Market standards and impacts on ecosystem services

Transcription

1 Market standards and impacts on ecosystem services Insights from extended cost-benefit analysis June 2 nd 2016 Mark van Oorschot 1

2 PBL Interface between science and policy Improve policy making: - Supply scientific knowledge - Evaluate policy instruments - Inspire debates on options

3 Topics for presentation Natural Capital (NC) thinking The TEEB-approach to impact assessment Results from extended cost-benefit analyses (Governance options for supply-chains ) Reflections on usefulness of NC thinking 3

4 Measuring impacts From Promise to Proof : 4

5 What is the TEEB approach? TEEB = The Economics of Ecosystems and Biodiversity Millenium Ecosystem Assessment (2005): Nature supplies all kinds of goods and services to society Showing the values of nature costs and benefits for different stakeholders Analysis tool with 4 assessment steps Identify => Map => Value => Capture 5

6 A new concept for M&E What: Include nature s value in impact assessment How: Extending Cost/Benefit analysis Value of ecosystem services Producer values Societal values Value of avoided deforestation But: Desk-research! Hardly any comparative data available Based on general assumptions Potential benefits Large uncertainties (local context) 6

7 TEEB analysis steps 7

8 Methods for monetary valuation Prices & Values 8

9 Why a TEEB approach to standard s impacts? Helping to build credibility, by making nature s role clear. by showing added value for society. Implicitly, standards already cover ecosystem services. although not systematically nor completely. 9

10 Research questions What are the private and public benefits?.. of certified (=sustainable) resource production. compared to conventional production. taking values of EG&S into account How are costs and benefits distributed over stakeholders? Private/Public Local/regional/global How to capture the benefits for different stakeholders? 10

11 Desk studies Compared production systems Resource Production Area Specific settings Model system Tropical Southeast Asia Low and high logging FSC, RIL and Wood South America intensity sparing plantations Cacao Ghana / Ivory coast Smallholders farms/ Large-scale plantations UTZ Certified agro-forestry and yield Soya Brazil Cerrado (savannah) / Amazon (tropical forest) RTRS certified GAP, no-tillage Palm oil Indonesia / Malaysia Peat soils / Mineral soils RSPO certified / Reduce drainage 11

12 Standards and ES Coverage and Precision - Hardly explicit - Mostly implicit Example RTRS Implicit references to ES Integrated pest management Soil fertility Soil carbon sequestration Cross-references GAP practices HCVAs (but not required) Limited on pollination 12

13 Example SOYA: extended CBA 13

14 SOYA: non-carbon societal benefits 14

15 Net benefits 1 15

16 Net benefits 2 16

17 Net benefits 3 17

18 18

19 Conclusions from extended CBA on certification Standards already cover ecosystem services. although not explicit, systematic or complete Monetary valuation Financial benefits for producer possible, NOT always CARBON benefits dominate other services Non-carbon benefits RELEVANT, but LOW in value High societal benefits of avoided deforestation Sometimes, no net benefits for society possible TEEB approach provides new view on impacts Show values for stakeholders Q: Business case or Societal case? 19

20 M&E research agenda More impact research needed Methodology Follow the TEEB steps - Natural Capital protocol Define the right scope: different levels/stakeholders Choose appropriate valuation methods Data collection Costs Operational (measures, certification and training) Costs of damage / cost of mitigation Loss of income or resources Benefits Premiums and discounts Benefits of goods and functions (market or shadow prices) Contribution to welfare level (living wages) 20

21 Multi-level governance 21

22 Perspectives for suppply-chain governance 1 Improve market standards Innovate standards for better ES coverage Show performance on net benefits Use additional finance (payment for carbon) 2 Make sustainable production the norm Inclusive and true prices Public procurement by leading consumers Include ES in minimum legal requirements Integrate standards in national policies 3 Expand approach to higher level (beyond ) Multi-functional production landscapes Inclusive land-use planning and management 22

23 Reflection on Ecological Economics Combining the Best of Both worlds? Much discussion about monetization (tool / question) Is it about THE VALUE OF NATURE or about THE NATURE OF VALUE (Frits Hinterberger - SERI) 23

24 van Oorschot M. et al. (2016) The contribution of sustainable trade to the conservation of natural capital PBL publication nr 1700 ESP Conference Antwerp sept 24