TEEB biodiversity and Water Patrick ten Brink of IEEP presentation at water day CBD COP10 Nagoya 22 Oct 2010
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The document discusses the economic significance of biodiversity and ecosystem services, emphasizing the need for better valuation and recognition in policymaking. It highlights various programs and instruments, such as payments for ecosystem services (PES) and their successful implementation worldwide, which demonstrate the economic benefits of maintaining ecosystems. The text advocates for a shift towards integrating nature's value into economic decisions to enhance environmental resilience and long-term sustainability.
TEEB biodiversity and Water Patrick ten Brink of IEEP presentation at water day CBD COP10 Nagoya 22 Oct 2010
- 1. The Economics of Ecosystems and Biodiversity Biodiversity and Water Patrick ten Brink TEEB for Policy Makers Co-ordinator Head of Brussels Office Institute for European Environmental Policy (IEEP) CBD COP 10 Water Ecosystems and Climate Change Room 211A level 1B 16:30 17:45 22 October 2010 Nagoya, Japan 1
- 2. TEEB origins Source: Bishop (2010) Presentation at BIOECON
- 3. TEEB s Genesis and progress Potsdam Initiative Biological Diversity 2010 1) The economic significance of the global loss of biological diversity Sweden Sept. 2009 Brussels 13 Nov 2009 TEEB Interim London India, Brazil, Belgium, Report @ CBD COP- July 2009 Japan % South Africa 9, Bonn, May 2008 Sept. 2010
- 4. Ecosystem Services and awareness of values Provisioning services Market values known and generally taken into account in Food, fibre and fuel decision making on land use decisions Water provision Ecosystem service generally unpriced, often taken for granted, Genetic resources until service is lost Regulating Services Climate /climate change regulation Value long ignored, now being understood >> new instruments (e.g. PES), markets, investments Water and waste purification Air purification Value often appreciated only after service is Erosion control degraded or gone > replacement, substitute costs Natural hazards mitigation (e.g. Flood control) Value often appreciated only after service gone Pollination and damage done >> damage costs Biological control Cultural Services Aesthetics, Landscape value, recreation Sometimes value explicit / implicit in markets and tourism (e.g. tourism spend / house prices) Cultural values and inspirational services Values generally rarely calculated Supporting Services - e.g. soil formation Habitat Services - e.g. nurseries The benefits to our economies, livelihoods and wellbeing have generally not been taken into account. There is, however, now + Resilience - e.g. to climate change a new awareness of the value of ecosystem services and a growing use of instruments to reward benefits.
- 5. 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
- 6. Presentation overview The Economics of Ecosystems and Biodiversity in Policy Making The Global Biodiversity Crisis Measuring what we manage Ecosystem service indicators Accounts Valuation and assessment Available Solutions Rewarding benefits: PES, REDD+, fiscal transfers, ABS, markets, GPP et al Subsidy reform Addressing losses : Regulation legislation, liability, taxes & charges, offsets, banking Protected Areas Investment in natural capital Responding to the value of nature http://www.teebweb.org/
- 7. Valuation and policy making: from valuing natural assets to decisions To underline the value of natural assets & help determine where ecosystem services can be provided at lower cost than man-made technological alternatives e.g. water purification and provision, flood control Conservation / restoration and other Investments decisions PES instruments at different scales and by different stakeholders Avoided cost of alternative water purification and provision e.g. USA-NY Catskills-Delaware watershed e.g. New Zealand Te Papanui Park - water e.g. Mexico PSAH nationally, and local application eg Saltillo City, Zapaliname mountains Avoided loss of output e.g. Venezuela: PAs to avoid sedimentation & loss of hydro output Lower cost of flood control e.g. Vietnam and restoring/investing in Mangroves - cheaper than dyke maintenance e.g. Belgium Schelde river: natural flood defence - cheaper than man-made infrastructure
- 8. Valuation and policy making: from valuing natural assets to decisions Inform land-use decision - Creating and improved evidence base Example: India: Floodplain between Yamuna River and Delhi. Choice: convert floodplain / embankment plan or not Evidence showed that ecosystem benefits exceeded opportunity costs of conversion. Decision: Delhi government halted embankment plan of Yamuna until further order . Avoid socially less good investment decisions
- 9. PES: They exist, they work (though lots of lessons to learn) Instrument growing in applications 300 PES programmes globally, range of ecosystem services (Blackman & Woodward, 2010) Broad estimate for global value: USD 8.2 billion (Ecosystem Marketplace, 2008) USD 6.53 billion in China, Costa Rica, Mexico, the UK and the US alone. (OECD 2010) increasing by 10-20% per year (Karousakis, 2010) For Specific services - e.g. provision of quality water (NY), protect groundwaters (J, D), cleanse coastal waters (Sw), carbon Storage (NZ, Uganda), invasive alien species (SA - WfW), biodiversity (EU) Multiple services: e.g Costa Rica s PSA - carbon, hydrological services preserving biodiversity and landscape beauty. Multiple objectives - e.g. Mexico s PSAH hydrological services, deforestation, poverty Big and small E.g. 496 ha being protected in an upper watershed in northern Ecuador eg. 4.9 million ha sloped land being reforested by paying landowners China. Public (municipal, regional, national) and private (eg Vittel (Fr), Rochefort (B) for quality water Local and national and international - e.g. REDD+ for forest carbon plus See also Chapter 5 TEEB for Policy Makers
- 10. Multiple Objectives : PSAH Mexico PES to forest owners to preserve forest Manage and not convert forest e.g. cloud forest US$ 40 per ha/year; e.g. other tree-covered land US$ 30 per ha/year Hydrological services: Aquifer Recharge; Improved surface water quality, Reduce frequency & damage from flooding Reduce Deforestation Address Poverty Munoz 2010); Muñoz-Piña et al. 2008; Muñoz-Piña et al. 2007.
- 11. Multiple Objectives : PSAH Mexico Balance of priorities varied over time Aquifers An instrument can evolve and respond to changing needs A Poverty Water scarcity P WS Deforestation D Munoz 2010); Muñoz-Piña et al. 2008
- 12. PSAH Mexico Results: PSAH reduced the rate of deforestation from 1.6 % to 0.6 %. 18.3 thousand hectares of avoided deforestation Avoided GHG emissions this equates 3.2 million tCO2e. Year in which forest is 2003 2004 2005 2006 2007 2008 2009 Total signed into the program Surface incorporated into 127 184 169 118 546 654 567 2,365 the program ( ooo ha) Forest owners participating 272 352 257 193 816 765 711 3,366 (individuals + collectives) Total payment to be made 17.5 26.0 23.5 17.2 84.2 100.9 87.4 303 over 5 years (US$ m) Source Munoz 2010); Muñoz-Piña et al. 2008
- 13. Multiple Benefits: at the Urban level City of Toronto Estimating the value of the Greenbelt for the City of Toronto The greenbelt around Toronto offers $ 2.7 billion worth of non-market ecological services with an average value of $ 3, 571 / ha. Implication re: future management of the greater city area ? Ecosystem Annual Value Valuation Benefits (2005, CDN $) Carbon Values 366 million Air Protection Values 69 million Watershed Values 409 million Pollination Values 360 million Biodiversity Value 98 million Recreation Value 95 million Agricultural Land 329 million Value Source: Wilson, S. J. (2008) Map: http://greenbeltalliance.ca/images/Greebelt_2_update.jpg
- 14. The Social Dimension: Jobs: Working for Water WfW is a public works programme in South Africa which protects water resources by stopping the spread of invasive plants. Municipal government contracting workers to manage public land sustainably Results - More than 300 projects in all nine South African provinces. Employed around 20,000 people per year, 52 per cent of them women4, and also provided skills training, health and HIV/AIDS education to participants. costs to rehabilitate catchments range from 200-700 EUR/ha (Turpie et al. 2008) benefits may reach a 40 year NPV of 47,000 EUR/ha (see TEEB Foundations, 2010) Wunder et al 2008a; http://www.dwaf.gov.za/wfw/
- 15. WfW: The Manalana wetland (near Bushbuckridge, Mpumalanga) severely degraded by erosion that threatened to consume the entire system 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 is 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/
- 16. Security and meeting objectives working with nature: Flood Control and the Schelde : Belgium Major infrastructural works were planned - deepening fairway to the harbour of Antwerp and complementary measures to protect the land from storm floods CBA carried out, including ecosystem services (recreational value) of new floodplains. Evaluation Result: an intelligent combination of dikes and floodplains can offer more benefits at lower cost than more drastic measures such as a storm surge barrier near Antwerp. 14 vs 41 year payback Policy Response / Action: The Dutch & Flemish gov ts approved an integrated management plan consisting of the restoration of approximately 2500 ha of intertidal and 3000 ha of non-tidal areas University of Antwerp and VITO (2004) in TEEB in National Policy (2011)
- 17. Table 4.2 Different alternatives for flood protection in the CBA (Phase 1: different measures; Phase 2 optimization) Security and meeting objectives working with nature: Flood Control and the Schelde : Belgium Phase 1 2 Measurements Storm Over- Dykes Floodplains Floodplains Floodplains surge Schelde (340km) (CIA, 1800 (RTA, 1800 (1325 ha) + barrier ha) ha) dykes (24 km) Investment and maintenance costs 387 1.597 241 140 151 132 Loss of agriculture 16 19 12 Flood protection benefits 727 759 691 648 648 737 Ecological benefits 8 56 9 Other impacts: - shipping -1 -3 -3 -5 - visual intrusion Total net benefits 339 -837 451 498 530 596 Payback period (years) 41 / 27 17 14 14 University of Antwerp and VITO (2004) in TEEB in National Policy (2011)
- 18. Private Sector Interests: Water: Vittel (France) Vittel mineral water, France Perrot-Maître 2006; Wunder and Wertz-Kanounnikoff 2009 Since 1993, PES programme in its 5100 ha catchment in the Vosges Mountains. 26 farmers paid to adopt best low-impact practices in dairy farming Payment levels Ave. payments are EUR 200 ha/year over a five year transition period and up to 150,000 EUR per farm to cover costs of new equipment. Contracts are long-term (18-30 years), with payments adjusted to opportunity costs on a farm-by-farm basis. Making it Happen built on a 4-years research by the France s INRA (National Institute for Agricultural Research ) took 10 years to become operational Success because of economic rationale + tenacity of Vittel Similar case for Beer ! Rochefort, Belgium . What cases do you know of ?
- 19. Natural resource management & spatial planning Flooding of River Elbe, Germany (2002) Damage over EUR 2 billion Assessment that flood damage (+ cost of dams) by far exceed costs of upstream flooding arrangements with land holders The value of upstream ecosystems in regulating floods was re-discovered ! Local authorities start changing spatial planning & seeking arrangements upstream
- 20. Thank you TEEB Reports available on http://www.teebweb.org/ & TEEB in Policy Making will come out as an Earthscan book in March 2011 See also www.teeb4me.com Patrick ten Brink, [email protected] IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment www.ieep.eu Manual of EU Environmental Policy: http://www.earthscan.co.uk/JournalsHome/MEEP/tabid/102319/Default.aspx