Payment schemes for forest ecosystem services : support for implementing the new EU forest strategy for 2030

The main objective of this report is to provide the European Commission with additional information on PFES in EU MS and on the role of these schemes in driving sustainable forest management practices. Building on the Commission guidance on PFES, alongside a literature review and case study-based research, we examine different types of schemes, focusing on their development and their role in forest protection, restoration, the local economy, and the provision of forest ecosystem services through financial support to forest owners/managers. Specifically, we highlight their role in promoting climate- and biodiversity-friendly forest management practices. We explore the funding sources to support these schemes and whether they rely on market principles, public subsidies, private funding or a combination, and we assess available EU funding and EU funded projects (e.g. the LIFE Programme, Interreg, Horizon). We also investigate the stakeholders involved and their cooperation, as well as the benefits and challenges encountered in their set-up and implementation. This report focuses on the role of PFES as a tool for sustainable forest management, outlining recommendations to the Commission and Member States for promoting the development of the schemes or the roll-out of existing schemes in other parts of the EU.