Valuation of Ecosystem Services (Wealth Accounting) and Assessment of Payment for Ecosystem Services

TERI, in partnership with Ernst & Young LLP, conducted a comprehensive study for the Bangladesh Forest Department as part of the Sustainable Forest and Livelihoods (SUFAL) Project. This study developed a robust framework for valuing ecosystem services and natural wealth accounting in three critical forest sites: Teknaf Wildlife Sanctuary, Modhupur National Park, and Ramgarh-Sitakunda Reserved Forests.

By applying internationally recognized methods and engaging stakeholders through workshops and training, the project quantified the substantial economic contributions of these forests, totalling over 720 million USD annually from provisioning, regulating, and cultural services.

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The study also assessed the feasibility of Payment for Ecosystem Services (PES) schemes to incentivize sustainable forest management, improve local livelihoods, and inform national and international policy. It highlights the importance of integrating ecosystem valuation into Bangladesh’s development planning and national accounts, supporting efforts to balance conservation with economic growth and fulfill national commitments to the Sustainable Development Goals and the Paris Agreement.