Identification of Key Components of Payment For Ecosystem Services (Pes) Mechanism In Begnas Lake Watershed of Pokhara-Lekhnath Metropolitan City, Nepal

Abstract

Payment for Ecosystem Service (PES) scheme for certain ecosystem services is being used as a mechanism to provide incentive to suppliers of the services by the beneficiaries. In Nepal, PES like schemes is in practice since a long time, though the discussions on formal PES schemes have recently been started. This study has been carried out at Begnas Lake Watershed (BWS), a Ramsar site, at Pokhara-Lekhnath Metropolitan of Nepal. It aims to understand the perception of local residents towards the implementation of PES scheme in BWS. Furthermore, it also identifies key actors for PES implementation at BWS, their role in PES design and implementation as well as potential payment mechanism for the ecosystem services within the PES scheme at BWS. Finally, institutional structure for PES design and implementation is also presented. The study finds positive perception of local people towards initiating payment mechanism for the use of ecosystem services to ensure environmental conservation and sustainable management of the resources. Both upstream and downstream population favors mix of public/private PES scheme while upstream population favors cash-payment type scheme and downstream population favors the capacity building of upstream communities in conservation efforts. It is also noted that upstream people favor input-based mode of payment and downstream people are inclined towards output-based payments. The study found some ‘PES-like’ practices operational in the watershed. The study recommends the formation of ‘Begnas Watershed PES Advisory and Coordination Committee’ with due participation of identified stakeholders to initiate and institutionalize formal PES mechanism at BWS.