Payments for ecosystem services and the financing of global biodiversity conservation

It is generally recognized that addressing the ongoing loss of global biodiversity requires a substantial increase in funding for conservation activities, particularly in developing countries. An increasing interest in Payment Mechanisms for Ecosystem Services (PES) begs the question of whether a focus on developing payment mechanisms will also reduce the ongoing loss of global biodiversity. We review, firstly, current flows of funds for biodiversity conservation, including PES and other market mechanisms, and secondly, the opportunities and constraints of PES to contribute to biodiversity protection globally. We argue that PES can and should make an important contribution, but that it will not be sufficient to rely on PES alone to finance the actions necessary to substantially reduce biodiversity loss. In response to the identified constraints, we believe there is a need to develop additional funding mechanisms specifically targeted at biodiversity conservation.