Designing a Payment for Ecosystem Services (PES) scheme Lessons from revisiting the PES mechanism at Rupa and Kulekhani Watershed


May 2022


The feasibility study was carried out in both the Kulekhani and Jagdishpur Reservoirs, two wetlands which provide wide arrays of ecosystem services with wider range of benefits at the local, national and global level. The feasibility study tried to understand the key challenges faced by Kulekhani and Jagdishpur Reservoirs for the management of the wetlands and also compared the past case of Rupa Lake with both the Reservoirs. The study also tried to understand the opportunities and constraints of initiating PES in both Kulekhani and Jagdishpur Reservoirs. From the previous learnings of PES in Kulekhani and Rupa watershed, PES design should take local context into account which is not seen in most cases.
The study used SWOT Analysis to understand the gaps/weaknesses and threats as well as identify strengths and opportunities within the watershed area. From the findings of SWOT analysis, recommendations to overcome identified gaps and weaknesses have been provided. The analysis result suggests that the attention should be given to support the conservation as well as diversifying income generating activities in both the watershed areas. Both the areas should focus on including real users of the common property which was grossly lacking in both the cases. Also, PES related plans and policies should be prioritized, a specific PES law can be created by incorporating local level customary laws and indigenous practices by implementing PES pilot projects, which can then be shared at national level. Awareness raising and capacity building programmes to community, community institutions, governmental institutions and other relevant stakeholders should be prioritized as they have limited knowledge on and organizational skills to wetland management and conservation.