PART II / CHAPTER 6
BIO-CULTURAL COMMUNITY PROTOCOLS IN THE
CONTEXT OF PAYMENT FOR ECOSYSTEM SERVICES
4. Challenges Faced by ILCs Regarding PES Schemes
As mentioned above, designing and implementing PES
of value to potential users. Only with this awareness will
schemes is riddled with diverse challenges, including how
communities be able to negotiate PES schemes with
to face transaction costs, the need for scientific and
potential users that will have long-term benefits to and
economic data, the real contribution and value of ESS,
the support of the greater community.
and the need for institutions that can manage and monitor
the scheme. Furthermore, experts highlight a range of
4.2 Representation and Governance
challenges that are particularly relevant when PES
schemes include one or more ILCs as providers of ESS.
In the ABS framework, communities have to negotiate with
This section provides an overview of these challenges and
potential users about the conditions under which they would
draws parallels to the ABS scenario where relevant.
be willing to share their TK. Similarly, communities in a PES
Finally, it will identify how PES schemes, similar to ABS
context have to engage with potential users about the
agreements, can offer opportunities to the strengthening
conditions under which they would be willing to maintain
of conditions that allow ILCs to bring their bio-cultural
or change certain land use practices for the generation of
values to the fore.
certain ESS. Negotiations in both cases require an individual
or committee to represent the rest of the community,
4.1 Participation and Capacity-building
which in turn requires the existence of a certain governance
structure. Such a committee needs to have been given
Similar to the ABS context, in order to set up an effective
the authority to engage in negotiations on behalf of the
PES scheme with an ILC, the community must be involved in
entire community. Without local representation, the PES
its design and agree to the changes that it may bring to certain
scheme may not only lead to negative consequences for a
land use activities that the community is engaged in or
range of members of the community, particularly the most
depends upon. A precondition to entering into negotiations
vulnerable, but is also likely to be unsustainable. In cases in
of a PES scheme is that community members understand the
which PES schemes have certain requirements of local land
legal ramifications of such a scheme as well as the technical
use practices, the community must collectively agree on the
importance of the services they are going to provide. According
terms and conditions, otherwise it may be difficult to enforce
to UNEP, the following criteria should be considered:
and is likely to lead to internal community conflict.
• The need for participatory processes as a basis of decision-
4.3 Distribution of Benefits
making, ensuring adequate ‘buy-in’ from the community;
• The need for members of the community or community-
Debates over how communities can benefit from PES
based organizations to be experienced with project
schemes mirror similar debates within the ABS framework.
management and technical support;
Notably, PES schemes can take place in a range of forms,
• The need for analysis of whether the investments meet the
goals of the larger community, including women and lower-
not just monetary payments, including the following
identified by UNEP:
income members; and
• The need for integrating members of the community into
• Direct financial payments, including compensation for
every level of the project, from design through
opportunity costs or loss of livelihoods incurred from
implementation and monitoring.
changes in land use practices for ESS protection, such as
the conversion of managed farmland to natural forest;
Thus, in order to prepare for PES schemes that integrate the
• Financial support for specific community needs, such as
participation of local communities, a certain amount of
building of infrastructure like schools, boreholes or
capacity-building is needed. Communities first require
clinics to remunerate for ecosystem ser vices;
information about the nature of the scheme, why it is
important and how their land use generates ESS that are
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