PES SCHEMES AND THEIR APPLICATION IN ALBANIA

Authors: Mimoza Koka and Silvana Malaj Heijneman

Mimoza Koka: Department of Economics and Rural Development Policies, Agrobusiness and Economy Agricultural University of Tirana, Tirana, Albania.

Silvana Malaj Heijneman: Business and Marketing Consultant Tirana, Albania.

ABSTRACT

Payments for Environmental Services (PES) have gained traction in recent years, primarily in Latin American countries. These payments involve a transaction between land users and environmental service providers for a specified fee. The purpose of this paper is to assess the current level of PES development in Albania and the measures taken by the Albanian government to promote their creation and advancement. To achieve this goal, several objectives have been defined: to present the history of PES creation and development, to establish the theoretical framework for their implementation, to evaluate the current state and progress in Albania, and to draw conclusions and recommendations for the government. Currently, PES in Albania are in the experimental phase, with a pilot project implemented in the Ulza watershed. The World Bank conducted interviews with 100 stakeholders in the lower part of the Ulza Basin, and this paper analyzes and presents the results of those interviews. A central conclusion is that interviewees believe the development of PES schemes is an important tool for addressing environmental issues, emphasizing the government’s responsibility to promote their advancement and growth.

Keywords: Environmental Services, Payment for Environmental Services, Transaction, Design, Watershed.

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