Payment for Ecosystem Services (PES): Why effective engagement and participation is an important success factor

September 22, 2025

PES technical working group during the capacity building workshop

What is PES?

Payment for Ecosystem Services (PES) is a market-based mechanism where beneficiaries of ecosystem services compensate those who conserve and manage them. In Uganda, PES offers a pathway to align biodiversity conservation with economic growth and community livelihoods, turning actions like tree planting, wetland protection, and habitat conservation into sustainable income opportunities.

Building Capacity for Effective PES Implementation in Uganda

On the 26th - 28th March 2025, the United Nations Development Programme (UNDP) in partnership with the National Environmental Management Authority (NEMA) held a capacity building workshop to prepare for the operationalization of PES in Uganda. This engagement brought together 51 technical officers (24 women and 27 men) from the following institutions: Makerere University, Ministry of Water and Environment (MWE), Ministry of Energy and Mineral Development (MEMD), Centre for International Forestry Research and International Centre for Research in Agroforestry (CIFOR-ICRAF), Wildlife Conservation Society (WCS), Environmental Conservation Trust of Uganda (ECOTRUST), Ministry of Finance, Planning and Economic Development (MoFPED), Ministry of Local Government (MoLG), Ministry of Tourism, Wildlife and Antiquities (MTWA), Ministry of Gender, Labour and Social Development (MGLSD), Ministry of Agriculture, Animal Industry and Fisheries (MAAIF), Private Sector Foundation Uganda (PSFU), Uganda National Council for Science and Technology (UNCST), Food and Agriculture Organisation (FAO), Kyambogo University and National Chemotherapeutic Research Institute (NCRI). This combination of partners in itself presenting a compelling reason for a broad-based cooperation between stakeholder in effective PES application as this is one of the key tenets for successful PES implementation.

Tom Sengalama, Team lead Nature, Climate, Energy and Resilience, UNDP Uganda, gives remarks at the PES capacity building workshop

The engagements brought together stakeholders to explore a wide array of topics critical to environmental management and conservation in Uganda. Key discussions centered around the National Environment Act 2019 and the use of PES as a viable policy and legal framework for sustainable environmental management. Participants examined the valuation of ecosystems, reviewed local and international case studies of PES in Uganda, and explored practical methodologies for designing and implementing PES schemes.

A notable highlight was the sharing of best practices from the Mt. Elgon Ecosystem-based Adaptation (EbA) Project, which showcased how PES can drive meaningful environmental outcomes. Additionally, experiences from tree-planting and farm-based initiatives demonstrated how PES can serve as an effective economic incentive for biodiversity conservation.

These discussions aim to strengthen institutional capacity for implementing Uganda’s PES programme. By deepening the understanding of PES mechanisms, encouraging inter-agency collaboration, and promoting stakeholder engagement, Uganda is paving the way for the successful operationalization of PES as a key tool for environmental sustainability.

Francis Ogwal from NEMA giving remarks during one of the sessions

Advancing PES in Uganda

The discussions highlighted the importance of aligning PES to Uganda's broader development agenda and frameworks, including the Green Growth Development Strategy, the Fourth National Development Plan (NDPIV), Vision 2040 and the UN Sustainable Development Goals (SDGs).

Attention was drawn to the impact of large-scale agricultural production on the need for conservation, and the importance of addressing poverty, food security and biodiversity loss. Uganda, as an agriculturally driven country, stands to significantly benefit from the PES programmes that will promote sustainable land use practices and forest conservation among smallholder farmers.

The Government of Uganda also encourages alternative livelihood activities that reduce pressure on forests, like improved agriculture techniques, butterfly farming, and beekeeping, which are often integrated alongside crops in most agroforestry-based PES programs. These approaches create a more diverse, resilient, and sustainable landscape.

Way Forward

Through UNDP’s Digital Nature and Climate team, Uganda will receive strategic and technical assistance to design and pilot a digital PES system that reflects national context, leverages existing work, and supports long-term sustainability. The PES digital platform will enable Uganda to deliver reliable, performance-based payments, offering a testable model that can be tailored and adapted to fit Uganda’s context and establish the country's readiness for operationalizing PES, enhancing scalability, efficiency, and effectiveness.

The workshop highlighted the need for environmental education to ensure effective PES implementation across both public and private sector. Emphasis was also placed on the importance to reconcile the benefits arising from ecosystem services, ecosystem valuation, in addition to having PES mainstreamed with Ministries, Departments and Agencies (MDAs).

The workshop marked a pivotal step in Uganda’s journey to operationalize PES, aligning biodiversity conservation with socio-economic transformation and the Sustainable Development Goals.

Monique Akullo, BIOFIN National Coordinator UNDP