Environmental Goods and Services: Non-Traditional Markets, Financing Mechanisms and Good Practices in Latin America and the Caribbean: Summary of Activity 1: Profile of Markets for Certified Green Products, Derived Environmental Services, and Financing Mechanisms

This document was commissioned by the Environment Network of the Regional Policy Dialogue for the V Hemispheric Meeting celebrated on November 30th, 2006. This consulting service attempts to set forth the principal opportunities available to the countries of the region of Latin America and the Caribbean in relation to the sustainable generation of environmental goods and services (EGS). Specifically, emphasis will be placed on how the non-traditional markets and the financing mechanisms, such as payments for environmental services, are useful tools for the permanent adoption of good environmental practices. This consulting service consists of three main activities. This report addresses activity 1, the objectives of which are to describe in detail the profile of the markets for certified green products, describe the environmental services offered by sustainable forest and agricultural practices and, finally, present the payment mechanisms that can support the implementation of these practices. The two reports that follow will refer to specific cases of applying financing mechanisms for the provision of environmental services and will present a summary of the major tasks and opportunities for the public sector in terms of guaranteeing the financing and the sustainable supply of environmental services in the region.