Fair and green? (Nearly) 20 years of payments for ecosystem services (PES) in Costa Rica

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The presentation of Dr Ina Porras, a researcher with IIED's Sustainable Markets Group, to the IIED-hosted Innovations for equity in smallholder PES: bridging research and practice conference. The presentation, made within the first session on strategies to promote the inclusion of smallholders and communities in PES schemes, focused on the lessons and experienced from a national-level scheme in Costa Rica. More information on Porras' work: http://www.iied.org/payments-for-ecosystem-services-costa-rica-s-recipe. The conference took place at the Royal Botanic Gardens in Edinburgh on 21 March. Further details of the conference and IIED's work with PES are available via http://www.iied.org/conference-innovations-for-equity-smallholder-pes-highlights, and can be found via the Shaping Sustainable Markets website: http://shapingsustainablemarkets.iied.org/.

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Author nameDateIna Porras, SMG21/03/14

(Nearly) 20 years of PES in Costa RicaPresented by Ina Porras, IIED

Fair and green?

Innovations for equity in smallholder PES: bridging research and practice Conference. Edinburgh 21 March 2014

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Context and people have changed…

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PES not only about the environment…

• By Law;• For political buy• For reputation; • For mutual agreements;

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Group contracts

• Between 1997-2002• One contract for group of

landowners. Reduced transaction costs, easier to manage.

• Did not work - not enough capacity to self-enforce.

• Evolved into group contract for technical advice

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Indigenous groups

• Contracts only with legal association• No power on internal distribution of

funding;• Increasingly important in light of

REDD+ commitments• Some grumbles, but overall highly

effective when they work

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Priority to areas with low development (SDI)

• Relatively useful (easy, roughly correlated with opportunity cost)

• But it is not measured against land ownership

• Large landowners benefit the most: over 1/3 have more than 100 ha, with average value of nearly US$900k.

• Too rough – lets in many who don’t need priority

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Priority for small properties

• < 50 hectares• Good because high fixed entry costs;• Encourage small properties around

urban areas;• “Small” ≠ poor or vulnerable: land

prices widely vary: 50 ha @ $3.5 million in St Domingo and @$125k in Upala.

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Who is who?

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But over 50% of contracts are now with corporations…

Who is being left out?

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