Payment for Ecosystem Services

CLIENT:

United Nations Development Program and Conservation and Environmental Protection Authority, Papua New Guinea

The government of Papua New Guinea wanted to create economic incentives for rural landowners to preserve critical biodiversity and water resources. Crane Associates was hired to identify the feasibility of a wide range of options to implement a Payment for Ecosystem Services program.  The work involved: Accounting of natural capital on 550 miles of coastal/marine resources; investigation of valuable natural resources in 25 rural villages though site visits and interviews with 65 stakeholder groups and officials over a 9-month period; market feasibility analysis of economic activities that provide landowners of high valued rainforests with alternatives to selling their rights to extractive industries; Creating policies that reduce or prevent deforestation and degradation while increasing household incomes and quality of life; Analyzing the governance and institutional capacity to implement PES; Conducting an Environmental Benefit Cost Analysis to analyze the impacts of these options.   The work resulted in a 10-year strategic plan that includes 12 pilot projects; physical improvements; capacity building programs; and a financial plan.

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