From Principles to Numbers: Approaches in Implementing Payments for Environmental Services (PES) in the Philippines - Smallholder Tree Growing for Rural Development and Environmental Services - page 363

Chapter 17
From Principles to Numbers: Approaches
in Implementing Payments for Environmental
Services (PES) in the Philippines
R. Lasco 1 *, G. Villamor 1 , F. Pulhin 2 , D. Catacutan 1 , and M. Bertomeu 1
Abstract This paper proposes a way to classify PES projects based on how
environmental service payments are justified and determined. Using the IPCC 1
approach as a model, we recommend the use of the tier system to classify PES
projects. The three tiers are summarized below:
● Tier 1: Payments based on established ecological principles and local
knowledge
● Tier 2: In addition to the above, payments based on simulation modeling and
limited site information
● Tier 3: In addition to above, payments based on site-specific quantitative meas-
urements of environmental services
We illustrate this with case studies from existing PES projects in the Philippines.
We then presented a decision tree to determine how the tier system can be used.
Keywords Payments for environmental services (PES), tier approach
17.1 Introduction
There is a lot of interest in PES schemes around the world (Landell-Mills and
Porras 2002). An environmental service payment or reward refers to compensa-
tion for service, merit or effort, and/or incentive for maintaining or enhancing