Landscape and Recreation Value Payment Scheme

This case study explores a payment for ecosystem services (PES) initiative in Kusamo, Finland, where private forest owners are compensated for preserving landscape services, biodiversity, and carbon storage. Set in the Ruka-Kusamo region—a major nature-based tourism destination attracting one million visitors annually—the scheme funds forest management changes that avoid clear-cutting and promote continuous cover forestry. Primarily funded through voluntary donations from tourists, local residents, and tourism enterprises, the initiative addresses the opportunity costs faced by small, non-industrial forest owners whose income relies heavily on timber. Developed by the Finnish Forest Centre and Natural Resources Institute Finland, the PES model involves stakeholder consultation and planning to identify ecologically valuable areas. The project supports sustainable funding for ecosystem services, enhancing recreational values and contributing to climate and biodiversity goals in a sparsely populated, forested region.