What makes Payments for Ecosystem Services sustainable?

Global evidence from 161 schemes highlights the role of governance, context and business models

A new global study shed light on how payments for ecosystem services can be designed to remain effective and sustainable across very different regional realities. By analysing 161 schemes worldwide, the study shows that successful outcomes depend on much more than preferences alone. Clear conditionality, secure land tenure, adequate incentives, and robust governance arrangements emerge as decisive factors, with strong evidence that regional context and forest characteristics shape what works in practice.

The findings reveal marked geographical differences in design choices and priorities. High income countries are more likely to invest in long term cultural ecosystem services, while low and middle income countries tend to focus on short term provisioning benefits. Private and mixed business models are widely used, particularly where economic sustainability is a concern, but their performance varies by region. Intermediaries continue to play a crucial role, especially in settings with fragmented or multi level governance, where they support coordination, trust building and agreement management.

The publication is closely aligned with INTERCEDE’s work on examining payments for ecosystem services as instruments for policy and practice. It draws on the SINCERE database, whose harmonisation was supported by the valuable work of Mr Vito Cozzi, strengthening the empirical foundations of the analysis. The study also contributes to the NOBEL project’s goal to support novel business models that help landowners enhance and maintain forest ecosystem services in response to growing societal demands. Together, these efforts underline the importance of context specific, well designed PES schemes to deliver lasting environmental and socio economic benefits.

Nazari, M., Grima, N., Bottaro, G., Pecurul-Botines, M., Pülzl, H. and Vacik, H. (2026) ‘A global analysis of key design factors for sustainable payment for ecosystem services schemes’, Ecosystem Services. htps://doi.org/10.1016/j.ecoser.2026.101846