Incentives for Ecosystem Services

Policy

IES includes public, private and civil society financing institutions. Investment and coordination between public and private stakeholders is difficult but very beneficial. It can reduce costs, focus efforts in mutually reinforcing measures and avoid undermining investments. Directly connecting with the private sector to finance IES presents a new opportunity for funding and the creation of a market for environmental goods.

A coordinated approach to planning and investment in agriculture and environmental measures can deliver mutually enforced benefits to farmers, and to other sectors of society. Public programmes to improve agricultural productivity can act as incentives for conservation and sustainable management of resources. Private actors may have specific interests in securing sustainable supply of agro-ecosystem products and services. Civil society initiatives may have specific programmes to support rural development. Incentives for ecosystem services can enable the private public sector to reach common environmental and agricultural goals. Together, they can finance and provide an integrated package of incentives that effectively assists their country in the long-term transition to sustainable agriculture.

A better combination of policy instruments can integrate different short- and long-term incentive mechanisms at different stages of implementation. It also enables co-financing from both private and public users of the ecosystem services provided by agriculture, at lower social cost. This can help overcome both short- and long-term adoption barriers. These packages include incentives that help to overcome short-term needs, such as training, rural credit, assistance in the clarification of use rights, to those that can in-build the conditions for long-term change, such as value-added markets and investment in alternative income-generating activities.