Laying the Foundation: An Analytical Tool for Assessing Legal and Institutional Readiness for PES

by Slayde Hawkins

Jan 1, 2011
This booklet has been created as an initial resource for public sector officials interested in fostering an environment in which PES transactions can occur. While PES legal and policy readiness is likely to look very different from one country to another -- depending on legal frameworks, as well as historical and current circumstances and pressures -- understanding policy options for getting ready for PES transactions is an important first step towards assessing readiness within a specific national and subnational context.

This booklet offers an analytical framework for assessing legal and institutional readiness for PES transactions. It is divided into three sections based on timing and the order of addressing issues, with an eye to what will be most important to investors and buyers in payment for ecosystem services agreements. Specifically, the first level of preparing for PES agreements should be ensuring that fundamental or threshold conditions are in place for buyers to feel that there is sufficient stability in place to consider entering in these business arrangements. The second level of preparedness, while important for well-functioning PES, may be developed adaptively as needs and options become clearer via PES experience on the ground. Finally, level three includes non-urgent aspects that may be important to streamline or scale up PES, depending on the particular circumstances.

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