Patrick ten Brink of IEEP TEEB nature and Green Economy 18 june 2012 ISEE event Rio+20

1. Nature and its role in the Transition to a Green
Economy
A contribution to Rio + 20
Patrick ten Brink
TEEB for National and International Policy Makers Co-ordinator
Head of Brussels Office
Institute for European Environmental Policy (IEEP)
TEEB Day at the ISEE 2012 Conference
Windsor Guanabara Palace Hotel, Conference Annex, Velasquez Hall.
Rio de Janeiro, Brazil,
Monday 18th June
3.15-4.45 pm

2. Nature and its role in the Transition to a Green Economy
Presentation overview
Nature and the Green Economy Project
1. Nature in a green economy
2. Nature , well-being and development
3. The multiple benefits of valuing
nature
4. Challenges and Commitments
5. Achieving the transition to a green
economy
Next Steps & Panel questions

3. TEEB’s Genesis and Developments
TEEB End User
Reports Brussels Nature and GE
Interim Climate TEEB W&W
2009, London 2010
Report Issues Update `TEEB Oceans
TEEB TEEB
Synthesis Books
Ecol./Env.
Economics CBD COP 9 Input to
literature Bonn 2008 UNFCCC 2009
India, Brazil, Belgium,
Japan & South Africa
TEEB studies
Sept. 2010
The Netherlands,
Germany, Nordics,
BD COP 10 Norway, India, Brazil
Nagoya, Oct 2010

4. Nature and the Transition to a Green Economy
• Need for a transition towards a “green” economy
that promotes social equity, poverty eradication
and human well-being.
• Increasing appreciation of biodiversity and
ecosystem services and the value of nature.
• Healthy and resilient ecosystems are necessary
for long-term socio-economic development
• Efforts to build a green economy should be based
on an appreciation of the values of nature.

5. 1. Nature in a Green Economy
• Nature is essential to the health and growth
of economies, societies and individuals,
through the provision of ecosystem services.
• Nature is more than “natural capital” - but,
NC is a useful metaphor to communicate the
value of nature to people and economy
• Nature is also more than the flow of
ecosystem services - however, an
understanding of the ecosystem services can
offer an important additional evidence base
to inform decisions and motivate action.

6. What is a green economy?
“one that results in improved human well-being
and social equity, while significantly reducing
environmental risks and ecological scarcities.
In its simplest expression, a green economy can
be thought of as one which is low carbon,
resource efficient and socially inclusive.”
(UNEP Green Economy Report)

7. Nature Capital’s contribution to the Economy
THE FOUR CAPITALS INTERMEDIATE CONSUMPTION FINAL CONSUMPTION
SECTORS OF THE ECONOMY
MAN MADE CAPITA`L (examples)
Manufactured, Fixed capital : factories, - Agriculture, hunting, forestry & fishing
DEMAND
power plant, transport and environmental - Food products, beverages & tobacco Domestic & Exports
infrastructures, buildings & - Textiles, textile products & leather
Financial capital: money and equivalents - Wood and wood products
- Pulp, paper & paper products
OUTPUTS
- Rubber & plastics products PUBLIC SECTOR
INPUTS
HUMAN CAPITAL - Research & development
Learning and skills, health, wellbeing - Mining & quarrying
and happiness - Hotels & restaurants
- Chemicals - Pharmaceuticals PRIVATE SECTOR
- Recycling - Manufacturing
SOCIAL CAPITAL - Electricity - Water supply
Social cohesion, trust, civic society, - Real estate - Construction
judiciary, education, health services & - Education - Finance & insurance HOUSEHOLDS
social services
Outputs from one sector can be
intermediate inputs to another
NATURAL CAPITAL
DIRECT FLOW OF SERVICES - BENEFITS
Biodiversity (genes, species, habitats,
ecosystems) and other natural
resources (e.g. water, air & climate, soil)
IMPACTS from production, use, investment INVESTMENT
Source: adapted from ten Brink et al (2011) in TEEB (2011a)

8. Key sectors include:
• Agriculture
• Fisheries
• Water Primarily investing in natural capital
• Forests
• Energy
• Manufacturing
Primarily investing in energy and resource
• Buildings efficiency
• Transport
Also working with nature can lead to cost-effective
• Tourism solutions and multiple benefits
• Waste management
All sectors important – whether due to their
+ Cities dependency/benefits from nature’s services, their impacts on
the environment, or their opportunities for action.
Source: UNEP Green Economy Report Also pharmaceuticals, food and drink, education, health...

9. 2. Nature , well-being and development
Human and societal well-being depends on nature.
Where natural capital is degraded and lost, there is a risk that
communities are undermined and humans suffer.
Efforts to conserve, restore and sustainably use natural capital can
• improve human well-being, address poverty, support
livelihoods and increase intergenerational equity
• increase ecological resilience - a life insurance policy for
many communities.
Nature contributes to local, regional and national development and
prosperity

10. Working for Water (WfW): SA
The Manalana wetland (near Bushbuckridge, Mpumalanga)
• Severely degraded by erosion that threatened to consume the entire system
Sources: TEEBCases for TEEB for local and regional policy
• WfW public works programme intervened in 2006 to reduce the erosion and improve
the wetland’s ability to continue providing its beneficial services
Results
• The value of livelihood benefits from degraded wetland was just 34 % of what could be
achieved after investment in ecosystem rehabilitation;
• Rehabilitated wetland now contributes provisioning services at a net return of 297
EUR/household/year;
• Livelihood benefits ~ 182,000 EUR by the rehabilitated wetland; x2 costs
• The Manalana wetland acts as a safety net for households.
Sources: Pollard et al. 2008; Wunder et al 2008a; http://www.dwaf.gov.za/wfw/
Recognising and demonstrating the values and potential for increased value critically important.

11. Nature and its role in the Transition to a Green Economy
Tanzania - Nihili woodland restoration
• Restoration using traditional knowledge.
• An increase in the provision of ecosystem services from the
woodland (e.g. fuel, fruit, building timber, honey, medicines and fodder)
• Time needed to collect fuel wood & non-timber forest products fell
by several hours.
• The sale of tree products has helped pay for children’s schooling &
• More time for education and productive work, thus creating
enabling conditions for development (TEEB 2012b).

12. 3. Values of Working with Nature – evidence base
• USA-NY: Catskills-Delaware watershed for NY: PES/working with nature saves money (~5US$bn)
• New Zealand: Te Papanui Park - water supply to hydropower, Dunedin city, farmers (~$136m)
• Mexico: PSAH to forest owners, aquifer recharge, water quality, deforestation, poverty (~US$303m)
• France & Belgium: Priv. Sector: Vittel (Mineral water) PES & Rochefort (Beer) PES for water quality
• Venezuela: PA helps avoid potential replacement costs of hydro dams (~US$90-$134m over 30yr)
• Vietnam restoring/investing in Mangroves - cheaper than dyke maintenance (~US$: 1m to 7m/yr)
• South Africa: WfW public PES to address IAS, avoids costs and provides jobs (~20,000; 52%♀)
• Germany : peatland restoration: avoidance cost of CO2 ~ 8 to 12 €/t CO2 (0-4 alt. land use)
Critical to assess where working with nature saves money for public (city, region,
national), private sector, communities and citizens & who can make it happen
Sources: various. Mainly in TEEB for National and International Policy Makers, TEEB for local and regional policy and TEEB cases

13. ‘We never know the worth of water 'til the well is dry’. ‘
English proverb
‘Men do not value a good deed unless it brings a reward’
Ovid, B.C. 43 – 18 A.D., Roman Poet

14. Hydrological services: Aquifer recharge;
Improved surface water quality, reduce
Solution: Mexico PSAH: PES to frequency & damage from flooding`
forest owners to preserve forest:
manage & not convert forest
Result
Deforestation rate fell from 1.6 % to 0.6 %.
18.3 thousand hectares of avoided deforestation
Avoided GHG emissions ~ 3.2 million tCO2e
Reduce Deforestation Address Poverty
Investment in good spatially relevant data critical to develop an2010); Muñoz-Piña et al. policy instruments 2007
Munoz evidence base for 2008; Muñoz-Piña et al.

15. Multiple Objectives : PSAH Mexico
Aquifers
Balance of priorities varied over time
A
Poverty Water scarcity
P WS
Deforestation
An instrument can evolve and respond to changing needs
D
Munoz 2010); Muñoz-Piña et al. 2008

16. 4. Challenges
• Feeding the 9 billion; Water; Poverty alleviation, Urbanisation, Jobs, Climate change,
Financial crisis etc
• The rising level of consumption and production will put increasing stress on the planet’s
resources and ecosystems – limits, scarcity, price volatility, critical (ecological and
social) thresholds...
Commitments
• Rio Conventions: CBD; UNFCCC and UNCCD
• Subsidy reform: Aichi targets, G20, EU, countries
• Natural capital Accounts/SEEA: WAVES, SNA/SEEA, Gabarone Declaration
• Finance and business: Natural capital declaration and EP&Ls
• Science policy interface: IPBES
• Proactive investment in natural capital (restoration) : Aichi targets
• Sustainable Development : MDGs (poverty, nutrition, education , equity, health, environment)

17. Over $ 1 trillion per year in Subsidies
Sector Region
Agriculture OECD: US$261 billion/year (2006-8) (OECD 2009)
Biofuels US, EU and Canada: US$11 billion in 2006 (GSI 2007; OECD 2008b)
Energy World: US$557 billion/year in 2008 (IEA 2010)
Fisheries World: US$15-35 billion/year (UNEP 2008a)
Transport World: US$238-306 bn/yr; EHS ~ US$173–233 bn/yr (Kjellingbro and Skotte 2005)
Water World: US$67 bn/year; EHS estimated at US$50 bn/year (Myers &www.teebweb.org
Source TEEB for policy Makers - Chapter 6 Kent 2002)
Most sensible use of funds? Reform win-wins ? eg budget, climate, energy security, water,
biodiversity & social?
Need identification of subsidies, assessment of potential benefits of reform

18. We need an inventory and assessment of
EHS to identify
the “good”
Source: building on Sumaila and Pauly 2007
still relevant, targeted, effective, positive impacts, few negative effects
the “bad”
no longer relevant, waste of money, important negative effects
the “ugly”
badly designed – eg inefficient, badly targeted, potential for negative effects
Need to understand which subsidies are which.
Where benefits of reform might lie.
Develop a road map for EHS Reform.

19. Tools to support national commitments: UK Subsidy reform
Phase 4:
Phase 0: Screening of Phase 1: Screening of Phase 2: Potential for Phase 3: Reform
Opportunities for
sectors / impacts incentives reform scenarios
action
5) Does the incentive 9) Are there suitable
2) Are there 13) Is there a window
fulfil its objectives reform option(s)?
incentives related to of opportunity for
and are these still
these sectors / reform or can one be
valid? +
activities? created?
Yes + 10) What are the
expected costs and Yes
3) Does the incentive 6) Does the incentive benefits (economic,
1) What are the 14) Is there a
lead to potential lead to socio- environmental, social)?
threats to (potential) policy
direct / indirect economic issues?
biodiversity, and + champion to drive
how do these relate biodiversity impacts? + reform?
to key economic (if positive inform Q10) 11) Are there
7) Are there more
obstacles to reform? Yes
activities / sectors? benign alternatives?
Yes: negative impacts
+ 15) Is there public/
4) Are these + 12) Is the reform political support to
potential impacts 8) Are there understandable, reform or can it be
limited by existing pressures to reform? practical and developed?
‘policy filters’? enforceable?
No
Can sectors / activities Can options for reform Is the removal or reform
Has an incentive been Is the removal or
by identified which are or removal be of the incentive timely
identified which may be reform of the incentive
harmful to identified, and are they & should it be
harmful to biodiversity? needed?
biodiversity? advisable? prioritised?
No Yes No Yes No Yes No Yes No Yes
Develop conditions for success Prioritise reform / removal of the
No need to currently take further action – regular review is however advised
and plan for future reform incentive harmful to biodiversity

20. 5. Achieving the transition to a
green economy
Key components and building blocks

21. The Transition to a Green Economy
Current Situation Building Blocks in the Ambitions for the Future
Transition to a Green Economy A Green Economy
Declining Sustainability
in a Brown Economy Improved human well-being and
Business-as-Usual
social equity, while significantly
Approaches
Resource over-exploitation & reducing environmental risks and
pollution pressures Avoiding Unsustainable Trade- ecological scarcities
offs
Climate Change + Staying within a ‘safe operating
Environmental compliance & space’: using resources within the
Biodiversity and natural infrastructure planet’s regenerative capacities &
Good governance
Good Governance
capital loss avoiding critical ecological
+ thresholds
Critical ecological and Active environmental
resource thresholds passed management No net loss of biodiversity and
or at risk climate change within ‘acceptable’
Active Risk Management
limits
Resource scarcity and limited
+
access to a clean Proactive Investment in Natural Sustainability for future
environment Capital generations and business:
available natural capital and a
+ clean environment
Health impacts and man-
made natural disasters Pursuing environmental
sustainability Health and livelihoods for citizens
An economy that is not Eco-efficiency and communities
resource efficient, low carbon + An economy decoupled from
and socially inclusive
Decoupling via Radical environmental impacts and
Source: Patrick ten Brink & Leonardo Innovation & Demand change resource use
Mazza, own representation

22. Examples of actions
A: Assessment to understand the whole picture – winners/losers,
impacts & response in project design and selection
B: Investment in water and waste infrastructures
C: Flood risk mapping, taxonomy and pathways for invasive species
D: Restoration of ecological infrastructure, e.g. wetlands, peatlands,
flood plains & Conservation, protected area management
E: EHS reform, positive incentives, polluter pays, fiscal reform
F: Research and development for new products/applications –
pharmaceuticals, biomimicry & Information for Demand changes
G: Indicators and Environmental accounts

23. Building Blocks in the
Transition to a Green Economy
Business-as-Usual Transitions to green economies
Approaches
Avoiding Unsustainable Trade-
offs
Path dependent on national contexts
+
Environmental compliance & Which combination of building blocks
infrastructure
are priority will vary over time and
+
Governance
place – though all necessary for the
Good
Active environmental
management transition
Active Risk Management
+
Proactive Investment in Natural
Financing the transition challenge
Capital
+ Governance for a green economy
Pursuing environmental
sustainability Accelerating efforts
Eco-efficiency
+
Decoupling via Radical
Innovation & Demand change

24. Conclusions 1. Nature, in all its diversity, provides a wide range
of benefits and values to society and the
economy referred to as natural capital.
2. A green economy aims to incorporate these
values from ecosystem services and biodiversity
into decision-making across all levels of
governance.
3. There are both opportunities and risks involved
in transitions to green economies in regards to
human welfare and development. Transition
management is critical for success.
4. Leading by example, cooperation and
partnerships essential to achieve the transition.
5. Rio - a window of opportunity , a window of
necessity.

25. Panel questions & discussion
Q: What role can nature play in improving wellbeing of
people/communities, poverty alleviation and local development? And what
governance solutions for mainstreaming (e.g. links of strategies and plans)?
Q: How can commitments of working with nature (e.g. CBD NBSAPs) be
mainstreamed with and other commitments (e.g. climate change, green
economy, development)?
Q: Where can we save money via working with nature, and where can we
get wider benefits and how can we identify and seize these opportunities?
Q: Who can lead the transition to a green economy?

26. Thank you
TEEB Reports available on http://www.teebweb.org/
See also www.teeb4me.com
Patrick ten Brink
ptenbrink@ieep.eu
IEEP is an independent not for profit institute dedicated to advancing an environmentally sustainable Europe
through policy analysis, development and dissemination.
For further information see: http://www.ieep.eu
Follow us on twitter: IEEP_EU
Or PtenBrinkIEEP
The new Manual of European Environmental Policy: http://www.europeanenvironmentalpolicy.eu/