Third parties are organizations that participate in markets in ways other than buying, selling, or acting in a regulatory capacity. Instead, third parties do such things as design new market tools, operate parts of the market, or represent buyers and sellers.

Examples of third parties include:

• A watershed council or soil and water conservation district that works with landowners to generate credits
• A trade association that helps buyers access the credits they need
• Consultants or non-profits that provide information to market participants

There is an enormous amount of room for third parties to participate in ecosystem services markets, and their activities are essential.

What is the role of third parties?

Third parties are an important source of efficiency in market transactions. They provide information, tools, and expertise that make markets fluid. Third parties might have a specific interest in a trade as they represent groups of buyers or sellers. They might play a role in framing policy that governs the market, or they might fill gaps in needed services that other stakeholders cannot provide. As we gain experience with ecosystem services markets, third parties are demonstrating that they can strengthen relationships, build trust, and improve the outcomes of trades.