Who wants to pay for Pantanal? Experiences of payment for environmental services in the preservation of a single biome

Abstract

Environmental conservation standards in Brazil are insufficient and must be completed by economic instruments, such as Payments for Environmental Services (PESs). These instruments are at initial implementation stage in Pantanal, which is one of the world’s greatest extensions of flooded areas. This biome undergoes increasing pressures for the exploitation of its natural resources. Thus, the objectives of the current research are to investigate PESs in Pantanal and to analyze their potential to be used for environmental protection purposes. Interviews were conducted with political authorities, NGO representatives and professional association members. Four PESs were identified. All counties in Pantanal region receive the Ecological ICMS, which is a percentage of a tax on commerce and services received by the State and redistributed to counties hosting Conservation Units. Another PES, called Private Natural Heritage Reserve (RPPN), enables the exemption of Territorial Tax. Despite protecting 250,000 ha, RPPNs only reach 1.7% of preserved areas in Pantanal. In addition to these PESs, which count on State participation, it was possible to find two mechanisms based on consumers’ participation, organic meat and organic honey production. However, only two producers were certified to produce organic meat and one to produce organic honey. Although PESs are important mechanisms, they play limited role in Pantanal region. PESs between producers and consumers depend on incentive policies and on information about environmental benefits provided to consumers. Ecological ICMS should be subjected to rigorous selection process in choosing who can receive the benefits. Although RPPNs are often used as PESs, their incentives are insufficient and should be improved.