BharatNotes Payment for Ecosystem Services (PES)
A voluntary transaction in which defined ecosystem service providers (e.g., forest communities, farmers) are paid by ecosystem service beneficiaries (downstream water users, carbon credit buyers) to maintain or enhance a specified ecosystem service.
Context & Background
Global PES schemes include REDD+ (forests and carbon), watershed PES (Costa Rica's pioneering PSA programme); India's CAF (Compensatory Afforestation Fund) has PES elements.
UPSC Exam Relevance
REDD+ mechanism under UNFCCC; India's Green Credit Programme (GCP, 2023) under the Environment Protection Act; CAF Act 2016; carbon credits and voluntary carbon markets.
