1.
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Public-private partnerships for
resilient agro-ecosystems
Prof Mark Reed

2.
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Context

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Emissions from land use

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Emissions from…
Source: Herrero et al 2016 Nature Climate
Peatland
Livestock
Source: Wetlands International

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Poorly managed systems
Environmental
degradation
Insecure
livelihoods
Knock-on
effects for
society and
business

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www.resilientdairylandscapes.com

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Blended finance

8.
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Payments for ecosystem services
• A voluntary transaction where
• A well-defined ecosystem service (or land
use likely to secure that service)
• Is being “bought” by a (minimum one)
ecosystem service buyer
• From a (minimum one) ecosystem service
provider
• If and only if the ecosystem service provider
secures provision (conditionality)

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Public, private or blended
Public PES-like schemes e.g. agri-environment
Private PES schemes e.g. compliance, voluntary and
regional carbon markets
Blended e.g. private finance tops up public funding to get
additional scheme entrants

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UK Peatland Code

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Landscape Enterprise Networks

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STEP1:LENsNetworkAnalysis
1

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£
B1
B2
B3
1. Understand Business needs
3. Build a technical
understanding of
businesses’ common
requirements from
the landscape
‘Supply
aggregator’
4. Engage service provider (operating on behalf of
farmers) to design and cost interventions / service
offerings that meets the needs of businesses
5. Cut a deal
‘Demand
aggregator’
2. Convene businesses around
their common interests
STEP2:Thebasicoperatingunit
2

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3
SUPPLY
DEMAND
Supply
aggregator
STEP3:Developinganetwork
Shared
interest
Supply
Aggregator
Supply
aggregator
Shared
interest
Shared
interest
Supply
aggregator

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10 key lessons

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1. Trade-off between farmer uptake and quantification
of benefits to investors
2. While complexity reduces land supply, limited
quantification of benefits does not appear to
significantly constrain demand if buyers have clear
dependencies on natural capital
3. Brokers can reduce complexity and increase land
supply if payment rates are high enough to pay for
their services
4. Business to business trusted brokers speak the
language of business

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5. Aggregating demand for ecosystem services
increases:
• Amount of funding (by stacking payments for multiple
benefits, bringing in non-regional buyers for carbon
and reducing perceptions of free-riding); and
• Resilience of funding (by spreading risks of non-
delivery of benefits/payments to buyers and sellers)
6. Aggregating supply of services:
• Increases market potential (availability of saleable
benefits) and density (connected landscape scale
opportunities rather than farms scattered across a
region)
• Reduces transaction costs (of contracting with
multiple landowners)

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7. Prices don’t have to reflect carbon markets
8. Public and private payments can be stacked to
increase uptake of agri-environment schemes, but
high public payment rates will crowd out all but the
most simple and attractive private schemes
9. Public schemes could be designed to leverage
private investment, with public funding prioritised to
unattractive or costly locations that the market won’t
pay for
10. Blending public and private finance is likely to
significantly alter cost-benefit ratios for land use
GHG mitigation options, making them a more
attractive proposition for reaching net zero
emissions

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www.resilientdairylandscapes.com
mark.reed@newcastle.ac.uk
@profmarkreed @ResilientDairy @fasttrackimpact