Payments for environmental services (PES) are a potential mechanism to provide incentives for sustainable management of grasslands and reduction of greenhouse gas emissions. PES is not widely practiced in Mongolia, but has been included in the Green Development Strategy of the government. This paper reviews 50 PES schemes operating in grasslands and other grazing lands globally, including Mongolia. It discusses key issues related to the design of PES schemes in Mongolian grasslands, including potential benefits, risks, constraints, and trade-offs.
