The Role of Biodiversity in Reaching the MDGs and the Issue of Trade-offs: How to Win More and Lose Less

Transcription

1 United Nations Development Programme The Role of Biodiversity in Reaching the MDGs and the Issue of Trade-offs: How to Win More and Lose Less Dr. Charles McNeill Environment & Energy Group United Nations Development Programme 29 October 2007 With appreciation to the Government of Norway for assistance that has made this work possible 1

2 Role of Biodiversity in Reaching the MDGs & Trade-offs Outline: 1. Biodiversity Goals and the MDGs: The Stars are Coming into Alignment 2. Halfway to 2015: How Are We Doing Towards the MDGs? 3. Trade-offs Between Biodiversity, MDGs and Climate Change: What Do We Know? 4. How to Win More and Lose Less with Trade-offs through: a. Valuation & Improved Information b. Mainstreaming Biodiversity c. Environmental Markets d. Rights & Voices of Local People 5. The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? 2

3 1. Biodiversity Goals & the MDGs: The Stars Are Coming into Alignment

4 Biodiversity Goals & the MDGs: The Stars Are Coming into Alignment The Millennium Development Goals This is the where the world s attention is focused! 4

5 Biodiversity Goals & the MDGs: The Stars Are Coming into Alignment The Biodiversity 2010 Target: Significantly reduce by 2010 the current rate of biodiversity loss at the global, regional and national level as a contribution to poverty alleviation and to the benefit of all life on earth 5

6 Biodiversity Goals & the MDGs: The Stars Are Coming into Alignment Biodiversity and the MDGs: Why Biodiversity Matters to the Poor More than 1.3 billion people depend on fisheries, forests, & agriculture for livelihoods The poorest (esp. women) are most vulnerable to environmental degradation due to diseases, declining fisheries, desertification 6

7 Biodiversity Goals & the MDGs: The Stars Are Coming into Alignment Why is it so important to integrate Biodiversity and MDG Frameworks? CBD COP8 Decision VIII/9 notes that: MA finds that the degradation of ecosystems could significantly increase in the first half of this century, and that this is a key barrier to achieving the MDGs; and At the same time, many actions to promote economic development and reduce hunger and poverty could contribute to the loss of biodiversity 7

8 Biodiversity Goals & the MDGs: The Stars Are Coming into Alignment In other words the success of the 2010 Biodiversity Target and the MDGs depend upon each other Development impacts biodiversity and ecosystems Biodiversity and ecosystems sustain development 8

9 Biodiversity Goals & the MDGs: The Stars Are Coming into Alignment History of links between 2010 Target and the MDGs CBD COP 6 World Summit on Sustainable Development CBD COP World Summit CBD COP Target adopted at CBD COP 6 in Target endorsed at WSSD CBD COP 7 called for the 2010 Target to be considered an interim target for MDG 7, that common indicators be identified for 2010 and MDG 7 targets, and that CBD will track and support MDG campaign 2010 Target reinforced at 2005 World Summit Delegates at CBD COP 8 & CBD Exec Sec. urged UN SG to adopt 2010 Target within MDGs UN SG agreed to integration of 2010 Target into MDGs in Dec 2006 Now Biodiversity is everyone s business! 9

10 2. Halfway to 2015: How Are We Doing Towards the MDGs?

11 Halfway to 2015: How Are We Doing Towards the MDGs? Goal 1: Eradicate Extreme Poverty and Hunger 11

12 Halfway to 2015: How Are We Doing Towards the MDGs? MDG Campaign Progress Chart - June

13 Halfway to 2015: How Are We Doing Towards the MDGs? Some of the poorest countries are on track on several of the Goals: Mozambique Rwanda Tanzania Burkina Faso Mali Ghana Bangladesh 13

14 Halfway to 2015: How Are We Doing Towards the MDGs? Why are some countries more on track? Leadership from the top Clear plan, policies & strategies MDGs prioritised in the allocation of domestic and external resources in the budget High focus on improving delivery mechanisms Greater accountability and transparency at all levels more citizen engagement More media and public debate International donors line up behind national priorities 14

15 Halfway to 2015: How Are We Doing Towards the MDGs? The Perfect Storm: Biodiversity & MDG Targets were Already a Challenge and Now Comes Climate Change! BIODIVERSITY & ECOSYSTEM SERVICES MILLENNIUM DEVELOPMENT GOALS CLIMATE CHANGE 15

16 Stern Review,

17 3. Trade-offs Between Biodiversity, MDGs and Climate Change: What Do We Know?

18 Trade-offs between Biodiversity, MDGs & Climate Change: What Do We Know? Millennium Ecosystem Assessment (MA) MA helps us understand trade-offs Degraded Mixed Enhanced Provisioning Capture fisheries Wild foods Wood fuel Genetic resources Biochemicals Fresh water Timber Fiber Crops Livestock Aquaculture Regulating Air quality regulation Regional and local climate regulation Erosion regulation Water purification Pest regulation Pollination Natural hazard regulation Water regulation (e.g. flood protection) Disease regulation Carbon sequestration Cultural Spiritual and religious values Aesthetic values Recreation & ecotourism Restoring Nature s Capital,

19 Trade-offs between Biodiversity, MDGs & Climate Change: What Do We Know? Enhancement of some services often leads to degradation of others: but who benefits and who bears the cost? Mangrove Services: nursery and adult fishery habitat fuelwood & timber housing carbon sequestration traps sediment detoxifies pollutants protection from erosion & disaster shrimp Mangrove ecosystem crops 19

20 Trade-offs between Biodiversity, MDGs & Climate Change: What Do We Know? Types of Trade-offs 1. Temporal Trade-offs: Benefits Now, Costs Later Overfish now no fish or jobs later Remove wetlands now -- floods later Overharvest forests now no livelihoods later 2. Spatial Trade-offs: Benefit Here, Cost There Logging here flooding there Biofuels here water degraded there Shrimp here no coastal protection there 3. Beneficiary Trade-offs: Some Win, Others Lose Subsidized shrimp farmer wins society loses Subsidized corn-based ethanol biofuel farmer wins society loses Trade-offs are real but we can move towards winning more and losing less 20

21 Trade-offs between Biodiversity, MDGs & Climate Change: What Do We Know? Example of a Temporal Trade-off gone terribly wrong New Orleans, USA after Hurricane Katrina,

22 Trade-offs between Biodiversity, MDGs & Climate Change: What Do We Know? How To Ensure Trade-offs Win More and Lose Less? 1. Valuation and improved access to information on ecosystem services 2. Mainstream biodiversity into global, national and local planning 3. Tapping into and catalyzing new environmental markets 4. Strengthen rights of local people and give them voice Bottom Line: It is about informed decision-making, value in the marketplace and fairness in society. 22

23 4. How to Win More and Lose Less with Trade-offs through: (a) Valuation & Improved Information (b) Mainstreaming Biodiversity (c) Environmental Markets (d) Rights & Voices of Local People

24 How to Win More and Lose Less with Trade-offs through: (a) Valuation & Improved Information (b) Mainstreaming Biodiversity (c) Environmental Markets (d) Rights & Voices of Local People 24

25 How to Win More and Lose Less with Trade-offs through Improved Information Making the Economic Case for Investing in Biodiversity and the Environment Examples of net returns from environmental investments: Coral reef conservation benefit-cost ratios of 3:1 to 5:1 Wetland conservation conversion of mangroves to shrimp aquaculture generally yields negative economic returns Water and sanitation benefit-cost ratios from 4:1 to 14:1 Soil and water conservation generally pays although returns are very sitespecific, with benefit-cost ratios up to 2:1 Air pollution control benefit-cost ratios from <1 up to 15:1 Source: PEP economic study undertaken by David Pearce, Sept

26 How to Win More and Lose Less with Trade-offs through Improved Information Millennium Ecosystem Assessment Follow-up Synthesis Reports Board Statement MA Conceptual Framework Technical Assessment Volumes 26

27 How to Win More and Lose Less with Trade-offs Plan for Millennium Ecosystem Assessment Follow-up (developed in Stockholm Oct 07 in UNEP/Sida-organized mtg) 1. Expanding the Knowledge Base - Fill in gaps from the first assessment (MA I) - Prepare for a second assessment (MA II) 2. National and other Sub-Global Assessments - Apply the MA framework to country and local levels - Generate multi-scale information for MA II 3. Support to Implementation - Tools and methodologies, capacity building, aligning financial incentives, pilot studies and resource mobilization - Support integration of ecosystem services into planning processes within countries and in the private sector 4. Awareness Raising, Outreach and Communication 27

28 How to Win More and Lose Less with Trade-offs through: (a) Valuation & Improved Information (b) Mainstreaming Biodiversity (c) Environmental Markets (d) Rights & Voices of Local People 28

29 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity What are the results of successful Biodiversity and Environmental Mainstreaming? Policies identified and implemented that result in better pro-poor environmental management Biodiversity and ecosystem services taken into account in national plans, budget processes, sector strategies and local level implementation Institutional processes established within government and stakeholder communities to ensure that parties responsible for poverty reduction and growth policies focus on environmental sustainability too Role of environmental agencies and CSOs strengthened 29

30 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity Tools and Methodologies for Mainstreaming: UNDP s MDG Support Initiative Assessment Implementation and Monitoring National development processes Strategy and Policymaking 30

31 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity What is the MDG Support Initiative? A UN initiative that assists countries in preparing rigorous national strategies that are ambitious enough to achieve the MDGs Made up of global and regional MDGS teams which work with UN Country Teams in every region to assist governments with: i. MDG-based Needs Assessment and Planning ii. Widening Policy Options and Choices, and iii. Strengthening National Capacity to Deliver 31

32 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity Tools and Methodologies for Mainstreaming: UNDP-UNEP Poverty-Environment Initiative 32

33 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity The UNDP-UNEP Poverty-Environment Initiative (PEI) What does the PEI do? Supports country-level efforts to mainstream poverty-environment linkages into national planning and implementation processes by providing financial and technical assistance and delivering capacity development programmes to government partners. Where does PEI operate? In pilot countries in Africa (Kenya, Malawi, Mali, Mauritania, Mozambique, Rwanda, Tanzania & Uganda), Asia (Bhutan, Viet Nam) and Central America (Nicaragua) with an intention to expand widely. 33

34 Ecosystem services: a guide for policy makers Forthcoming Nov 2007

35 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity Tools and Methodologies for Mainstreaming: Strategic Environmental Assessment (SEA) 35

36 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity SEA and the Convention on Biological Diversity SEA is a requirement of the Convention (article 14, par. 1b) In response to this requirement Voluntary Guidelines on Biodiversity-Inclusive Impact Assessment were produced: Endorsed by the CBD COP 8 in Curitiba, March 2006 Provides guidance on whether, when, and how to consider biodiversity in project- and strategic-level environmental assessments CBD Parties to consider SEA as an approach for improving integration of national biodiversity strategy and action plans and national development strategies. 36

37 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity Tools and Methodologies for Mainstreaming: CBD NBSAP Capacity Building Workshops 37

38 How to Win More and Lose Less with Trade-offs through Mainstreaming Biodiversity CBD NBSAP Capacity Building Workshops in 2008 Purpose: Implementation of Article 6 of CBD Workshops will provide an opportunity to: Share national experiences in developing, implementing and updating NBSAPs Discuss best practices for effective mainstreaming into: relevant sector and national plans and strategies Explore challenges to implementation Exchange solutions and approaches to overcome these Identify strategic priorities and next steps Workshops will be held in all regions in 2008, beginning in with Asia in Jan 08 and Southern / Eastern Africa in Feb

39 How to Win More and Lose Less with Trade-offs through: (a) Valuation & Improved Information (b) Mainstreaming Biodiversity (c) Environmental Markets (d) Rights & Voices of Local People 39

40 How to Win More and Lose Less with Trade-offs through Valuation and Markets Expanding benefits of the carbon market for the MDGs and biodiversity

41 How to Win More and Lose Less with Trade-offs through Valuation and Markets Why MDG Carbon: CDM s failure to deliver sustainable development dividend Geographical Imbalance (CDM Project Locations) Sectoral Imbalance (Anticipated 2012 Cumulative CERs) Afforestation & Reforestation, 0.2% Fuel switch, 7% Cement & Coal mine/bed, 7% Energy efficiency 7% HFC & N 2 O reduction 40% CH 4 reduction 16% Renewable Energy 23% 41

42 How to Win More and Lose Less with Trade-offs through Valuation and Markets Strategic Roadmap for the Carbon Finance Market High Proposed Objective for Global Carbon Strategy MDG & Biodiversity Impacts of Carbon Finance Projects Low Current CDM Market* Low Number of Countries with access to CDM carbon finance market High * 60% of CDM projects in 4 countries; projects from the LDCs constitute only 1% of the CDM pipeline 42

43 How to Win More and Lose Less with Trade-offs through Valuation and Markets Emerging opportunities for broader PES schemes Market Goal Carbon Markets Water Trading Source: Forest Trends (2005) Habitat Conservation Sustainable Fisheries Products Suppliers Customers Market Size by 2012 ($ Billion) Abatement credits for reducing CO2 emissions (carbon offsets, AEU, ERUs, CERs) Acres of forests and wetlands preserved, restored or created Acres of restored or conservation managed land. Permits to catch a set weight of fish species Certified marine fish. Permit traders Efficiency and GHG capture project developers Landowners and private wetland mitigation banks Landowners and private conservation banks. Governments issue quotas; Retiring fishers sell quotas; Certification organizations issue certificates (e.g., Certified Marine Fish Council) Governments Energy intensive industries Governments Water basin agencies Real estate developers Governments Real estate developers Conservation organizations Fishing fleets Voluntary purchase of certified marine fish > Forest Trends,

44 Aligning economic incentives with ecosystem stewardship Restoring Nature s Capital, 2007

45 How to Win More and Lose Less with Trade-offs through Valuation and Markets Harnessing Carbon Finance for Land Restoration Opportunity: Potential for harnessing carbon finance for sustainable land management (e.g. land restoration) to deliver quadruple benefits: climate mitigation, adaptation, biodiversity and livelihoods. Challenge: CDM rules and lack of capacity currently provide disincentives to small land-users. Recommendations: Expand CDM eligibility requirements: 1. Inclusion of more land-use types, 2. Expand role of soil carbon in CDM 3. Increase limit on size of AR projects and promote bundling of AR projects Invest and build capacity: 1. Financial analysis of carbon business model for land restoration 2. ODA to provide start-up funds to defray market risks and build capacity 3. Develop low-cost technologies to measure soil carbon. 45

46 How to Win More and Lose Less with Trade-offs through: (a) Valuation & Improved Information (b) Mainstreaming Biodiversity (c) Environmental Markets (d) Rights & Voices of Local People 46

47 How to Win More and Lose Less with Trade-offs through Rights and Voices of Local People Local Communities are Key to Biodiversity & the MDGs Ultimately, biodiversity conservation and the MDGs will succeed or fail at the local level. The Challenge: Local people often lack (1) clear rights to use and make decisions about the ecosystem services they depend on for their livelihoods and well-being, (2) opportunities to influence policies that impact them, and (3) means to learn from each other. The Action Plan: Strengthen the rights of local people to use and manage ecosystem services by: - Decentralizing decisions about ecosystem services and build capacity of local communities to manage those services. - Bringing local voices to the table to influence projects and policies that affect them. - Supporting bottom-up approaches to conservation. 47

48 How to Win More and Lose Less with Trade-offs through Rights and Voices of Local People Equator Initiative Partnership Created in response to: Equator Initiative The focus of the 2002 World Summit on Sustainable Development (WSSD) in Johannesburg on innovative partnerships Recognition that the greatest concentrations of poverty & biodiversity are found in the Equatorial region and that innovative win-win solutions are there too Need to understand and recognize and learn from successful community-based action on the ground. 48

49 How to Win More and Lose Less with Trade-offs through Rights and Voices of Local People Equator Initiative Partnership Equator Initiative The Equator Initiative is designed to reduce poverty through the conservation and sustainable use of biodiversity in the equatorial belt by fostering, supporting and strengthening community partnerships. Biodiversity Conservation The World Conservation Union Community Empowerment Poverty Reduction and MDGs 49

50 How to Win More and Lose Less with Trade-offs through Rights and Voices of Local People Impact Partnerships Equator Prize Sustainability Gender Equality Innovation & Transferability Leadership & Community Empowerment Leadership & Community Empowerment Selection Criteria 50

51 How to Win More and Lose Less with Trade-offs through Rights and Voices of Local People Shidhulai Swanirvar Sangstha, Bangladesh Equator Initiative Biodiversity Conservation * Poverty Reduction * Education Association Songtaab-Yalgré, Burkina Faso Biodiversity Conservation * Poverty Reduction * Education * Health: HIV/AIDS 51

52 52

53 How to Win More and Lose Less with Trade-offs through Rights and Voices of Local People Community Knowledge Service (CKS) Example of local & global learning partnership Developed by 20 community leaders, CKS supports communities share expertise and apply acquired knowledge that enhances local livelihoods while sustaining biodiversity. Program components: Peer-to-peer learning exchanges and site visits Knowledge fairs and workshops Leadership development training initiatives Participatory video and radio methodologies Web-based knowledge exchange platforms and networks Local knowledge centers Written documentation of community practices 53

54 How to Win More and Lose Less with Trade-offs through Rights & Voices of Local People UNDP-GEF Small Grants Programme Champions conserving and restoring the environment while enhancing people's well-being and livelihoods. 4,946 Biodiversity projects in > 80 countries Over $300 million disbursed since 1992 for community initiatives Example of local success: Grant support contributed to stabilizing population of last endemic parrot in Mauritius 54

55 5. The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene?

56 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? I. Use the Momentum on Climate Change for Biodiversity by Finding Synergies 56

57 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? Adaptation to Climate Change: The Most Urgent Development Challenge Source: Johan Rockström, Stockholm Resilience Centre 57

58 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? Biodiversity and Climate Change Adaptation: Win-Win Policy Solutions? People most vulnerable to climate change are also most dependent on biodiversity. Although biodiversity is fundamental to climate regulation and must be central to adaptation and mitigation programs, the potential for conflict between the CC and BD agendas is enormous if we get it wrong. Since biodiversity underpins ecosystems which provide resilience to climate change impacts, Adaptation strategies should be improved by including ecosystem resilience and genetic diversity - and biodiversity better protected by being included in Adaptation strategies. Significant flow of resources towards Adaptation may provide opportunity for biodiversity funding if we make the case 58

59 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? Reduced Emissions from Deforestation and Land Degradation (REDD): A Major Opportunity for Synergy between Biodiversity and Climate Change? Oil palm plantations 59

60 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? The Case for Including REDD in Climate Policy Deforestation responsible for >20% of GHG emissions - yet avoided deforestation is not included under the current climate change regime. Forests are home to much of the world s biodiversity. Over 1 billion people living in extreme poverty depend on forests for livelihoods. Including REDD mechanisms in a post-2012 climate regime can create incentives for countries to protect and maintain their forest cover. 60

61 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? The Case for Including REDD in Climate Policy: Financial Incentives At $10 per m ton of carbon, the prevention of further deforestation in National Parks in East-Kalimantan could generate $135 million per annum The total 2006 budget for National Parks in East- Kalimantan was $5 million 61

62 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? The Case for Including REDD in Climate Policy: Financial Incentives $80 / hectare for growing rice in Madagascar vs. Up to $3,000 / hectare for avoiding deforestation Ken Chomitz,

63 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? But REDD Approaches must be Pro-Poor To reach the potential win-win-win-win (i.e. with benefits for CC mitigation, adaptation, biodiversity and livelihoods), local communities must also receive benefits. Importance of forests in local economy Source ICRAF/CIFOR study by Sonya Dewi 63

64 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? II. A Systematic Approach to Trade-offs to Win More and Lose Less 64

65 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? What can the Biodiversity Community do to: Win More and Lose Less with Trade-offs (a) Valuation and Improved Information Continue to build the economic case for return on investments in the environment for poverty reduction Carry out more in depth full cost accounting studies (like those on mangroves and shrimp farms) for other ecosystems Actively support the Millennium Ecosystem Assessment Followup (MA II) Advocate for a special IPCC report on the interactions between climate change, biodiversity and ecosystem services and human wellbeing. 65

66 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? What can the Biodiversity Community do to: Win More and Lose Less with Trade-offs (b) Mainstreaming Biodiversity Ensure that biodiversity goals are integrated in national development strategies through: - NBSAP Capacity Building Workshops - MDG Support Initiative - Poverty-Environment Initiative (PEI) - Strategic Environmental Assessment (SEA) - WRI tools Focus closely on mainstreaming Biodiversity in climate change adaptation planning. 66

67 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? What can the Biodiversity Community do to: Win More and Lose Less with Trade-offs (c) Environmental Markets Explore options and mechanisms to expand carbon finance benefits to biodiversity and the MDGs (including for land restoration) Build capacity and provide start-up funds to give access to carbon finance benefits to more countries Learn from the carbon market experience and support establishment of markets for other ecosystem services beyond carbon such as water, biodiversity, fisheries, nitrogen, etc., including through voluntary markets Advocate for national or global regulatory interventions that will create markets for payment for ecosystem services. 67

68 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? What can the Biodiversity Community do to: Win More and Lose Less with Trade-offs (d) Rights and Voices of Local People Support local and global learning partnerships that ensure local best practices are identified and disseminated to influence policy for win-win approaches to conservation and poverty reduction Invest in capacity building at the local level so that communities can participate in, and benefit from, new environmental markets Develop programs to help communities apply Millennium Assessment methodologies at the local level. 68

69 The Way Forward: How and Where Can the Biodiversity Community Most Effectively Intervene? Fortunately, world leaders and the public are beginning to pay attention Now let s ensure that Biodiversity is fully in the equation 69

70 Thank You 70