Agreements for financing the Environmental Services Payment Program (PSA)
Product: Enviromental Alliances
The National Fund for Forest Financing (FONAFIFO) is responsible
for raising funds for the payment of environmental services (PES)
provided by forests and forest plantations. Forest Law No. 7575
allows the establishment of agreements with companies that wish
to compensate for the use of natural resources or contribute
towards the protection of these resources. The Parties’
obligations are specified in the agreement.
The agreements allow differentiated payments of PES to owners
or owners of farms because of their social or economic vulnerability.
The amount of the Agreement includes the payment of 100% of the PES
and costs of implementing the additional commitments to the PES.
This mechanism has been used by organizations developing projects
financed with international loans, as an instrument in conservation
projects. It also serves to respond for environmental damage, and
as a resource for the environmental commitment of companies or projects.