"PES scheme implemented in various Brazilian states (Parana, Sao Paulo, Mina Gerais, Rondonia, Amapa, Rio Grande do Sul, Mato Grosso, Mato Grosso do Sul, Pernambuco, Tocantins). This mechanism raises funds through a sales tax on all goods and services and then pays the money out to municipalities based on how many “conservation units” (protected areas) they maintain or the level of sanitation infrastructure present in the municipality. The aim is to compensate municipal governments for the tax revenue they lose when land is designated a protected area. It has an incentive effect, encouraging the designation of new conservation areas."