Contribution 9 Institutional mechanism: matching demand and supply sides Jorge Gutiérrez

1. International Payments for Ecosystem Services A Publication Review Meeting Contribution 9 Institutional mechanism: matching demand and supply sides Jorge Gutiérrez University of Heidelberg, Germany January 1, 2020

2. Contents • Problems associated to supply and demand of ES • Institutions - Property rights and land tenure - Legal systems and implementing institutions - Monitoring and transaction costs • The roles of local, national & international institutions • Limits to measuring biodiversity Jorge Gutierrez, University of Heidelberg January 1, 2020

3. Problems associated to demand and supply of ES • 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. • Immediatebenefits from ecosystem conversion are higher than long-term benefits derived from biodiversity conversion. Jorge Gutierrez, University of Heidelberg January 1, 2020

4. Environmental services Supply Demand • Type of service • Scale • Opportunity cost of conserving • Transaction costs • Property rights • Land tenure arrangements • Institutions Demand and supply of environmental services Jorge Gutierrez, University of Heidelberg January 1, 2020

5. Financing mechanism • Institutions • Supervision Payment Mechanism ES users ES provider Demand and supply of environmental services Jorge Gutierrez, University of Heidelberg January 1, 2020

6. PES and Scale • Local - local communities, NGO’s - land tenure arrangements, property rights • National - governments, watersheds • Regional - multilateral cooperation, ecoregions • International - international organizations, financing mechanism … Jorge Gutierrez, University of Heidelberg January 1, 2020

7. Roles of national and international institutions • Multilateral Environmental Agreements (MEAs) - UNFCCC - IPCC • Cooperation - legal systems and implementing institutions - Monitoring and transaction costs • The roles of local, national & international institutions Jorge Gutierrez, University of Heidelberg January 1, 2020

8. Limits to measuring biodiversity • Complexity and uncertainty - Economical valuation - Local communities • Scale - Direct values: biological resources - Indirect values: resilience • The roles of international institutions - GEF • Incentives Jorge Gutierrez, University of Heidelberg January 1, 2020

9. Summary • Issues of legal frameworks and implementing institutions can be very country-specific and will need close attention when implementing projects at the international level • 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. • 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 Jorge Gutierrez, University of Heidelberg January 1, 2020