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Payments for environmental services (PES) have attracted increasing interest as a mechanism to translate non-market values of the environment, into real financial incentives for local actors to provide environmental services. The PES concept is relatively new to Serbia. However, recent laws regulating the use of natural resources have enabled some basic environmental economics mechanisms. The current Environmental Protection Act in Serbia adopted the “user pays” principle and introduced fees for the use of natural resources and some ecological services. Other laws, such as the Water Act and the Forest Act, also regulate payments for the use of natural resources. Two ministries share the responsibility of water management in Serbia: the Ministry of the Environment (ME) and the Ministry of Agriculture, Forestry and Water Management (MAFWM). Fund for Water is not an institution, but a separate budget item in the national budget. It was established in 2010 by the Law on Waters. Six types of charges go into the Fund for Water. Financial plan for water management activities for 2011. shows that the highest financial part is directed to: management of water courses and flood control (32,93%). Some of the important characteristics of a PES schemes that are absent in existing financial mechanisms in Serbia are: explicit internalization of environmental costs; transparent pricing system; clear indications of purpose of charges; control of use of generated income; monitoring the efficiency of financed conservational measures.

PAYMENTS FOR ECOSYSTEM SERVICES AND STAKEHOLDER'S PERSPECTIVES IN SERBIA