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This paper examines the possibility of integrating incentive for ecosystem services (IES) Scheme in municipal development planning. Nepal’s Local Government Operation Act empower municipal authorities to develop local level innovations and by laws, whereas Forest Act provides sufficient space towards IES schemes. The study is carried out in two municipalities, Dhankuta in the east, and Dasarath Chand in the far west, representing mid hills of Nepal. The study follows household questionnaire to understand stakeholders’ priority and IES possible institutional structure, focus group discussions, and Key Informant Interviews. The result revealed that IES schemes are feasible through multi-stakeholders’ engagement at the municipal level. There is a need for municipal facilitation to ensure upstream and downstream interlinkages, and ensuring incentives to upstream communities. In order to establish long term IES schemes, the institutional mechanism needs to be established within the municipal structure and IES conceptual program needs be endorsed by the municipal authorities Unlike cash payment, the study also suggest to a project-based incentive mechanism which not only ensure good governance, but also reduces the chances of corruption. |
