Over centuries, ecosystems have supported people. Today, environment indicators reveal that ecosystem services are at the tipping point – the point of no-recovery. In addition, climate events are increasing, their impacts are more devastating. The answer may be found in nature-based solutions, at scale. Payments (profits) are guaranteed for environmentally sustainable practices – through cohesive community (social) action with decision-making (governance) embedded at all levels – that result in measured rehabilitation and preservation of ecosystems. The Payment for Ecosystem Services approach can play a catalytic role in attracting private sector capital at scale – a critical need today – for nature-based solutions since risk-return profiles are easily measurable and quite visible in this approach.

This position paper aims to provide knowledge and support to social enterprises that intend to become impact enterprises. It also intends to be a basis for access to private sector climate financing by conservation practitioners, since financial returns accrue to investors, to scale up socio-ecological impact across different ecosystems. The paper will advance uptake of Payment for Ecosystem Services as an approach for addressing social-ecological transformation through impact investment as part of climate financing.