FONAG — Quito Water Protection Fund (Ecuador)
Ecuador
FONAG, the world's first water fund, was established in 2000 with a 1% surcharge on Quito's water bills, later expanded …
Japan · Osaka · See the Japan profile
Since 2003, Suntory holds 30–100-year forest management agreements at 27 Japanese sites totalling >12,000 ha, recharging more than twice the groundwater it extracts. Five sanctuaries hold OECM certification from Japan's Ministry of the Environment.
Suntory's beverage and spring-water business depends on the forests that recharge its groundwater sources. Since 2003 the company has moved beyond conventional CSR afforestation toward long-term contractual watershed protection.
The Natural Water Sanctuary programme protects and restores forests supplying groundwater to Suntory's manufacturing sites through long-term (30 to 100-year) agreements with landowners, functioning as a genuine payment-for-watershed-services mechanism.
Management activities include selective thinning of neglected cedar and cypress plantations, enrichment planting with locally sourced native seedlings matched by DNA to surrounding vegetation, and airborne lidar-assisted forest-structure surveys. A groundwater flow simulation model has operated since 2006 to track recharge outcomes.
As of 2026 the programme covers 27 sanctuaries across 16 Japanese prefectures, totalling more than 12,000 ha. Published model results show the managed forests recharge more than twice the groundwater withdrawn at all Suntory-owned manufacturing sites in Japan. Five sanctuaries have been recognised by Japan's Ministry of the Environment as Other Effective Area-Based Conservation Measures (OECMs).
The programme's long-term contractual structure, quantitative recharge monitoring, and government OECM recognition demonstrate a durable corporate watershed-PES model, though it remains dependent on a single voluntary corporate funder rather than an external regulatory mandate.
Where this practice's information was retrieved from, and when.
Ecuador
FONAG, the world's first water fund, was established in 2000 with a 1% surcharge on Quito's water bills, later expanded …
Vietnam
Asia's first national PFES law (Decree 99/2010) requires hydropower, water-supply and eco-tourism companies to pay into Vietnam's Forest Fund; 355,000 …
Laos
NT2 Power Company pays US$1.3M/year to WMPA to protect the 3,710 km² Nakai–Nam Theun National Protected Area—Laos' largest NPA—for 25 …
Panama
Panama Canal Authority pays landowners flat annual fees to restore forest in the 342,000-ha Canal watershed: 10,846 ha reforested (3,650 …
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