This document summarizes a discussion on developing payments for ecosystem services (PES) in the UK. It outlines some examples of PES schemes including a reverse auction to reduce diffuse water pollution in a river in southwest England. It also describes several Defra-funded pilot projects testing PES approaches in different contexts like integrated constructed wetlands and opportunities around pesticide use, grasslands, and flood storage. Finally, it announces the development and launch of a pilot peatland code and provides links for further information.

1. True-cost accounting in food and farming
Policy mechanisms discussion –
developing the potential for Payments for
Ecosystem Services
Helen Dunn, Senior Economic Adviser, Defra
5th December 2013

2. What does PES look like?
“Green infra­structure as a substitute for or
complement to traditional engineered
approaches is gaining currency in the
developed world .”
State of watersheds payments,
Ecosystem marketplace report
Land or
resource
managers
Services
Payments
Service
beneficiaries
Graphic © Forest Trends

3. Developing the potential for PES...

4. Defra PES pilot fund projects
Aims of pilot
projects to develop
proof of concept,
help build capacity
& spread good
practice

5. Trialling different contexts
for applying PES to water
 South West Water pilot & implementation of a reverse auction
approach for diffuse pollution (Fowey river improvement
auction)
 Feasibility of a nitrogen PES scheme in the Poole Harbour
 Applying PES in context of sewage treatment works/integrated
constructed wetland
 Upper Thames Cotswold pilot – exploring PES opportunities
relating to pesticide use, grasslands & AD, flood storage

6. Development and launch of a
pilot peatland code

7. Thank you.
For further information:
PES action plan and best practice guide:
https://www.gov.uk/government/policies/protectin
g-biodiversity-and-ecosystems-at-home-andabroad/supporting-pages/valuing-the-benefits-weget-from-nature
PES pilot research projects:
https://www.gov.uk/ecosystems-services
http://ekn.defra.gov.uk/resources/programmes/pe
s-pilots/