The project is seeking to identify and build the regional capacities needed to initiate markets for ecosystem services. Market opportunities could include groundwater management, water quality markets and biodiversity, among others. Our approach will be to investigate and develop pilot market opportunities in the three case study catchments (Murrumbidgee - NSW, Goulburn Broken - Vic and Blackwood Basin - WA).

In each case study area we will identify the key market requirements - such as measurement of ecosystem services, the buyers and sellers and how they can interact and what policy changes are needed to facilitate markets. We will also be examining how markets for ecosystem services can work with other strategies to achieve regional natural resource management targets.

How will the project deliver?

'The Markets for Ecosystem Services Project' will directly address the challenge at the regional level by:

• building partnerships with appropriate groups in case study regions;
• integrating market based mechanisms with other programs in case study regions to achieve targets;
• quantifying changes to particular ecosystem services to measure what can be bought or sold in markets;
  
• testing pilot markets in practice, on the ground, in the case study regions to show they work;
• recommending policy changes to strengthen laws underpinning market creation and management.

A strong conceptual framework will underpin these steps. We will use the framework to help identify and analyse key opportunities, institutions and impediments to effective market-based mechanisms in the case study areas.