The Economics of Ecosystems & Biodiversity (TEEB): Insights into the relationship of environment and economy

Transcription

1 27th of April, 2011 // EPBRS Budapest The Economics of Ecosystems & Biodiversity (TEEB): Insights into the relationship of environment and economy Carsten Neßhöver TEEB Scientific Coordination

2 Overview 1. TEEB process & rationale 2. Major TEEB results 3. TEEB uptake & challenges

3 Overview 1. TEEB process & rationale 2. Major TEEB results 3. TEEB uptake & challenges

4 TEEB rationale The Goals To review the current state of the science and economics of ecosystems and biodiversity, and recommend a valuation framework and methodologies To address the needs of the end-users of these economics: policy-makers, local administrators, corporations and citizens To mainstream the economics of ecosystems and biodiversity

5 TEEB s genesis & outcome Potsdam Initiative Biological Diversity 2010 the economic significance of the global loss of biological diversity. Science & Economics Foundations Policy Evaluation for National Policy-Makers Evaluation & Decision Support for Local and Regional Policy Business Risks & Opportunities Synthesis

6 TEEB framework Ch.1

7 TEEB s approach 1. Recognizing value: a feature of all human societies and communities 2. Demonstrating value: in economic terms, to support decision making 3. Capturing value: introduce mechanisms that incorporate the values of ecosystems into decision making

8 TEEB s approach Recognizing value Demonstrating value Regional Plans Legislations Certification PA Evaluation PES Capturing value Norms, Regulations & Policies Economic Mechanisms Markets Ch.5 Ch.4 Ch.3 Ch.3

9 Overview 1. TEEB process & rationale 2. Major TEEB results 3. TEEB uptake & challenges

10 Recommendations the ecological dimension: Ecological infrastructure and climate change Investing in ecological infrastructure makes economic sense when the full range of benefits is taken into account It is usually cheaper to avoid degradation than to pay for restoration, but both are relevant in the context of climate change Ecosystem conservation and restoration should be evaluated & pursued in support of climate change mitigation and adaptation. Within the UNFCCC process, REDD+ should be accelerated for implementation : pilot projects & capacity building in developing countries. Ch.5,9

11 Recommendations: Ecological infrastructure and climate change Example : Nature-based climate change mitigation, Germany drainage of 930,000 ha peatlands for agriculture caused emissions of 20 Mio. t of CO 2 -eq. per year, social cost 1.4 billion Peatland restoration: low cost, biodiversity friendly mitigation Mecklenburg-Vorpommern: Pilot project Restoration of 30,000 ha Reduced emissions up to 300,000 tco2-e cost of 8 to 12 / t CO 2 (& if extensive grazing / reed production/ alder forest then costs down to 0 to 4 ) Source: Federal Environmental Agency 2007; MLUV MV 2009; Schäfer 2009 Restored peatland in Trebeltal 2007 Foto: D. Zak,

12 Recommendations: Ecological infrastructure and climate change Example: 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 (but still have a lot to do)

13 River Elbe flooding, Germany Step 1: Specify and agree on the problem August 2002 heavy floods of the river Elbe, direct economic damage of over 9 billion occasion to revise system of flood protection towards integrated flood risk management Step 2: Which ecosystem service are relevant flood protection habitat for a multitude of species nutrient retention DPA Step 3: Define information needs and select methods CBA of different alternatives (relocate dykes, establish polder) replacement costs for assessment of the nutrient and pollutant filters contingent valuation for the willingness to pay for flood control

14 Step 4: Conduct the assessment relocation of the dykes creates a new flood retention area of just 35,000 ha of land establish polder includes the creation of a surface of 3,248 ha combination of both measures with dike relocations (3402 ha) and steered polders (4143 ha) Step 5: Identify and appraise policy options all options have a positive benefit-cost-ratio if environmental benefits are included: BCR: - relocation of the dykes = establish polders = combination = 4.6 Step 6: Assess the distributional impacts of policy response Maps are being made that indicate economic losses and social impacts Grossmann, M.; Hartje, V.; Meyerhoff, J. Sources: Grossmann, M., Hartje, V., Meyerhoff, J. (2010) Ökonomische Bewertung naturverträglicher Hochwasservorsorge an der Elbe. Naturschutz und Biologische Vielfalt 89, Bundesamt für Naturschutz: Bonn.

15 Overview 1. TEEB process & rationale 2. Major TEEB results 3. TEEB uptake & challenges

16 Uptake in Policy New CBD strategic plan and some major decisions at COP10 Strategic targets 2, 3, 4, 14 Source: Global Biodiversity Outlook 3 (2010)

17 Mainstreaming..

18 TEEB: challenges faced and remaining Clearly communicate the chances but also the trade-offs and problems of valuation and economic approaches Explicitly address the ethical dimension of the approach and the issue of scale Make clear that the approach is an add-on argument to other arguments to safeguard biodiversity Mainstream the approach beyond the environmental context

19 Research needs Improve the ecological baseline for developing a joint set of ESS indicators Further develop policy tools to ensure that their use avoids trade-offs as far as possible Joint scenario and model development from ecology and economics >> develop policy sector specific conversion options, working with its stakeholders Further develop discourse based valuation approaches Urgent need for methodological pluralism

20 Thank You! TEEB reports: TEEB for everybody: TEEB in deutsch: