Payment for Ecosystem Services in practice

An example of protecting forests and improving the lives of forest communities delivered through private sector investment.

This case study describes how projects supported by Partnerships for Forests (P4F) have improved forest community livelihoods, forest conservation, and restoration by establishing a new Payments for Ecosystem Services (PES) market in Indonesia. The projects addressed both demand- and supply side issues by creating an entire value chain of suppliers, interlocutors, and buyers.

On the demand side, global commodities companies previously lacked access to the sustainable forestry projects needed to improve their footprint and/or offset any liabilities they have as Roundtable on Sustainable Palm Oil (RSPO) members. P4F helped to address this by supporting market access player Lestari Capital to develop the Rimba Collective and the Sustainable Commodities Conservation Mechanism (SCCM) RSPO Solutions mechanisms, which allow the companies to buy certified conservation outcomes from village forests and ERCs.

On the supply side, many village communities lacked the capacity and access to finance needed to effectively manage their forests and provide ecosystem restoration concessions (ERCs). P4F supported eight forest communities to develop business plans for selling their conservation outcomes via Rimba Collective and SCCM RSPO Solutions.


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