Environmental Services

Environmental services originate in natural assets (soil, water, plants, other living organisms and the atmosphere) providing mankind with economic, financial, ecological and cultural benefits. More often than not these benefits are taken for granted. The hydrological services provided by forests, such as clean and regulated water flow, and reduced sedimentation, for example, are only noted when natural disasters, flooding, siltation of reservoirs and scarcity of water occur as a result of the removal of forest cover.

That such services should be lost despite their value is easy to understand: land users typically receive no compensation for the services their land generates for others, and consequently do not take them into account in making land-use decisions. Recognition of this problem has led to efforts of developing systems in which land users are compensated for the environmental services they generate. This typically would create additional income streams for land users who are often poor and would make benefits of environmental and natural resources explicit. The World Bank is assisting various countries in this endeavor. Thus far this work is mostly focused in Latin America although initiatives in other regions are currently being explored.

Capacity Building 
 
The Bank is also aware of the need for capacity building and training and has developed a two week training course for senior level technical staff of government agencies on environmental services. Non-governmental and private sector organizations are encouraged to participate. The training course is very much a hands-on and case study centric exercise. The where, how and why specific tools work or do not work is presented in an intensive participatory workshop environment. The benefits envisioned are increased generation of valuable services to the country and their protection. With an eye towards financial sustainability payments for environmental services should be made privately viable where possible.
 
 For more information, e-mail Gunars Platais at gplatais@worldbank.org or Stefano Pagiola at spagiola@worldbank.org.