Thursday, February 02, 2012
ONLINE RESOURCE: Payments for Ecosystem Services (PES) Contract Clauses Library
A new resource likely to be useful to individuals and organizations involved in the drafting of PES contracts.
As private and public payments for ecosystem services (PES) transactions gain wider acceptance as a tool for addressing ecosystem degradation and loss, guidance around negotiating and drafting PES agreements becomes increasingly important. In general, drafting a contract consists of adapting and modifying an existing contract, rather than beginning from scratch. Few examples exist, however, of payments for ecosystem services (PES) contracts. The lack of precedents in contracting for PES makes negotiating and drafting these agreements much more costly and time-consuming. It is also likely to put sellers, who may have little commercial experience and limited resources, at a disadvantage relative to commercially-savvy PES buyers or brokers.
With the support of UNDP South Africa, the Katoomba Group’s Legal Initiative, which is part of Forest Trends, has put together an online Payments for Ecosystem Services (PES) Contract Clauses Library to help address this gap. This web-based resource provides background information about PES contracting and the structure of a PES agreement, as well as basic information about 20 different types of clauses that are likely to be used in these contracts, and 33 example clauses. We hope that this resource will continue to grow and will help PES participants to negotiate and draft effective and equitable PES agreements.