The Coral Reef Economy

Transcription

1 The Coral Reef Economy Innovative Finance for Reefs Monaco, 4 December 218 Jerker Tamelander, UN Environment

2 Delivering the 23 Agenda and SDGs Coral reefs are a development asset Goal 12. sustainable consumption and production 12.2 sustainable management and efficient use Goal 8. inclusive sustainable growth 8.4 decoupling economic growth 8.9 sustainable tourism Goal 1. end poverty 1.5 build resilience Goal 15. terrestrial ecosystems 15.1 conservation 15.2 sustainable forest management 15.9 ecosystem values Goal 14. life below water Goal 5. gender equality 5.5 women s participation Goal 2. food security 2.3 double agricultural productivity Goal 6. water and sanitation 6.2 adequate sanitation 6.3 reduce pollution, halve untreated wastewater Goal 13. climate change 13.1 resilience and adaptive capacity 13.2 integrating climate change measures 13.3 education, awareness and capacity

3 Leveraging coral reefs in development The business case for investment Report launched at high-level side event during Our Ocean Conference Quantitative model of interactions between coral cover and economic returns generated by three sectors: tourism, coastal development and fisheries Estimation of current economic returns to each sector and expected changes under healthy and degraded reef scenarios Modelling costs and benefits of specific interventions on economic returns, and the net benefit and return on investment in each intervention The Coral Reef Economy The business case for investment in the protection, preservation and enhancement of coral reef health

4 16 in the Coral Triangle (IDN) (US$ Million, 217 Prices) Intervention (US$ Million, 217 Prices) Filter Strip.2 Constructed Wetlands -$193 $ Int. 2 IDN No-Take Zone -$212 $453 Annualised Present Value of, Benefits and Net-Benefits of Healthy Reef Int. 6 IDN Afforestation -$61Prices) $26 Interventions in Mesoamerica (US$ Billion, 217 Int. 4.2 IDN Benefit.4 8 IDN for Filter reefs Strip -$183 $1,618 The businessint.case coral Return on Investment colour coded from low (red) to high (green) Return on investment in the Coral Triangle fish inco con Afforestation 3 Present Value Net-Benefit Return on Investment (%) -$59.7 $ $ $1, benefit and return on investment. Constructed Wetlands Tab (US Filter Strip Cos Cos.5 Annualised Pres Interventions Figure 7. Annualised Present Value of the, Benefits and Net-Benefits of Healthy Reef Interventions in the Coral Triangle (US$ Billion, 217 Prices) Ben Present Value: No-Take Zone Benefits Net Benefit Afforestation Constructed Wetlands Net Economic returns to only three sectors total USD 14 billion per year Figure 8. Annualised Present Va Depending on reef health,mesoamerica returns could fall or rise by more than 2 billion per year by 23 Indonesia Filter Strip Annualise I 2. Annualised Present Value of, Benefits and Net-Benefits of Healthy Reef Interventions in the Coral Triangle (US$ Billion, 217 Prices) 1 Trucost estimates based on FAO (FAO, n.d.) Figure 9. Annualised Present Va (US$ Billion, 217 Prices) THE CORAL REEF ECONOMY Mesoamerica Figure 8. Annualised Present Value of the and Benefits of No-Take Zone Interventions (US$ Billion, 217 Prices) Opportunity

5 Change in Economic Returns (US$ Billion, Present V the Mesoamerica Reef (MSA) (US$ Million, 217 Prices) 1 Intervention 1 2 Present Value Benefit Net-Benefit Return on Investment (%) Int. 3 MSA Constructed Wetlands -$8 $22 $ Int. 5 MSA Afforestation -$7 $25 $ Int. 7 MSA Filter Strip -$5 $24 $2 5.1 The 3business Int.case coral 1 MSAforNo-Take Zone reefs -$3 $1,321 $1, Return on Investment colour coded from low economic (red) to high (green) No-take marine area = high-take area 44. Figure 6. Annualised Present Value of, Benefits and Net-Benefits of Healthy Reef Interventions in the Mesoamerica Reef (US$ Billion, 217 Prices) Present Value: No-Take Zone Benefits Net-Benefit Afforestation This is mainly a result of benefits accruing in the tourism sector and coimparatively low opportunity cost Constructed Wetlands 1 Filter Strip (US$ Million, 217 Prices) There is a 44 % return on investment in no-take marine protection in Mesoamerica 1.4 Annualised Present Value of, Benefits and Net-Benefits of Healthy Reef Interventions in Mesoamerica (US$ Billion, 217 Prices) THE CORAL REEF ECONOMY Figure 7. Annualised Present Value of the, Benefits and Net-Benefits of Healthy Reef Interventions in the Coral Triangle (US$ Billion, 217 Prices) Present Value: No-Take 15

6 The business case for coral reefs A large part of the potential dividend is within reach Figure 13. Contribution of Modelled Interventions to Closing the Gap between the Degraded and Healthy Reef Scenarios in 23 Coral Triangle (U$S Billion, Present Values (PV), 217 Prices) Degraded Reef Scenario: PV Economic Returns in 23 Healthy Reef Scenario: PV Economic Returns in 23 No-Take MPA Extension Constructed Wetlands for Wastewater Management Afforestation to Reduce Erosion Reduced till Agriculture to Reduce Erosion Residual Gap Present Value of Forecast Economic Returns From the Coral Triangle 23 (US$ Billion per Annum, 217 Prices) in the Coral Triangle, the interventions could close 7% of the gap between the value derived from a degraded and a healthy reef by 23; and 45% of the gap in Mesoamerica

7 Key conclusions Financing for reefs depends on making a business case for healthy reefs Reefs underpin significant economic value for the private sector The value of future healthy reefs is high Societal benefits of healthy reefs could exceed private gains Policies to enhance reef health generate return on investment Interventions to protect reefs contribute to the SDGs Climate change poses significant risk and adds uncertainty The Coral Reef Economy The business case for investment in the protection, preservation and enhancement of coral reef health

8 Thank you Jerker Tamelander UN Environment Coral Reef Unit