TEEB by Patrick ten Brink of IEEP Globe Forum 13 June 2009 Final Sent
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TEEB by Patrick ten Brink of IEEP Globe Forum 13 June 2009 Final Sent

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Presntation on TEEB by Patrick ten Brink of IEEP at the Globe Forum in Rome on the 13 June 2009

Presntation on TEEB by Patrick ten Brink of IEEP at the Globe Forum in Rome on the 13 June 2009

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TEEB by Patrick ten Brink of IEEP Globe Forum 13 June 2009 Final Sent TEEB by Patrick ten Brink of IEEP Globe Forum 13 June 2009 Final Sent Presentation Transcript

  • The Economics of Ecosystems and Biodiversity (TEEB) The Economics of Ecosystems and Biodiversity (TEEB) Measuring Natural Capital TEEB approach and Working insights Rome G8+5 Legislators Forum Italian Chamber of Deputies 12th- 13th June 2009 An initiative of the G8+5, BMU (D) & the Patrick ten Brink European Commission TEEB D1 Co-ordinator Supported by Defra (UK), UNEP, OECD, CBD Secretariat, VROM, EEA, UFZ, IUCN, Univ. Liverpool, IEEP & experts from across the world Building on and borrowing from the work & insights of the wider TEEB team and contributors of supporting studies, call for evidence and other contributions 9/4/2009 1
  • TEEB overview 1. TEEB genesis, aims and ambitions 2. Approach to valuing natural capital 3. From value to policy tools Incentive schemes Subsidies Protected areas & other investment in green infrastructure Regulation Policy instrument mixes 4. From value to priorities
  • TEEB’s Goals 1. Demonstrate the value to the economy, to society/individuals and wider environment – what we have & what we risk losing. 2. Underline the urgency of action, benefits of action (opportunities) 3. Show how we (can) take into account the value of ecosystems and biodiversity in our decisions and choices, 4. Identify / support solutions New instruments, Support wider use of good existing tools (eg in other countries), Help make existing tools realise their potential; Help provide information to reform “bad ones” 5. Address the needs of policy-makers, local administrators, business and citizens (the “end-users”) Source: adapted from Pavan Sukhdev
  • The Process for TEEB Phase 2 2008 2009 2010 Nagoya, Japan Inputs from Science and Economics Scenarios and models for exploring experts through the Call for Evidence, future trends in biodiversity and participation in Working Groups, etc ecosystem services - CEC CBD COP9 - Bonn, Germany Science & Economics Foundations D0 Update / Additional analysis D0 End-User Outreach TEEB for Policy-Makers D1 D1 D2 TEEB for Administrators D2 D3 D4 TEEB for Business D3 CBD COP10 TEEB for Citizens/Consumers D4 Continuous involvement of End-User Groups 9/4/2009 4
  • The D1 (Policy Level) TEEB Report: D1 (The “wireframe”) turned into questions Ch Questions being addressed 1 Why is there Urgency for Action to address biodiversity loss? 2 Who can take up the biodiversity challenge; what tools can help ? 3 What should we measure to ensure a proper stewardship of our natural capital? 4 What tools work, what needs and opportunities are there for their use? 5 What policy instruments can help & how to make markets give the right signals? 6 Can we save money and avoid the destruction of biodiversity? 7 What instruments and market signals can help ensure that the polluter pays ? 8 What role do Protected Areas play and how to we help them meet their promise? 9 What package of instruments and responses do we need? 9/4/2009 5
  • TEEB overview 1. TEEB genesis, aims and ambitions 2. Approach to valuing natural capital 3. From value to policy tools Incentive schemes Subsidies Protected areas & other investment in green infrastructure Regulation Policy instrument mixes 4. From value to priorities
  • Ecosystem services public goods & difficulty of valuation Spiritual & religious ? Economic Aesthetic ? Valuation Flood/Fire ? Difficult or regulation impossible Disease regulation ? Water purification ? Climate regulation ? Freshwater ? Genetic resources ? Recreation & ? tourism Fiber ? Easy Food ? Economic Value ($) Source: Jeffrey A. McNeely, Chief Scientist, IUCN-The World Conservation Union from presentaion: FUNDING MECHANISMS FOR BIODIVERSITY. 27 July 2006 Inter-American Development Bank Workshop on Biodiversity Loss
  • How does the value of ecosystems and biodiversity help policy makers? Economic values provide information / evidence to demonstrate: Importance/Value (and costs) of maintaining natural capital Opportunities from investments in natural capital Cost of degradation and loss – past and future Cost of risks & “what if” scenarios Value of early action Value of policy synergies Understanding social implications Needs for & design of economic instruments Note one does not always need extensive valuation to reach the necessary understanding or progress with instruments. For example for Payments for Environmental Services (PES), negotiation can also do the job.
  • Importance/Value (and costs) of maintaining natural capital Value of services often taken for granted: Water supply/regulation: Catskills Mountains $2bn natural capital solution vs $7bn technological solution (pre-treatment plant) Pollination: 30% of 1,500 crop plant species depend on bee and other insect pollination. Value of bees for pollination ~ Eur29 billion to EUR 70 billion worldwide per annum. Fish stock existence/productivity: Global market $80bn, 1.2 billion people reliant, stock collapses have major (local/national) implications Flood control services of floodplain: eg FR River Bassee floodplain: ~ 91.5 – 305 million EUR / year
  • Importance/Value (and costs) of maintaining natural capital Value of services: existing, growing and new markets Existing markets :pharmaceuticals : ~ US$640 billion a year, of which around 25 to 50 percent is derived from genetic resources. Agricultural seeds: ~$30bn Growing markets: biotrade: natural cosmetics ~ $7 billion in 2008; Organic agriculture ~ €30.8 billion in 2006; FSC certified forests ~ 7% of the world’s productive forest, in 81 countries, with a value ~ US$20 billion Ecotourism: again $billion industry, growing fast, with significant employment Biomimicry: growing part of architecture, engineering etc
  • Opportunities from investments in natural capital Cost effective measures - eg water regulation (Catskills), carbon storage – maintenance of peat lands, protected areas, prevention / early response to invasive alien species (IAS), biomimicry (boxfish inspired car, 30% more efficient) Benefits of restoration eg wetlands and flood control; mangroves, fish breeding groups Benefits of protected areas eg multiple: food variety reservoirs for future food security Benefits of other green infrastructure eg city climate change adaptation (cooling from green cover)
  • Biodiversity loss From 1700 to 2050 73% 62% Richer Ecosystems Poorer Ecosystems Source: building on Ben ten Brink (MNP) presentation at the Workshop: The Economics of the Global Loss of Biological Diversity 5-6 March 2008, Brussels, Belgium.
  • (1) Economic size of losses (COPI 1 study) A : 50-year impact of inaction or B : Natural Capital Loss every year ‘business as usual’ Source: Braat & ten Brink (Eds., 2008): Cost of Policy Inaction Welfare losses equivalent Natural Capital Lost : Annually to 7 % of GDP, horizon 2050 EUR 1.35 x 1012 to 3.10 x 1012 (@ 4% (@ 1% Discount Rate) Discount Rate) 3. TEEB Phase 1 results
  • Measuring What we Manage: Towards Proper Stewardship of Our Natural Capital A. Do we have a measurement problem? B. The way we currently measure biodiversity and ecosystem services C. Better macro economic and societal indicators D. GDP of the Poor E. More Comprehensive National Income Accounting Range of opportunities to take natural capital into account • Biodiversity indicators: needs for measurement/monitoring, modeling and targets. • Ecosystem services indicators important for instrument design (PES, REDD) • Ecological footprints valuable for policy targets and communication • Critical importance of ecosystem services to the poor – refocus poverty policy? • National policy makers with more comprehensive national income accounts
  • TEEB overview 1. TEEB genesis, aims and ambitions 2. Approach to valuing natural capital 3. From value to policy tools Incentive schemes Subsidies Protected areas & other investment in green infrastructure Regulation Policy instrument mixes 4. From value to priorities
  • Incentive Schemes: Rewarding the (unrecognised) value of ecosystems and biodiversity Payments for Environmental Services (PES) – potential to build on experiences of water purification, carbon storage et al. Economics underlines the potential. Need for upfront ecosystem service assessments, conditionality, participation, monitoring & governance. PES-REDD – potentially high value new instrument offering synergies between biodiversity and climate change (see later speaker) Access and Benefits Sharing (ABS) – negotiations Other compensation measures (tax breaks, transfers) and direct payments to secure benefits Markets (organic, biotrade, natural cosmetics, FSC, MSC etc) – being “mainstreamed”. Need for support for certification of producers in 3rd countries. Green public procurement – making use of market demand (PP 14% of EU GDP). A tool that can help green the product cycle – leading counties to show the way.
  • Subsidies: Aligning Today’s Subsidies to Tomorrow’s Priorities Sector OECD/ world Agriculture OECD: €204 bn a year (in 2005-7) (OECD 2008) Biofuels OECD: €10-12 bn in 2006 (OECD 2008) Fisheries World: USD 15-35 billion (UNEP, 2008) Energy IEA: $310 billion in the 20 largest non-OECD countries in 2007 (IEA, 2008) Transport World: €179-230 bn/year – of which EHS €130-175 bn (EEA) Water OECD: €33.6 bn (Myers and Kent) – incl. irrigation 40 % 40 % 20 % 1950 2010 We are fishing down the foodweb – D. Pauly (UBC, Canada) 9/4/2009 17
  • TEEB overview 1. TEEB genesis, aims and ambitions 2. Approach to valuing natural capital 3. From value to policy tools Incentive schemes Subsidies Protected areas & other investment in green infrastructure Regulation Policy instrument mixes 4. From value to priorities
  • TEEB for Policy Makers Some working recommendations The North has a major responsibility to act and provide resources; the South cannot escape the responsibility of protecting forest and other resources but cannot do so alone. A shared project. Institutions must rise to this. We have limited time; 10 years(?) to reverse trends; Combined strategy / policy synergies - biodiversity & climate (+water, food); Public investment on large scale (PAs, restoration, green infrastructure) New and better working markets are needed and better economic signals Regulation still critical part of toolkit to reduce pressures Subsidy reform – critical to save money, reduce impacts Priority areas: Fisheries, Forestry, Agriculture, Biomass, Coral reefs 9/4/2009 19
  • Making the markets signals work better The cost and price signals in the economy need to reflect the benefits of ecosystems and biodiversity. There are Opportunities for payments to reward benefits of ecosystems and biodiversity (PES, REDD, Markets, GPP) Opportunities and needs for reforming subsidies so that they reflect tomorrow’s priorities (fisheries, agriculture, bio fuels et al) Needs for a range of measures to make the polluters pay (legislation, restoration, liability, compensation) Engage the power of the government, consumers and the supply chain (green public procurement, certification) 9/4/2009 20
  • Solutions – a Toolkit; which portfolio of instruments will work for you? Policy Instruments New instruments (eg REDD) Support wider use of good existing tools Market based: eg PES, resource charges, fine/compensation, markets, GPP Regulation: waste water treatment, air pollution control, standards et al Help make existing tools realise their potential (eg EIA, SEAs, PAs); Help provide information to reform “bad ones” (eg harmful subsidy reform) Information: Better information to measure to Manage Natural capital. From ecosystem indicators & footprints, to valuation of natural capital, to more encompassing macro indicators, GDP of the poor, to more comprehensive national accounts New investments (eg green infrastructure, restoration, PAs, green new deal investments) 9/4/2009 21
  • Instruments and measures Contributions to natural capital Opportunities/benefits of ESS Past No net loss from 2009 level / Investment in natural capital +ve degradation halting biodiversity loss change Subsidy reform ` Better governance/implementation of law measurement & evidence-based policies Alternative natural capital Economic measures: PES, REDD, fines Development path Markets: certification & GPP Other green infrastructure Predicted future loss of natural capital (schematic) Restoration Investment in natural capital: PAs Avoided loss eg by regulation 2009 2050
  • Thank You What measures do you see as offering the greatest potential? Practical Roadmap? & looking forward to your questions and feedback Patrick ten Brink ptenbrink@ieep.eu not-for- IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment in Europe 9/4/2009 23
  • Thank You! • TEEB for Policy Makers: ptenbrink@ieep.eu • Further information and Call for Evidence: www.teebweb.info • Contact Scientific Coordination: teeb@ufz.de • Further contributors: 24
  • Annex Supporting / backup slides 25
  • TEEB’s Genesis and progress “Potsdam Initiative – Biological Diversity 2010” 1) The economic significance of the global loss of biological diversity TEEB Interim Report @ CBD COP-9, Bonn, May 2008 Strömstad 7-9 September
  • Ecosystem Services - The Millennium Ecosystem framework Source: MEA
  • Mapping changes : from Biodiversity & Ecosystems to Economic Values (Human) Drivers Change Change in in Change Economic Natural Land use, in Change Value Drivers Climate, Biodiversity Pollution, In Water use Ecosystem Services Policies Change Nat. Reg. in Loc. Int. Ecosystem functions Source: L. Braat & P. ten Brink (eds.)
  • The link between biodiversity, ecosystems, their services, and benefits to mankind…& economics Maintenance and restoration costs Natural Capital Also investments in green infrastructure – PAs, watersheds, urban environment. Biophysical Economic and social values – some market values or to Structure of be market values, some process risk, some non market eg 1: woodland Function values habitat eg 1: slow eg 2: net primary passage of water productivity) Service eg 2: biomass eg 1: flood prevention eg 2: harvestable Benefit (value) products eg 1: avoided costs of eg 3: carbon impacts storage eg 2: for more woodland harvestable products eg3: value of carbon capture and storage Source: Building on presentation by Jean-Louis Weber (EEA) presentation at the Workshop: The Economics of the Global Loss of Biological Diversity 5-6 March 2008, Brussels, Belgium
  • Measuring Benefits of Ecosystem services Answers are needed at all levels Non-Specified Monetary: eg avoided water purification Benefits costs, avoided flood damage, tourist value, value of medicines / Increasing up the pharmaceuticals from natural products benefits Monetary Value pyramid Quantitative: eg level of service, number people benefiting from wood from forests, # of avoided The Benefits Quantitative Review of Effects health impacts; number of visitors Pyramid Type of benefits; health benefits from clean air, social benefits Qualitative Review from recreation, income from products, security, wellbeing. Knowledge gaps Full range of ecosystem services from biodiversity The “known- unknowns” and “unknown-unknowns” Source: P. ten Brink: presentation at March 2008 workshop Review of Economics of Biodiversity Loss, Brussels
  • The D1 (Policy Level) TEEB Report: D1 Structuring the issues The “wireframe” Ch Title 1 The Biodiversity Policy Challenge 2 Policy Responses: Actors and instruments 3 Measuring to Manage our Natural Capital 4 Evaluation Tools that (can) Integrate the Value of Biodiversity 5 Policies to Reward (unrecognised) Benefits of Ecosystems and Biodiversity 6 Aligning Today’s Subsidies to Tomorrow’s Priorities 7 Policies to Address the Losses of Biodiversity 8 Protecting areas, ecosystems, habitats and species 9 Using the whole Policy Toolkit to address the challenge Structure and content being developed continuously taking into account insights & suggestions – detailed wireframe on http://ec.europa.eu/environment/nature/biodiversity/economics/pdf/d1.pdf 9/4/2009 31
  • Policy instrument mixes – an example Oil Spills: following Exxon Valdez – policy response: a combination of instruments: • Technical Regulation: requirement for double hulled ships - 79% of all oil tankers criss-crossing the globe are now of double-hull design • Regulatory constraints: single hulled ships not allowed in EU waters. • Economic incentives: responsibility for clean up fines and compensation payment for damage - The cleanup effort cost the company $2.5 billion alone, and Exxon was forced to pay out $1.1 billion in various settlements. A 1994 federal jury also fined Exxon an additional $5 billion for its "recklessness," • Criminal charges: risk of charges for negligence, jail sentences Policy response: a needed response to an unfortunate “window of opportunity” 9/4/2009 32