Linking Smallholders to PES/REDD+ Intermediaries and ecosystem service markets

Intermediaries – governments, local organised community groups, NGOs and the private sector are important players in linking smallholders to niche markets for environmental services. But supporting land users and persuading them to risk investing in evolving markets where the benefits are erratic is a challenge.

This issue paper focuses specifically on intermediation strategies to deliver regulating and cultural services, primarily through payments for ecosystem services (PES) and REDD+. It highlights the importance of good governance and the need to establish clear land, forest and carbon rights to protect resource users’ rights and ensure the fair distribution of benefits and risks without further marginalising the poorest land users – and cautions that a one-size-fits-all, market-based approach may not be suitable for all.