Program on Forests (PROFOR)
Forests are lost because conservation and sustainable management is less profitable then deforestation, at least in the short-term. Payments for environmental services – such as watershed management, carbon storage, and biodiversity conservation – can alter this equation and make standing forests more profitable. Various mechanisms to generate payments for such services are emerging, from public payment systems to user rights and new trading schemes. Several cases of practical experience with payments for environmental services now exist and provide insights as to how such markets might function.
The World Bank