Payments for Ecosystem Services

Payments for Ecosystem Services (PES) are financial arrangements where individuals or communities receive compensation in exchange for managing land or resources in ways that benefit the environment. For example, farmers might be paid to keep their forests intact to protect water quality, preserve habitat, or sequester carbon. These payments incentivize sustainable practices that provide benefits like clean air, water, and biodiversity. Essentially, PES recognizes the value of ecosystems' services and encourages their preservation by rewarding those who maintain them, aligning economic incentives with environmental conservation.