The Quest to Make Conservation Profitable

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1 The Quest to Make Conservation Profitable

2 Vision A future in which conservation is mainstream economically attractive and common-place sustaining Earth s biodiversity and vital life-support systems

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4 Realizing the Vision Increase flow of $$ into conservation Allocate $$ flow in new ways

5 Realizing the Vision Increase flow of $$ into conservation Allocate $$ flow in new ways 1. Working Landscapes 2. Ecosystem Services 3. Financial Incentives

6 Realizing the Vision Complement traditional conservation approaches with new strategic foci 1. Working Landscapes 2. Ecosystem Services 3. Financial Incentives

7 Conservation Value of Working Lands Cons. Value Intensity of Land Use

8 Conservation Value of Working Lands Cons. Value Intensity of Land Use

9 Conservation Value of Working Lands Cons. Value Intensity of Land Use

10 Biodiversity in Hawai i Distribution of Biodiversity in Hawaii Mature Forest Ranchland Koa Plantation

11 Conservation Value of Working Lands FOR BIODIVERSITY: Absolutely vital 1. Reserves core part of strategy 2. Window of opportunity

12 Realizing the Vision Complement traditional conservation approaches with new strategic foci 1. Working Landscapes 2. Ecosystem Services 3. Financial Incentives

13 Ecosystem Services i. Production of Goods

14 Ecosystem Services ii. Life-support Processes

15 Ecosystem Services iii. Life-fulfilling Conditions

16 Ecosystem Services iv. Preservation of Options

17 Conservation Value of Working Lands FOR ECOSYSTEM SERVICES: Absolutely vital 1. Supply, scale of delivery 2. Window of opportunity

18 Realizing the Vision Complement traditional conservation approaches with new strategic foci 1. Working Landscapes 2. Ecosystem Services 3. Financial Incentives

19 Capturing Conservation Values Goal? Who pays? How much? To whom? For what? For how long?

20 Goal: which elements of ecosystem capital are most important? Past focus: aesthetic and taxonomic criteria

21 Future focus: ecosystem service criteria

22 Outcome of Biosphere 2 Experiment O 2 levels plummeted CO 2 and N 2 O levels skyrocketted Water purification failed 19 of 25 vertebrate spp went extinct All pollinators went extinct Crazy ants, cockroaches, katydids rampant

23 Crop Pollination 2/3 of crops require it Honeybee declines worldwide Can wild bees to do the job? Value of their habitats? apple tomato coffee

24 Harnessing coffee for conservation Do forest pollinators benefit nearby coffee? How valuable is forest to farmers?

25 The value of forest to farmers Coffee near forest: more diverse bees more pollination 20% higher yields $ $ Value of forest: $60,000/year to 1 farm 10x more than current conservation incentive payments

26 The Value of Forest to Farmers 1.0 km With remnants

27 The Value of Forest to Farmers 1.0 km With remnants Without remnants

28 The Value of Forest to Farmers 1.0 km With remnants Without remnants Lowerbound value ~US$60,000 / yr

29 Aligning Economic Incentives with Conservation Goal? Who pays? How much? To whom? For what? For how long?

30 Paying for Ecosystem Services $$ agricultura purificación del agua estabilización de la clima biodiversidad

31 Paying for Ecosystem Services biodiversidad agricultura purificación del agua estabilización de la clima agua clima biodiversidad agricultura $$ $$ $$ $$ $$

32 Experiments => Models of Success WATER PURIFICATION FLOOD CONTROL BIODEGRADATION INTEGRATED APPROACHES importance of service valuation of ecosystem capital capturing ecosystem service values (Daily & Ellison 2002)

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35 NYC -- Water Purification PHYSICAL CAPITAL ECOSYSTEM CAPITAL FILTRATION PLANT RESTORATION OF WATERSHED US$ 6-8 BILLION US$ BILLION

36 Investment in Ecosystem Capital

37 Investment in Ecosystem Capital

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39 Napa ~ Flood Control PHYSICAL CAPITAL ECOSYSTEM CAPITAL DIKES, LEVEES, CONCRETE CHANNELS RESTORATION OF NATURAL FLOODPLAIN US$ 150 MILLION US$ 200 MILLION

40 Investment in Ecosystem Capital 109 buildings removed; 9 bridges (re)moved 650 acres wetlands created or restored

41 NAPA ~ A RIVER CITY

42 NAPA ~ A RIVER CITY

43 Biodegradation ~ Costa Rica

44 Pulp

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46 Costa Rica ~ Biodegradation PHYSICAL CAPITAL ECOSYSTEM CAPITAL LIVESTOCK FEED PRODUCER NATURAL BIODEGRADATION US$ 2-3 MILLION US$ 0.5 MILLION

47 Del Oro ACG Contract Pest control Water supply Orange peel degradation Protection from disease $1/ha-yr $5/ha-yr $12/truckload gratis TOTAL $24,000/yr

48 ECO O.K.

49 Murray-Darling Basin covers > 1 million km 2 supplies 75% Australia s irrigation water yields >40% Australia s agricultural production supplies 3 million people with drinking water

50 Annual Salt Contribution to Rivers, NSW MT/km 2

51 Hypothetical Farm Business Commodity Share (%) Wheat 40 Wool 15 Timber 10 Water filtration 15 Carbon sequestration 7.5 Salinity control 7.5 Biodiversity 5

52 Costa Rica Payment for Ecosystem Services Climate Stabilization Water Purification Biodiversity Resources Scenic Beauty US$20 / acre-yr

53 Aligning Economic Incentives with Conservation Goal? Who pays? How much? To whom? For what? For how long?

54 Realizing the Vision Increase flow of $$ into conservation Allocate $$ flow in new ways 1. Working Landscapes 2. Ecosystem Services 3. Financial Incentives

55 Realizing the Vision Increase flow of $$ into conservation Allocate $$ flow in new ways 1. Governments 2. Local Institutions 3. Private Sector 1. Working Landscapes 2. Ecosystem Services 3. Financial Incentives

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57 Realizing the Vision Increase flow of $$ into conservation Allocate $$ flow in new ways 1. Governments 2. Local Institutions 3. Private Sector 1. Working Landscapes 2. Ecosystem Services 3. Financial Incentives

58 The Natural Capital Project 1. MAPPING ES FLOWS In biophysical, economic, cultural terms 2. IMPLEMENTATION Pilot projects Symbolic trades 3. SCALING UP Brain Trusts in Conservation Finance & Communications

59 To succeed, conservation must become economically profitable and common-place