The Network for Nature Valuation & Financing and Forest Trends currently collaborate on the topic of "private sector demand for ecosystem services". Ivo Mulder is carrying out a consultancy for Forest Trends to analyse the current status of private sector involvement in markets for ecosystem services. This study comprises:

• Documenting as many deals as possible between private entities and suppliers of ecosystem services
• Identifying motivations for private entities to pay for ecosystem services
• Identifying barriers and opportunities for further upscaling private sector involvment in the emerging markets of ecosystem service payments

Although it appears to look easy, setting deals between a buyer (most of times the beneficiary of an ecosystem service) and a seller (the supplier of the ecosystem service) often takes quite some time before they are concluded and money is changing-hands. A deal comprises a number of stages. First, it needs to be acknowledged that a certain party benefits from an ecosystem service. Second, both the beneficiary or the presumed buyer of the ecosystem service have to be identified as well as the supplier. Third, the value of the service needs to be quantified and peferably monetized (capturing the value). Forth, a deal needs to be set. There are various financing mechanisms by which this can take place. Example include but are not limited to: direct payments, clearing house, interference of a third party (e.g. a by a commercial broker, or an NGO such as Fundecor in Costa Rica), bilateral negotiation, pooled transaction and trust funds. More information on financing mechanisms can be found here. 

 

Forest Trends is interested how to further accelerate markets for ecosystem services, both by public agencies, but especially by private sector agencies. This study is part of a bigger project that also includes capacity building, biodiversity offsets and the Ecosystem Marketplace among other elements. The outcomes of this study will be used to identify key players in the private sector that are potentially interesting to approach with regard to markets for ecosystem services, as well as needed-action to overcome the barriers of private sector involvement.

Background Ivo Mulder 
Ivo completed his BSc and MSc in Environmental Sciences at Wageningen University. During his studies he specialized in environmental economics, natural resource economics and environmental management. He is especially interested in liberating markets for ecosystem services so as to move to a more effective form of nature conservation. Other topics of interest include climate change and managing environmental pollution. Ivo can be reached at ivo.mulder@gmail.com.