The Earth's climate is changing because the composition of our atmosphere is being altered, primarily as a consequence of human activity. We are now also experiencing a non-cyclical rise in the global temperature caused by the accumulation of the so-called "greenhouse gases"--carbon dioxide, methane, nitrous oxide and others.

Visitors to Vrindavan and the fabled land of Lord Krishna, called Braj Bhoomi, are often taken aback by its ramshackle, dirty condition. It has dried up ancient water bodies or kunds, denuded forests and lots of garbage. It also has a dreaded mining mafia running around with dynamite, digging holes and blowing up sacred hills.

Payments for environmental services (PES) have attracted increasing interest as a mechanism to translate external, non-market values of the environment into real financial incentives for local actors to provide environmental services (ES). In this introductory paper, we set the stage for the rest of this Special Issue of Ecological Economics by reviewing the main issues arising in PES design and implementation and discussing these in the light of environmental economics. We start with a discussion of PES definition and scope.

Your Editorial 'Markets can save forests' (Nature 452, 127

A venture capital company has bought the rights to ecosystem services from a 370,000-hectare rainforest reserve in Guyana. In return for its investment, London-based Canopy Capital will receive a percentage of any income that might one day be made from the reserve's ecosystem services. The company's hope is that these services will eventually become tradable commodities in the same way that carbon is today. Once Canopy Capital has recouped its investment, 80 per cent of further profits will go back to the reserve.