Contribution 9

Institutional mechanism: matching demand and supply sides

Jorge GutiérrezUniversity of Heidelberg, Germany

April 21, 2023

International Payments for Ecosystem ServicesA Publication Review Meeting

International Payments for Ecosystem ServicesA Publication Review Meeting

1. Problems associated to supply and demand of ES

2. Institutions- Property rights and land tenure- Legal systems and implementing institutions- Monitoring and transaction costs

3. The roles of local, national & international institutions

4. Limits to measuring biodiversity

Contents

Jorge Gutierrez, University of Heidelberg April 21, 2023

• Failures in international (institutions, law & market) . Not all global benefits that biodiversity provides are while making decisions on natural resources use.

• Biodiversity loss is linked to land uses change at local level.

• Immediate benefits from ecosystem conversion are higher than long-term benefits derived from biodiversity conversion.

Problems associated to demand and supply of ESProblems associated to demand and supply of ES

Jorge Gutierrez, University of Heidelberg April 21, 2023

Environmental services

Type of service

Scale

Opportunity cost of conserving Transaction costs Property rights Land tenure arrangements

Institutions

Demand Supply

Jorge Gutierrez, University of Heidelberg April 21, 2023

Demand and supply of environmental services

ES users

Financing mechanism

Payment MechanismInstitutions-Supervision

ES provider

Jorge Gutierrez, University of Heidelberg April 21, 2023

Demand and supply of environmental services

• Local- local communities, NGO’s- land tenure arrangements, property rights

• National- governments, watersheds

• Regional- multilateral cooperation, ecoregions

• International

- international organizations, financing mechanism

…

PES and ScalePES and Scale

Jorge Gutierrez, University of Heidelberg April 21, 2023

1. Multilateral Environmental Agreements (MEAs)- UNFCCC- IPCC

2. Cooperation- legal systems and implementing institutions- Monitoring and transaction costs

3. The roles of local, national & international institutions

Roles of national and international institutionsRoles of national and international institutions

Jorge Gutierrez, University of Heidelberg April 21, 2023

1. Complexity and uncertainty- Economical valuation- Local communities

2. Scale- Direct values: biological resources- Indirect values: resilience

3. The roles of international institutions- GEF

4. Incentives

Limits to measuring biodiversityLimits to measuring biodiversity

Jorge Gutierrez, University of Heidelberg April 21, 2023

1. Issues of legal frameworks and implementing institutions can be very country-specific and will need close attention when implementing projects at the international level

2. For future efforts to be successful, it is important to explore in what way and to what extent international systems of payments for and trading of ecosystem services (as exists for carbon under the Kyoto Protocol) are a sensible approach.

3. For biodiversity services especially, local adaptation within any international framework of coordination may be very important. In general, international efforts should aim at creating synergies and increasing impact while taking local needs into account

SummarySummary

Jorge Gutierrez, University of Heidelberg April 21, 2023