Table 3. Key leverage points for shaping pro-poor payment for ecosystem services (PES). We define these as factors that are both critical to the future shape of ecosystem service markets and amenable to influence through programs of advocacy, support, or investment. Key leverage point Recommendation Source(s) for further explanation A. Increase market size A1. Global carbon regulation Establish a robust legal framework to regulate carbon emissions worldwide, including provisions for land use, land-use change, and forestry (LULUCF) carbon offsets Streck et al. 2008 A2. Biodiversity regulations Enact requirements to mitigate or offset effects on biodiversity of development projects in developing countries ten Kate et al. 2004, Bishop et al. 2008 A3. Land use-watershed protection nexus Increase scientific research on the effects of land use on water quantity and quality Calder 2002 A4. Eco-certified production Support market development and methods for smallholder participation Molnar et al. 2007 B. Enable and facilitate pro-poor participation B1. Land-use-based carbon offsets Provide credible yet simple LULUCF and reducing emissions from deforestation and forest degradation (REDD) carbon offset options in post-Kyoto global carbon regulation Locatelli et al. 2008 B2. “Best practices” for pro-poor program design Develop guidelines for design of PES to enable the poor to participate Bracer et al. 2007, Smith and Scherr 2003 B3. Property rights Accelerate efforts to grant clear property rights over land and natural resources to rural individual and community land stewards Sunderlin et al. 2008 B4. Extension for PES Integrate education on ecosystem service management and PES into agricultural extension programs Scherr et al. 2007b B5. Local institutional development Support existing farmers’ groups, local governments, and nongovernmental organizations to organize and administer the production and sale of ecosystem services Scherr et al. 2007b B6. Intermediaries Establish and support intermediary brokers, consolidators, and insurers of ecosystem services generated by smallholders Bracer et al. 2007, Smith and Scherr 2003 B7. Cost-effective monitoring Develop and test credible low-cost methodologies and information management systems to measure and verify ecosystem service provision from numerous small plots of land Brown 2002, Kremen and Ostfeld 2005, Scherr et al. 2007a B8. Standards Incorporate minimum standards for social and environmental sustainability into all PES projects while supporting ongoing innovation for more rigorous voluntary standards Kollmuss et al. 2008 C. Increase the pro-poor benefit for those who participate C1. Property rights See B3 See B3 C2. Local institutional development See B5 See B5