Payment schemes for environmental services in watersheds

Payment schemes for environmental services (PES) are innovative instruments for natural resources management which are increasingly being applied in Latin America. In a watershed context, PES schemes generally involve the implementation of market mechanisms to compensate upstream landowners in order to maintain or modify a particular land use that is affecting the availability and/or quality of the water resources for downstream users. The Regional Forum on Payment Schemes for Environmental Services in Watersheds was held during the Third Latin American Congress on Watershed Management (Arequipa, Peru, 9-13 June 2003) to exchange experiences with these schemes in Latin America and to formulate recommendations for the economic valuation of water-related services, as well as the design and execution of PES schemes in watersheds. This report summarizes the lessons and recommendations of the forum. The complete documentation, including 19 papers, 22 presentations and case studies, is included on the CD-ROM that accompanies this publication.