This research highlights the governance of landscape and policy coherence to ensure a sustainable supply of ecosystem services through incentives for ecosystem schemes at the municipal level in Nepal. The study was carried out in Dhankuta and Dasarath Chand municipalities representing Nepal’s Koshi and Sudur Paschim provinces. Six aggregate governance indicators adopted by the World Bank Group were assessed through interviews with primary stakeholders of selected landscapes in two municipalities, followed by Key Informant Interviews. The study indicates that implementation of the Incentive for Ecosystem service scheme is feasible, creating multi-stakeholder institutions at the local level. However, there are several governance challenges to ensure its success. In particular, incentives for ecosystem schemes must be part of local government planning, where multisectoral coordination and collaboration are essential. While municipal authorities have constitutional jurisdictions to initiate such schemes, they lack the human resources to understand ecosystem management for a sustainable supply of ecosystem services. Therefore, landscape governance is essential to make incentive schemes successful and ensure transparency and equitable benefits among ecosystem service providers.
Evaluating progress in human development and well-being is imperative for policymakers to assess the impact of their policies. Traditional measurement methods focus mostly on economic growth and socio-economic objectives, often neglecting vital components of the natural environment, particularly the ecological determinants essential for the sustainability of human well-being. The tension between sustainability and development becomes apparent as the recognition of the dependence of human well-being on the natural environment and ecosystem services is crucial for safeguarding the environment for present and future generations. This highlights the necessity for indicators that capture the intricate relationship between human well-being and environmental changes while addressing the challenges posed by the tension between sustainable practices and traditional development models. This paper presents a literature review examining the domains, dimensions, and indicators related to the sustainability of human well-being regarding economic, social, and natural environments. Emphasizing the multidimensional nature, this paper highlights the drawbacks of relying solely on socioeconomic indicators for assessment. The review explores diverse concepts and methodologies proposed to evaluate the components and multidimensional factors influencing the sustainability of human well-being. Ultimately it offers a holistic understanding serving as a foundation for further research and policy development.