Nature and its role in the Transition to a Green Economy A contribution to Rio + 20 Patrick ten Brink TEEB for National and International Policy Makers Co-ordinator Head of Brussels Office Institute for European Environmental Policy (IEEP) TEEB Day at the ISEE 2012 Conference Windsor Guanabara Palace Hotel, Conference Annex, Velasquez Hall. Rio de Janeiro, Brazil, Monday 18th June 3.15-4.45 pm
Nature and its role in the Transition to a Green EconomyPresentation overview Nature and the Green Economy Project 1. Nature in a green economy 2. Nature , well-being and development 3. The multiple benefits of valuing nature 4. Challenges and Commitments 5. Achieving the transition to a green economy Next Steps & Panel questions
TEEB’s Genesis and Developments TEEB End User Reports Brussels Nature and GE Interim Climate TEEB W&W 2009, London 2010 Report Issues Update `TEEB Oceans TEEB TEEB Synthesis BooksEcol./Env.Economics CBD COP 9 Input toliterature Bonn 2008 UNFCCC 2009 India, Brazil, Belgium, Japan & South Africa TEEB studies Sept. 2010 The Netherlands, Germany, Nordics, BD COP 10 Norway, India, Brazil Nagoya, Oct 2010
Nature and the Transition to a Green Economy• Need for a transition towards a “green” economy that promotes social equity, poverty eradication and human well-being.• Increasing appreciation of biodiversity and ecosystem services and the value of nature.• Healthy and resilient ecosystems are necessary for long-term socio-economic development• Efforts to build a green economy should be based on an appreciation of the values of nature.
1. Nature in a Green Economy• Nature is essential to the health and growth of economies, societies and individuals, through the provision of ecosystem services.• Nature is more than “natural capital” - but, NC is a useful metaphor to communicate the value of nature to people and economy• Nature is also more than the flow of ecosystem services - however, an understanding of the ecosystem services can offer an important additional evidence base to inform decisions and motivate action.
What is a green economy? “one that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive.” (UNEP Green Economy Report)
Nature Capital’s contribution to the Economy THE FOUR CAPITALS INTERMEDIATE CONSUMPTION FINAL CONSUMPTION SECTORS OF THE ECONOMY MAN MADE CAPITA`L (examples) Manufactured, Fixed capital : factories, - Agriculture, hunting, forestry & fishing DEMAND power plant, transport and environmental - Food products, beverages & tobacco Domestic & Exports infrastructures, buildings & - Textiles, textile products & leather Financial capital: money and equivalents - Wood and wood products - Pulp, paper & paper products OUTPUTS - Rubber & plastics products PUBLIC SECTOR INPUTS HUMAN CAPITAL - Research & development Learning and skills, health, wellbeing - Mining & quarrying and happiness - Hotels & restaurants - Chemicals - Pharmaceuticals PRIVATE SECTOR - Recycling - Manufacturing SOCIAL CAPITAL - Electricity - Water supply Social cohesion, trust, civic society, - Real estate - Construction judiciary, education, health services & - Education - Finance & insurance HOUSEHOLDS social services Outputs from one sector can be intermediate inputs to another NATURAL CAPITAL DIRECT FLOW OF SERVICES - BENEFITS Biodiversity (genes, species, habitats, ecosystems) and other natural resources (e.g. water, air & climate, soil) IMPACTS from production, use, investment INVESTMENTSource: adapted from ten Brink et al (2011) in TEEB (2011a)
Key sectors include:• Agriculture• Fisheries• Water Primarily investing in natural capital• Forests• Energy• Manufacturing Primarily investing in energy and resource• Buildings efficiency• Transport Also working with nature can lead to cost-effective• Tourism solutions and multiple benefits• Waste management All sectors important – whether due to their+ Cities dependency/benefits from nature’s services, their impacts on the environment, or their opportunities for action.Source: UNEP Green Economy Report Also pharmaceuticals, food and drink, education, health...
2. Nature , well-being and developmentHuman and societal well-being depends on nature.Where natural capital is degraded and lost, there is a risk that communities are undermined and humans suffer.Efforts to conserve, restore and sustainably use natural capital can • improve human well-being, address poverty, support livelihoods and increase intergenerational equity • increase ecological resilience - a life insurance policy for many communities.Nature contributes to local, regional and national development and prosperity
Working for Water (WfW): SAThe Manalana wetland (near Bushbuckridge, Mpumalanga)• Severely degraded by erosion that threatened to consume the entire system Sources: TEEBCases for TEEB for local and regional policy• WfW public works programme intervened in 2006 to reduce the erosion and improve the wetland’s ability to continue providing its beneficial servicesResults• The value of livelihood benefits from degraded wetland was just 34 % of what could beachieved after investment in ecosystem rehabilitation;• Rehabilitated wetland now contributes provisioning services at a net return of 297EUR/household/year;• Livelihood benefits ~ 182,000 EUR by the rehabilitated wetland; x2 costs• The Manalana wetland acts as a safety net for households. Sources: Pollard et al. 2008; Wunder et al 2008a; http://www.dwaf.gov.za/wfw/ Recognising and demonstrating the values and potential for increased value critically important.
Nature and its role in the Transition to a Green EconomyTanzania - Nihili woodland restoration• Restoration using traditional knowledge.• An increase in the provision of ecosystem services from the woodland (e.g. fuel, fruit, building timber, honey, medicines and fodder)• Time needed to collect fuel wood & non-timber forest products fell by several hours.• The sale of tree products has helped pay for children’s schooling &• More time for education and productive work, thus creating enabling conditions for development (TEEB 2012b).
3. Values of Working with Nature – evidence base• 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) PES & Rochefort (Beer) 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) Critical to assess where working with nature saves money for public (city, region, national), private sector, communities and citizens & who can make it happenSources: various. Mainly in TEEB for National and International Policy Makers, TEEB for local and regional policy and TEEB cases
‘We never know the worth of water til the well is dry’. ‘ English proverb‘Men do not value a good deed unless it brings a reward’ Ovid, B.C. 43 – 18 A.D., Roman Poet
Hydrological services: Aquifer recharge; Improved surface water quality, reduceSolution: Mexico PSAH: PES to frequency & damage from flooding` forest owners to preserve forest: manage & not convert forestResultDeforestation rate fell from 1.6 % to 0.6 %.18.3 thousand hectares of avoided deforestationAvoided GHG emissions ~ 3.2 million tCO2e Reduce Deforestation Address Poverty Investment in good spatially relevant data critical to develop an2010); Muñoz-Piña et al. policy instruments 2007 Munoz evidence base for 2008; Muñoz-Piña et al.
Multiple Objectives : PSAH Mexico AquifersBalance of priorities varied over time A Poverty Water scarcityP WS Deforestation An instrument can evolve and respond to changing needs D Munoz 2010); Muñoz-Piña et al. 2008
4. Challenges• Feeding the 9 billion; Water; Poverty alleviation, Urbanisation, Jobs, Climate change, Financial crisis etc• The rising level of consumption and production will put increasing stress on the planet’s resources and ecosystems – limits, scarcity, price volatility, critical (ecological and social) thresholds...Commitments• Rio Conventions: CBD; UNFCCC and UNCCD• Subsidy reform: Aichi targets, G20, EU, countries• Natural capital Accounts/SEEA: WAVES, SNA/SEEA, Gabarone Declaration• Finance and business: Natural capital declaration and EP&Ls• Science policy interface: IPBES• Proactive investment in natural capital (restoration) : Aichi targets• Sustainable Development : MDGs (poverty, nutrition, education , equity, health, environment)
Over $ 1 trillion per year in Subsidies Sector RegionAgriculture OECD: US$261 billion/year (2006-8) (OECD 2009) Biofuels US, EU and Canada: US$11 billion in 2006 (GSI 2007; OECD 2008b) Energy World: US$557 billion/year in 2008 (IEA 2010) Fisheries World: US$15-35 billion/year (UNEP 2008a)Transport World: US$238-306 bn/yr; EHS ~ US$173–233 bn/yr (Kjellingbro and Skotte 2005) Water World: US$67 bn/year; EHS estimated at US$50 bn/year (Myers &www.teebweb.org Source TEEB for policy Makers - Chapter 6 Kent 2002) Most sensible use of funds? Reform win-wins ? eg budget, climate, energy security, water, biodiversity & social? Need identification of subsidies, assessment of potential benefits of reform
We need an inventory and assessment ofEHS to identify the “good” Source: building on Sumaila and Pauly 2007 still relevant, targeted, effective, positive impacts, few negative effects the “bad” no longer relevant, waste of money, important negative effects the “ugly” badly designed – eg inefficient, badly targeted, potential for negative effects Need to understand which subsidies are which. Where benefits of reform might lie. Develop a road map for EHS Reform.
Tools to support national commitments: UK Subsidy reform Phase 4:Phase 0: Screening of Phase 1: Screening of Phase 2: Potential for Phase 3: Reform Opportunities for sectors / impacts incentives reform scenarios action 5) Does the incentive 9) Are there suitable 2) Are there 13) Is there a window fulfil its objectives reform option(s)? incentives related to of opportunity for and are these still these sectors / reform or can one be valid? + activities? created? Yes + 10) What are the expected costs and Yes 3) Does the incentive 6) Does the incentive benefits (economic, 1) What are the 14) Is there a lead to potential lead to socio- environmental, social)? threats to (potential) policy direct / indirect economic issues? biodiversity, and + champion to drive how do these relate biodiversity impacts? + reform? to key economic (if positive inform Q10) 11) Are there 7) Are there more obstacles to reform? Yes activities / sectors? benign alternatives? Yes: negative impacts + 15) Is there public/ 4) Are these + 12) Is the reform political support to potential impacts 8) Are there understandable, reform or can it be limited by existing pressures to reform? practical and developed? ‘policy filters’? enforceable? NoCan sectors / activities Can options for reform Is the removal or reform Has an incentive been Is the removal orby identified which are or removal be of the incentive timely identified which may be reform of the incentive harmful to identified, and are they & should it be harmful to biodiversity? needed? biodiversity? advisable? prioritised? No Yes No Yes No Yes No Yes No Yes Develop conditions for success Prioritise reform / removal of theNo need to currently take further action – regular review is however advised and plan for future reform incentive harmful to biodiversity
5. Achieving the transition to a green economyKey components and building blocks
The Transition to a Green Economy Current Situation Building Blocks in the Ambitions for the Future Transition to a Green Economy A Green Economy Declining Sustainability in a Brown Economy Improved human well-being and Business-as-Usual social equity, while significantly Approaches Resource over-exploitation & reducing environmental risks and pollution pressures Avoiding Unsustainable Trade- ecological scarcities offs Climate Change + Staying within a ‘safe operating Environmental compliance & space’: using resources within the Biodiversity and natural infrastructure planet’s regenerative capacities & Good governance Good Governance capital loss avoiding critical ecological + thresholds Critical ecological and Active environmental resource thresholds passed management No net loss of biodiversity and or at risk climate change within ‘acceptable’ Active Risk Management limits Resource scarcity and limited + access to a clean Proactive Investment in Natural Sustainability for future environment Capital generations and business: available natural capital and a + clean environment Health impacts and man- made natural disasters Pursuing environmental sustainability Health and livelihoods for citizens An economy that is not Eco-efficiency and communities resource efficient, low carbon + An economy decoupled from and socially inclusive Decoupling via Radical environmental impacts andSource: Patrick ten Brink & Leonardo Innovation & Demand change resource useMazza, own representation
Examples of actions A: Assessment to understand the whole picture – winners/losers, impacts & response in project design and selection B: Investment in water and waste infrastructures C: Flood risk mapping, taxonomy and pathways for invasive species D: Restoration of ecological infrastructure, e.g. wetlands, peatlands, flood plains & Conservation, protected area management E: EHS reform, positive incentives, polluter pays, fiscal reform F: Research and development for new products/applications – pharmaceuticals, biomimicry & Information for Demand changes G: Indicators and Environmental accounts
Building Blocks in the Transition to a Green Economy Business-as-Usual Transitions to green economies Approaches Avoiding Unsustainable Trade- offs Path dependent on national contexts + Environmental compliance & Which combination of building blocks infrastructure are priority will vary over time and + Governance place – though all necessary for theGood Active environmental management transition Active Risk Management + Proactive Investment in Natural Financing the transition challenge Capital + Governance for a green economy Pursuing environmental sustainability Accelerating efforts Eco-efficiency + Decoupling via Radical Innovation & Demand change
Conclusions 1. Nature, in all its diversity, provides a wide range of benefits and values to society and the economy referred to as natural capital. 2. A green economy aims to incorporate these values from ecosystem services and biodiversity into decision-making across all levels of governance. 3. There are both opportunities and risks involved in transitions to green economies in regards to human welfare and development. Transition management is critical for success. 4. Leading by example, cooperation and partnerships essential to achieve the transition. 5. Rio - a window of opportunity , a window of necessity.
Panel questions & discussionQ: What role can nature play in improving wellbeing ofpeople/communities, poverty alleviation and local development? And whatgovernance solutions for mainstreaming (e.g. links of strategies and plans)?Q: How can commitments of working with nature (e.g. CBD NBSAPs) bemainstreamed with and other commitments (e.g. climate change, greeneconomy, development)?Q: Where can we save money via working with nature, and where can weget wider benefits and how can we identify and seize these opportunities?Q: Who can lead the transition to a green economy?
Thank you TEEB Reports available on http://www.teebweb.org/ See also www.teeb4me.com Patrick ten Brink email@example.comIEEP is an independent not for profit institute dedicated to advancing an environmentally sustainable Europe through policy analysis, development and dissemination. For further information see: http://www.ieep.eu Follow us on twitter: IEEP_EU Or PtenBrinkIEEP The new Manual of European Environmental Policy: http://www.europeanenvironmentalpolicy.eu/