Scope of Payment for Ecosystem Services Mechanism for ... - icimod

communities and the preference for KUKL playing an intermediary role indicates a clearpossibility of developing a PES scheme.Effective, efficient, sustainable as well as equitable compensation and reward mechanismfor environmental services could be a possible solution for water scarcity.Table 5.6: Meeting the 4 criteria of PES in Bhaktapur water supply systemPrinciple of PES Notes on how the criteria can be fulfilledRealistic Continuing conservation activities. Ecosystem hydrological services water quality. Replacement of Pine trees into water storing trees.Conditional Payment for forest enhancing activities. Payment for increased of water supply. Payment for replacement of Pine trees into waterstoring trees. Payment planting trees on open land. Payment for reduced water use in the upstreamarea. Payment for reducing pollution.Voluntary Upstream and downstream have the freedom toengage in payment scheme KUKL is also a likely beneficiary of the schemeand could actively pursue diverse interests,including those of downstream beneficiaries.Pro-poor Upstream are generally poorer than municipalitypeople. PES scheme will ensure incentives andrewards to upstream people provided bydownstream water consumers.It is clear from the various discussions that both upstream and downstream communitiesare aware of the existing links between watershed conservation and hydrological benefits.Activities such as replacing pine trees with local broad-leaf species, improving forestcover are understood to be good for hydrological services of the catchment. The results ofthese activities are seen by both upstream and downstream communities to be “realistic”.Additionally, efficient use of water by upstream people can reduce water wastage inupstream, thus making this available for downstream users. There is clear willingness ofthe downstream water consumers to invest in conservation activities to ensure betterwatershed ecosystem, services.Development of sustainable and equitable payment mechanism seems very possible.Payments to upstream communities can be made if forest enhancing and water37