Costa Rica Payments for Environmental Services (PSA / FONAFIFO)
Costa Rica
Costa Rica's national PES, created by the 1996 Forest Law, has paid landowners US$565M to conserve 1.15M+ hectares for carbon, …
Luxembourg · Luxembourg · See the Luxembourg profile
Luxembourg pays private forest owners €150 to €37.50 per hectare a year, via a 10-year statutory commitment, to manage woodland for ecosystem services — over 600 owners have enrolled 6,526 ha, more than half of it inside protected biodiversity zones.
Luxembourg's Ministry of the Environment, Climate and Biodiversity introduced "Klimabonus Besch" by Grand-Ducal Regulation on 16 April 2021, offering private forest owners a statutory, tiered per-hectare annual payment in exchange for a 10-year commitment to manage their woodland for climate and biodiversity outcomes rather than solely for timber. A March 2025 revision lowered the minimum eligible area from 0.5 to 0.3 hectares and adjusted the payment tiers.
Owners are paid EUR150/ha for the first 0-50 hectares, EUR75/ha for 50-100 hectares, and EUR37.50/ha beyond that, administered by the Administration de la nature et des forets. More than 600 applications have been received since 2021, covering 6,526.30 hectares of private forest - of which 3,687.19 hectares (56%) lie within protected Natura-type zones. In May 2025 Luxembourg extended the model with a companion scheme, "Klimabonus Mouer a Wiss," offering the same tiered rates to owners of species-rich meadows and wetlands.
No source consulted publishes a total annual budget or aggregate disbursement figure for the scheme - only the per-hectare rate schedule and enrolled area are documented, so a total spend cannot be stated without estimation. Uptake is also still modest relative to potential: Luxembourg has an estimated 12,000-14,000 private forest owners nationally, so the 600-plus enrolled to date represent a small fraction of the eligible universe, and the newer meadow/wetland companion scheme is too recent (launched 2025) to have any enrollment data yet.
Read the full analysis: https://gouvernement.lu/en/actualites/toutes_actualites.gouvernement2024+fr+actualites+toutes_actualites+communiques+2025+05-mai+12-klimabonus-mouer.html
Implementation detail (cost, timeline, staffing, conditions for success) is not yet available for this practice.
Where this practice's information was retrieved from, and when.
Costa Rica
Costa Rica's national PES, created by the 1996 Forest Law, has paid landowners US$565M to conserve 1.15M+ hectares for carbon, …
Japan
Since 2019, Japan distributes ¥40–62 billion/year to municipalities and prefectures for managing private plantation forests; from April 2024 funded by …
Argentina
Argentina's 2007 Native Forest Law mandates 0.3% of the federal budget as direct payments to landowners and communities conserving Category …
Papua New Guinea
PNG's REDD+ programme verified 17M tCO₂e of avoided deforestation (2014–2016), earning USD 63.4M in GCF results-based payments (July 2025). Covers …
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