Winrock International India

The report presents field experiences and lessons in developing Incentive-based Mechanisms (IBMs) for watershed protection services and improved livelihoods at micro and macro-scales, derived from an action-learning project in India at three locations in the states of Himachal Pradesh (HP) and Madhya Pradesh (MP).

An inter-village transaction was facilitated at one site (the Kuhan micro-catchment in HP), while at the second site (Suan micro-catchment in HP) a transaction failed to materialize despite initial interest. At the third site in MP, there was interest in undertaking a transaction between the city of Bhopal and the catchment of its lake, the Bhoj Wetlands. 

The action research has yielded insights into the role of hydrological information, types of incentive mechanisms, the importance of institutions and the implementation of IBMs.

The study is based on a scoping study on ‘Developing Markets for Watershed Protection Services and Improved Livelihoods in India,’ which Winrock International India (WII), New Delhi, undertook as part of a larger international study being carried out by the International Institute for Environment and Development (IIED), London.