Integrating Ecosystem Service Values into Carbon Pricing

In partnership with the World Resources Institute, CSF is providing technical and political guidance on how to integrate ecosystem service values into carbon pricing. This guidance is part of the USAID project implemented by Pronatura: CO2munitario: Improving livelihoods through the recognition of the value of standing forests using market mechanisms. 

CSF’s study will determine the monetary value of a forest under a carbon sequestration project in Mexico that focuses on how forest management can increase carbon stocks. In most cases, existing carbon market prices do not reflect the value of carbon sequestration to communities  or  the value of ecosystem services that standing forests provide. Our analysis will consider the economic value of other ecosystem services (e.g., water, cultural values, etc.), and the willingness to pay (WTP) for these “co-benefits” of potential buyers.

Our hypothesis is that deforestation and forest degradation rates, as well as greenhouse gas emissions, can be reduced if communities living near standing forests can monetize carbon stocks and  co-benefits from a conserved forest. However, this will only be possible if the revenue from carbon credit sales and the monetized co-benefits from the standing forest are greater than the opportunity cost of converting it to other uses.
 

This project is in partnership with the World Resources Institute, as part of the USAID project implemented by ProNatura

Photo: Oaxaca, Mexico
Photo Credit: Cecilia Simon