This document summarizes a research poster presentation on payments for environmental services (PES) schemes. It discusses key parties involved in a PES project in Argentina called PSA, including project promoters, landowners, water users, and others. It then provides an introduction to the research methodology, which analyzed PES programs in Latin America and a case study of Fundacion Vida Silvestre in Argentina. Finally, it outlines considerations for PES program design, best practices identified, and a strengths, weaknesses, opportunities, and threats analysis of applying lessons to the PSA project.

1. RESEARCH POSTER PRESENTATION DESIGN © 2015
www.PosterPresentations.com
Parties involved in the
PSA scheme
Project Promoter
Partners that support
the implementation of
the project
Municipality of
Andresito
Entities that support
the PSA mission
Suppliers of the
environmental
services
Land owners with
forests capable of
reforestation or
preservation
Buyers or
beneficiaries of the
environmental
services
Water users in
Andresito
Companies that
financially benefit
from water use or
existence of the forest
Institutions interested
in offsetting their
water or carbon
footprint
Tourists who want to
offsett the ecological
footprint of their
vacations
Payments for Environmental Services (PES) are schemes that stimulate
conservation and restoration efforts by placing environmental services
within a market model. While a relatively new method, PES programs are
becoming more utilized, especially in rural regions, as a way to improve
sustainable development and agriculture. This research looks at active PES
schemes in Latin America to find trends that can be used as best practice
guidelines. The research was originally completed in collaboration with
Fundacion Vida Silvestre in Argentina as a way to improve their Pago Por
Servicios Ambientales (PSA) project, which was being undertaken in a
portion of the highly biodiverse and resource-rich Atlantic Forest of the
Upper Parana. However, it can be used as a planning tool by any
organization looking to implement PES schemes. Key findings and
recommendations for the pilot project include increasing transparency and
public participation, improving environmental education within the
community and designing ES measurement and monitoring procedures.
INTRODUCTION
METHODOLOGY
PES PROGRAM DESIGN
FVSA is a non-profit, non-governmental daughter entity of the World Wildlife Fund. Their mission is to propose and implement solutions to conserve nature,
promote sustainable use of resources, and encourage responsible conduct with regards to climate change. In 2008, FVSA undertook a project to reforest riparian
margins of streams in an effort to help landholders and producers recuperate these areas and comply with their legal obligation to maintain the forests that protect
the watersheds. FVSA launched the project, Pago Por Servicios Ambientales (PSA), which aimed to establish a system of PES schemes at the local level linked to
the Arroyo San Francisco in the Misiones Province. The PSA is focused on the water basins as an innovative mechanism to generate financial incentives for the
owners of the province to sustainable manage the forest.
CASE STUDY: FUNDACIÓN VIDA SILVESTRE, ARGENTINA
ACKNOWLEDGEMENTS & CONTACT
The research consisted of an analysis of journal articles and other available
information on PES programs in Latin America. Primary research was also
conducted over 8 weeks in the FVSA office in Buenos Aires, Argentina.
Research specific to the PSA project was taken from the review of internal
documents, personal interviews with FVSA researchers, and from FVSA
project meetings.
By Trista Brophy, M.A.
University of South Florida, Patel College of Global Sustainability
Payments for Ecosystem Services: A Conservation Tool
Figure 1: Elements in PES program design (FAO, 2007)
For PES programs to be environmentally beneficial and economically viable,
they must be carefully constructed within the frame of the social,
economic, and biophysical circumstances. The four stages that should be
followed during the design process are: 1) Determine the Environmental
Service and its benefits; 2) Identify the beneficiaries, users, and providers;
3) Calculate a price; 4) Choose terms of payment
Global Status of Ecosystem Services Evaluated
in the Millennium Assessment, 2005
Service Status Notes
Provisioning Services
Crops  Substantial production increase
Livestock  Substantial production increase
Capture Fisheries  Declining production due to overharvest
Aquaculture  Substantial production increase
Wild Foods  Declining production
Timber ± Forest loss in some regions, growth in
others
Cotton, Hemp, Silk ± Declining production of some fibers, growth
in others
Wood Fuel  Declining production
Genetic Resources  Lost through extinction and crop genetic
resource loss
Biochemicals,
Natural Medicines,
Pharmaceuticals
 Lost through extinction, overharvest
Fresh Water  Unsustainable use for drinking, industry,
and irrigation; Amount of hydro energy
unchanged, but dams increase ability to use
that energy
Regulating Services
Air Quality
Regulation
 Decline in availability of atmosphere to
cleanse itself
Climate Regulation
(global)
 Net source of carbon sequestration since
midcentury
Climate Regulation
(Regional and
Local)
 Preponderance of negative impacts
Water Regulation ± Varies depending on ecosystem change and
location
Erosion Regulation  Increased soil degradation
Water Purification
and Waste
Treatment
 Declining water quality
Disease Regulation ± Varies depending on ecosystem change
Pest Regulation  Natural control degraded through pesticide
use
Pollination  Apparent global decline in abundance of
pollinators
Natural Hazard
Regulation
 Loss of natural buffers (wetlands,
mangroves)
Cultural Services
Spiritual and
Religious Values
 Rapid decline in sacred groves and species
Aesthetic Values  Decline in quality of natural lands
Recreation and
Ecotourism
± More areas accessible but many degraded
Status indicates whether the productive capacity of the service globally has
increased () or degraded () in the recent past.
Figure 2: PSA Model as it relates to Water Quality (adapted from FVSA documents)
Figure 3: Relationship of Potential Parties
Involved in the PSA Project
BEST PRACTICES FOR PES PROGRAMS
• Payments for specific land use can increase efficacy by targeting highest
value lands and land uses in relation to the ES they provide
• Silvopastoral systems can help expand income opportunities and be
instrumental in the ecological and economic sustainability of cattle
production because they allow for enhanced nutrient cycling and fodder
production
• Transparency is central to gaining trust among stakeholders and other
actors and a publicly accessible project database could foster this
• Benchmarks to measure improvements, or lack thereof, will help projects
realize their targets
• Community committees can speak to realized benefits and are a good way
to keep beneficiaries involved as active participants
IDENTIFIED ENVIRONMENTAL SERVICES IN THE
ARROYO SAN FRANCISCO AREA
• Biodiversity
• Carbon Sequestration
• Cultural Services
• Water Provision, Purification, &
Conservation
• Tourism & Recreation
FINANCING OF THE PSA
1. IMPLEMENTATION & MANAGEMENT:
For initial management, design, and implementation, financing came
from FVSA, the DOEN Foundation, Ecosystem Alliance, International
Union for Conservation of Nature, and Wetlands International. This
funding did not include a seed fund for the payment of compensation
but was planned to allocate budget funds for the promotion and sale of
environmental services. Compensation in-kind will be obtained through
agreements with partners and buyers or beneficiaries. In-kind
compensation will include:
2. CONTINUITY OF PROJECT BY LOCAL ACTORS
Funds available from the sale of environmental services will constitute
the economic base to pay compensation to ES providers. A certification
program that establishes a methodology for recognition of the
conservation of environmental services, set up by FVSA, will help drive
ES sales.
• Training in sustainable
agriculture methods
• Advice & training for the
development of sustainable
business models
• Materials for plots
• Seedlings for reforestation
• Tax exemptions
• Creation & enforcement of
environmental laws
APPLICATION OF KEYS FINDINGS TO PSA PROJECT: SWOT
STRENGTHS
• A lot of natural forest coverage and
important areas are still preserved
• Retaining existing land uses is less
expensive than changing land uses
• Microclimate favors production of
tropical fruits, making area more
valuable on a local scale
• Legal framework already in place to
support PSA project
• Existence of abundant and diverse ES in
the region
• Significant human capital
OPPORTUNITIES
• Proximity to Iguazu Falls and large
tourist market provides incentive
for preservation
• Presence of indigenous peoples
drive dependence on the forests
• Existing presence of interested
NGOs in support of PSA project
• Availability of a seed fund can
facilitate motivation for other
payers to enter the PSA system
• Existence of smallholdings can
boost cooperation with neighbors
WEAKNESSES
• No uniform criteria to determine sale
price of environmental services
• Irregularity in tenure of researchers and
organizers within FVSA
• Difficulty incorporating indigenous
communities into decision-making
• Landholders must be able to adopt land
use changes and management practices
after subsidies end
THREATS
• Government restrictions and lack
of political will
• Laws not effectively enforced
• Lack of coordination between
public policies related to
conservation
• Townspeople not environmentally
conscientious due to an absence of
environmental education programs
THE COSTA RICAN ROLE MODEL
Costa Rica is the original pioneer of the PES in Latin America, it’s first
program established in 1996 due to Forest Law #7575. It helped stop
deforestation of the rain forest, is credited with recapturing 26% of the
land-mass-to-forest cover, and has benefited over 7000 small to medium
scale private landholders (Fundecor, 2009). Funding comes from multiple
sources including a fuel sale tax, private sector firms contributing to
watershed conservation, and profits from the sale of certified tradable
offsets, which are all used to pay for sustainable forest management
contracts (Rodricks, 2010).
Farming System or
Land-Use Change
•Conservation agriculture
•Reforestation
Environmental
Service Produced
•Soil and above ground
carbon sequestration
•Watershed protection
•Biodiversity
conservation
Benefits Realized
•Climate change
mitigation
•Clean water
•Increased resilience
Payment
Mechanism
•Carbon emission offset
sales
•Water-use fees
•Price premiums on
agricultural products
Recognition
for the
value of the
service
from
lenders.
Activities
for the
recovery of
the native
forests.
Native
forests
produce ES
Users
receive
good
quality
water.
PSA Model