Making payments for ecosystem services (PES) schemes fairer and more inclusive for small scale farmers and local communities relies on practical solutions that benefit ecosystems and the local people who rely on them.

This was the common view of participants at a recent conference on PES, coordinated by the International Insitute for Environment and Development (IIED).

Researchers and practicioners highlighted how PES schemes are extremely diverse in the extent to which local people are involved in their design, payment preferences (i.e. cash or in-kind), funding models and how private sector involvement is promoted.

These schemes can alleviate poverty and conserve natural resources but only if designed properly and with the needs and preferences of local people at their core,” says the article.

Beira Leimona, from the World Agroforestry, outlined how in the Cidanau watershed of Indonesia, auctions have been held for watershed services.

Delegates spoke about how to assess if schemes really work and how they can be scaled-up. There was agreement that PES schemes still only operate on the margins and more national PES systems and international markets for ecosystem services are needed. Examples of successful pro-poor schemes are also required and finance is an ongoing issue.

Read the full story on IIED’s website:  Payments for ecosystem services: We can't leave people out of the equation

Presentations from the conference are available on IIED's SlideShare site