Contribution 9 Institutional mechanism: matching demand and supply sides Jorge Gutiérrez University of Heidelberg, Germany January 3, 2016 International Payments for Ecosystem Services A Publication Review Meeting International Payments for Ecosystem Services A Publication Review Meeting

1. Problems associated to supply and demand of ES 2. Institutions - Property rights and land tenure - Legal systems and implementing institutions - Monitoring and transaction costs 3. The roles of local, national & international institutions 4. Limits to measuring biodiversity Contents Jorge Gutierrez, University of Heidelberg January 3, 2016

Failures in international (institutions, law & market). Not all global benefits that biodiversity provides are while making decisions on natural resources use. Biodiversity loss is linked to land uses change at local level. Immediate benefits from ecosystem conversion are higher than long-term benefits derived from biodiversity conversion. Problems associated to demand and supply of ES Jorge Gutierrez, University of Heidelberg January 3, 2016

Environmental services  Type of service  Scale  Opportunity cost of conserving  Transaction costs  Property rights  Land tenure arrangements Institutions Demand Supply Jorge Gutierrez, University of Heidelberg January 3, 2016 Demand and supply of environmental services

ES users Financing mechanism Payment Mechanism Institutions -Supervision ES provider Jorge Gutierrez, University of Heidelberg January 3, 2016 Demand and supply of environmental services

Local - local communities, NGO’s - land tenure arrangements, property rights National - governments, watersheds Regional - multilateral cooperation, ecoregions International - international organizations, financing mechanism … PES and Scale Jorge Gutierrez, University of Heidelberg January 3, 2016

1. Multilateral Environmental Agreements (MEAs) - UNFCCC - IPCC 2. Cooperation - legal systems and implementing institutions - Monitoring and transaction costs 3. The roles of local, national & international institutions Roles of national and international institutions Jorge Gutierrez, University of Heidelberg January 3, 2016

1. Complexity and uncertainty - Economical valuation - Local communities 2. Scale - Direct values: biological resources - Indirect values: resilience 3. The roles of international institutions - GEF 4. Incentives Limits to measuring biodiversity Jorge Gutierrez, University of Heidelberg January 3, 2016

1. Issues of legal frameworks and implementing institutions can be very country- specific and will need close attention when implementing projects at the international level 2. For future efforts to be successful, it is important to explore in what way and to what extent international systems of payments for and trading of ecosystem services (as exists for carbon under the Kyoto Protocol) are a sensible approach. 3. For biodiversity services especially, local adaptation within any international framework of coordination may be very important. In general, international efforts should aim at creating synergies and increasing impact while taking local needs into account Summary Jorge Gutierrez, University of Heidelberg January 3, 2016

End of slide show Thank you! Jorge Gutierrez, University of Heidelberg January 3, 2016