Community Payment for Ecosystem Services (PES) Readiness

Building Capacity for Piloting Payment for Ecosystem
Services in Babagon Watershed


Pilot “Payment for Ecosystem Services” approach for growing Sabah’s and Malaysia’s capacity and capability to manage water catchments through collaboration among stakeholders. Working with three communities and others in the Babagon watershed we shall back their finding pathways to use PES to enhance resource governance, community vitality and socio-economic opportunities.

The objectives:

​The signing of a mutually agreeable PES agreement is the final output for the project, with key beneficiaries being the local communities in Babagon watershed, the public and commercial water users in Kota Kinabalu. Realising this will require integrated achievement of three core objectives to ensure these functions can be sustained into the future through PES revenues:

Project Objective 1: To establish a governance structure that supports implementation of PES in the Babagon watershed.
Project Objective 2: To build capacity for PES through community implementation of sustainable socio-economic activities that lead to improved livelihoods and watershed health.
Project Objective 3: To build capacity in targeted data collection – biological, chemical and physical – to inform and produce management protocols needed for implementing and monitoring PES activities.