This report aims to review PES implementation in Thailand and Lao PDR and to draw lessons from the case studies. In the Thailand, most of the funds for natural resources conservation are primarily CSR investments. Investors do not directly benefit from the ecosystems services they are paying for; donations have tended to be one-time investments with no guarantee of continuity in funding. PES-like projects related to wildlife has the potential to generate voluntary contribution from private companies or from the general public; flows of contributions from these sources are unlikely for ecosystems services. PES cases in Lao PDR are also at the design stage; however, the mining and hydro-power projects of private sectors in Lao PDR have developed their own incentive or benefit-sharing mechanisms, which depend on the outcome of negotiations for concession agreements. The Government of Lao PDR has shown strong interest in the PES mechanism. The main constraint in Lao PDR is not the legal issue itself, but rather the lack of human and financial capacity to implement PES.
Payment for Ecosystem Services in Thailand and Lao PDR