Payments for Ecosystem Services (PES) are financial mechanisms that incentivize landowners and resource managers to conserve and sustainably manage natural ecosystems. By assigning economic value to ecosystem services — such as clean water, carbon sequestration, biodiversity conservation, and soil protection — PES creates structured incentives for actions that deliver measurable environmental benefits. Discover how New York City is applying this approach to safeguard its drinking water through innovative watershed partnerships.
Voluntary Agreements Support Ecosystem Service Delivery
PES programs operate through voluntary agreements in which landowners are compensated for adopting practices that maintain or enhance ecological functions. These agreements are supported by clearly defined eligibility criteria, transparent funding mechanisms, and robust monitoring systems that track service delivery over time. Common PES arrangements include conservation easements, reforestation contracts, and watershed protection schemes, all grounded in legally binding or performance-based frameworks.
Public and Market-Based Financing for PES Programs
Governments, development agencies, and water utilities are often the primary funders of PES, using public budgets, environmental levies, or donor support to finance compensation packages. Market-based approaches are also emerging, such as tradable carbon or biodiversity credits, which enable private-sector actors to invest in ecosystem outcomes.
Best Practices and Technical Verification in PES
Technical guidance is integral to PES success. Programs often require landowners to follow science-based best management practices in forestry, agriculture, or water resource management. Independent audits and third-party verification increase transparency and public trust.
Scaling PES Through Integrated Policy and Investment
By combining regulatory tools, financial incentives, and technical solutions, PES schemes support long-term environmental stewardship and resilience. As climate and biodiversity pressures intensify, scaling up PES frameworks offers a practical approach to protecting natural resources while supporting rural livelihoods and local economies.
New York City’s PES Partnership Secures Urban Water Through Watershed Conservation
The New York City water supply system is one of the world’s largest unfiltered surface water networks, delivering over 1.1 billion gallons of safe drinking water daily to nine million people. The system depends on the Croton Watershed (375 square miles, east of the Hudson River) and the Catskill/Delaware Watersheds (1,597 square miles, west of the Hudson), which include 19 reservoirs and three controlled lakes. This natural infrastructure is safeguarded through ongoing management and PES agreements.
WAC, a locally governed not-for-profit, implements PES programs in partnership with the New York City DEP. WAC works directly with farm and forest landowners in both watersheds to carry out Whole Farm Plans and Forest Management Plans. These plans incorporate BMPs such as nutrient management, manure storage, cover cropping, and forest erosion control. Conservation easements help restrict development and ensure long-term sustainable land use.
DEP’s $228 million commitment supports the design of a new WAC headquarters, funds more than 80 staff positions, and covers program costs including technical support, conservation easements, forestry activities, and small economic grants. Local technical partners — such as Cornell Cooperative Extensions and Soil and Water Conservation Districts — provide expertise to participating landowners. Voluntary participation remains critical for reducing water pollution and supporting the long-term productivity of farms and forests in the region.
Conclusion: Advancing Ecosystem Protection Through PES Policy Tools
PES policy tools are essential for protecting natural resources and supporting local economies. Strategic regulatory frameworks, reliable funding, and technical assistance promote effective land stewardship and deliver lasting benefits for ecosystems and communities. Expanding the use of PES tools across watersheds worldwide is vital to achieving long-term climate and water security.
WATER-FOOD NEXUS Training Series: Build Skills in Circularity, Innovation, and Sustainable Resource Management
The WATER-FOOD NEXUS Collection of Trainings by EIT Food and Our Future Water is a four-part online series building skills in systems thinking, design innovation, nature-based strategies, and sustainable financing to advance circular, resilient water-food systems. This training series equips participants with practical tools to address challenges in the water-food nexus, fostering solutions that integrate efficiency, innovation, and long-term sustainability.
WATER-FOOD NEXUS Training Series: Build Skills in Circularity, Innovation, and Sustainable Resource Management
The WATER-FOOD NEXUS Collection of Trainings by EIT Food and Our Future Water is a four-part online series building skills in systems thinking, design innovation, nature-based strategies, and sustainable financing to advance circular, resilient water-food systems. This training series equips participants with practical tools to address challenges in the water-food nexus, fostering solutions that integrate efficiency, innovation, and long-term sustainability.
📢 Coming Soon: The Circular Economy and Liveable Cities (Cambridge University Press)
Coming soon from Cambridge University Press — “The Circular Economy and Liveable Cities,” edited by Robert C. Brears, Our Future Water. This essential guide delivers actionable strategies and best practices for implementing circular economy, climate resilience, and sustainability in urban environments, with global examples from leading cities like Tokyo, New York, and Singapore to help planners, policymakers, and researchers build liveable and sustainable cities for the future.
📘 Coming Soon — 2nd Edition of Nature-Based Solutions to 21st Century Challenges (Routledge)
Fully revised and updated, the second edition of Nature-Based Solutions to 21st Century Challenges by Robert C. Brears offers a timely and systematic review of how working with nature can address today’s most pressing environmental and societal issues. Featuring new case studies from across the globe, expanded insights on public policy, AI, and community-led initiatives, this edition is essential reading for anyone shaping a sustainable future.
🌿 Payments for Ecosystem Services: Incentivizing Conservation and Sustainable Management
📚 Payments for Ecosystem Services: Scaling Nature-Based Solutions for Sustainable Development and Climate Resilience
📚 Nature Positive Economy: Strategies for Sustainability, Ecosystem Restoration, and Biodiversity Conservation
📚 Sustainable Finance for Ecosystem Restoration: Unlocking Investment for Environmental Solutions
📚 Shape the Future of Sustainability: Contribute to Springer Nature’s Landmark Publications
As Editor-in-Chief, Robert C. Brears invites experts, researchers, and practitioners to contribute to impactful and forward-thinking publications from Springer Nature. These comprehensive Handbooks and Encyclopedias explore Nature-Based Solutions, sustainable resource management, ecosystem well-being, and the global energy transition.
- Palgrave Handbook of Nature-Based Solutions
- Palgrave Encyclopedia of Sustainable Resources and Ecosystem Resilience
- Palgrave Handbook of Ecosystems and Human Well-Being
- Palgrave Handbook of Energy Transition and Renewable Energy
- Palgrave Handbook of Urban Climate and Disaster Resilience
- Palgrave Handbook of Social Transformations in Science, Innovation, and Education
