TEEB: The Economics of Ecosystems and Biodiversity For local and regional policy makers. LOCS conference

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1 TEEB: The Economics of Ecosystems and Biodiversity For local and regional policy makers Heidi Wittmer Helmholtz Centre for Environmental Research, UFZ TEEB Scientific Coordination LOCS conference Capetown, February 28th 2011

2 TEEB s main reports Ecological & Economic Foundations Policy Evaluation for National Policy- Makers Evaluation & Decision Support for Local and Regional Policy Business Risks & Opportunities Synthesis TEEB's mission is to make Nature economically visible

3 The situation: Nature provides bundles of different benefits. This natural capital is neglected as a condition for local well-being: Around people depend on NTFPs in Nagarhole NP, India (on average 28% of total income) (Ninan 2007) as an asset for local development : 89 planned hydroelectric dams in Brazil need forested watersheds for low sediment load

4 The situation: We cannot risk taking nature for granted poor use leads to development opportunities lost wetland management in Sorou Valley, Burkina Faso overuse leads to vicious circle of (poverty degradation) pressures on Malawi s most productive lake: Lake Chilwa collapse can cause tremendous irreversible damage: Amazon waterpump for Argentina s granary Courtesy : Yann-Arthus Bertrand, GoodPlanet

5 The opportunity: Maintaining, restoring or enhancing nature s benefits it can help save municipal costs Quito s drinking water comes cheaper from 2 national parks Kampala s wetlands effectively treat sewage it can protect against natural hazards mangroves protect against typhoons in northern Vietnam it can boost the local economy it pays to protect sharks in the Maldives it can help tackle poverty woodland restoration secures essential services to agropastoralists in Tanzania Source: all examples are TEEBcases (teebweb.org)

6 The Report: What you can expect from it A source of inspiration: telling examples from around the world. An overview of approaches and instruments. An aid to orientation on the potential, requirements and caveats of applying assessment and valuation instruments.

7 TEEBcases online accessible best practice examples final version will contain more than 100 cases from around the world showcasing the incorporation of economic valuation into local decisionmaking In cooperation with EEA - accessible via

8 The Report: Table of Contents Part I: The Opportunity Chapter 1: The Value of Nature for Local Development Part II: The Tools Chapter 2: Conceptual Frameworks for Considering the Benefits of Nature Chapter 3: Tools for Valuation and Appraisal of Ecosystem Services in Policy Making Part III: The Practice Chapter 4: Ecosystem Services in Cities and Public Management Chapter 5: Ecosystems Services in Rural Areas and Natural Resource Management Chapter 6: Spatial Planning and Environmental Assessments Chapter 7: Ecosystem Services and Protected Areas Chapter 8: Payments for Ecosystem Services and Conservation Banking Chapter 9: Certification and Labelling Part IV: Conclusion Chapter 10: Making Your Natural Capital Work for Local Development Overview of tools and databases

9 Protecting ecosystem services is important: Fresh Water Provisioning The Kipsaina Crane and Wetlands Conservation Group is a partnership of local communities to conserve and restore the Saiwa Swamp N.P (Kenya) Reliable clean water source all year round as a result of the group s effort Fivefold increase in the grey crowned crane popultion, increased income from fish and produce sale Waste Water Treatment Economic valuation comparing the natural effect of Nakivubo Swamp (Uganda) and man-made solution Cost of maintaining the wetlands: ~ $ per year Running a sewage treatment facility with equivalent capacity: ~ $ per year

10 Protecting ecosystem services is important: Coastal Protection Since 1994, local communities have planted and protected mangroves in coastal regions of Vietnam This is is cost-effective: An investment of US$ 1.1 million saves an estimated US$ 7.3 million per year in dyke maintenance. Flood Protection Unprecedented monsoon rainstorm in Mumbai Almost 1 meter of rain fell, severe floodings resulted However: loss of life and property damages were halved by the Sanjay Gandhi National Park.

11 Protecting those services is important: Climate Change Adaptation In Ethiopia, 13 million people are affected by drought and erratic seasonal rains, likely to deteriorate due to climate change terracing and tree planting to rehabilitate land and water resources. Better Management In Sourou Valley, Burkina Faso: Development strategies focused on wetland conversion for agriculture Valuation reveals intact wetlands are of greater value than agricultural lands A minimum annual value of ~ US$ 21.2 million in 2009 for fishing, fodder, wood products

12 The Way Forward We invite you to use the report for: Making the case: healthy rivers and forested slopes are assets we depend on Getting clarity on trade-offs in your decisions: who looses and who benefits is determined by the changed flow in nature s benefits as well as by cash Pursuing public service efficiency: the public goods of clean and regular water, air, soil and climate rely on natural infrastructure Exploring win-win options: certified production, payment schemes for water, biodiversity or carbon are strategies for your local economy

13 Contact us at Check Thank you!

14 Nature-based climate change mitigation in Germany drainage of 930,000 ha peatlands in Germany for agriculture cause emissions of 20 Mio. t of CO 2 -eq. per year total damage of these emissions amounts to 1.4 billion peatland restoration: low cost and biodiversity friendly mitigation option Mecklenburg-Vorpommern: pilot project between restoration of 30,000 ha (10%) emission savings of up to 300,000 t CO2-eq. avoidance cost of 8 to 12 / t CO 2 if alternative land use options are realized (extensive grazing, reed production or alder forest) costs decrease to 0 to 4 / t CO 2 where Maize can be grown restoration can not compete Source: Federal Environmental Agency 2007; MLUV MV 2009; Schäfer 2009 Restored peatland in Trebeltal 2007 Foto: D. Zak,

15 Further examples

16 NPV over 9 yrs (10% discount rate) US$/ha in 1996 Private Profits, Public Losses Most trade-offs go only as far as measuring private profits Shrimp Farm Mangroves $9632ha $12,392ha $584ha private profits $1220ha private profits less subsidies $584ha private profits If public wealth is included, the tradeoff choice changes completely.. Net of public costs of restoration after 5 years - $9,318ha After adding public benefits from mangroves Source: Hanley and Barbier 2009

17 as an asset for local development: Enhancing nature s benefits through a focus on ecosystem services: silvo-pastoral management in Colombia. The problem Pasture degradation resulting in income loss, further expansion of pasture area. Focus on Ecosystem services How to tackle poor pasture practices and with it soil erosion, increase of water runoff and biodiversity loss? (picture: CIPAV) Source: TEEBcase Silvopastoral Project Policy response Silvo-pastoral management on 3.500ha: planting improved grasses, fodder shrubs and trees. GEF-funded payment for biodiversity and carbon fixation (PES) to cover initial investment costs. Results: 1. Enhanced local benefits: nutrient recycling, fruit, fodder, timber, water flow regulation, protection against landslides. 2. After the project, farmers still keep the silvopastoral systems without the PES, due to its multiple benefits.