India TEEB. Pusa Institute, New Delhi. Study Leader TEEB & Special Adviser & Head - Green Economy Initiative United Nations Environment Programme

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1 10 th February, 2010 Pusa Institute, New Delhi India TEEB Pavan Sukhdev Study Leader TEEB & Special Adviser & Head - Green Economy Initiative United Nations Environment Programme

2 TEEB s origins Potsdam Initiative Biological Diversity 2010 the economic significance of the global loss of biological diversity. TEEB Interim Report CBD COP-9, Bonn, May 2008 TEEB Climate Issues Update Strömstad September TEEB Main Reports Nov Oct. 2010

3 Main Assets Built by TEEB TEEB Reports & Databases Constant review and updates TEEB Approach Collaborative stewardship TEEB Community Vibrant & expanding TEEB Brand Evolving, dynamic, jointly owned

4 TEEB approach to valuation 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

5 Applying TEEB Approach Recognizing value Demonstrating value Regional Planning Legislations PA Evaluation Certification PES Capturing value Norms, Regulatio ns & Policies Economic Mechanisms Markets Ch.5 Ch.4 Ch.3 Ch.3

6 Examples : Integrating ecosystem services into land use plans in Baoxing County, Sichuan, China REGIONAL PLANNING An ecosystem service mapping and modeling tool (InVEST) used to plan development zones that avoid areas of high ecosystem service provision and conservation importance Developments were reconsidered by local government officials during the making of the next Baoxing County Land Use Master Plan 2010 where mapping had highlighted that activities were planned in areas of several critical ecosystem services

7 Examples : Tubbataha Marine Park, Philippines UNESCO World Heritage site, contains 396 species of corals & has higher species diversity it per square metre than the Great Barrier Reef LEGISLATIONS After1998 Bleaching Stakeholders meeting No-take areas agreed, & later, President passed the Tubbataha Reefs Natural Park Act in 2010 ( 10 mile buffer zone around the no-take marine reserve) thus increasing Park by 200% 10% annual increase in live coral cover. fish biomass is four-folds better than the average healthy reef

8 Examples : Kampala Wetland Services provided by the Nakivubo swamp include natural water purification and treatment & supporting small-scale income activities of slum dwellers PROTECTED AREA EVALUATION (Nakivubo designated a part of the city s greenbelt zone) Ecosystems services provided by the swamp equal USD 1 million million / year If the swamp is converted then additional investment into a sewage treatment plant would be required with running costs of over USD 2 million / year

9 Examples : Satoyama Landscapes % reduction in pesticides, traditional winter flooding rice farming adopted, & White Stork rice & other certified products sold at a premium PES : farmers paid 40,000 JYen per 1,000m 2 of rice paddies.currently granted 7,000 JYen per 1,000m 2 by Toyo-oka City CERTIFICATION Rice sold at 23 % higher rate for reduced pesticide use, and 54 % more for organic farming Konotori no Mai / Flying Oriental White Stork White Stork habitat increased from 0.7 ha in 2003 to ha Extinct in 1971, now has over 40 breeding pairs 1 billion JPY annually in tourism, & municipal income raised by 1.4 %

10 A Key Finding : Natural capital and poverty reduction Indonesia India Brazil Ecosystem services as a % of classical l GDP 79% 84% 21% 16% 90% 10% Ecosystem services dependency 99 million 352 million 20 million 11% Ecosystem services as a % of GDP of the Poor 75% 25% 47% 53% 89% Source: Gundimeda and Sukhdev, D1 TEEB 10 Ecosystem services

11 Ecosystems as assets for local development existing and 89 planned hydroelectric dams in Brazil need forested watersheds for low sediment load (est. economic value of enhanced useful life $ 600 million p.a.) 2. Silvo-pastoral management in Colombia. The problem : Pasture degradation resulting in income loss, further expansion of pasture area. Focus on Ecosystem services : to tackle poor pasture practices, soil erosion, increased water runoff, and biodiversity loss (picture: CIPAV) Source: TEEBcase Silvopastoral Project Policy response : Silvo-pastoral management on 3,500 ha by planting improved grasses, fodder, shrubs, trees. GEF funding for biodiversity and carbon fixation (PES) to cover initial investment costs. Results: 1. Enhanced local benefits: nutrient recycling, fruit, fodder, timber, water flow regulation, protection against landslides. 2. After the project, farmers still keep the silvopastoral systems without the PES due to its multiple benefits

12 The opportunity: Maintaining, restoring or enhancing ecosystem services To save municipal costs Quito s drinking water comes cheaper from 2 national parks Kampala s wetlands effectively treat sewage To protect against natural hazards mangroves protect against typhoons in northern Vietnam To boost the local economy it pays to protect sharks in the Maldives To help tackle poverty woodland restoration secures essential services to agropastoralists in Tanzania Source: all examples are TEEBcases (teeb.org)

13 A Key Recommendation : Measuring better to manage better Natural resources are economic assets, whether or not they enter the marketpace Conventional measures of national economic performance (eg : GDP Growth) fail to reflect these stocks and their benefits flows. Rapidly upgrade the System of National Accounts (SNA) to include changes in natural capital stocks and ecosystem service flows (CBD Strategic Plan Target 2... in [..]) URGENT : physical accounts for forest stocks / carbon storage need to be in place (e.g. for orderly development of REDD+) Ch.3 Ch.3,5

14 A Key Recommendation : Financial Disclosure and Net Positive Impact Corporate financial reporting standards & purchasing policies do not generally require attention to environmental externalities Disclose all major externalities in the annual reports and accounts of business and other organizations Reflect all environmental liabilities and changes in natural assets of the Corporation in its statutory accounts Principles of No Net Loss or Net Positive Impact (avoidance, mitigation, restoration, compensation, etc) should be integrated into normal business practice Ch.3-5

15 Main Implementation Demands TEEB Capacity Building for Developing Countries Country and Regional TEEB Assessments Green National Accounts (WB, UNEP & Others) Estimating Business Sector Externalities (TEEB Foundation) Identifying & closing Ecology & Valuation Knowledge Gaps Communicating the Issue to Society at Large

16 India TEEB Deliverables & Timelines (To Be Discussed at Stakeholder Meeting) India TEEB - Interim Report November 2012 (COP-11) India TEEB Final Report December 2013 Green Gee Domestic estcproduct -Model November oe 2012 (COP-11) Green Domestic Product Final December 2015 Capacity building for state governments to generate similar periodic evaluations in-house on a bi-annual basis

17 India TEEB Community (This Includes You All Today) Central Govt (Ministries) State Govts (States ) Academic Institutions (Universities, iti Research NGO s) Civil Society (NGO s ) Corporations (Corporations) Financial Institutions (Banks, Insurance Companies) Advisory Board (Indian and International Experts) Project Coordinators (Overall + each Pilot state) Authors (expected 100+) Reviewers (expected 100+)

18 Thank You!