1. Markets for forest environmental services and the poor Natasha Landell-Mills, IIED Conservation Finance Retreat Maryland, Feb. 12-13 2002

2. Scope of IIED’s work Themes:  market compatibility with SD, especially poverty reduction  developing evaluation methods and lessons for market design  Approach:  case study research of emerging markets  action-learning / learning by doing  capacity-building  networking and dissemination

3. Projects A global review of markets - impact on the poor – markets for BD conservation, carbon sequestration, watershed protection and landscape beauty –>280 cases from around the world –Aim to draw out preliminary findings on:  key features of emerging markets  the mechanics of market development; and  impacts: economic, social and environmental with emphasis on the poor –forthcoming March ‘02, range of outputs

4. Detailed case study research –Aim: primary data collection for evaluation of impact on the poor and implications for market design –Range of services, with particular emphasis on watershed protection –Countries: Costa Rica, Ecuador, Brazil and the Philippines

5. Action-research on markets for watershed protection services and improved livelihoods –Aim: to explore how markets can complement regulation in promoting improved watershed management that benefits the poor –Action-learning in South Africa, India, Indonesia, the Caribbean –Inception year to October 2002 & implementation (hopefully) over 3 years

6. Delivery system Collaborative research with in-country partners IIED: –Staff: Environmental Economics Programme (3) & Forestry and Land Use Programme (part- time 4) –Expertise: policy analysis, economics, forestry, watershed mgmt, poverty/SL analysis, information & communication –Tools: collaborative research, reports, internet, meetings

7. Gaps & Needs Closer links with practitioners - access to information on experiences and cooperation in evaluation Research on biophysical linkages, e.g. land- use – water; carbon - biodiversity Outlets for disseminating findings & piloting recommendations Long-term funding….

8. Markets database - Reference Manager M&E systems - focusing on measuring impacts for the poor Guidelines for setting up MES in developing country-contexts - especially for watershed services Potential contributions