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Payments for Ecosystem Services: Getting Started. A Primer - UNEP

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<strong>Payments</strong> <strong>for</strong> <strong>Ecosystem</strong> <strong>Services</strong>: <strong>Getting</strong> <strong>Started</strong><br />

A <strong>Primer</strong><br />

<strong>Ecosystem</strong>s provide society with a wide range of services<br />

— from reliable flows of clean water to productive soil and<br />

carbon sequestration. People, companies, and societies<br />

rely on these services — <strong>for</strong> raw material inputs, production<br />

processes, and climate stability. (See Table 1 and Box 1 <strong>for</strong><br />

illustrative ecosystem services as well as a full breakdown of<br />

ecosystem service types.)<br />

TABLE 1<br />

Types of <strong>Ecosystem</strong> <strong>Services</strong><br />

Forests<br />

Oceans<br />

Cultivated /<br />

Agricultural Lands<br />

Environmental Goods<br />

• Food<br />

• Fresh water<br />

• Fuel<br />

• Fiber<br />

• Food<br />

• Food<br />

• Fuel<br />

• Fiber<br />

Regulating <strong>Services</strong><br />

• Climate regulation<br />

• Flood regulation<br />

• Disease regulation<br />

• Water purifi cation<br />

• Climate regulation<br />

• Disease regulation<br />

• Climate regulation<br />

• Water purifi cation<br />

Supporting <strong>Services</strong><br />

• Nutrient cycling<br />

• Soil <strong>for</strong>mation<br />

• Nutrient cycling<br />

• Primary production<br />

• Nutrient cycling<br />

• Soil <strong>for</strong>mation<br />

Cultural <strong>Services</strong><br />

• Aesthetic<br />

• Spiritual<br />

• Educational<br />

• Recreational<br />

• Aesthetic<br />

• Spiritual<br />

• Educational<br />

• Recreational<br />

• Aesthetic<br />

• Educational<br />

Source: Millennium <strong>Ecosystem</strong> Assessment 2005 (http://www.millenniumassessment.org)<br />

At present, however, many of these ecosystem services are either undervalued or have<br />

no fi nancial value at all. As day-to-day decisions often focus on immediate fi nancial<br />

returns, many ecosystem structures and functions are being fundamentally undercut. 1<br />

The most comprehensive assessment of ecosystem services to date — the Millennium<br />

<strong>Ecosystem</strong> Assessment, which included over 1,300 scientists from 95 countries —<br />

found that over 60% of the environmental services studied are being degraded faster<br />

than they can recover. 2<br />

In response to growing concerns, markets are emerging <strong>for</strong> ecosystem services in<br />

countries around the world. Formal markets — some voluntary and others mandated by<br />

law — now exist related to greenhouse gases (carbon), water, and even biodiversity. 3 In<br />

addition, focused business deals and PES are also being <strong>for</strong>ged to invest in restoration<br />

and maintenance of particular ecological systems and the services that they provide.<br />

1<br />

For more in<strong>for</strong>mation, please see: Daily, Gretchen C. 1997. Nature’s <strong>Services</strong>: Societal Dependence on<br />

Natural <strong>Ecosystem</strong>s. Washington, DC: Island Press; Millennium <strong>Ecosystem</strong> Assessment. 2005. “<strong>Ecosystem</strong>s<br />

and Human Well-Being: Synthesis” Washington, D.C.: World Resources Institute (http://www.maweb.org/<br />

documents/document.356.aspx.pdf)<br />

2<br />

Millennium <strong>Ecosystem</strong> Assessment. 2005. “<strong>Ecosystem</strong>s and Human Well-Being: Synthesis” Washington,<br />

D.C.: World Resources Institute (http://www.maweb.org/documents/document.356.aspx.pdf)<br />

3<br />

For more in<strong>for</strong>mation, please see: http://www.ecosystemmarketplace.com/<br />

2

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