Brazil’s National Policy on Payment for Environmental Services: An Analysis of Alignment with International Best Practices

The enactment of Federal Law No. 14,119/2021, establishing the National Policy on Payment for Environmental Services (PNPSA in Portuguese), granted legal recognition to implement Payment for Environmental Services (PES) schemes in Brazil. However, it is crucial to assess whether the best practices recommended in scientific literature are incorporated into the legislation. This article examines the PNPSA considering PES best practices and suggests key points for its regulation. A review of the main best practices was conducted, as well as an analysis of the law based on these guidelines. The findings reveal that most of the analyzed best practices are either absent or insufficiently addressed in the legal text, particularly in the categories of “Payments,” “Definition of eligible/priority areas,” and “Conditionality.” The law more effectively incorporates “Institutional arrangement” and “Type of participation” best practices. This analysis highlights the need for PNPSA regulations to align with best practices to ensure effectiveness.