PtB TEEB for Policy Makers Webinar/Earthcast 7 april 2011
The Economics of Ecosystems and Biodiversity (TEEB) in National and International Policy Making Patrick ten Brink TEEB for Policy Makers Co-ordinator Head of Brussels Office Institute for European Environmental Policy (IEEP) Earthscan – Webinar 7 April 2011 1
TEEB’s Genesis, Aims and progress G8+5 “Potsdam Initiative – Biological Diversity 2010” Potsdam 1) The economic significance of the global loss of biological diversity Importance of recognising, demonstrating & responding to values of nature Engagement: ~500 authors, reviewers & cases from across the globe TEEB End User Reports Brussels Interim Climate 2009, London 2010 Report Issues Update TEEB TEEB CBD COP11 Synthesis Books Delhi National TEEBEcol./Env. WorkEconomicsliterature Sectoral CBD COP 9 Input to TEEB Bonn 2008 UNFCCC 2009 work India, Brazil, Belgium, Et al. Japan & South Africa Sept. 2010 Rio+20 Brazil BD COP 10 Nagoya, Oct 2010
UN Convention on Biological Diversity (CBD)defines biodiversity as “the web of life”• Variety of species - plants, animals and microorganisms• Genetic differences within each species - e.g. varieties of crops and breeds of livestock• Variety of ecosystems - e.g. forests, wetlands, mountains, deserts, lakes, rivers, coastal marine, agricultural et al
Biodiversity and its value is about• Diversity/variety – e.g. pharmaceuticals, food security; andE.g. genetic resources: > than• Quantity – e.g. carbon storage, fish stock, flood control, timber, water retention;• E.g. for fish production: > than• Quality – e.g landscape and tourism, ecosystems and water filtration Building on Balmford and Rodriguez et al (2009) Scoping the Science
Biodiversity lossBiodiversity loss leads to loss of natural wealth, ecosystem services, benefits to UNEP (2011) UNEP Yearbookeconomy and society/wellbeing (see TEEB (2009,2010,2011) MEA (2005)
The Pathway from Ecosystem Structure and processes to human well-being
Coral Reefs: Critical natural asset in danger• Coral Reef Services (per hectare) can have very high values• Global valuation studies place the value as high as US$ 172 billion per annum• Over 500 million people are dependent on the services from reefs• however…. Coral Reefs are an ecosystem at the threshold of irreversibility Need: reduce pressure on coral reefs, MPAs et al & encourage GHG emissions reductions -450ppm and 2 degrees already accepting major losses
Global Fish stocks: an overexploited, underperforming natural asset at risk of collapseSource: adapted from FAO 2005 Half of wild marine fisheries are fully exploited; a further quarter already over-exploited At risk : $ 80-100 billion income from the sector est. 27 million jobs short term vs long term over a billion people rely on fish as their main or sole source of animal protein
Valuation and policy making:from valuing natural assets to decisions “I believe that the great part of miseries of mankind are brought upon them by falseestimates they have made of the value of things.” Benjamin Franklin, 1706-1790
Valuation and policy making: from valuing natural assets to decisions “There is a renaissance underway, in which people are waking up to the tremendous values of natural capital and devising ingenious ways of incorporating these values into major resource decisions.” Gretchen Daily, Stanford University Book announcement: The Economics of Ecosystems and Biodiversity in National and International Policy Making nowTEEB Reports: http://www.teebweb.org/ available from EarthscanSummaries (in range of languages) and chapters
TEEB for Policy Makers Book The Global Biodiversity Crisis • Nature’s assets & biodiversity loss • Economic values and loss • Social dimension Measuring what we manage • Indicators • Accounts • Valuation • Assessment Available Solutions • Markets/pricing/incentives • Regulation: standards • Regulation: planning, protected areas • Investment (man-made & natural capital) Transforming our approach tohttp://www.teebweb.org/ natural capital
Multiple benefits from ecosystemsProvisioning services Many services from the same resource• Food, fibre and fuel• Water provision• Genetic resourcesRegulating Services• Climate /climate change regulation• Water and waste purification• Air purification• Erosion control• Natural hazards mitigation• Pollination• Biological controlCultural Services• Aesthetics, Landscape value, recreation and tourism• Cultural values and inspirational services Important to appreciate the whole set of eco-systemSupporting Services services & take into account in decisions• Soil formation Not only after they have been lost and oft costly substitutes+ Resilience- eg to climate change needed
Evidence base - Assessing values and actionsAssessing the value of working with natural capital has helped determine whereecosystems can provide goods and services at lower cost than by man-madetechnological alternatives and where they can lead to 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) 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)Sources: various. Mainly in TEEB for National and International Policy Makers, TEEB for local and regional policy and TEEB ca ses
Beneficiaries: Public sector (e.g. water – national & municipalities), Public goods (e.g forests, biodiversity, climate), Private sector (e.g. water, beer, energy, agriculture), Citizens (e.g. water quantity, quality, price, security) and Communities (e.g. payments, livelihoods/jobs, ecological assets & “GDP of the poor”)Decisions: conservation / restoration investment, PES / public programmes, protected areasPolicy synergies: Water – availability/quantity, quality, Climate - mitigation (green carbon) and (ecosystem based) adaptation to CC Job creation and livelihoods Security - natural hazards (e.g. flooding), water, energy Finances - public sector budget savings (Nat. gov’t, public services, municipalities) Industrial policy – energy, water, forestry, agriculture... Consumer affordability Poverty and in each case : biodiversity.
Global Issues, Regional solutions: Assessing value of nature-based CC mitigation Mecklenburg-Vorpommern project 2000-2008 • Restoration of 30,000 ha (10%) • Emission savings of up to 300,000 t CO2-eq. • CO2 Avoidance cost of 8 to 12 € / t CO2 • if alternative land use options are realized (extensive grazing, reed production or alder forest) costs decrease to 0 to 4 € / t CO2 Restored peatland in Trebeltal 2007 Foto: D. Zak, http://www.fv-berlin.deSource: Federal Environmental Agency 2007; MLUV MV 2009; Schäfer 2009
Cities & assessing Multiple Benefits – City of TorontoEcosystem Annual ValueValuation Benefits (2005, CDN $)Carbon Values 366 millionAir Protection Values 69 millionWatershed Values 409 millionPollination Values 360 millionBiodiversity Value 98 millionRecreation Value 95 millionAgricultural Land 329 millionValueSource: Wilson, S. J. (2008)Map: http://greenbeltalliance.ca/images/Greebelt_2_update.jpg
TEEB for Policy Makers – Available Solutions torespond to the value of nature • Rewarding benefits • Payments for ecosystem services (PES) • REDD+ • Tax incentives, and tax transfers • Markets and certification/labelling • Green public procurement (GPP) • Avoiding damage • Pricing – full cost recovery, pollution charges, liability • Regulation: standards, bans • Protecting assets • Spatial planning • Protected areas – designation, management • Investing in natural capital • Restoration, new investments http://www.teebweb.org/
Payments for Ecosystem Services Hydrological services: Aquifer recharge; Improved surface water quality, reduce (PES) frequency & damage from flooding`Instrument: Mexico PSAH: PES to forest owners to preserve forest: manage & not convert forestResultDeforestation rate fell from 1.6 % to 0.6 %.18.3 thousand hectares of avoided deforestationAvoided GHG emissions ~ 3.2 million tCO2e Reduce Deforestation Address Poverty Munoz 2010); Muñoz-Piña et al. 2008; Muñoz-Piña et al. 2007.
Protected areas & benefits • 1/3 of the world’s 100 largest cities draw a large part of their drinking water from P As. • P & forests purify water for As NY city = US$ 6 billion (total) savings in water treatment costs • Venezuela’s national P system A prevents sedimentation that would reduce farm earnings by around US$ 3.5 million/year.Dudley and Stolton 2003, Pabon-Zamora et al. 2009
Investment in ecological infrastructure: multiple benefits• Afforestation: carbon store+ reduced risk of soil erosion & landslides• Wetlands and forests and reduced risk of flooding impacts• Mangroves and coastal erosion and natural hazards• Restore Forests, lakes and wetlands to address water scarcity• Coral reefs as fish nurseries for fisheries productivity / food security• PAs & connectivity to facilitate resilience of ecosystems and speciesPotential for lower cost adaption to climate change and policy synergies Adaptation to climate change will receive hundreds of US$ billions in coming years/decades. Critically important that this be cost-effective. Support for identifying where natural capital solutions are appropriate & invest.
Eroding natural capital base & tools for an alternative development path Opportunities/benefits of ESS No net loss from 2010 level Past loss/ Investment in natural capital +vedegradation Halting biodiversity loss change ` Regulation Better governance Economic signals : PES, REDD, ABS (to reward benefits) Charges, taxes, fines (to avoid degradation/damage: Alternative natural capital Subsidy reform (right signals for policy) Sustainable consumption (eg reduced meat) Development path Markets, certification/logos & GPP Agricultural innovation Investment in natural capital: green infrastructure Predicted future loss of natural capital Restoration (schematic) – with no additional policy action PAs 2010 2050
TEEB quantitative assessment -50%Ben ten Brink et al (2010) Expanding PAs has a role, as does reducing deforestation. Changing diet the most important. Biofuels can be counterproductive. Combined these issues are not enough – need full set of instruments and integration across sectors
SummaryMaking Natures Values Visible: improved evidence base for improved governance, awareness for …is this enough to work out what to do? action – government, business, peopleMeasuring better to manage better: from indicators to accountsChanging the incentives: taxes, charges, subsidy reform, marketsProtected areas: biodiversity riches that can offer value for moneyEcological infrastructure and benefits: climate change and beyond …always better to look atNatural capital and poverty reduction: the whole board investment for synergies And engage the full set ofMainstream the economics of nature: across players. sectors, across policies, seek synergies across disciplines.
TEEB Implementation – some post Nagoya steps TEEB Country & Regional Studies Rio+20 TEEB Brazil, TEEB India, TEEB NL, TEEB Nordics .. CBD COP11 TEEB Integration Support for business and biodiversity (indicators, valuation reporting) RAMSAR TEEB for Agriculture; TEEB & Water …. COP 2012 Initiatives building on TEEB recommendations SEEA 2012 World Bank/UNEP et al 5+5 initiative on National accounts … Science / Economics evidence base Quantitative assessment, valuation, Green infrastructure etc Parallel track: Similar type work independent of TEEBMany initiatives that focus on (responding to) the value of nature by range of actors
Thank you TEEB Reports available on http://www.teebweb.org/ The Economics of Ecosystems and Biodiversity in National and International Policy Making and other TEEB books available on Earthscan and follow us on http://twitter.com/TEEB4ME & http://www.facebook.com/TEEB4me Patrick ten Brink, firstname.lastname@example.orgIEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment. www.ieep.eu The Manual of European Environmental Policy http://www.europeanenvironmentalpolicy.eu/