BIO-CULTURAL COMMUNITY PROTOCOLS IN THE CONTEXT OF PAYMENT FOR ECOSYSTEM SERVICES PART II / CHAPTER 6 5. The Options Provided by BCPs to Address these Challenges While integrating communities into PES schemes will remain the selection of a representative to negotiate on behalf of complex, the use of BCPs, as described in the context of ABS, the community will be more challenging. Either way, the could offer clear support in facilitating the process and process of developing a BCP will be beneficial as it will enabling sustainable schemes that positively contribute to confirm existing representatives and give them the authority local livelihoods and strengthen their bio-cultural ways of life. to negotiate a PES scheme on behalf of the community, The following section outlines some of the possible benefits or it will lead to the selection of a new group of that BCPs offer in the context of PES schemes. representatives or committee. Through the BCP process, the representatives will be given a clear mandate about 5.1 The BCP Process as a Tool for Capacity Development how to engage in the negotiations. The protocol itself will also help outsiders who would like to enter into negotiations with the community to identify a point of Similar to the ABS context, a BCP in a PES scheme would contact to approach. serve both as process and outcome. The process would help with the identification of the community and its different stakeholders. The development of the BCPs would set out 5.3 Reducing Transaction Costs through Prepared Communities who is included in the community, which resources and practices they rely on and other characteristics relevant to One of the biggest challenges to making PES work is the a PES scheme such as the community’s bio-cultural values high transaction costs associated with setting up and concerning land use. The process of engaging community maintaining a PES scheme. If transaction costs outweigh the members in the design of a BCP would also facilitate the possible gains made by an ESS user for paying an ESS provider sharing of information about the concepts of PES schemes to maintain or improve land use practices, then the whole and how they could be integrated into endogenous PES scheme is redundant. Thus, reducing transaction costs development planning. It would also allow community of setting up and maintaining a scheme is essential. members to discuss the nature of individual PES schemes, their local adaptability and relevance and their accompanying While BCPs will not be able to prevent all transaction costs, opportunities and challenges, including how they may they have the potential to reduce some of the costs associated support their bio-cultural ways of life. with negotiating with ILCs. First, communities that have developed BCPs are better prepared for entering into 5.2 Affirmation of Local Decision-making Processes negotiations with visions of what they want to achieve from such a scheme. They will have also decided who will represent them in negotiations and will have given that representative In order to set up a PES scheme, a community has to enter a clear mandate. Furthermore, building local capacity and into a negotiation process with one or more actors, such understanding the concept of PES through the BCP process as other communities serving as ESS providers, possible will further facilitate the efficacy of negotiations. Finally, when users of ESS or intermediaries. To do so, the community several neighboring communities are integrated into one has to decide on who should represent them in such PES scheme, the joint formulation of a BCP can help negotiations, which could be existing representatives, participating communities collectively align their visions local leaders who represent the community in other with respect to the scheme, thus reducing some of the matters or new representatives. In communities that are transaction costs of working with different groups at well-organized and already have a history of negotiating the same time. the use of natural resources at the local level, the selection of such representatives is likely to be fairly easy. In other Other factors associated with the BCP process are likely to cases in which no such process has taken place before, lower transaction costs directly or indirectly. 64

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