Template Payments for Ecosystem Services (PES) Agreements
This page contains template purchase agreements, drafted in partnership between the Katoomba Group and CARE International, for water, carbon, and biodiversity ecosystem services transactions. Additional contract drafting guidance can be found in the form of a PES design brief, as well as in drafting notes that accompany each template contract. Because small-scale sellers of ecosystem services may want to join together in order to effectively preserve ecosystem services over a larger area while minimizing transaction costs, template contracts involving a "seller aggregator" are also provided. In such cases, the seller aggregator acts as an intermediary between the buyer(s) and the individual ecosystem services sellers, and the template contract governs the relationship between the buyer(s) and the seller aggregator.
How to use the template contracts:
The template contracts are designed to serve as a starting point for negotiation and drafting of a final ecosystem services purchase agreement. They are not intended to be used without modification as final agreements in any given case. Rather, because property, contract and other laws vary depending on the local jurisdiction, it will be necessary to adapt the terms of each agreement to the circumstances of the specific project with the assistance of local counsel. This will ensure that the final agreement complies with local regulations and is enforceable in the local jurisdiction.
DISCLAIMER: The template contracts, documents, and links on this site are offered to highlight the key issues that should be considered in PES and REDD transactions, not to provide a substitute for experienced, local legal counsel. As this field is evolving rapidly, it will be essential to engage legal counsel in conjunction with any PES transaction to ensure that any agreements reflect the latest developments in the field and comply with all current local and national legislation.