Smallholder tree growing for rural development and environmental services : lessons from Asia

This paper proposes a way to classify PES projects based on how environmental service payments are justified and determined. Using the IPCC1 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 measurements 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.

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