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Natural Capital - The New Political Imperative

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Natural Capital - The New Political Imperative

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    Natural Capital - The New Political Imperative Natural Capital - The New Political Imperative Document Transcript

    • Natural capital: The new political imperativeAn interim report prepared for the ‘Parliamentarians and Biodiversity Forum’ at the tenthConference of the Parties to the Convention on Biological Diversity, Nagoya, Japan.October 2010 GLOBE International Commission on Land Use Change and Ecosystems Supported by the Global Environment Facility and the United Nations Environment Programme
    • Natural capital: The new political imperativeAn interim report prepared for the ‘Parliamentariansand Biodiversity Forum’ at the tenth Conference of theParties to the Convention on Biological Diversity,Nagoya, Japan.Prepared as part of the work of the GLOBEInternational Commission on Land Use Change andEcosystems.The GLOBE International Commission on Land UseChange and Ecosystems is supported by the GlobalEnvironment Facility (GEF) and the United Nations (UNEP).Environment Programme (UNEP).This report was prepared by Natasha Pauli (ZSL), ChrisStephens (GLOBE), Alejandro Litovsky (Volans), AnishaGrover (ZSL), Beth Gardiner-Smith (GLOBE), ElizabethClark (ZSL) and Stephanie Reading (GLOBE).For further information, please contact:Natasha Pauli, Scientific Advisor, Zoological Society ofLondon (natasha.pauli@zsl.org)Chris Stephens, Director, GLOBE InternationalCommission on Land Use Change and Ecosystems(chris.stephens@globeinternational.org)All figures quoted in this report are in US dollarsunless otherwise noted.October 2010GLOBE International Secretariat11 Dartmouth StreetWestminsterSW1H 9BNLondon, UKFront cover images:GLOBE Parliamentarians at the GLOBE Forum inCopenhagen, October 2008 © GLOBE International.Rain forest canopy at the Forestry Research InstituteMalaysia. © Mike Norton 2008
    • Table of contentsForeword.............................................................Foreword ............................................................. ii ................................ The Global Legislators Organisation (GLOBE), founded (GLOBE) in 1989, facilitates high level negotiated policySummary of key messages .................................1 messages ................................. positions from leading legislators from across the imperative...... ......2Natural capital: The new political imperative ......2 G8+5 parliaments and from regional dialogues whichWhat is natural capital? ................................................ 2 are informed by business leaders and key international experts. GLOBEs objective is to support nature...... ......4Achieving public policy goals through nature ......4 ambitious political leadership on issues of climate andJobs and the economy .................................................. 4 energy security, land-use change and ecosystems andAgriculture, forests and fisheries.................................. 4 economic and population growth.Energy security .............................................................. 5Defence and security .................................................... 5 www.globeinternational.orgClimate change and water............................................ 5Health and well-being.................................................... 6 The Zoological Society of London (ZSL) a charity (ZSL), world................... ...................7Case studies from around the world ...................7 founded in 1826, is a world renowned centre ofAustralia: Managing the Great Barrier Reef................. 8 excellence for conservation science and appliedBrazil: Tax revenue and ecological criteria.................10 conservation. ZSL’s Mission is to promote and achieveCameroon: Restoration for rural livelihoods ..............12 the worldwide conservation of animals and theirChina: Government incentives at scale......................14 habitats. This is realised by carrying out fieldDenmark: From farmland to National Park................16 conservation and research in 50 countries across theEurope: Managing coastal zones ...............................18 globe and through education and awareness at ourIndonesia: Reducing carbon emissions .....................20 two zoos, ZSL London Zoo and ZSL Whipsnade Zoo, inspiring people to take conservation action.Japan: Legislation on restoration ...............................22Mexico: National payments for ecosystem services..24 www.zsl.orgSouth Africa: Poverty alleviation through restoration 26USA: Marine and coastal restoration at scale............28Insights for legislators on natural capital......... 30 capital......... Volans is part think-tank, part consultancy, part brokerInclude natural capital in national accounts..............30 and part incubator. Based in London and Singapore,Evaluate economic benefits .......................................30 Volans works globally with entrepreneurs, businesses, investors and governments to develop and scaleMobilize political support for natural capital .............30 innovative solutions to financial, social andInvolve local communities ..........................................30 environmental challenges. Our Innovation Lab bringsInvest in green jobs and infrastructure ......................31 together cross-sector partnerships to identify, mapBuild on existing models and mechanisms ...............31 and remove barriers that slow the scaling ofAdvocate for integrated regional planning.................31 innovative solutions to governance, economic, socialUse natural capital for future challenges...................31 and environmental challenges. ......................................................References ...................................................... 32 www.volans.com studies.............Websites and reports on case studies............. 36Acknowledgements..........................................Acknowledgements.......................................... 37 ................................ i
    • ForewordIn 2010, we celebrate the International Year of Examples of successful policies must be addedBiodiversity, culminating in the tenth Conference to this evidence base. This report aims to fill thisof the Parties to the United Nations Convention gap by profiling a set of policies, programmeson Biological Diversity in Nagoya, Japan. Almost and legislation from around the world where thetwenty years after the importance of ecosystems value of natural capital has been incorporatedand biodiversity was recognised at the Earth into decision making. The examples have beenSummit in Rio de Janeiro, we are still losing put forward by legislators from the GLOBEspecies of plants and animals to extinction faster International network, and range from large-than ever before. As we lose species, the scale ‘payment for ecosystem services’integrity of the ecosystems on which we all programmes in Mexico and China, todepend becomes ever more threatened. Today, incentivising conservation through tax revenuesmore than ever, our leaders and in Brazil, to increasing the flow of ecosystemparliamentarians must find new ways to value, services through land restoration in Denmarkrestore, conserve and manage our natural and South Africa, and recognising the economicenvironment, before our very way of life is also contribution of protected areas in Australia.under threat. Each of these examples builds upon a criticalGovernments have begun to realise that the message: environmental policies can helpconservation and restoration of the natural deliver positive benefits to the economy andenvironment can help to achieve major public society, and help achieve short-term,policy goals. The relationship between nature mainstream public policy goals. Byand the economy is now better understood, and demonstrating that economic growth, jobit has been shown that economic growth and creation, energy and food security, healthsustainable environmental management can go benefits, climate change objectives andhand-in-hand. A central aspect in these recent sustainable resource management can bedevelopments is the valuation of natural capital achieved through innovative means that involveand ecosystem services, or in more simple terms, the natural world, this report provides uniqueputting an economic value on the natural insight from GLOBE’s network of legislators onenvironment and the services that nature how to win political support for policies thatprovides to the economy and society. deliver long-term environmental goals.Despite these timely advances, the true value of Currently, the policies profiled in this report arenatural capital is rarely integrated into policy seen as progressive due to their recognition ofmaking processes across government the true value of ecosystem services. We need todepartments. Public works programmes ensure move towards a world where these approachesthat built capital and infrastructure are are second nature to policymakers and wheremaintained and restored at regular intervals to the value of natural capital is recognisedprevent service deterioration and cost blow-outs. throughout decision-making processes.We must now do the same with natural capitaland ecosystem services. Until this happens, thegrowing body of scientific and economicevidence supporting the natural capitalapproach will not achieve the required results ofhalting the degradation of critical ecosystem The Rt Hon. John Gummer, Lord Debenservices and global biodiversity loss. President, GLOBE International ii
    • Summary of key messagesParliamentarians can help develop and guide Messages for legislators on natural capitalpolicies that will ensure better management ofour ecosystems and species. In many cases, Nature is a form of capital that provides tangibleimproved environmental management can also goods and services that benefit people. The realdeliver tangible economic, social and political economic and social value of natural capital isbenefits, as well as meet key public policy goals. ignored or underestimated, resulting in ecosystem degradation and loss of valuableThis report showcases examples from around services (pp. 2-3).the world where legislators have been activelyinvolved in developing and implementing Better management of natural capital can buyprojects and legislation that have demonstrated, political capital given the level of community capital,quantifiable benefits for the environment, the interest in environmental issues, and theeconomy, and society. Examples are drawn from multiple benefits that can be delivered (pp. 2-3).Australia, Brazil, Cameroon, China, Denmark,Indonesia, Japan, Mexico, South Africa, Sweden, Long-term goals for managing natural capital ong-the UK and USA, as nominated by members of can be balanced with short-term policy goals in short-the GLOBE International legislators’ network. key areas such as jobs, health, agriculture, defence, energy and water (pp. 4-6).Parliamentarians and key experts have addedtheir political insights to these case studies, to meet All countries can use natural capital to meetdemonstrate how these innovative and economic, social and environment objectives, objectivesprogressive ideas were developed and through restoration, conservation, and improvedimplemented. In many cases, difficulties were management, if initiatives are well-designed andencountered along the way that had to be thoroughly implemented (pp. 7-29).overcome. In a way, this report could beconsidered as the parliamentarians’ ‘response toTEEB’ (the study on The Economics of political Strong political leadership by individuals andEcosystems and Biodiversity). parties is crucial to the success of the natural capital approach. In many of the case studies, legislators acted to promote, negotiate andThis document is an ‘interim’ report. It will be champion legislation, with strong involvementpresented to and discussed by parliamentarians from the public sector and civil society (p. 30).at the Parliamentarians and Biodiversity Forumon October 25-26, to be held in parallel withnegotiations at CBD COP10, in Nagoya, Japan. At Policies on natural capital are most likely tothis meeting, legislators will add their insights succeed if aligned with other political priorities if priorities,and ideas to those collected here. The final and if they are based on sound scientific andreport, incorporating these additions, will then be economic evidence, developed through widereleased in late 2010. consultation, and regularly reviewed and updated (pp. 30-31).We hope that this report will demonstrate thatlegislators are making a difference towards a Community involvement is a key factor innew, more sustainable world order, and act as successful environmental management. Many ofinspiration for new initiatives. Here, we provide a the case studies involved extensive communityshort summary of some of the key messages involvement, which often helped to increasecontained within this report. participation and political support, allay negative reactions, scale up initiatives, and maximise beneficial outcomes for local people (p. 30). 1
    • Natural capital: The new political imperativeLegislators have the unique responsibility of What is natural capital?looking after the national interest byrepresenting their nation’s people and holding We don’t often think of nature as a form oftheir government to account. As the impacts of capital. However, biodiversity and naturalclimate change begin to hit home, and with the ecosystems provide key goods and services thatloss of species and ecosystem degradation sustain our economy, and the value of theseoccurring at an unprecedented rate, it has services has often been taken for granted.become ever more obvious that sustainable ‘Natural capital’ provides a flow of services thatenvironmental management is a key part of are considered valuable to human society.securing every nation’s future. Legislators have aduty to show the political leadership that is Healthy wetlands, for example, provide a naturalrequired to address ecological crises in a water purification service, as well as floodcoordinated and timely manner. protection, carbon sequestration, food products, and much more. The disappearance of a wetlandThe global economy now consumes the means that these services would need to beequivalent resources of 1.4 planets, and we are replaced by man-made capital - like a waternow drawing down on our natural capital 1. As treatment plant. The value of the ‘ecosystemnational economies surpass what are considered service’ provided, and the value of replacing thisto be ‘safe’ boundaries in the stability of the service through man-made infrastructure, givesEarth’s natural cycles, we are reminded of our economists and policy-makers a rough idea ofcritical dependence on nature. the value of the natural capital that surrounds us.Across most industries, the private sector and Although financial values cannot be attached tofinancial markets are fundamentally challenged all ecosystem services, economic valuationto rethink their impact on the natural world. The frameworks exist for many of them. For example,task for governments, political leaders and the ecosystem services provided by coral reefslegislators around the world is even more have an estimated value of $172-375 billion perchallenging: to ensure that their country’s annum 2-5. These services include fisheries, rawecological systems can continue to meet the materials, raw materials, storm protectionneeds of their populations for shelter, food, climate regulation, and tourism.water, health and well-being in a rapidlychanging future landscape. A nation’s economy and wellbeing depends on the services provided by nature. And yet,This report highlights the role of legislators as insufficient political attention is given to ensuringstewards of natural capital. Here, we detail that we are not depleting our natural capital,political insights from initiatives in 12 countries even though, ironically, its degradation implieswhere legislators have been directly involved in that governments will have to spend more‘investing’ in natural capital, through innovative money in the future to ensure that ecosystemapproaches to ecological restoration, services are sustained. The hardships faced byconservation, sustainable management, and the communities living around the shrinking Aralfinancing for nature. We hope that the political Sea, who once relied on a healthy freshwatermessages from these examples will help ecosystem for their livelihoods, bear testimony tolegislators engage effectively with a new agenda the social, economic and health problems thatfor change, which will help to shift economies can ensue if we continue to deplete our naturaland societies towards a healthier balance with capital 6.the natural systems that underpin them. 2
    • If our legislators and policy makers had clearer Ecological restoration, innovative legislation oninformation on how improved management of environmental management, and novel ways ofnatural capital could deliver benefits in key incorporating nature into decisions on waterareas of public policy, better decisions would be management and agricultural productivity aremade. Agriculture, fisheries, forestry, health, and just a few of methods that can have positivewater provision are all intricately linked with the returns on financial investment over the longstate of our natural capital. term, given the right conditions 7.Part of the difficulty with dealing with these Governments have a critical role to play inissues is related to the short-term nature of ensuring that such investments are drivenpolitical terms, compared with the long-term forward. Indeed, given the level of interest in theapproaches that are needed to properly manage environment in the community, governmentsour natural capital. Therefore, it is critical to that demonstrate forward-thinking, long-termdemonstrate that environmental policies that management of natural capital are likely toachieve long-term sustainability can also deliver accumulate substantial political capital. We hopeshort-term, mainstream policy goals. that this report provides inspiring examples of innovative ways that legislators are becoming involved in improving management of ourToday, there are many examples of how natural capital, and at the same time deliveringlegislators, community leaders and economic and social benefits to localentrepreneurs are working in or with communities.governments to create new investment andgovernance systems that can preserve naturalcapital as a form of national wealth.“It is essential that we begin to integrate the true value of naturalcapital and ecosystem services into policy making processes acrossgovernment departments. Otherwise, we risk further deteriorationthat will result in greater cost to our economies.”Zac Goldsmith MP, UK member for Richmond Park and North Kingston. 3
    • Achieving public policy goals through natureIncreasingly, governments and businesses are These considerations are as relevant to OECDrealising that using nature, biodiversity and countries as they are to the developing world.ecological processes in creative and innovative Improving the management of natural capital canways can help achieve major public policy and have a direct financial impact on local incomefinancial goals. These can range from increasing through payments for ecosystem services,agricultural output and food security, to providing employment income, and the proceeds ofjobs and a healthier future for communities. tourism. Other economic benefits includeBelow, we present some examples of how increased availability of natural resources suchinvesting in and improving the management of as fish and non-timber forest products, greaternatural capital can have positive impacts on six availability of water, increased agriculturalkey public policy areas. productivity, and higher property prices.Governments and businesses can choose to In South Africa, the large-scale Working for Water‘invest’ in natural capital in many different ways. programme (see page 26) to remove invasiveThis could include spending money on ecological species has provided jobs and training for up torestoration programmes, ‘green infrastructure’, 30,000 people over 15 years. In Namibia, locally-promoting sustainable agriculture and forestry, managed, government-sanctioned wildlifeand the management of protected areas. ‘Green conservancies provided over 500 full time andinfrastructure’ refers to the use of natural assets, 3000 part-time jobs between 1998 and 2005,such as mangroves, reed banks, river beds and with substantial economic benefits to localforests, to fulfil functions that might otherwise by people 8. Government payments for ecosystemdealt with through more expensive built services (also known as ‘PES’) schemes haveinfrastructure, such as storm walls and water had positive effects on income in parts of ruralpurification plants. China 9 and Mexico 10.As we realise the enormous impact of the loss of Agriculture, forests and fisheriesbiodiversity on our forests, fisheries, farmlands,waterways and urban areas, programmes that Improving environmental management hasmaintain and restore natural capital and obvious benefits for the agriculture, forests andecosystem services will advance up the list of fisheries sectors. The use of sustainable farminggovernment spending priorities. practices on agricultural lands can mitigate against the effects of land degradation, and increase productivity. Australia’s LandcareJobs and the economy movement has demonstrated that such practices, such as adopting conservative stocking rates,Under the right conditions, investing in natural planting trees, protecting remnant vegetationcapital can provide jobs, promote economic and rotating crops, can lead to more profitabledevelopment, and ‘capture’ the financial value of farming, and help guard against the worst effectsecosystem services. of severe droughts 11.“Public budgets can be used more efficiently ifgovernments improve how they ‘work with nature’ toadvance economic priorities.”Patrick ten Brink, Coordinator of the TEEB report for policy-makers. 4
    • Over the short term, it might seem more Other natural assets can provide sources of low-profitable to convert forests to other land uses. carbon energy, such as wind, wave, tidal andHowever, over the longer term, the loss of forests geothermal energy. In coastal and marine areas,can lead to a lack timber, fuel-wood and other if the generation of offshore energy is carefullyforest products, as well as depletion of planned and included within integrated coastalecosystem services such as erosion control and zone management, this can provide a relativelyflood protection. Investing in forest restoration low-environmental impact method of boostingand sustainable forest management can help to energy security.restore some of the economic benefits of forests,if well-designed and well-managed 12. Thesuccess of community-based forest management Defence and securityin the Petén region of Guatemala has shown how Scarcity of food and water due to environmentalsustainable management can provide multiple mismanagement can amplify conflict andeconomic, social and environmental benefits 13. contribute to instability, although natural resource scarcity is very rarely the sole cause ofAlthough it may at first seem counterintuitive, conflict. Desperation on the part of localinvesting in the creation and management of fisherman in the face of illegal foreign fishing andmarine protected areas is increasingly being toxic waste dumping is thought to haveconsidered as an important tool in marine contributed to the rise of piracy in Somali watersfisheries management 14. Marine protected areas 20-21. Shortages of farmland and land degradationcan allow fish populations to recover from may have contributed to tensions in Rwanda inexploitation 15. The overflow effect means that as the 1990s 22. More sustainable and equitableadult fish leave the protected area, there is a management of natural resources could help todirect benefit to neighbouring fisheries 16. address the roots of conflict, and offset fundsGlobally, the additional catch from restoring fish spent on peacekeeping and humanitarianstocks to health through better management of relief 23.fishing activity could avert undernourishment andhunger for 20 million people 17. As water resources becoming increasingly scarce, the potential for conflict over the distribution ofEnergy security water resources along transboundary rivers has been raised as a potential political issue.Given the finite reserves of oil and natural gas, However, co-operative water management acrossand the need for countries to reduce their carbon borders can build trust among neighbouringemissions under international law, natural and countries, and prevent conflict 24. Instances ofagricultural ecosystems will need to provide an cooperation among countries that share a riverincreasing proportion of energy supplies. Biofuels outnumber instances of conflict by about two toand biogas could provide part of the answer to one 25.this problem, although strict regulations must beenacted to ensure that the expansion of crops forbiofuels does not lead to losses of biodiversity, Climate change and waterfood insecurity, and a net carbon debt 18-19. Mitigating and adapting to the effects of climateInvesting in genuinely sustainable biofuel and change will be one of the biggest challenges forbiogas production (such as using waste materials the 21st century. Natural capital and ecosystemsthat would otherwise remain unused) can be part will play a key role in both of these tasks. Theof an overall package for achieving energy loss and degradation of tropical forests accountssecurity. for 18 to 25% of global greenhouse emissions 26. ‘REDD+’ refers to strategies to reduce emissions 5
    • from deforestation and forest degradation, where land degradation, and pollution of thecombined with enhancement of forest carbon atmosphere and water supplies have hadstocks, sustainable management of forests and adverse health effects.onservation. REDD+ strategies are a key part ofthe transition to a low-carbon economy 27, and Watershed management and restoration ofare being negotiated under the international wetland areas can reduce pollution loads and theclimate change convention. incidence of water-borne diseases, which can lead to significant cost savings on expensive‘Ecosystem-based adaptation’ centres on water treatment plants. This idea has beenmaintaining ecological functions across a famously illustrated by the City of New York’s uselandscape in the face of climate change, and it of the Catskills Mountains watershed as acan be a cost-effective method for adaptation 28- ‘natural’ water treatment facility 32.29. Strategies can include developing alternativelivelihoods and food sources for fishing There are significant benefits to health and well-communities that are reliant on coral reefs, being that can be gained through access towhich are threatened by climate change. Another natural areas. A recent study found thatexample is increasing agricultural resilience residents in the British city of Bristol were 24%through the use of soil and crop management more likely to be physically active if they hadtechniques that make the most of reduced good access to green space. By extrapolation, if itrainfall. Investing in sustainable ecosystem- were possible for all households in the UK tobased management that explicitly considers the have access to green space, this would save anlocal effects of global climate change will soon estimated £2.1 billion per year from the healthbecome central to effective resource budget 33.management. Running down natural capital can have direSecuring sufficient reserves of high quality water consequences for human health and well-being,will become increasingly challenging under many particularly in the face of devastating naturalof the projected scenarios for climate change. disasters. A study including over 50 developingAlready, between 5 to 25% of global freshwater countries showed that the area of forest cover isuse currently exceeds renewable supply 30, and if negatively correlated with flood frequency 34.no new policies on water management are Following the devastating 2004 Boxing Dayintroduced, by 2030 nearly half the world’s tsunami in south-east Asia, some governmentspopulation could be living with severe water are re-establishing mangrove forests that havestress 31. Government-led initiatives on water the potential to act as a barrier to storm surge 35.trading, water law reform, water use efficiency inagriculture and watershed management will beimportant to ensure continued water availability.Health and well-beingThe links between a healthy natural environmentand healthy human populations are clear,through the provision of safe drinking water,absence of harmful pollutants, and productivefarmlands and fisheries. The condition of thenatural environment should be considered aspart of the overall health policy, particularly 6
    • Case studies from around the worldThe following sections of the report profile a GLOBE focal points in ten countries and therange of responses that legislators have taken to European Union were asked to nominate projectsincrease investment in natural capital. The or pieces of legislation that embodied theapproaches range from making payments to principles of investing in natural capital (seecommunities to manage forested watersheds in Figure 1). To be considered for inclusion in thisMexico, to incentivising conservation through the report, the case studies had to demonstratetaxation system in Brazil, initiating large-scale evidence of the environmental, economic andrestoration to combat land degradation in China social benefits associated with the project orand Indonesia, and formulating integrated legislation, and that there was potential for thelegislative responses to environmental principles of the approach to be applied in othermanagement in Europe. geographic areas. GLOBE members and experts associated with each of the case studies were asked to provide political insight into the factorsThe case studies in this report were selected with that enabled each approach to succeed.the involvement of parliamentarians from theGlobal Legislators Organisation, known morecommonly as GLOBE. GLOBE consists of senior Most of the case studies focus on ecologicalcross-party members of parliament, drawn restoration, ecosystem-based management,primarily from the G20 countries. Membership of payments for ecosystem services, andGLOBE is open to members of parliament from conservation initiatives. The kinds of policies thatany country. Recently, GLOBE has expanded are described in the following pages might bebeyond its historical emphasis on climate change seen currently as ‘progressive’, but once theand energy security to policies related to land value of natural capital is fully integrated intouse change, marine ecosystem management, the decision making, these types of approachesprovision of ecosystem services and biodiversity could become second nature to policy makers.conservation.Figure 1: Map showing the countries from which the cases studies are drawn. drawn. 7
    • Australia: Managing the Great Barrier ReefThe Great Barrier Reef Marine Park was established in 1975. Following the implementation ofan ambitious re-zoning plan in 2004, all resource extraction, including fishing, was prohibitedacross one-third of the park. Evidence suggests that the rezoning has resulted in betterprotection for a wide range of species and habitats, including more abundant fish populations,a reduction in invasive species, coral recovery and enhanced support for tourism, andcommercial and recreational fishing industries. The planning process and successful outcomeof the rezoning have influenced marine conservation efforts around the world.Australia’s Great Barrier Reef is the largest Building political support was crucial to thetropical coral reef system in the world (Figure 2). rezoning programme. This process was greatlyThe Great Barrier Reef Marine Park supports a aided by the fact that head of the GBRMPA atwide range of uses, including marine tourism, the time, the late Hon. Virginia Chadwick, was aindigenous traditional uses, fishing, ports and former New South Wales Cabinet Minister andshipping, and recreation, that together support skilled political negotiator.more than 50,000 jobs and contribute over$5 billion to the Australian economy every year. When asked to comment on the complexities of the negotiations, Professor Kemp said, “AsIn 1999, the Great Barrier Reef Marine Park Minister for the Environment I sought toAuthority (GBRMPA) embarked on a process to establish good working relationships with thedevelop a new zoning plan, in response to various industries, and to assure them that theirconcerns over biodiversity and habitat protection. genuine interests would be taken into account.Scientists advised that unless at least 20 per The tourism industry was highly supportive of thecent of each habitat could be properly protected, rezoning, as the ecological health of the reef wasthe ability of the ecosystem to remain healthy critical to their future. Coastal communities wereand productive would be seriously compromised. also generally positive, as they were aware of theAt the time, highly protected no-take zones value of the Marine Park to their prosperity. Theoccupied less than five per cent of the total area trawling industry presented the most difficultof the park. issues because of the size of their capital investment and wide community hostility to the by-catch problems that the industry was seekingThe Hon. Professor David Kemp was the to address”.Australian federal Minister for Environment andHeritage who authorized the commencement of Professor Kemp added the following insights onthe public process and had the new Zoning Plan the benefits of rezoning: “The main benefit of thepassed through the Parliament in 2003. rezoning has been the improvement in theReflecting on his experiences, Professor Kemp ecological health of the Great Barrier Reef. Fishsaid, “The rezoning was a complex political task populations have increased in the protectedbecause of the number of industries and zones, and there is recent scientific evidencecommunities that could be affected, and the demonstrating that fisheries benefits are alsoadverse impact of the rezoning on access to a occurring in the adjacent fished areas throughsignificant portion of the reef for exploitative the spillover of adult fish as well as larvalpurposes.”“Many industries rely on the continued health of the Great Barrier Reefecosystem, which underpins a significant and growing proportion ofQueensland’s regional economy.”The Hon. David Kemp, former Australian Minister for Environment and Heritage (2001-2004) 8
    • movement from the adjoining protected areas.Outbreaks of the invasive ‘Crown of Thorns’starfish plagues have lessened, and theecological resilience of the area to cope withother pressures has also been increased.Further time is needed to determine the fullextent to which the increasing fish populationswill provide substantial benefits to thecommercial and recreational fishing industries.So far, the results fully justify the rezoning.”Professor Kemp’s comments are supported by arecent scientific analysis of data on fishpopulations, which also indicated thatexpenditure on management and maintenanceof the park represents only a tiny fraction of thetotal revenue generated by reef-basedactivities 36.The role of community involvement in therezoning and management of the Great BarrierReef provides interesting insights for legislators.Over 31,000 public submissions were received, © NASAmaking it the most comprehensive process ofcommunity involvement in any environmental Figure 2: Australia’s Great Barrier Reef.issue in Australia. The timetable for public The Great Barrier Reef is a complex system thatconsultation was specifically designed to be able extends for 2,000 kilometres along the northeasternto manage intense community interest. Amongst coast of Australia. The condition of the reef ecosystem is influenced by human activities on land and at sea.the broader community, there was strong This picture, from NASA’s ‘Earth Observatory’, showssupport for increasing the level of protection for part of the southern portion of the reef adjacent to thethe Great Barrier Reef 37. central Queensland coast. earthobservatory.nasa.gov/IOTD/view.php?id=1337Ongoing engagement with the community is keyto implementing and enforcing the amendedmanagement rules from the new zoning plan.Education is viewed by the GBRMPA as one ofthe most effective strategies to encouragecompliance with the management objectives ofthe Marine Park, according to Professor Kemp.He added. “Effective protection for the GreatBarrier Reef Marine Park requires the support ofthe community, and can only be sustained if ithas political support”. 9
    • Brazil: Tax revenue and ecological criteriaSince 1992, a number of Brazilian states have redistributed some of the revenue raisedthrough value-added tax to municipalities according to environmental indicators. This practicewas originally intended as a means of compensating municipalities for maintaining protectedareas within their territories, rather than as a tool for improving environmental management.However, evidence suggests that the practice has acted as an incentive to set aside newareas for conservation, and improve management of existing protected areas.One of the biggest challenges to achieving good Protected areas deliver numerous economicallystewardship of natural capital is the valuable environmental services, as well asdevelopment of fiscal instruments that can strong social benefits for indigenous peoplesencourage conservation and reward sound who are able to maintain their identity andenvironmental management. A number of culture through close association with their lands.Brazilian states have done just that by However, there are also opportunity costsdistributing a portion of revenue from value- associated with not developing the land.added tax (known in Brazil as the ICMS orImposto sobre Circulação de Mercardorias e Following the implementation of stricterServiços) revenue to local municipalities, based environmental legislation in the 1980s, someon environmental criteria. municipalities in the state of Paraná felt disadvantaged after the area available toThe ICMS tax constitutes approximately 90% of agricultural expansion was restricted. Theyoverall state tax revenues. One quarter of the exerted pressure on the state legislature andrevenue raised by the ICMS must be allocated by government agencies for financial compensation.states to local governments. Of this 25%, three- Subsequently, the ICMS-E was developed to givequarters must be distributed in accordance with financial compensation to municipalities for thethe share of state ICMS collected from that existence of protected areas and othermunicipality. States that have an ‘ecological ecological services.ICMS’ (often referred to as ICMS-E) redistributesome of the remaining ICMS revenue according Paraná began operating the ICMS-E in 1992.to environmental indicators, such as the area of Other states have since adopted a similarthe municipality occupied by protected areas. system, including: Minas Gerais, São Paulo, Amapá, Rondônia, Rio Grande do Sul, MatoBrazil has some of the largest protected areas in Grosso, Mato Grosso do Sul, Tocantins,the world. Protected areas in Brazil include Pernambuco and Rio de Janeiro. Santa Catarina,Indigenous Territories and Conservation Units. Espírito Santo and Goiás have drafted ICMS-EBetween 2003 and 2009, Brazil was responsible legislation; and Amazonas, Bahia and Cearáfor establishing nearly three-quarters of all have submitted ICMS-E legislation to theirprotected areas declared across the globe respective state legislatures. See Figure 3 for aduring this period 38. map of states currently with and without ICMS-E.“Services rendered by natural ecosystems are numberless, includingthe maintenance of the hydrological cycle, soil regeneration andprotection, nutrient recycling, and the preservation of species thatare critical to food security, medicine and industry.”Representative Rebecca Garcia, member of the Brazilian Federal Parliament. 10
    • Each state decides on the ecological indicatorsto be used, as well as the overall proportion thatshould be distributed. There are no limits placedon how municipalities use the ICMS-E, which ishanded over as a ‘lump sum’. For example, inthe municipality of Ilha Grande, in Paraná, ICMS-E resources are used for numerous activities inthe community, including drilling of wells fordrinking water, maintenance of seedlingnurseries, cleaning and landscaping of urbanareas, construction of industrial facilities, States with ICMS-Egarbage collection, landfills, environmental States with draft ICMS-Eeducation, enforcement of land use controls, legislationand all the costs required to maintain Ilha States that have submitted ICMS-EGrande National Park 39. legislation to legislatures States without ICMS-EAlthough it was not originally designed as a toolfor improving environmental management of Figure 3: Uptake of ICMS-E in Brazilprotected areas, evidence suggests that the The popularity of ICMS-E has been gathering withinICMS-E has acted in many cases as an incentive Brazil since Paraná became the first state to adoptto establish new protected areas, and improve ICMS-E legislation in 1992. Source: Ring (2008).management of existing protected areas. Thereis also evidence to suggest that the introductionof ICMS-E has changed the way land managers It should be noted that it is not only the ICMS-Eview protected areas 40-41. Instead of seeing that is related to an increase in protected areas;protected areas as an obstacle to development, other government policies are also at play.they are now seen as an opportunity to generate Further, not all municipalities with conservationrevenue 41. areas benefit equally from ICMS-E 39. In Rondônia, for example, the ICMS-E did not have such strong positive effects. Due to the way thatIn the state of Paraná for example, the area of revenues were distributed, it adversely affectedconservation units grew by 165% in the nine poorer municipalities without conservation units,years following the introduction of ICMS-E in or with only small protected areas 42.1992 39. In 2000 alone, over one millionhectares of land were declared as newconservation units in Paraná 39, an area slightly The ICMS-E is strongly supported by Brazil’ssmaller than the island of Jamaica. Federal Environmental Ministry. One of the key advantages for implementation of the ICMS-E is that it has very low transaction costs. It has beenRepresentative Rebecca Garcia, Member of the designed to build on an existing mechanism forFederal Parliament of Brazil, said, “The success transferring money between states and localachieved with ICMS-E in the state of Paraná, municipalities 41. Brazil’s ICMS-E has beenmeasured by the increase in protected areas profiled in many international fora. It has evenand increased income in municipalities with been advanced as a blueprint for distributingextended protected areas, has definitely funds to developing countries the world over forinfluenced other states to adopt similar efforts to conserve biodiversity and ecosystemmechanisms”. services 43. 11
    • Cameroon: Restoration for rural livelihoodsMore than 200,000 people use the resources of the Waza Logone floodplain in northernCameroon for fishing, dry season grazing and agriculture. Since the early 1990s, theGovernment of Cameroon has been working to reverse the adverse impacts of the Maga Dam,constructed across the floodplain in 1979. Cost-benefit analyses show that ecosystemrestoration, if delivered at a large scale, would have multiple long-term economic and socialbenefits, as well as benefits for wildlife and wetlands. However, securing funding to expandthe restoration programme has proven extremely challenging.Covering an area of approximately 8,000 km2, and resolve some of the conflicts over access tothe Waza Logone floodplain is one of the largest resources. The intention of the project was not towetlands in the West African Sahel, and forms restore the floodplain to its original state, butpart of the Lake Chad Basin. The high rather to try and strike a better balance betweenproductivity of the floodplain relies on seasonal environment and development.flooding following wet season rains. The water-soaked soil allows grasses to grow well into the Trial releases of dammed water to recreatedry season, forming an important source of feed seasonal floods were a key part of the Wazafor graziers, and inundated areas provide fish Logone project. Results from 1994 and 1997and other food items. indicated improvements in perennial grass cover, wild herbivore populations, fishing yields andThe Waza Logone region faces serious problems livestock production 44. Based on the trials, threeof food security. The Maga Dam was built to possible options for large-scale water releaseincrease food security by providing water for were developed 45. Cost-benefit analysesirrigated rice cultivation and year-round fishing. indicated that implementation of any of the threeHowever, dam construction was carried out options would lead to significant net economicwithout considering environmental impacts. A benefits for local people, as recently highlightedperiod of dry years, exacerbated by the presence in the TEEB study 35.of the dam, reduced the flow of water to thefloodplain, with negative consequences for thepeople living downstream. Many difficultiesarose among local communities over sharingaccess to the limited water and other resourcesof the floodplain. Those affected by the altered 5 yearshydrology of the floodplain include some of the The time that it would take to recoup thepoorest and most vulnerable people in the initial costs of restoring the floodingregion 35. regime in the Waza Logone regionWhen the Government of Cameroon becameaware of the ecological, hydrological and social US$2.3 millionimpacts of the irrigation project, it “understood The annual net livelihood benefits forthe necessity of being aware of environmental local people in the Waza Logone regionaspects in investing in development”, said Hon. from floodplain restoration activitiesAmadou Adji, a Cameroonian legislator from the 46 35region. This led to the Waza Logone Project, a Source: Loth (2004) . TEEB (2009)collaborative effort undertaken with theInternational Union for the Conservation ofNature (IUCN) and other partners, to restore thehydrological regime on which the region depends, 12
    • Despite these impressive figures, no furtherlarge-scale donor funding has been forthcoming.In Cameroon, donors tend to fund forest-relatedprojects, and overlook opportunities to fundsustainable development in other ecosystems 47.This is despite the fact that funding restorationprojects could have significant flow-on effects,because it would likely have a positive impact onLake Chad. Water levels in Lake Chad havereached an unprecedented historical low, as acombined result of overgrazing, upstream waterdiversion for dams, water withdrawal andclimatic variation 48 (see Figure 4). The shrinkingof Lake Chad has had serious consequences forthe estimated 22 million people living in thearea 49.Aside from a dearth of funding to continue theWaza Logone project, the continued resilience ofthe region’s ecosystems and agriculturalsystems is threatened by climate change. Sincethe 1970s, there has been a trend towardsreduced annual rainfall across the Sahel 46. Cropproduction in the Waza Logone area is alreadychallenging, with reports that production ofcommon crops may fail once in every three years. © NASAFacilitating adaptation to the effects of climatechange, altered hydrology and reduced rainfall Figure 4: The changing face of Lake Chad.will be crucial to development and agriculture The Waza Logone floodplain region, shown as thestrategies in the area. elongated green area in the lower half of this satellite image, forms part of the Lake Chad basin (in the upper half of the image). The Maga Dam can be seenIn the Waza Logone region, investing in as a small crescent shaped grey patch in the image. Changing climatic conditions, water extraction,ecological restoration and sustainable resource vegetation removal and grazing have changed the sizemanagement is now considered as a central part of Lake Chad over the last fifty years. The lake’sof development planning because it is seen by former extent can be seen by the green areas of vegetation and rippled brown and green areas; openlegislators and community leaders as vital to the water now occupies a small area in the southeastcontinued social and economic development of portion of the lake (visible as grey-green in colour).the area. International donors would do well to earthobservatory.nasa.gov/IOTD/view.php?id=1877consider how investing in natural capital canhelp to meet social and economic outcomes.“Investing in this area by taking advantage of the lessons learnt byformer interventions can be a good way to show the internationalcommunity the necessity of maintaining natural capital”.Hon. Amadou Adji, Cameroonian legislator from the Waza region. 13
    • China: Government incentives at scaleThe Chinese government has initiated some of the largest ecosystem restoration and landrehabilitation programmes in the world. Many of these programmes were developed inresponse to severe impacts on rural and urban dwellers from deforestation, desertification,soil erosion, river sedimentation and flooding. The Sloping Land Conversion Programme is oneof the largest, and has so far enrolled around 23 million hectares of land for afforestation.China’s vast interior has supported productive national, have been involved in designingagriculture for millennia. However, in recent programmes with elements of payments ordecades, expansion and intensification of markets for ecosystem services that suit localagricultural activity has contributed to land needs and draw on various funding sources.degradation and soil erosion, which has affectedcrop yields, water quality, and human well-being. In China, food security is an enormous challenge.For example, the incidence of dust storms Despite this, China has initiated the Naturalincreased from once every three decades before Forest Protection Programme, an element of1949, to almost once per year from 1990 which is the Sloping Land Conversiononwards 50. Severe dust storms can bring Beijing Programme (SLCP), to convert farmland onto a standstill, erode topsoil, and can have sloping land back to forests. The SLCP, alsoserious health impacts. Greater frequency and known as ‘Grain for Green’ is the most wellintensity of dust storms has been partly known of China’s large restoration programmes.attributed to deforestation 50.Over the last two decades, policy makers inChina have taken a lead in developing novelapproaches to environmental policy that canhelp to address the challenges of limitedavailability of arable land, environmental Provinces with Sloping Land Conversiondegradation and rapid economic growth 51. Programme (SLCP) initiativesThese policy approaches have included some of Provinces without SLCP initiativesthe largest land restoration and reforestationprogrammes in the world.Already, China has invested more than $90billion on planned public payment schemes andmarket-based programs for ecosystem services,with rapid growth over the past decade 51. A keyelement that runs through many of the schemesis the use of public money to pay farmers toretire cropland and plant trees and othervegetation. Figure 5: Scale of the Sloping Land ConversionAlmost all of China’s ‘eco-compensation’ Programme in Chinaschemes have been developed and funded The SLCP has a broad geographic reach across China,within China. With the exception of a few operating across 25 Chinese provinces. The provinces where SLCP currently has a presence are marked inprojects, such as the World Bank’s ‘Loess green in the map above. Information from Liu et al.Plateau Rehabilitation Project’, there has been (2008) 52.relatively little international involvement 51. Alllevels of government, from local to provincial to 14
    • The SLCP is the largest land retirement and Finally, the success of restoration andreforestation programmes in the world, and has reforestation programmes in China has impactsarguably been seen as a blueprint for national- that reach beyond the country’s borders. Aslevel land conversion and payment schemes in vegetation cover increases across China, uptakeChina. It aims to reduce rural poverty by of carbon from the atmosphere is enhanced, andpromoting a shift to sustainable production, there is also a reduction in air-borne dust fromthrough direct payments to rural landowners to the erosion of topsoil 52. These effectsplant trees and grass on farmland located in demonstrate the increasing ‘globalisation’ ofsloping and marginal areas. environmental issues.Originally designed to reduce sediment loads inthe Yangtze and Yellow Rivers, today the SLCPprogramme spans 2,000 counties in 25 Chinese Facts and figures on China’sprovinces (Figure 5). So far, around 23 million Sloping Land Conversion Programmehectares of land have been enrolled forafforestation, involving 32.5 million rural $US 50 billionhouseholds. There is evidence to suggest that Total budget of the programme,the programme has had a positive impact oncropping, livestock assets and total income 52-53. an amount greater than the annualNotable positive environmental outcomes GDP of over 100 countries.include reduced surface runoff and soil erosion,reduced soil nutrient loss and increased 9.3 million hectaresvegetation cover. Total area of cropland enrolled, which would cover all of Portugal.The Sloping Land Conversion Programme hashad a large impact on policy in China since it was 13.6 million hectareslaunched in 1999. The development of this Total area of ‘wasteland’ afforested -programme was strongly rooted in several an area the size of England.successive ecological disasters, which promptedthe government to implement more decisive, 51 Source: Bennett (2009)forceful and far-reaching measures than thosethat had previously been adopted 54.China’s efforts to restore natural capital lostthrough decades of over-use of forests,farmlands and waterways hold many lessons forlegislators from around the world. In China thereis now a vast wealth of knowledge on how todesign and implement large-scale payments forecosystem services, which could be very helpfulfor other countries in similar situations. 15
    • Denmark: From farmland to National ParkDenmark’s Skjern River valley was extensively drained during the 1960s to reclaim land forfarming. By the 1980s, the Danish Parliament recognised that farming on these lands was amarginal activity, and that the downstream estuarine region was suffering from high nutrientloading and declines of economically-important fish species. Since completion of restorationworks in 2003, a wide variety of economic, social and environmental benefits have beenmeasured. The area was nominated for consideration as a National Park in 2008.The ecosystems of northern Europe have The Hon. Steen Gade MP, Chairman of theundergone significant modification through Environment Committee in the Danishmillennia of human habitation and agricultural Parliament, shared his insights on the legislativedevelopment. Clearing of native vegetation, process for the restoration works. According todraining of wetlands, and straightening of river Steen Gade, the Skjern River restorationcourses have altered natural capital and programme was put forward largely as a naturechanged the flow of environmental services in project, emphasising the need to return the rivermany areas. Many policy makers now realise to its natural state. Additionally, the proponentsthat carefully designed ecological rehabilitation argued that agriculture would not be profitable inprogrammes can restore some of this natural the future, and that river restoration could allowcapital and associated ecosystem services. the development of tourism based on fishing.Danish legislators have long acknowledged the Initially, there was opposition to restoration fromrole of ecosystem restoration in meeting multiple farmers and other groups, just as there hadpolicy goals. Between 1989 and 2004, about been opposition to the original plans to reclaim10,000 ha of wetlands were restored in land for farming in the 1960s. Key issuesDenmark. In 1987, a parliamentary directive was included concerns over an adequate level ofissued with the aim of restoring economically compensation, and concerns over public accessunsustainable marginal agricultural lands back to the restored lands. There was support fromto their natural ecological state. The Skjern River some farmers, who preferred to be compensatedvalley was chosen as the ‘headline’ case 55. by the government earlier, rather than later, after agricultural productivity had irreversibly declined.The lower section of the Skjern River valley wasextensively drained during the 1960s to reclaim “If we had known then what we know todayland for farming. However, by 1983, the Danish about the economic and social benefits thatParliament recognised that the farms of the area restoration of the river would provide, perhaps itwere declining in productivity and would might have been easier for the local communityeventually prove economically unsustainable. to embrace the plans,” commented Steen Gade.Further, the Ringkøbing Fjord was suffering from Meetings with local representatives took placehigh nutrient loading and declines in over several years, during which time communityeconomically important fish species. attitudes towards the plan changed substantially. Eventually, restoration works began in 1998.“We can use natural processes to reduce the amount of nutrients,sediment and pollutants entering our waterways. Conservation andrestoration of natural areas will help us fulfil our obligations underthe Water Framework Directive, and provide benefits for nature.”The Hon. Steen Gade MP, Chairman of the Environment Committee, Danish Parliament 16
    • Since completion of the restoration works in Lessons from the Skjern River experience have2003 (see Figure 6), a wide variety of economic, been applied throughout Denmark. Follow-upsocial and environmental benefits have been projects have generally been at a much smallermeasured, including saved pumping costs, scale. Securing funding for nature restorationreduced nutrient loading in the estuary, has become difficult in light of changingimproved water quality, re-establishment of bird priorities for governments. However, there hashabitat and fish spawning grounds, increased been much work on freshwater ecosystems inoutdoor recreation and improved land allocation Denmark related to the EU’s Water Framework56-57. The total cost of the restoration programme, Directive (WFD), including the large-scale pilotmuch of which was funded by the Danish study for the Odense River Basin 58.Government, was approximately $42 million,while the total benefits have been estimated at Under the WFD, all EU states must achieve$83 million. ‘good’ ecological and chemical status for surface water systems by 2015. In Denmark, there hasA new process for the area is now underway. been a focus on reducing eutrophication, aBased on successful conservation outcomes, the process that occurs when excess nutrients fromarea was nominated for consideration as a fertilisers and runoff enter waterways, promotingNational Park in 2008. The local community and the growth of algae and phytoplankton, which infarmers are once again involved in discussions turn reduces the amount of oxygen in the waterwith management authorities, local and national column for other forms of life. Naturepoliticians as to how farming activities can be conservation and restoration have a key role toincorporated within and around the proposed play in promoting better water quality inNational Park boundaries. Denmark’s rivers and estuaries. © 2010 Google - Imagery © 2010 TerraMetrics, Map data ©2010 Tele Atlas ©2010 Google - Imagery ©2010 DigitalGlobe, Scankort, GeoEye, COWI A/S, DDO, TerraMetrics, Map data ©2010 Tele AtlasFigure 6: Transformation of the lower Skjern RiverThe satellite images above, both from Google Maps, illustrate how the course of the Skjern River changed followingrestoration works. In the upper photo, the straightened, channelled sections of the waterway are clearly visible. In thelower photo, the straight stretches have been converted back to their natural, meandering state. 17
    • Europe: Managing coastal zonesOne third of the European Unions population lives along on the coastline, with maritimeregions accounting for over 40% of Europe’s GDP. A large proportion of the European coastalzone is considered at risk from multiple anthropogenic pressures and impacts. The EuropeanParliament and Council Resolution on the implementation of Integrated Coastal ZoneManagement (ICZM) was adopted in 2002, and was intended to guide member states informulating ICZM strategies. The UK and Sweden have now passed legislation on ICZM withinnew national marine policy frameworks.The coastal areas of Europe have come under development. The Statement will provide theenormous pressure from human activities such strategic framework for all future marine plans.as agriculture, fishing, tourism and urbandevelopment (see Figure 7). There have been New marine plans will be developed by the newsuggestions at the highest political level that the Marine Management Organisation, and willchronic degradation of European coastal areas is provide guidelines for industries and developersa direct result of a lack of coherent, co-ordinated about where various activities will be allowed topolicies for coastal activities 59. take place. The new marine planning system is designed to bring together environmental, socialIn 2002, the European Parliament passed a and economic considerations.resolution on Integrated Coastal ZoneManagement (ICZM). The resolution encourages An extensive consultation period has begun onan ecosystem-based approach to coastal the boundaries of marine plan areas and on themanagement that recognises that terrestrial, location of Marine Conservation Zones. Lordcoastal and marine zones are interdependent, Hunt of Chesterton, member of the UK House ofand that natural boundaries do not always Lords, commented that, “Community awarenesscoincide with political boundaries. Above all, it is of and involvement in the planning process, andintended to provide a framework for European in data collection, is important for successfulnations to redesign their coastal policies to take implementation and science-based decision-a broader, cross-sectoral approach to making.” This inclusive approach is alsomanagement. The UK and Sweden are two important in alleviating potential public andcountries that have recently passed legislation commercial opposition to the marine planningclosely tied to the ICZM resolution. proposals under the Act.United Kingdom The new UK marine planning system is not onlyThe UK marine sector represents nearly 7% of expected to provide better environmentalthe whole economy, providing around 890,000 protection, but it is also expected to deliverjobs in areas such as fisheries, aquaculture, substantial economic benefits. An initialshipping, research, oil and gas production, and government impact assessment estimated thatrenewable energy. The UK has 20,000 the annual value of environmental benefitskilometres of coastline, providing habitat for a associated with implementation of the act woulddiverse array of marine species and habitats. be between £749 million to £1.6 billion, for English inshore and UK-wide offshore areas 60.Recognising the need to have a coherentapproach to coastal planning and management,the Marine and Coastal Access Act became lawin 2009. One of the key components of the Act isa Marine Policy Statement, which is currently in 18
    • kilometres of the coast and coastal tourism accounting for an estimated 71,000 jobs 61, the health and productivity of Sweden’s marine environment is vital to the national economy. The policy is guided by the principle that an ecosystems-based, holistic maritime policy will provide more potential for the sustainable use of the sea, generate synergies between different activities, and reduce conflicts over resources. A new agency has been established for marine © NASA activities, similar to the UK’s MMO. Other key elements of the policy focus on encouragingFigure 7: Europe by night strategic regional and cross-sectoral co-This composite image of Europe by night shows the operation, the development of a sustainableintensity of light emissions from major population fisheries sector, and measures to addresscentres. In many parts of Europe, particularly aroundthe Mediterranean and Baltic Seas, the coastline is coastal pollution.highlighted by a dense line of settlements.earthobservatory.nasa.gov/IOTD/view.php?id=981 The marine environment is considered to be the highest priority environmental issue, next to climate change, by the Swedish government. TheSweden government’s first step in addressing this issueWith one of the longest coastlines in Europe and was to appropriate new funds for the marinean archipelago of tens of thousands of islands, environment within the budget, making availableSweden has an ancient maritime history. around $190 million for restoration, research,Eutrophication, heavy fishing pressure and and measures for environmental improvementpollution have had a major impact on the Baltic between 2007 and 2012 62.Sea. The current Swedish Environment MinisterAndreas Carlgren noted: “The world’s richest The Coherent Swedish Maritime Policy is verynations should not have one of the world’s most recent and implementation is yet to be fullypolluted inland seas off their coasts”. rolled-out. However, Sweden is already pushing ahead with implementation of the regionalThe Coherent Swedish Maritime Policy, integrated approach through the EU Strategy forestablished in 2009, is intended to provide a the Baltic Sea Region, which outlines a strategypathway for the sustainable development of for regional cooperation on marine resourceSweden’s marine and coastal industries. With issues. Sweden’s new policy will contribute to a40% of the Swedish population living within five more rationalised and sustainable approach to European marine environment policymaking.The Swedish Maritime Policy provides model legislation for other EU nationsto replicate. With almost half of Europes population living within 50 km ofthe coastline it is imperative that a holistic approach is implemented, asdemonstrated by Sweden, incorporating the objectives of sustainableresource use and ecosystem based management to safeguard the futureintegrity and resilience of our marine waters.Sofia Arkelsten MP, Swedish Parliament 19
    • Indonesia: Reducing carbon emissionsThe extensive forest peatlands of central Kalimantan suffered severe degradation in the1990s during the drive to convert these lands for the production of irrigated rice, makingthem highly susceptible to damaging wildfires. Carbon emissions from peatlands are nowthought to contribute up to half of all of Indonesia’s greenhouse gas emissions. Since 2007,the Indonesian government has been working in partnership with the Australian governmentand others to restore and rehabilitate sections of these peatlands through the KalimantanForests and Climate Partnership.Kalimantan has extensive areas of tropical universities, private sectors and localpeatlands. These unique ecosystems provide a communities to restore and rehabilitate sectionsrange of ecological goods and services, including of these peatlands through the Kalimantanwater catchment for drinking and irrigation, Forests and Climate Partnership. Australia hascarbon sequestration, food, shelter, medicine committed $29 million over four years towardsand cultural values for indigenous communities, the Partnership.and habitat for plants and animals. The aim of the Kalimantan Forests and ClimateThe forest peatlands of central Kalimantan Partnership is to preserve up to 70,000 hectaressuffered severe degradation in the 1990s during of Kalimantan’s peat swamp forests. In addition,the drive to convert these lands for the over the long term it aims to restore 200,000production of irrigated rice, making them highly hectares of degraded peatland through re-susceptible to damaging wildfires. Fires occur flooding and reforestation. To give a sense ofevery year in the dry season, from August to scale, the Mega Rice project involved drainingDecember (Figure 8). These fires are caused around 1.4 million hectares of peatlands.mainly by land-clearing and other agriculturalactivities. Fires can escape control, and burn into The Kalimantan Forests and Climate Partnershipadjacent forests and thick layers of peat. Once is one of the first large-scale REDD+alight, peat can smoulder for weeks or even demonstration activities in Indonesia, and themonths at a time, causing severe health first in tropical peatland anywhere in the world 64.problems related to smoke and haze. Subsequently, Indonesia and Australia have signed a second partnership agreement to tackleCarbon emissions from peatlands are now deforestation in Sumatra, under the Sumatrathought to contribute up to half of all of Forest Carbon Partnership.Indonesia’s greenhouse gas emissions. Oneanalysis estimated the amount of carbon The lessons learnt through the work of theemitted during the devastating peat and forest Kalimantan Forests and Climate Partnership willfires across Indonesia during the El Niño event in inform the design of REDD+ programmes1997 was equivalent to 13–40% of the mean elsewhere in Indonesia, as the world preparesannual global carbon emissions from fossil fuels for a future regime of international trading inin that year 63. forest carbon offsets. The Partnership’s activities include developing methodologies for restoration,The Indonesian government has recognised the piloting activities, undertaking carbon stockseriousness of this issue and has taken assessments, improving forest governance andimportant steps to rehabilitate this vital monitoring. There will be opportunities for forest-ecosystem. Since 2007, the Indonesian dependent communities to receive payments forgovernment has been working in partnership maintaining intact forest cover under thewith the Australian government and a national REDD+ system.consortium of non-government organisations, 20
    • The work of the Partnership also complementsother initiatives by the Indonesian Governmentto protect and rehabilitate the peatlands ofKalimantan. This includes PresidentialInstruction No.2/2007 on rehabilitation of theEx-Mega Rice Project area, and the “Heart ofBorneo” initiative with the Governments ofMalaysia and Brunei Darussalam. In May 2010,Indonesia announced that there would be a two-year moratorium on issuing new permits toconvert natural forests or peatlands to otherland uses. © NASAFigure 8: Fire and haze over KalimantanThis image of fire (red dots) and smoke over the island of Borneo was captured in October 2006. Fires occur every yearin the dry season, from August to December. These fires are caused mainly by land-clearing and other agriculturalactivities. Fires can escape control, and burn into adjacent forests and thick layers of peat. Once alight, peat cansmoulder for weeks or even months at a time, causing severe problems of smoke and haze.earthobservatory.nasa.gov/NaturalHazards/view.php?id=17363 21
    • Japan: Legislation on restorationIn Japan, nature restoration is a daunting task because of high human population density,urbanisation and challenging environmental conditions. Despite these challenges, 23,000river restoration projects were completed in Japan between 1990 and 2004. Japan is one ofthe few countries in the world to have introduced legislation on restoration, through the Lawon the Promotion of Natural Restoration. Japan’s work on nature restoration has to datereceived relatively little profile in the international sphere.The Japanese archipelago is recognised as a Today, only 3 out of Japan’s 109 major riverglobal biodiversity hotspot. Because much of systems remain free-flowing. River restoration inJapan is covered in mountains and forests, Japan is related not only to a desire to restorecoastal areas and river valleys have experienced the ecological integrity of river ecosystems, butexperience intense pressure for conversion to also to the strong need to improve water qualityagriculture and urbanisation. Just under half of and protect people and property from floods 65.Japan’s population live on floodplains, whichrepresent 14% of the total land area. Japanese Japans first River Law was passed in 1896, afterrivers have been heavily affected by canalisation, a series of devastating floods propelled floodisolation from floodplains, flow regulation, exotic protection to the forefront of governmentspecies, and urbanisation 65. concerns 66. Between 1945 and the early 1970s, Japans rivers went through a period of intenseAt its widest point, Japan is just 300 kilometres development associated with flood control workswide. Owing to its geological youth, Japan is and rapid urbanisation. As an energy crisis tookendowed with mountains, volcanoes, steep hold in the early 1970s, people began to onceslopes and fertile floodplains. Japan’s unique again to appreciate the value of naturaltopography and monsoon climate with intense landscapes and their role in well-being 66.seasonal rainfall means that many rivers inJapan are short, steep, fast flowing and ‘flashy’. According to the Hon. Shuichi Kato, JapaneseTyphoon damage, mudslides, landslides and MP and Acting Chairman of GLOBE Japan,floods are common. Annual flood damage in another major reason for increased awarenessJapan is amongst the highest in the world. of nature conservation was because the Japanese people faced issues of environmental damage, including four major pollution-related diseases.$US 1.2 billionThe amount spent by Japan’s River In 1990, Japans River Bureau launched anBureau on river conservation and initiative to conserve and restore river corridors,rehabilitation in 2004. which was known as Nature-oriented River Works 66. The number of river restoration programmes climbed steadily, reinforced by an$US 5.4 billion amendment to the River Law in 1997. Under thisThe average annual cost of flood damage amendment, conservation and improvement ofin Japan between 1994 and 2003. the river environment became one of the principal goals of the law 66. Between 1990 and60% 2004, more than 23,000 Nature-oriented River Works were carried out in Japan 66.The proportion of Japan’s wetland areathat has been lost since the MeijiRestoration in 1868. 22
    • Japan created a new National Biodiversity The appreciation of nature is deeply ingrainedStrategy in 2002. This strategy included nature within Japanese culture. “The psychologicalrestoration as one of the main themes. In attitude of trying to live with nature rather thanresponse, the Law for the Promotion of Natural fighting against and overcoming nature datesRestoration was passed by the Japanese Diet in back to the Nara and Heian eras severalJanuary 2003. The law on restoration aims to hundred years ago when people cherished allrecover lost or degraded ecosystems, to aspects of nature,” said Shuichi Kato.implement conservation and the restoration orcreation of natural spaces, and to manage such Community groups and small non-governmentnatural environments. organisations are heavily involved in ecological restoration in Japan 65. Community groups areThere were some difficulties associated with the often involved in planning and decision-making,passage of the legislation. The opposition party and many restoration activities take place at apushed strongly for cuts in spending on public very local scale. In many ways, restoration inworks. “As a result, the government cancelled Japan could be considered a ‘grass-roots’ activity255 public works projects,” commented Shuichi that is supported at a higher level by nationalKato. “At the same time, the Ministry of Land, legislation on restoration.Infrastructure, Transport and Tourism positionednature restoration projects as the new public The Law on the Promotion of Natural Restorationworks projects of the 21st century, and the River must be seen in the context of numerous otherBureau expressed their intention to expand the Japanese laws related to the environment andbudget for nature restoration projects”, he said. natural capital. Relevant laws include the RiverCareful negotiation and detailed explanations of Law, Invasive Alien Species Act, Landscape Law,nature restoration projects eventually led to the Urban Green Space Conservation Law, Naturalsuccessful passage of the legislation. Parks Law, and Natural Environment Protection Law. “We need to re-evaluate legal systemsJapan’s Law for the Promotion of Natural based on the perspectives of natural capital”,Restoration encompasses all the ecosystems of said Shuichi Kato, “but domestic policies alonethe archipelago, from kelp forests to coral reefs, will not be sufficient to achieve our goals”.forests, tidal flats, wetlands and grasslands. The Through their actions and legislation, the peopleNatural Restoration Council has implemented 22 and parliamentarians of Japan have recognisedprojects around the country based on the law. the importance of sustainable environmentalSome examples include restoration works on the management to the future of their country.Arakawa River, Tama River, the oak forests ofMusashino, and the Sekisei coral lagoon.Funding comes mainly from public worksexpenditures of several national ministries, withsome local government contributions.“Since Japan has limited habitable areas, we need to protect theenvironment. We intend to use nature conservation to preventdisasters.”The Hon. Shuichi Kato, Japanese MP and Acting Chairman of GLOBE Japan 23
    • Mexico: National payments for ecosystem servicesThe Mexican government currently supports one of the largest national payments forecosystem services programmes in the world. Payments are made to local communities andlandowners for hydrological services, biodiversity and agroforestry. The hydrologicalcomponent of the programme uses a fee charged to large non-agricultural water users to payforest owners to protect natural forests. In 2008, the programme paid close to $8.4 million tolandowners, individuals, and communities, protecting around 324,000 ha of land.Mexico faces problems of severe water scarcity A key factor promoting the uptake of paymentsand high rates of deforestation 67. As part of a for hydrological services is a general belief heldbroader policy response to address these issues, across many sectors of Mexican society thatin 2003 the Mexican government initiated a there is a link between forest conservation andprogramme of payments for hydrological water quality and quantity 67. This broad-basedservices, known as PSA-H. This programme was community support comes from many quarters,based on paying individuals and local including urban professionals and public officialscommunities to conserve natural forests that to smallholder farmers and local environmentalwould otherwise have been converted to groups. Interestingly, scientific evidencealternative land uses. In Mexico, around 70% of presents a far more complex picture of the linkforest lands are communally owned. between forest cover and water availability 67.In 2004, another programme of payments forcarbon sequestration, biodiversity conservationand agroforestry services (known as PSA-CABSA) 1500000was established to complement PSA-H. However, 1250000direct payments for carbon sequestration haveceased to exist 68, largely because of a lack of Hectares of land 1000000technical capacity to design forestry carbon 750000projects that met the necessary requirements ofadditionality, permanence and leakage 69-70.The 500000hydrological services component is the largest 250000part of the programme, and the most popular. 0The agroforestry component predominantly 2003 2004 2005 2006 2007 2008supports shade-grown coffee farming. Figure 10: Growth of the area covered byFunding for the PSA-H is provided largely through payments for hydrological services.a fee charged to water users. Payments aremade directly to landowners with forests on their The graphic above shows the cumulative area of forested land enrolled in the Mexican payment forland that are in good condition. This creates a hydrological scheme (PSA-H) from 2003 to 2008. Overlink between the providers of environmental this same period, annual federal funding for theservices (land stewards), and those who benefit programme increased from $16.9 million in 2003 to a peak of $65 million in 2007.from them (water consumers) 67. Additionalsupport is provided via grants from the Global Source: McAfee and Shapiro (2010) 71.Environment Facility and the World Bank. 24
    • Local communities have been heavily involved in There is very strong support for Mexico’s PESthe design and implementation of the programmes at federal level, and increasingly atprogrammes. Indeed, one of the major reasons state level and across civil society organisationsfor expanding payments beyond hydrological 68. According to a recent report, President Felipeservices was because of lobbying by community Calderón named payment for ecosystemorganisations for greater recognition of their role services as one of his top 10 priorities 10.in sustainable land management, which reachesbeyond simply protecting forests 10. As the Mexico’s national programme of payments forprogrammes have evolved over time, so has environmental services has served as ancommunity involvement. example to other countries of what can be achieved through federal investment in naturalThe structure of payments and procedural rules capital. They have evolved substantially throughhave also evolved over time. In the first phase of time in response to community involvement,the hydrological services programme, which ran political priorities monitoring of conservationfor five years, there were two set levels of outcomes, and advice from scientists andpayments per hectare, with a greater amount economists.paid to stewards of montane cloud forest.Investigations into the first phase of the There are many lessons from Mexico’sprogramme found that payments were not experience that are highly relevant to otheralways targeted towards areas at highest risk of countries that have, or will, set up initiativesdeforestation, or where there would be greatest based on financial transfers to land stewards tobenefits to water supply from modified behaviour. promote sustainable land management. The challenge now is to evolve this government-During the next phase of the programme, financed programme into a market-basedselective targeting of areas will assume a higher scheme, where the direct beneficiaries ofpriority. According to José Carlos Fernández, services provided by forest owners would help toDirector of the International Affairs and Finance underwrite the programme cost.Unit at the National Forestry Commission, overtime it is likely that there will be fewercommunities benefiting directly from nationalPES programmes, but they will receive higherprices in exchange for more precise anddemanding forest management andconservation practices.The payments made to communities andfamilies have provided financial benefits, andthere is evidence to suggest that the nationalPES schemes have played a role in povertyalleviation 10, 67, 72. Over time, the povertyalleviation component has come to play anincreasingly greater role in national payment forecosystem services programmes. 25
    • South Africa: Poverty alleviation through restorationSouth Africa’s innovative Working for Water Programme has been referred to as one of themost successful integrated land management programmes in the world, in terms of itsimpacts on biodiversity, water and socio-economic development. The programme model isbased on employing local people to remove invasive plant species that threaten watersupplies, and has been so successful that it has since been scaled out to working for wetlands,woodlands, and working on fire.South Africa, like many countries around the The Working for Water programme has clearedworld, must address issues of water scarcity and invasive plants from over one million hectares ofresource degradation, as well as complex land over the last 15 years. A recent studychallenges of unemployment and poverty in rural indicated that the removal of invasive plantareas. South Africa’s Working for Water species from water catchments has increasedprogramme has found an innovative way of water yield by approximately 34.4 billion litrestackling these difficult challenges in a holistic per year 76. This is equivalent to about 40% ofway, by employing local people to clear mountain the water yield from a new, built watercatchments and river corridors of invasive alien infrastructure scheme in the Western Cape,species. Since its inception in 1995, the constructed at a cost of approximately $232programme has provided jobs and training to up million 76.to 30,000 people per year. The results of Working for Water’s activities areThe Working for Water programme is impressive in environmental terms, and it hasadministered through the Department of Water been called an ‘inspirational’ example ofAffairs and Forestry (DWAF). A ‘water resource restoration of natural capital 77. However, it ismanagement fee’ is included in the water tariff the social and economic outcomes that thethat DWAF charges to consumers, and this fee programme has delivered that have cementedcontributes to the programme’s budget. political and community support. In addition toUnemployed people tender for contracts to job creation, the programme has alsorestore public or private lands by removing emphasised gender equity, and has providedinvasive species. The annual budget for the skills training, and health and HIV/AIDSprogramme is approximately $72 million, and awareness programmes 75.there are Working for Water projects in all nineof South Africa’s provinces. Working for Water has always had a strong emphasis on poverty alleviation and supportingEnvironmental degradation and rural the livelihoods of the programme participants.development are closely linked in South Africa. It The programme was born during the post-is estimated that around 7% of the country’s apartheid period, with initial funding through themean annual runoff is lost to invasive alien Reconstruction and Development Programmeplants 73, with significant flow-on effects for (RDP). According to Dr Guy Preston, Chairpersoneconomic activity and agricultural productivity. and National Programme Leader of Working forClearing land of alien species contributes to the Water, securing jobs for poor people was a keyrestoration of natural fire regimes, increased political goal at the time, and one of the majorproduction potential of land, improved reasons that the programme secured high levelbiodiversity conservation, reduced soil erosion political support was due to its role in joband better hydrological functioning and flood creation.protection 74- 75. 26
    • The importance of political support to the The success of the Working for Water model hassuccess of natural capital initiatives is well seen the development of a number of ‘sibling’illustrated by the experience of Working for programmes. Among these are the Working forWater. At the time the idea was first proposed, it Woodlands, Working for Wetlands and Workingwas championed by Professor Kader Asmal, the with Fire programmes. The programmes onMinister of Water Affairs and Forestry at the time woodlands and wetlands focus on ecological78. Jay Naidoo, who at the time was the Minister restoration, while Working with Fire targets theresponsible for the RDP, was impressed by the prevention and control of wild fires. There isproposal, which was subsequently passed by the strong community support for these programmes,RDP committee 78. and in many towns, the programmes have been the only source of new work 74.Working for Water spent its full budget, createdwork opportunities for the poor, and delivered South Africa’s Working for Water programme isecological outcomes. Immediately, it became a an example to other countries of what can beflagship programme of Government 74. The achieved for poverty alleviation andprogramme has consistently spent about 98% of environmental management through sustainedits allocated budget within the financial year in government support for the restoration ofwhich it was given, a feat unparalleled for other natural capital. The need to align environmentalgovernment programmes in South Africa. and social goals with political priorities has always been at the forefront of planning for the programme, and is a key reason for its success.The roll out of the programme was not withoutdifficulties; some people believed that moneyspent on restoration could be better directed toother initiatives, there were claims that thebenefits of the programme had not beenadequately quantified, and that the rapiddeployment of the programme led todisorganisation 77. Today, information collectedover the life of the programme provides concreteevidence that if well-managed, suchprogrammes can have tangible effects onpoverty, ecosystem health, water availability andland productivity.“The long-term risks associated with environmental degradation aresimply too massive. It is essential that legislators understand thereturns on investment from better land management, as well as theimportance of early detection and rapid response.”Dr Guy Preston, Chairperson and National Programme Leader of Working for Water. 27
    • USA: Marine and coastal restoration at scaleThe ecosystems of the Puget Sound basin in north-west USA provide economically valuableservices including flood protection, water supply and filtration, food and fibre production andclimate regulation. These valuable services are currently threatened by urbanisation, landdegradation and pollution. If signed into law, the Puget Sound Recovery Act will allow thecreation of a federal grant program to support large-scale restoration works in the sound,which will have multiple social and economic benefits.Puget Sound is the second largest estuary in the The indigenous peoples of the Puget SoundUSA. The sound, located in Washington State on area are also very influential in both cultural andthe Pacific coast, is a complex estuarine system legal terms. “Federal Court decisions havefed by 19 watersheds. Over the last 150 years, recognized Native American tribes’ rights tolarge areas of the region’s formerly extensive harvest and manage the habitat of fish andmarshlands, wetlands and forests have been shellfish in the entire Puget Sound basin. If thatdegraded and developed. Polluted runoff from ‘natural capital’ is degraded, tribes are able todeveloped areas has led to serious impacts on bring suit to protect their rights”, said Mrthe marine environment, which in turn has Townsend. The state of the sound’s naturalaffected human health, fisheries, and tourism. capital also influences the activities of the broader public, through water supply limitations and declines of trees, salmon and shellfish.The Puget Sound ecosystem provides floodprotection, clean drinking water, food, aestheticvalue, and many other valuable services. A Recognizing that the region’s economy and thepartial valuation of 14 ecosystem services well-being of its inhabitants is tied to the healthacross the Puget Sound basin indicated that of its natural capital, in 2007 the Washingtonthese services provide at least $9.7 billion in State Legislature created the Puget Soundannual benefits to the region. The sound’s Partnership (PSP). The governor of the State ofnatural capital is worth at least $305 billion in Washington convened a high level panel to maketerms of its net present value 79. recommendations on how to achieve ecosystem recovery in Puget Sound. Two national legislators and four state legislators from both majorAccording to Chris Townsend, Special Assistant parties participated in this panel. The billto the Director of the Puget Sound Partnership, creating the PSP was passed by both houses of“National leaders recognize the importance of the state legislature with bi-partisan support.healthy natural environments to thrivingeconomies. The Puget Sound economy is drivenin large part by high-tech industries such as The PSP is a state government agency given theMicrosoft and biomedical research. Those task of protecting and restoring the Puget Sound.companies need to attract the brightest and best The Partnership is highly collaborative, led by aemployees who have choices about where to board of local citizens and advised by a sciencework and live. The natural beauty of the area and panel. The Partnership’s Action Agenda,recreation opportunities are key to attracting and published in 2009, includes ecosystem recoverykeeping a highly qualified work force.” goals, actions and indicators 80.“We have taken a significant step toward restoring Puget Soundand protecting everything from animal habitats, to tourism, to ourprecious environment and our regional economy”.US Senator Maria Cantwell, co-sponsor of the Puget Sound Recovery Act. 28
    • Already, existing conservation and restoration restoration programmes. Legislators can activelyefforts have seen some positive results. Policies promote the importance of stewarding naturalto focus new urban development in previously capital, they can work with Executive Agenciesdeveloped areas rather than in natural areas that allocate funding, and they can also passhave helped to slow the rate of loss of natural legislation to ensure long-term finance forareas, while pollution mitigation and watershed restoration. Chris Townsend added, “Legislatorsprojects have improved water quality 81. can also support the use of innovative sources ofEcosystem restoration activities are expected to funding that are not typically thought of asboost the local economy and provide jobs. ecosystem recovery funds, but which could be used to achieve priority actions”.In developing its Action Agenda, the Puget SoundPartnership has drawn on a wealth of experiencefrom a number of large-scale, science-based,collaborative ecosystem restoration programmesthat have been carried out elsewhere in the US82-83. The scale of these projects makes themexpensive, and federal funding, supported bynational legislators, is crucial to their success.Two key actions at the federal level, haveenabled federal funding for implementation ofthe Puget Sound Partnership’s restorationprogramme. The US Federal EnvironmentalProtection Agency approved the restorationproject in 2009 under the National EstuaryProgram, securing greater federal funding andsupport for the initiative, thanks in part to theefforts of the congressional delegation. In 2010,the US Senate Committee on the Environmentand Public Works approved the Puget SoundRecovery Act, sponsored by Washington Senator © NASAMaria Cantwell. If signed into law, this nationallegislation will provide a consistent level of Figure 11: Aerial view of the Puget Sound.funding for the programme. Puget Sound is a complex estuarine system of interconnected marine waterways and basins fed by“In Puget Sound, 13 different federal agencies 19 watersheds. It is more than 160 kilometres longhave formed a caucus to coordinate federal with more than 4,000 kilometres of shoreline. The complex tangle of the sound’s waterways is visible inprojects aimed at Puget Sound restoration. this aerial view of northern Washington State, to theThere is buy-in at the highest levels for this southeast of Vancouver Island and Juan de Fuca strait.coordination effort,” said Mr Townsend. “To The light blue area offshore is a phytoplankton bloom. Algal blooms, which are associated with increasedsome extent, this creates synergy and nutrients from both onshore and seafloor sources, cancollaboration between agencies and replaces have serious health consequences if toxic species areredundancy and inefficiency.” present. Harmful algal blooms have been reported with increasing frequency and intensity in recent years.The case of restoration in the Puget Sound earthobservatory.nasa.gov/IOTD/view.php?id=1813demonstrates that legislators can profoundlyinfluence the success or failure of large-scale 29
    • Insights for legislators on natural capitalThese diverse case studies have shown just a Evaluate economic benefitssnapshot of what investing in bettermanagement of natural capital can achieve in Closely related to the inclusion of natural capitalkey areas of public policy, as well as some of the in national accounts is the need to undertakemajor challenges. Below, we present a short thorough cost-benefit analyses of policy options,summary of the key political insights for which take into account the real economiclegislators based on the experiences with these effects of policies that affect the naturalprojects and pieces of legislation. environment. Some investments may no longer make sense after such an analysis, when the real long-term costs of development are comparedThese messages are intended to be neither static against short-term profits. Legislators can do thisnor exhaustive. We hope that legislators by requiring that new projects undertake cost-attending the ‘Parliamentarians and Biodiversity’ benefit analyses that explicitly evaluate the effectforum held in parallel to the negotiations at the of development on the value of environmental10th Conference of the Parties (COP10) to the services over the short and long term.Convention on Biological Diversity (CBD) will addtheir insights to those listed below. This willaugment a growing body of knowledge held by Mobilize political support forlegislators on sustainable management ofnatural capital. The final version of this report will natural capitalincorporate ideas advanced at the forum. Political support at a high level was critical to the implementation and success of many of the programmes profiled in this report.Include natural capital in national Parliamentarians can act as champions for innovative ideas that use natural capital as partaccounts of a broader policy approach to address multipleNatural capital should be included in national challenges (such as unemployment, waterincome accounts, alongside other forms of scarcity, and declining agricultural productivity). Itcapital. The UN and the World Bank (in may not always be necessary to pass newcollaboration with a number of other legislation, but providing support and secureorganisations) are currently updating the funding to government departments andinternational standardised framework for community groups that are involved in theseenvironmental accounting, which will be projects is essential.completed in 2012. The incorporation of naturalcapital into national income accounts will beaided by the creation of Parliamentary Select Involve local communitiesCommittees on Natural Capital. It is critically Community involvement and support was criticalimportant that finance ministries and the to the success of many of the projects andtreasury should be involved. legislation profiled in this report. Local communities whose livelihoods are closely linkedThe Global Legislators Organisation (GLOBE) is with the state of the environment are invariablyadvancing a Natural Capital Action Plan, to be interested in how plans for the management oflaunched at CBD COP10, which will address natural capital will affect them. Consultation withsome of the political steps that need to be taken the local community and with indigenous peoplesto fully incorporate the value of natural capital must be an integral part of any new initiative oninto national accounts and political decisions 84. natural capital. This will not only ensure politicalA copy of the Action Plan accompanies this support, but will also likely improve the sense ofreport. ownership that communities have over their lands and futures. 30
    • Invest in green jobs and Advocate for integrated regionalinfrastructure planningImproving the stewardship of natural capital can There is a distinct need to move beyond theinvolve job creation. When designing stimulus sectoral approach to environmental management,and spending packages, legislators should and increase links across ministries ofconsider channelling funding towards natural agriculture, forestry, fisheries, environment,capital initiatives that will not only create jobs, finance, education, defence and health. This canbut will also add economic value at a longer time involve streamlining environmental management,frame. This could include increasing carbon as has occurred for the new US National Oceansequestration through land management, Policy 85, and the UK Marine Policy Statementincreasing investment in renewable energy, or (currently in development). Integrated,using ‘green infrastructure’ as part of managing ecosystem-based planning and management willflood risk. require dedicated high-level task forces and extensive community and expert consultation to bring into effect.Build on existing models andmechanisms Use natural capital for futureLegislators can rapidly advance the integration ofnatural capital thinking with mainstream public challengespolicy by building on existing financial and Addressing the future challenges of climategovernance mechanisms, and by adapting change, water scarcity, food security andexisting models that have proved successful. biodiversity loss will require active investment in natural capital. Parliamentarians can help toBrazil’s ICMS-Ecológico builds on the existing tax align policies to address these challenges withregime, which has led to low transaction costs sustainable environmental management byand limited additional bureaucracy. Mexico’s setting up expert advisory commissions,national scheme of payment for environmental parliamentary standing committees, andservices provides payments mostly to commissioning research on policy options.communities, rather than individual landowners,again lowering entry and transaction costs. Thesuite of programmes that have built on thesuccess of South Africa’s Working for WaterProgramme bear testament to the idea ofadapting successful models to new sectors.You cannot adjust the ecological dependence of your economies orcities within a week or a year, but need to plan decades ahead. Wedo this in other domains: education, transportation, infrastructureand defence. We need to employ longer-term thinking just asvigorously in the resource domain.Mathis Wackernagel, Founder and President of the Global Footprint Network 31
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    • Websites and reports on case studiesAustralia: Managing the Great Barrier Reef Europe: Managing coastal zonesGreat Barrier Reef Marine Park Authority: European Commission webpage on integrated coastalhttp://www.gbrmpa.gov.au/ zone management: http://ec.europa.eu/environment/iczm/home.htmOverview of the Representative Areas Programme inthe Great Barrier Reef Marine Park: Indonesia: Reducing carbon emissionshttp://www.gbrmpa.gov.au/corp_site/management/re Kalimantan Forests and Climate Partnership:presentative_areas_program http://www.climatechange.gov.au/government/initiati ves/international-forest-carbon-Brazil: Tax revenue and ecological criteria initiative/~/media/publications/international/kalimanReport on fiscal incentives for biodiversity tan.ashxconservation: the ICMS-Ecológico in Brazil:http://www.iied.org/pubs/display.php?o=8119IIED Japan: Legislation on restoration River Bureau of the Japanese Ministry of Land,Ecosystem marketplace wepbage on Brazilian Infrastructure, Transport and Tourism (MLIT):initiatives: http://www.mlit.go.jp/en/river/index.htmlhttp://www.ecosystemmarketplace.com/pages/dynamic/article.page.php?page_id=6524&section=home Ministry of the Environment report on nature restoration projects in Japan:Cameroon: Restoration for rural livelihoods http://www.env.go.jp/en/nature/npr/nrp_japan/pdf/fIUCN report on the Waza Logone Project: ull.pdfhttp://www.atl.org.mx/files/WaterPublications/ParaCuencas/6.pdf Mexico: National payments for ecosystem servicesLake Chad Basin Project webpage on Waza Logone Summary of Mexico’s Payments for HydrologicalPilot Project: Services programme:http://lakechad.iwlearn.org/about/dp/wlpp/waza- http://www.watershedmarkets.org/casestudies/Mexiclogone-pilot-project o_National_PSAH_eng.htmlChina: Government incentives at scale South Africa: Poverty alleviation throughReport on markets for ecosystem services in China: restorationhttp://www.forest- Department of Water Affairs and Forestry page ontrends.org/documents/files/doc_2317.pdf Working for Water programme: http://www.dwaf.gov.za/wfw/World Bank Project website on Loess PlateauWatershed Rehabilitation. USA: Marine and coastal restoration at scalehttp://go.worldbank.org/RPDAURT290 Puget Sound Partnership: http://www.psp.wa.gov/Denmark: From farmland to National ParkDanish Ministry of Environment page on Skjern RiverRestoration:http://www.skovognatur.dk/Ud/Beskrivelser/Vestjylland/SkjernEnge/Skjern_River_Wetlands.htm 36
    • AcknowledgementsThe authors of this report would like toacknowledge the generous and insightfulcontributions of a large number of people to thisreport. Without their input and advice this reportcould not have been completed. Any errors offact, omissions or misrepresentations remain thesole responsibility of the authors.Contributions on the ideas behind the overallreport were received from James Aronson,Jonathan Baillie, Alice Barbe, Andre Clewell,Simon Harding, Ian Johnson, John D Liu, AdamMatthews, Alex Rogers, Patrick Ten Brink, TerryTownshend and Mathis Wackernagel. We alsoacknowledge the important work undertaken bythe teams responsible for ‘The Economics ofEcosystems and Biodiversity’ study 35 and‘Restoring Natural Capital’ 7, 86, whose ideasunderpin this report.Assistance and advice with the country casestudies was received from many people, who arelisted here alphabetically by country. Australia Australia:Jon Day, Professor David Kemp. Brazil Solange Brazil:Amorelli, Giselda Durigan, Joshua Farley, Hon.Rebecca Garcia, Ricardo Ribeiro Rodrigues,Pedro Henrique Santin Brancalion. Cameroon Cameroon meroon:Hon. Amadou Adji, Rémi Jiagho, Leonard Usongo,Hon. Jean-Jacques Zam. China Michael Bennett, China:Terry Townshend. Denmark Alex Dubgaard, Hon. Denmark:Steen Gade MP, Signe Schelde Poulsen.European Union: Union Rafael Jiménez-Aybar.Indonesia:Indonesia Laura D’Arcy, Tom Maddox, SophiePersey, Agus Suratno. Japan Hon. Shuichi Kato Japan:MP, Keigo Nakamura, Jinichi Ueda. Mexico Mexico:Andrés Avila-Akerberg, Esteve Corbera, JoséCarlos Fernández, Carolina Hernández, GmelinaRamírez. South Africa James Blignaut, Shereen Africa: Sweden:Dawood, Christo Marais, Guy Preston. SwedenSofia Arkelsten MP. UK Hon. Barry Gardiner MP, UK:Hon. Lord Hunt of Chesterton, The Rt Hon. JohnGummer, Lord Deben. USA Senator Maria USA:Cantwell, Thuch Mam, Chris Townsend, JeffreyWatters. 37