PES: Forest-saving scheme where beneficiaries pay nature back

In recent years, wildfires ravaging Thailand’s watershed forests have not only devastated natural resources but have also inevitably impacted the economy and public health, causing escalating economic losses year after year. 

In response, Thailand has introduced the "Payment for Ecosystem Services" (PES) mechanism as a new tool for sustainable natural resource management.

Buntoon Srethasirote, Director of the Good Governance for Social Development and Environment Institute, explained that the current focus on carbon credits often leads society to view forests solely as carbon sinks. In reality, forests are vital sources of food, clean water, and fresh air.

Thus, there should be a mechanism that encourages beneficiaries of these ecosystem services to contribute to their conservation.

PES: A Different Path from the Carbon Market

PES is an economic concept where beneficiaries of environmental conservation pay or provide resources to those who maintain ecosystems. This contrasts with the carbon market approach, where polluters pay for their emissions.

PES also addresses structural challenges in Thailand, such as limited government resources and bureaucratic hurdles that delay proactive conservation efforts.

Local communities play a crucial role as "ecosystem service providers" who deeply understand their land and have lived in harmony with forests for generations. Scientific tools can help resolve longstanding land use conflicts, demonstrating that sustainable human-forest coexistence is achievable.

For instance, while annual wildfires plague most of Doi Suthep, the area around Ban Pong Nuea has been fire-free for five years. This success is due to villagers engaging in controlled burns to manage dry leaf litter, organising patrols, installing surveillance cameras, and developing "wet forests" to retain moisture. Although these measures carry costs, they are far more economical than firefighting expenditures, highlighting the need for financial mechanisms to support these local conservation efforts.

International Precedents for PES

Globally, PES has been developed for over 30 years. A notable example is the United Kingdom, where the government treats nature as "natural capital" — real economic assets such as forests, rivers, and ecosystems. The Treasury leads efforts to collect payments from those benefiting from conservation initiatives.

Economic Incentives for Forest Protection

Under PES, companies emitting carbon could fund reforestation projects, bottled water companies could support farmers to avoid contaminating water sources, and urban areas could finance green restoration projects to mitigate flood risks.

Weerasak Kowsurat, Chair of the Targeted Research Program on Reducing Northern Thailand's Haze Crisis for the National Research Council of Thailand, said that scientifically measurable forest restoration efforts are advancing through the use of remote sensing technology for closer monitoring. This will strengthen private sector and civil society support for conservation.

This approach aligns with PES principles, where those restoring and protecting ecosystems are financially supported. Ultimately, urban residents will also benefit from cleaner air, restored watersheds, reduced soil erosion, increased carbon sequestration to combat climate change, and preserved biodiversity.

On-the-Ground Success in Northern Thailand

Recently, a research team visited Ban Mae Sa Noi in Pong Yaeng Subdistrict, Mae Rim District, Chiang Mai Province, to study a successful community initiative led by Hmong leaders within Doi Suthep–Pui National Park. Collaborating with 13 neighbouring villages, they have restored watershed forests and managed wildfires effectively by planting over 30 native species, boosting biodiversity to nearly 100 species.

Using both modern technology and traditional community regulations to prevent fires, the project aims to expand with PES-based support, ensuring that those maintaining ecosystems are fairly compensated for the benefits extended to urban populations across the country.

Thanyamai Anantakoraniwat