ECOSYSTEM SERVICES ROADMAP. Proof of Concept

Transcription

1 ECOSYSTEM SERVICES ROADMAP Proof of Concept

2 CONTENTS Alberta Innovates Bio Solutions...2 Ecosystem Services Roadmap Program Plan (Draft May 21, 2014)...3 Ecosystem Services Roadmap...4 Appendix AI Bio s Investments...12 ES Roadmap...12 Project Summaries...14 Page 1

3 ALBERTA INNOVATES BIO SOLUTIONS Alberta Innovates Bio Solutions (AI Bio) has a provincial mandate to provide leadership and coordination for research and innovation that supports the growth and diversification of Alberta s agriculture, forest and life science sectors. It acts as a bridge between the private sector, research institutions, government and others in the research system, playing a key role in fostering a rich innovation infrastructure and culture of excellence in the biosectors. AI Bio is expected to create value by: Increasing the effectiveness and integration of planning, funding and service delivery Aligning programs and investments toward priority areas and outcomes Increasing the program and investment focus on key areas relevant to agriculture and forestry: genomics and other life sciences, nanotechnology, food and nutrition Improving the facilitation of knowledge, intellectual property and skill transfer within the system and between academia, industry and government Improving accountability and outcomes through integrated performance monitoring and continuous improvement processes Integrating a disciplined research and innovation process into government policy for sustainable development Connections and relationships enhance AI Bio s ability to build on the strengths of partners, leverage resources and avoid duplication. AI Bio seeks partners with expertise and capacity to deliver results. AI Bio s investments in a suite of targeted research initiatives as described in its business plan will give Alberta new knowledge that leads to new products and services, helps maintain market access, informs policy and regulatory frameworks, provides tools and technologies for growth and initiates further investment in the province. Page 2

4 ECOSYSTEM SERVICES ROADMAP PROGRAM PLAN (DRAFT MAY 21, 2014) The Government of Alberta (GOA) is committed to growing the economy, investing in communities, opening new markets and managing resources in a sustainable way. Resource industries have been the backbone of Alberta for decades, and strengthening competitiveness in these industries is important for the economic, social and environmental well- being in the province. As Alberta works to strengthen its reputation in resource stewardship and transform their path to a more sustainable future, the time is right to consider more innovative approaches. Sustainable resource development means managing the impacts of development on ecosystem services (ES). ES are the goods and services provided by natural and modified ecosystems that sustain the well- being of people through maintenance of healthy soils for the production of food and fibre, the provision of clean water, the regulation of climate and disease, and opportunities to enjoy and learn from nature. In the past, many of these services have been taken for granted, without incentives and policies to ensure that their value is maintained. Around the world, researchers have explored how to create market- based approaches that will help industries account for their impacts on ES in a way that encourages innovation and competitiveness. Market- based instruments are policies or programs that place an economic value on ES so that, when resource management decisions are made, these instruments are directly considered in ways that influence ES outcomes. Taking a market- based approach to enhancing ES is a paradigm shift. It is focused on achieving specific outcomes (end points) with the market recognizing or paying for those end points (e.g., CO 2 equivalents in the carbon market). This enables new business opportunities and helps all resource sectors in Alberta demonstrate social licence to operate while supporting growth, development and diversification. Page 3

5 In Alberta, ES markets are a logical approach to help demonstrate sustainability and manage environmental risks associated with industrial development. These markets are particularly important to the resource sectors, which are under increasing public pressure to demonstrate sustainability in its planning and activities. However, new skills and knowledge are required in order for ES to transform the Alberta economy, either through market- based regulations, new markets for ES or other changes in policy and business operations. Market- based approaches can catalyze private and public investments in ES. According to Dr. Michael Porter (Harvard), well- designed environmental regulations result in efficiency and encourage innovation, and short- term costs lead to increased competitiveness, making the economy more resilient in the long run. More stringent but properly designed environmental regulations (in particular, market- based instruments such as taxes or cap- and- trade emissions allowances) can trigger innovation [broadly defined] that may partially or more than fully offset the costs of complying with them in some instances (Porter and van der Linde, 1995, 98). 1 Combined with appropriate regulatory mechanisms and policies, adoption of market- based environmental policies that reward improved management and environmental integrity will catalyze innovation. The vision of the roadmap is to position Alberta as a leader in the development of ES approaches to manage the energy, mining, forestry and agricultural sectors, leading to the discovery and adoption of new ecologically sustainable technologies and production processes, and making Alberta s economy more efficient and competitive. ECOSYSTEM SERVICES ROADMAP AI Bio brought together key stakeholders and experts to set out a strategic framework, The Ecosystem Services Roadmap (ES Roadmap), to catalyze innovation and competitiveness in the resource sectors and create opportunities for Alberta to brand itself as a leader in environmental management. These experts have been working on developing the building blocks to facilitate the development and use of market- based approaches for managing ES that can be used in The highest priorities are to demonstrate the feasibility of an ES approach through testing, validation and refinement of the ES Roadmap concepts, building particularly on assessment models and market- based approaches initiated under the first round of investment in S. Ambec, Mark A. Cohen, Stewart Elgie, and Paul Lanoie. The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? Resources for the Future, %2Fdocuments%2FRFF- DP pdf&ei=YJqtU6_YKoO9oQTj- YGIBQ&usg=AFQjCNGw07DE81kyYF5GfryhTJA1cMiEYA. Page 4

6 integrated resource planning processes, demonstrating environmental integrity via world- class monitoring, to strengthen the competitiveness of resource- based sectors. The mission of the ES Roadmap is to facilitate the development and practical application of leading- edge knowledge focused on enhancing ecosystem services, through market- based instruments, integrated systems and collaborative processes. Investment in the ES Roadmap began in A consultation process with stakeholders and experts was undertaken in the fall of 2013 to review and validate the direction of the roadmap and to prioritize further investment strategies. Proof of Concept (POC) In this document we are using proof of concept (POC) to describe the system required to implement an ES approach to resource management. This includes ES assessment (ESA), ES market infrastructure and other planning and policy support tools. The POC includes, but is not limited to, pilot studies to test market- based instruments (MBIs) on a smaller scale, discussion papers, frameworks and options to support decision- making, policy development, and recommended protocols and approaches. The innovation and research to support an ES approach to resource management will help Albertans achieve their objectives in optimizing water use and management, and integrated land use and management. AI Bio s innovation priorities to date in this area have focused on: Building transparent and credible science- based data and information about the state and supply of ES and their relationship to management systems Encouraging open availability and sharing of information and knowledge (critical to well- functioning markets and planning processes) Collecting data on ecosystem states and processes that promote well- being Looking at the use of market- based instruments and the necessary market infrastructure Encouraging a better understanding of the dynamics between ES and human and natural disturbances, including climate change and the need for adaptation A detailed summary of these projects is available in Appendix A. The ES POC will have greater success when driven by local, regional and national priorities and underpinned by policy. Market- based approaches for enhancing ES require a paradigm shift from a focus on activities to a focus on specific outcomes (end points), with the market recognizing or paying for those end points (e.g., CO 2 equivalents in the carbon market). New business opportunities emerge, and resource sectors demonstrate social licence to operate while supporting growth, development and diversification. Future program investments will target the critical Page 5

7 building blocks required to support market- based approaches. Data, information and systems that are developed to support market- based approaches will support land- use planning and documentation of environmental integrity. POC Goals The POC extends the strategic guidance provided by the roadmap by strengthening the connections and synergies between projects among various stakeholders to ensure successful application/ implementation. The goals are to: 1 Develop science, capacity, systems and policy options to support improvements in desired ES through market- based approaches 2 Demonstrate environmental integrity and monitoring, integrated resource management and planning processes that directly address the cumulative impacts of multiple land uses on the environment 3 Foster new business opportunities and enhance competitiveness of resource- based sectors POC Governance The POC will be approved through AI Bio s Board and its annual business plan. Projects will be planned and designed collaboratively with appropriate proponents, and the investment decisions are guided through arm s- length technical and expert advisory processes. Where there is alignment in business goals, AI Bio also builds on existing review processes of partner agencies. POC Principles AI Bio bases its investment decisions for the POC on the following principles: Interdisciplinary. Science and applications will include interdisciplinary knowledge and expertise such as biophysical, economics, social, information technology, engineering etc. Innovative. Projects are based on new thinking and take new approaches that catalyze innovation and lead in the discovery and application of environmental and economic outcomes. Alignment. Projects investment will be aligned to the ES Roadmap and achieve the defined objectives. Credible, transparent and based on science. Evidence- based research, applications and new knowledge are open, credible and based on science. Relevant. Work is relevant to existing policy challenges and capacity and can identify emerging risks and potential solutions. Work advances science and supports innovation. Collaborative. Collaborative approaches are taken that will leverage resources and build applications, validate analytics and test new knowledge. Information and data are shared. Stakeholders across industry sectors (energy, agriculture, forestry) and non- industry organizations are engaged and/or directly involved. Builds capacity. Work will build capacity with stakeholders and lead to decision support tools that can be applied in policy and land management. Approaches are communicated in terms that are simple and intuitive. Cost- effective. Collaboration and alignment will ensure that we are investing effectively and efficiently. Approaches should lean heavily on available sources of information, data and existing knowledge. Page 6

8 POC Objectives Objectives of the POC are to: 1 Develop integrated ES assessment (ESA) platforms and technologies for use at multiple scales 2 Create accounting protocols that support verification and validation of ES credits and market approaches 3 Build understanding and knowledge capacity with stakeholders including land managers and government 4 Build decision support tools for policy analysis and program evaluation 5 Explore social science and economic aspects of ES and ES markets 6 Identify and address biophysical science requirements to enable the ES approach Assessment Platforms and Technologies Objective: Develop integrated ESA platforms and technologies for use at multiple scales. There is a need to apply the models and technologies developed for assessing ES in order to better understand the consequences and impacts of land management decisions. Relevant sources of data and information have been assembled to measure ES; the next step is to develop the assessment models and validate model predictions using field data and to test the critical components in the system. Actions: 1 Integrate existing ES- related information ongoing data mining of currently available biophysical and socioeconomic information. 2 Work with expert networks to address data gaps related to social, economic, and biophysical information and develop a strategy for enhancing data collection for ES. 3 Incorporate existing data (remote sensing, 4- band multispectral) into ESAs and make them accessible through an open data and information portal. 4 Develop and validate models to estimate and map ES supply and demand. 5 Develop protocols for assessing ES through a validated, credible, documented standardized process that allows for connection and integration. 6 Prioritize valuable ES in Alberta to determine priorities for ESA. 7 Support the development of ESA tools for land- use planning and implementing regional plans. Page 7

9 Accounting Protocols Objective: Create accounting protocols for ESA that can support offsets and other ES market transactions. Through the ESA project, continue to define credits for ES and develop protocols for measuring ES in a manner that supports market transactions. Accounting protocols are necessary for measuring gains and losses in ES from different management actions, and supporting the translation of management actions into quantifiable services that can be bought and sold in a market. Actions: 1 Pilot projects to inform accounting protocol development translating specific management actions (e.g., restoration, beneficial management practices). 2 Develop accounting protocols for biodiversity and linear features, integrated with other ES. 3 Identify and test market- based approaches. Mechanisms for ES conservation would include: Evaluating ES and prioritizing/targeting ES in conservation Understanding and identifying public preference for ES (value) Developing and integrating biophysical modelling approaches for ESA at the watershed level Demonstrating how environmental functions provide a suite of ES Testing market- based instruments (e.g., reverse auction) and conservation actions as viable Capacity Objective: Build understanding and knowledge capacity with stakeholders including land managers and government. Demonstrations or Show and tell forums can be used to create an understanding of ES and market- based instruments (MBIs). Help landowners understand demand for ES and who will pay, the cost and potential supply of ES, the use of various tools for participation in ES markets. Industry (agriculture, forests, oil and gas) can then use this information to develop management systems, practices and opportunities to participate. Actions: 1 Develop networks of experts, specialists, market actors, community stakeholders and policy advisors, and link to global networks. 2 Create a formal network of engaged professionals that will work collaboratively on ES, sharing information and acting as a go- to source for information and access to expertise. 3 Share information and results of the POC activities through ongoing communication and information sessions. Such information will include a compendium of collective science, Page 8

10 technology and information developed in the pilots and an evaluation of pilot project results including lessons learned and deliverables. 4 Support symposiums, workshops and conferences on ES markets in Alberta. 5 Create a community and shared understanding of ES and MBIs through an outreach application to effectively communicate the concept of ES. An educational tool will communicate and teach users what decisions need to be made in procuring and selling ES. Make apparent the challenges of measuring, land- use planning, trade- off decisions and ensuring environmental integrity and sustainability of resource- based sectors. Science and Information Needs Objectives: Build decision support tools for policy analysis and program evaluation. Explore social science and economic aspects of ES and ES markets. Identify and address biophysical science requirements to enable the ES approach. Decision support tools will assist government, industry, and companies to achieve a shared value between economic and societal needs. Policy tools should help enhance the competitiveness of the company while meeting the economic and societal needs of a community. Science and decision tools are needed to support market- based policy, integrated land- use planning and cumulative effects management. Alberta s Land- use Framework (LUF) sets out new approaches to managing Alberta s land and natural resources to achieve long- term economic, environmental and social goals. The LUF established seven regions and calls for a regional plan in each. These regional plans include Integrated Resource Management Systems that set cumulative outcomes with strategies and actions to achieve the desired objectives. The cumulative effects of population growth and economic development in the region are placing increasing pressures on the region s air, water, land and biodiversity. Actions: 1 Support Environmental Offsets System Framework White papers, case studies and pilots that support an offsets framework will build on critical elements for a successful offset program and identify options to be applied in the Alberta context. This includes but is not limited to: Identifying stages of offset development from project and system levels Page 9

11 Developing critical roles and responsibilities of science and technology within government policy frameworks and a credible offset system Leveraging and using existing information, studies and global mitigation programs (and applying them to the Alberta context) Identifying industry and government drivers Establishing options for principles Providing solutions for challenges such as additionality, acceptable levels of uncertainty, understanding baselines and time lags Accounting for multiple ES and the relationships between them (bundling of ES, and if you change one what happens to the others) Developing rules and protocols for determining credits (a.k.a. stewardship units ) and buying and selling Creating options for offsets implementing on private and public lands Recommending options for administration and governance 2 Apply ES Roadmap building blocks in a case study to demonstrate applicability in regional planning and cumulative outcomes. This project will: Present a plan to assess ES and how these tools can be used in regional planning and managing cumulative outcomes (e.g. objectives for biodiversity with an appropriate suite of biodiversity indicators that can be measured to assess if those objectives are being achieved) Address questions on loss and gain of ES, temporal lags and risk of failure in long restoration projects, and unintended consequences (identifying perverse incentives) (e.g., use in identifying conservation areas such as native grasslands protected from further disturbance like cultivation, forests, and oil and gas) Assist in industry sustainability reporting (collectively in a region) Demonstrate results in sustainability and environmental integrity (to regulator, to public) (e.g., healthy aquatic ecosystems, and wetlands) Conduct a comparative analysis between existing approaches and tools versus ES 3 Use case studies to explore social science and economic aspects, including: Valuing ES and understanding demand and supply drivers Prioritizing ES and targeting Understanding human dimensions of ES Page 10

12 4 Evaluate current and past project and efforts using the new knowledge of ESAs and approaches. Efforts are reviewed, evaluated and improved based on new information and learning. Science gaps are identified and strategies developed to address the new requirements. 5 Establish a steering committee that would be responsible for identifying available data and limitations, understanding and articulating assumptions, evaluating reports and recommending improvements and next steps. Page 11

13 Appendix AI Bio s Investments AI Bio has invested in several core projects to support the objectives identified in the Ecosystem Services Roadmap (ES Roadmap). Work in these core projects builds scientific knowledge and capacity that is required to enhance ecosystem services. Contact AI Bio for detailed information about the projects currently being funded and their accomplishments to date. ES ROADMAP Ecosystem services (ES) are the benefits that humans receive from nature. They support our health and well- being, from our basic needs like clean water and food to more intangible benefits like recreational opportunities and aesthetic value. ES are integrated in nature. Taking an ES approach therefore requires a clear recognition of systems, and the connections and choices to be made around the environment, economy and society. AI Bio brought together key stakeholders and experts to set out a strategic framework, the ES Roadmap, to catalyze innovation and competitiveness in the resource sectors, and create opportunities for Alberta to brand itself as a leader in land and environmental management. These experts have been developing the building blocks that facilitate the development and use of market- based approaches and that can be used in integrated resource planning processes, demonstrating environmental integrity and monitoring. Page 12

14 Figure 1: The key building blocks necessary for ES approaches. The foundational pieces of the roadmap focus on building data and information, biophysical and ecological science (which focuses on the ESA with ABMI) and socioeconomics (market- based instrument design). These foundational pieces can be viewed as networks of experts that are coming together to develop and integrate key concepts and approaches. Figure 2: Data and Information Structure The Algar POC tests the initial concepts and results from the foundational building blocks: The Ecosystem Services Assessment (ESA) The ESA identifies the supply and condition of ES. It establishes metrics (stewardship units) to measure and register ES and establishes baselines for measuring future changes and estimate the quantity and quality of ES. While some ES have a clear, well- known economic value, it is difficult to calculate the value of most services. Learning to measure and value ES is essential in learning how to manage and make decisions with regards to Alberta s landscape. The Alberta Biodiversity Monitoring Institute (ABMI) is well underway with the ESA project, which is a system to map, measure and value ES. The Algar POC tested the use of an ESA in phase three of the project. Components of the ESA and a cost- benefit analysis were applied to the Algar area and were used to determine how restoration work in the Algar area contributed to the quality of various ecological functions. Managing Information and Building Data A robust data and information management system based on collaboration, cooperation, transparency and data sharing among all stakeholders will be required to achieve efficiency, effectiveness and increased transparency in an ES approach. Credible environmental management requires long term supporting mechanisms such as research capacity and data procurement. The Page 13

15 Bio- Resource Information Management System (BRIMS), led by the Silvacom Group, is an initiative that is intended to manage provincial ES information. This information management system will be designed to assess the resource potential on public and private lands in Alberta and works to connect the dots between the supply and demand of these bio- resources. The underlying goal of the BRIMS project is to develop a world- class bio- resource information management system to guide policy, business and local decision- making related to the bioeconomy. The system will enhance ES knowledge by looking at which provisioning and regulating services exist, the location of these services, the quantity, quality, costs, constraints and commitments these services have, how utilization of resources can be managed from an information and industrial perspective and what are the environmental implications of managing these resources. Socioeconomics (Market- Based Approach) Loss of some ES has occurred, in part, because the full value of natural resource and environmental assets are not accounted for in market prices. Market- based approach relies on market forces to re- allocate goods and services through full and effective pricing to correct for market failures. Building capacity for using innovative socioeconomic approaches to manage for ES in Alberta is led by Alberta Innovates Technology Futures. The Algar proof of concept reviewed eight different offset programs that are either currently in place or under consideration in a number of places around the world, identifies common key principles and articulates the steps taken to achieve these key principles. PROJECT SUMMARIES Ecosystem Services Assessment (ESA) While some ES have a clear, well- known economic value, it is difficult to calculate the value of most services. Learning to measure and value ES is essential in learning how to manage and make decisions with regards to Alberta s landscape. The Alberta Biodiversity Monitoring institute (ABMI) is well underway with their ESA project, which is working to map, measure and value ES. The work completed through this project will develop knowledge to support the creation of a range of market- based instruments (MBIs) to promote the management of ES. The project will establish simple yet credible systems for assessing ES and documenting environmental integrity. The key goals for this project include: 1 Measuring and mapping Alberta s ES, which includes: Determining the supply of each service across Alberta s landscape Evaluating the economic value of each service based on how it s used by Albertans 2 Understanding how various policies and their impact on human behaviour will affect the provision of ES As of now, a series of integrated projects have been initiated to combine available information and new ecological data to represent ES supply and demand in Alberta. The work is generating publicly Page 14

16 accessible maps and summaries of ES, supported by several technical reports and peer reviewed publications. The project is also demonstrating specific applications of this new ES knowledge, including credible, unbiased assessments of environmental performance and support for market approaches that promote positive environmental outcomes. Bio Resource Information Management System The Silvacom Group is leading an initiative to build a Bio- Resource Information Management System (BRIMS) that will manage provincial biomass information. This system assesses the resource potential on public and private lands in Alberta and works to connect the dots between the supply and demand of these bio resources. The underlying goal of the BRIMS project is to develop a world- class bio- resource information management system to guide policy, business and local decision- making related to the bio- economy. The system enhances ES knowledge by looking at which provisioning and regulating services exist, the location of these services, the quantity, quality, costs, constraints and commitments these services have, how utilization of resources can be managed from an information and industrial perspective and what are the environmental implications of managing these resources. The project is currently in its second phase of a four- phased approach. Market Infrastructure/Offset System The GOA is recognizing the use of conservation offsets as an effective tool for meeting environmental outcomes. We are seeing conservation offsets being referenced in GOA strategies such as the Land- Use Framework (2009), Responsible Actions: A Plan for Alberta s Oil Sands (2009), A Woodland Caribou Strategy for Alberta (2011), the Lower Athabasca Regional Plan and the Draft South Saskatchewan Regional Plan. In order to develop stakeholder understanding of offset system requirements and the elements of success for an offset system, Alberta Innovates Technology Futures hosted a workshop on conservation offsets in November The workshop generated feedback on what a successful pilot will look like and accomplish. We will continue to work with the GOA as they develop a conservation offset policy framework for the province. This framework is expected to be released in fall Algar Proof of Concept (POC) The Algar POC, led by The Silvacom Group in collaboration with Green Analytics, is assessing the potential for conservation offsets to be a driver in land reclamation and restoration. The project is devising frameworks for assessing ES and biodiversity benefits from reclamation activities. The direct outcomes of this project will include: the development of an information resource on key project themes; a set of spatial data layers to serve as a guide for future initiatives such as this one; and building industry capacity for ESAs and the evaluation of conservation offsets. To date, the team has completed the background research and data gathering, conducted an ESA, evaluated the Page 15

17 opportunities for conservation offsets in Algar, and conducted a cost- benefit analysis of Algar relative to other oil sands reclamation approaches in the region. Alberta Applied Biodiversity Conservation Chairs The Alberta Biodiversity Chairs Project will establish two biodiversity conservation chairs at the University of Alberta, who will provide dedicated science capacity to link monitoring outcomes with policy development and strategic planning. Bears, Wolves and Ecosystem Health: Population Trend Monitoring for Informed Decision- Making The Waterton Biosphere Reserve Association is currently leading a project that looks at ecosystem scale monitoring of population trends in grizzly bears and wolves in south- western Alberta. This is being achieved through two distinct monitoring initiatives: 1) The Southwest Alberta Grizzly Bear Monitoring Project (GMP) and 2) The Wolf Population Monitoring Framework in Southwest Alberta (WMF). In both initiatives, non- invasive monitoring techniques will be used to track species distribution and population changes and, in turn, will provide important data required to understand the spatial variability of biodiversity intactness and the value of land management in biodiversity conservation. Building Capacity for Using Innovative Economic Approaches to Manage for ES in Alberta Led by Alberta Innovates Technology Futures, this initiative is focused on building capacity for developing market- based approaches to manage for ES in Alberta. In so doing, AITF is developing a Centre for Market- Based Instruments (CMBI). The CMBI is a collaborative network that bridges theory and practice in applying market- based approaches to conservation and stewardship in the areas of water use, land use, energy, forests and agriculture. Creating and Commercializing Predictive Eco- site Classification Platform for Alberta The Alberta Biodiversity Monitoring Institute is currently working on a multi- phased initiative that will enable eco- site classification information to be created throughout Alberta, by creating a predictive, consistent eco- site classification platform. There is a need for this standardized eco- site information by large companies, but currently there is a lack of information and the current approach is both costly and inefficient. Towards Integrated Source Water Management in Alberta This follows up on the U of A s Southern Rockies Watershed Project, which focused on the impacts of wildfires on water quality. Its work is limited for developing proper policy, in that it does not address manmade disturbances, particularly those associated with forest management. The current Page 16

18 project will address the knowledge gaps related to impacts of forest management by harvesting on water and compare these impacts to those associated with wildfires. Using Decomposition Rates and Microbial Activity to Understand Grazing Impacts on Nutrient Cycling and Carbon Sequestration on Alberta Rangelands The Alberta Livestock and Meat Agency s work is quantifying the influence of regulatory mechanisms capable of altering decomposition and nutrient cycling by soil microbes (i.e., by changing extracellular enzyme activity), including cattle grazing, plant species composition and soil properties. This information will provide a basic understanding of how grazing alters grassland carbon stores and, in turn, provide insight into how managers can optimize carbon storage. Page 17