An economist’s point of view on IPBES: How canassessments of ecosystem services benefit decision-                     make...
Critical issuesThe value of biodiversity and ecosystem services are not fully reflected in themarkets, in price signals, a...
Biodiversity (genes, species, ecosystems) & its value is aboutDiversity/variety – e.g. pharmaceuticals, food security, bio...
Many ecosystem services from the           Benefits local to global       same piece of land                              ...
Benefits depend on what you cover in       Benefits also differ across stakeholders              the analysis             ...
Understanding values has many aspects – this is both an opportunity for decision making   (better evidence, fuller underst...
TEEB for Policy Makers                            The Global Biodiversity Crisis                            •        Natur...
Evidence base - Assessing values and actionsAssessments can identify where ecosystems can provide goods and services atlow...
Evidence base for decision making Economic assessments can help decision making :     By adding to the evidence base – h...
IPBES & contributing to the evidence     Links with other processes and options over time                                 ...
Summary• Assessing the value of nature improves the evidence base for decisions• Qualitative, quantitative, spatial and mo...
Thank you                TEEB Reports available on http://www.teebweb.org/                               See also www.teeb...
CBD COP 10 Nagoya: Strategic Plan 2011-20                5 strategic goals & 20 headline targets       ….extracts…Strategi...
EU Biodiversity Strategy                                                                                         DG Env Pr...
Economic evidence base for policy making- usefulareas of focus. IPBES activities/products ?CBD links: thematic assessments...
Biodiversity ‘values’: What can you know; wish to know                                                        To get the f...
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Patrick ten Brink of IEEP on IPBES an economists perspective EP 29 May 2012 final ppt

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Patrick ten Brink of IEEP on an economist's perspective on the importance of economic value of nature for decision making within the context of IPBES

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Patrick ten Brink of IEEP on IPBES an economists perspective EP 29 May 2012 final ppt

  1. 1. An economist’s point of view on IPBES: How canassessments of ecosystem services benefit decision- makers? Patrick ten Brink TEEB for Policy Makers Co-ordinator Senior Fellow and Head of Environmental Economics Programme Institute for European Environmental Policy (IEEP)Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES) Reconnecting science to policy: Why? What? How? 11:30 – 13:30 Tuesday 29 May 2012 European Parliament, Brussels Room PHS 7C050
  2. 2. Critical issuesThe value of biodiversity and ecosystem services are not fully reflected in themarkets, in price signals, and policies Decision making (at company, policy & citizen level) still too often fails to take into account the local to global benefits, contributing to a loss of biodiversity and ecosystem services. Assessing ecosystem service benefits (and links to biodiversity and ecosystem functions) and identifying who benefits from what natural capital is critical for policy making, interest and instrument choice, design and implementation, and enforcement. IPBES is an opportunity to drive understanding and awareness of the roles and value of nature for people, society, and the economy & hence help develop the evidence base needed by policy makers
  3. 3. Biodiversity (genes, species, ecosystems) & its value is aboutDiversity/variety – e.g. pharmaceuticals, food security, biomimicry; Building on Balmford and Rodriguez et al (2009) Scoping the ScienceE.g. genetic resources: > thanQuantity – e.g. timber, carbon storage, fish stock, flood control, water retentionE.g. for fish production: > thanQuality – e.g landscape & tourism, ecosystems & water filtration, resilience(to climate change, IAS)
  4. 4. Many ecosystem services from the Benefits local to global same piece of land Benefits depend on supply/demand,Benefits are spatially dependent scarcity and availability of substitutes
  5. 5. Benefits depend on what you cover in Benefits also differ across stakeholders the analysis There will be winners and losersBenefits are time dependent (as are costs) There are trade-offs in decisions
  6. 6. Understanding values has many aspects – this is both an opportunity for decision making (better evidence, fuller understanding) & a challenge (tools and resources to assess values)Fit for purpose: what level of precision is needed?  EU Policy Making – if benefits an order of magnitude > costs (or vice versa), then clear signal for need for policy action (or not). Precision less critical in Impact Assessment (IA) - robust order of magnitude can suffice.  Instrument Design – eg PES, REDD+, ETS – greater precision needed to get the design right (e.g. what level of payments, defining additionality & conditionality) + confidence in instrument  In project and permit assessment – as precise an answer is needed where possible, but whole picture also needed  In compliance checking (e.g. performance under PES/REDD) – as precise an answer as possible is needed. Verifiability. Fit for purpose: Policy needs & context defines the level of robustness and precision needed Good governance only requires answers fit for purpose – proportionality principle
  7. 7. TEEB for Policy Makers The Global Biodiversity Crisis • Nature’s assets & biodiversity loss • Economic values and loss • Social dimension Measuring what we manage • Indicators • Accounts (SEEA/Waves) • Valuation • Assessment Available Solutions • PES (e.g. water), PES: REDD+ • Markets, GPP • Subsidy reform • Legislation, liability, taxes & charges • Protected Areas • Investment in natural capital (restoration et al) Transforming our approach to http://www.teebweb.org/ natural capital
  8. 8. Evidence base - Assessing values and actionsAssessments can identify where ecosystems can provide goods and services atlower cost than by man-made technological alternatives >> significant savings• USA-NY: Catskills-Delaware watershed for NY: PES/working with nature saves money (~5US$bn)• New Zealand: Te Papanui Park - water supply to hydropower, Dunedin city, farmers (~$136m)• Mexico: PSAH to forest owners, aquifer recharge, water quality, deforestation, poverty (~US$303m)• France & Belgium: Priv. Sector: Vittel (Mineral water) Bionade (soft drink) PES for water quality• Venezuela: PA helps avoid potential replacement costs of hydro dams (~US$90-$134m over 30yr)• Vietnam restoring/investing in Mangroves - cheaper than dyke maintenance (~US$: 1m to 7m/yr)• South Africa: WfW public PES to address IAS, avoids costs and provides jobs (~20,000; 52%♀)• Germany : peatland restoration: avoidance cost of CO2 ~ 8 to 12 €/t CO2 (0-4 alt. land use)• Belgium: Schelde flood control: 14 year payback for option using green infrastructures(ecosystem restoration); 41 years for traditional man-made infrastructure (storm surge barrier) Assessing where working with nature saves money for public (city, region, national), private sector, communities and citizens & who can make it happen can be valuable for policy makingSources: various. Mainly in TEEB for National and International Policy Makers, TEEB for local and regional policy and TEEB ca ses
  9. 9. Evidence base for decision making Economic assessments can help decision making :  By adding to the evidence base – helping understand trade-offs in decision making, winners and losers across stakeholders, time and location.  Inform and encourage decisions and support ambition : where additional evidence (e.g. on costs of policy inaction) underlines urgency of action.  Facilitate political buy-in / reduce opposition: by presenting clear economic insights  Encourage synergies and good governance: by underlining where actions in different policy domains support (or run counter) others’ objectives  Help in instrument design, implementation and enforcement: e.g. in PES/REDD+ schemes to define incentive and non-compliance response.
  10. 10. IPBES & contributing to the evidence Links with other processes and options over time WAVES and SEEA National TEEBs & support for development ‘coordination M orbit’Values ofnature Values of M nonM nature nonM Values of M Regional CBD: ESS value & nature nonM Assessments accounting 2015? 2018? Global Core IPBES Assessment Thematic Climate Land degradation Thematic Assessments adaptation & Thematic & desertification Assessments REDD+ Assessments assessments assessments UNFCCC / UNCCD
  11. 11. Summary• Assessing the value of nature improves the evidence base for decisions• Qualitative, quantitative, spatial and monetary analysis each have a role• Range of tools available, sometimes alternative, sometimes complementary• Has proven to be useful for investment decisions, permit decisions, encouraging support (political and public) for action, helped in instrument choice, design, political and legal launch and implementation. The whole picture of benefits and costs need to be appreciated – the here and now, the over there and over time, the private and public …is this enough to work out what to do? …always better to look at the whole board …and engage all the key players Investing in the evidence base important for decision making: IPBES and affiliated regional or country bodies, are new players that have the potential to play an important role.
  12. 12. Thank you TEEB Reports available on http://www.teebweb.org/ See also www.teeb4me.com Patrick ten Brink ptenbrink@ieep.euIEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment. www.ieep.eu See also IEEP’s award winning Manual of European Environmental Policy http://www.ieep.eu/the-manual/introduction/ http://www.europeanenvironmentalpolicy.eu/
  13. 13. CBD COP 10 Nagoya: Strategic Plan 2011-20 5 strategic goals & 20 headline targets ….extracts…Strategic goal A: Address the underlying causes of biodiversity loss by mainstreaming biodiversity across government and societyTarget 1:… people aware of the values of biodiversity …..Target 2: …. biodiversity values have been integrated ….into strategies… planning … national accounting…. reporting systems.Strategic goal D: Enhance the benefits to all from biodiversity and ecosystem servicesTarget 14: … ecosystems that provide essential services…. restored and safeguardedTarget 15: … contribution of biodiversity to carbon stocks has been enhanced…Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization; Evidence on values of biodiversity can also support many other targets e.g. On sustainable fisheries, agriculture, forestry, sustainable use …
  14. 14. EU Biodiversity Strategy DG Env Presentation at ´‘Investing in Peattlands‘ Sterling 2011. ActionsAction 5: Improve Knowledge of ecosystems and their services in the EU. Member Sates,with the assistance of the Commission, will map and assess the state of ecosystems and theirservices in their national territory by 2014, assess the economic value of such services, and promotethe integration of these values into accounting and reporting systems at EU and national level by 2020
  15. 15. Economic evidence base for policy making- usefulareas of focus. IPBES activities/products ?CBD links: thematic assessments on• Fisheries and marine environment: resource efficiency, ESS, community impacts, limits of substitution.• Coral reefs: Critical natural capital at threat: BD, services, communities• Assessment/evaluation of how ESS values assessed and taken into account - in different socio-economic contexts. E.g. 2015 to give time for 2020UNFCCC links: thematic assessments on• Ecosystem based adaptation to climate change: major need to clarify areas, cost savings, ESS benefits and wider community benefits• REDD+ Mapping/Assessment of wider ESS and community benefits/lossesUNCCD links: thematic assessments on• Land degradation, desertification, loss of services, impacts on poverty & MDGs, need for investment in natural capital.Wider Sector integration studies/assessments• Financial services: insurance, rating agencies, ethical investment funds; assessment, capacity building re risk assessment, management tools etc.• Water: ecosystem based clean water provision, water stress, health, crops, savings• Agriculture & pollination: specific thematic assessment. Food security, sector resilience
  16. 16. Biodiversity ‘values’: What can you know; wish to know To get the full picture one needs mix of monetary, quantitative, spatial, and qualitative information / understanding Valuation tends to build on physical assessment Available Press Policy information interest needs Quantitative The Evidence Base / qualitative and Demand MonetaryIPBES has potential to help with both

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