Analysis and engagement with partners working on ecosystem services transactions, policies and laws over the past decade have demonstrated a clear need to better understand the gaps and limitations related to complex legal considerations which affect ecosystem services project participants and the public sector. Since January 2008, the Tropical America Katoomba Group and the IUCN Environmental Law Centre have worked on a joint initiative to better understand and define guidelines and priorities for action in this area.

The initiative analyzes the legal underpinnings of water and carbon contracts used in payment for ecosystem services (PES) deals in the voluntary space as well as the regulatory and institutional frameworks (and relevant gaps) that relate to ecosystem services. Country-based analysts with experience in ecosystem services transactions have developed country and project assessments to define existing and recommended regulatory and institutional frameworks that enable equitable and long lasting ecosystem services deals.

Key topics analyzed include: legal and institutional frameworks related to PES; property rights; contracts; securities and risk allocation; negotiation processes; monitoring, non-compliance, and enforcement; dispute resolution; and public participation. The methodology of analysis used is available for replication in other countries.

The primary outcome from the initiative will be the development of guidelines for the legal and institutional structures required to support PES schemes and their implementation. Key outputs under development include:

• country reports to be made available on the Katoomba Group website (November 2008)
• a consolidated publication on legal and contracting issues on PES for water (January 2009)
• legal guidance tools for project developers added to the Getting Started manual (Dec 2008)
• tools, resources and expertise to address government needs and opportunities via onsite Rapid Response and shape evolving polciy for PES (December 2008)

The countries highlighted in this phase are Bolivia, Brazil, Colombia, and Peru; others may be included as the initiative develops.

For information and presentations from the August 2008 workshop that presented preliminary findings of this initiative, please see the Katoomba events page.

Please contact Carina Bracer (cbracer at katoombagroup.org), if you have similar analyses, workplans, activities or needs for support in these topics.