An urban PES model for diffused green areas requalification and maintenance in Milan

Abstract

In 2005 Milan Municipality launched the “Adopt a green spot” model initiative, to restore and maintain scattered and marginal green areas, following a Payment for Ecosystem Services (PES) scheme. The PES scheme was designed in the form of two standardized typologies of voluntary agreements – sponsorship and collaboration - allowing flexibility in the commitment of involved private stakeholders, including condominiums, NGOs, and the business. 502 agreements, for a total surface of 265.398 m2, have been signed up to now. The paper analysis the design components of the PES scheme which determines its capacity to be replicated in different contexts involving a variety of stakeholders. The main elements enabling the success of the PES scheme are i) the flexibility of the voluntary agreements designed to meet the needs of various stakeholders; ii) the variety of green areas included in the initiative; iii) public recognition which makes it possible to attract firms iv) low transaction costs borne by the stakeholders. The financial resources committed, even if representing a small portion of the total social benefit generated, are sufficient to ensure an adequate requalification and maintenance of small green areas, often neglected because of scarcity of public financing. The replication capacity of this PES scheme makes it a model initiative. Given its characteristics and flexibility, it has been used for the definition of more than 500 agreements with different stakeholders, and for these reasons the policy design approach can be suitable for the replication in other urban contests.