Ecosystem Services as a Focal Point for Landscape-scale Governance? Challenges and Potentials from a TEEB Perspective

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1 TEEB: The Economics of Ecosystems and Biodiversity Ecosystem Services as a Focal Point for Landscape-scale Governance? Challenges and Potentials from a TEEB Perspective Dr. Heidi Wittmer TEEB scientific coordination SAC and SEPA conference Valuing Ecosystems: Policy, Economic and Management Interactions Edinburg, 3 rd -4 th of April 2012

2 TEEB s genesis 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 Phase 3 Outreach & Facilitation: Nov CBD COP 11, Hyderabad National TEEB assessments & WAVES local TEEB initiatives & follow up projects TEEB Main Reports Nov Oct CBD COP-10, Nagoya

3 Distortions in decision making Rarely a systematic overview of all relevant ecosystem services many services are invisible, Markets capture only few privatizable ecosystem services, Regulating ecosystem services are often taken as given, Thresholds for future provisioning unclear/contested, Ecosystems provide interdependent bundles of public and private goods: no easy basis for regulating, Costs for biodiversity conservation need to be paid immediately mainly at the regional or local level, benefits occur spread in space and time.

4 Valuations, Operating Spaces, Responses Recognizing value Demonstrating value Regional Plans Legislations Certification PA Evaluation Capturing value PES Norms, Regulations & Policies Economic Mechanisms Markets Ch.5 Ch.4 Ch.3 Ch.3

5 TEEBcases best practice examples available online more than 100 cases from around the world showcasing the incorporation of ecosystem services into local decision-making In cooperation with EEA - accessible via teebweb.org

6 How does the governance of landscapescale management affect the delivery of multiple ecosystem services? Multiple Ecosystem services: Which ones? Who decides? Delivery: Who delivers? Landscape-scale management: what is and what needs to be managed at the landscape scale? Governance: what are the options at the landscape scale? Challenges and Potentials Examples from the TEEBcases

7 Multiple ecosystem services

8 Who decides?

9 Who delivers? Why and how? Farmers/forest managers: optimizing for profit in markets for provisioning services. Privat owners: houses, gardens Nature protection ngos or foundations: manage for nature conservation Municipalities: manage for multiple (often public) purposes Commercial owners: use mainly the carrying function of the land: build factories, shops, parking lots

10 What needs to be managed at the landscape scale? Service Scale Food & raw material Farm Water Local climate regulation CO 2 storage Soil protection Protection against natural hazards Pollination biological control Habitat & genetic diversity Recreation, aesthetics, tourism Landscape Farm / landscape Farm Farm Landscape Farm / landscape Farm / landscape Landscape

11 Governance options at the landscape scale? Regulation Planning Protected areas Statutory laws: soil, water & air protection Incentives, Markets, Subsidies, cross compliance Fiscal incentives Incentive programmes Voluntary (investments) Individual or collective

12 Property rights Use rights: Access to resource e.g. walk into the forest, along the lakeshore Withdraw from resource e.g. take water, harvest products Exploit resource e.g. cut a tree Management or decision-making rights: Management plant, trim, Exclusion prevent others from use or access Alienation/tranfer hand the resourse to other

13 Challenges For conserving biodiversity: Connectivity, structure of overall landscape decisive Local level protection of more ecosystem services can lead to tipping points for biodiversity conservation being reached at the regional level

14 250 conserved sites 100 conserved sites Faith Daniel.P.(2011), Diversity 3, 1-7 Faith, D.F. et al., (1996) For. Ecol. Manage. 85, 251

15 Opportunities: policy (changes) EU Biodiversity Strategy Target 2: Green infrastructure, restoration of degraded ecosystems CAP pillar 1: cross compliance and in proposal for reform: greening (7% area out of production for ecological focus areas, crop diversification, grassland protection). CAP pillar 2: rural development policy agri-environmental measures

16 Some examples from the TEEBcase collection

17 Spatial planning in Sumatra, Indonesia New spatial planning law (2007) passes spatial plans to the district levels. Lowland forests affected by intense logging and forest conversion to plantations, affecting biodiversity, water regulation, and causing erosion Occurrence and spatial connections were assessed with InVEST a tool for mapping and analysing ecosystem services. Photo: Ahmad Zamroni/AFP/Getty Images Source: Natural capital project and TEEBcase Integrating Ecosystem Services into Spatial Planning in Sumatra

18 Spatial planning in Sumatra Based on district level data, InVEST modelled services under two scenarios: Sumatra Ecosystem Vision and BAU, Specific recommendation based on maps: - where to restore habitats, - where to allocate forest concessions, - for which areas to apply for carbon PES,.. Good for overall landuse decisions More complicated for management Source: Natural capital project and TEEBcase Integrating Ecosystem Services into Spatial Planning in Sumatra

19 Ecological Fiscal Transfers in Brazil ICMS Ecologico Teeb National, Chapter 5

20 Paraná: Increase of protected areas Protected areas [ha] Declared after 1991 [ha] Total [ha] Increase [%] Public federal state communal Privat/mixed APA RPPN other total May et al. 2002, Ring 2008b

21 TEEBcase: Reducing P-load by reverse auctions, Conestoga watershed, PN, USA Reverse auctions to pay farmers to apply best management practises (BMP) for phosphorous management Farmers place bids of prices they are willing to accept for specific measure Bids ranked according to costs/lb of P reduced until budget exhausted Goal of P reduction achieved at lower cost than with conventional cost share subsidy ($5.06 vs. $10.32/lb) Efficient/cost effective if monitoring ensured Equality of opportunities?

22 Restoring rice paddy habitats to reintroduce the Oriental White Stork in Toyo-oka, Japan Pesticides harm stork. Acreage of rice grown organically up from < 1 ha (2003) to ha (2009). Reduces rice productivity/ hectare by 25%, but White Stork branded local produce sells at a premium of 23% - 54% over conventional rice. White Stork is back (2005=0, 2009=36), Eco-Tourism boom & municipal income increased by 1.4 %. Available as TEEBcase on teebweb.org

23 Nature-based climate change mitigation, Germany drainage of 930,000 ha peatlands for agriculture caused emissions of 20 Mio. t of CO 2 social cost 1.4 billion Peatland restoration: low cost, biodiversity-friendly mitigation Mecklenburg-Vorpommern: Pilot project Restoration of 30,000 ha Reduced emissions up to 300,000 t CO 2 -eq. cost of 8-12 / t CO 2 (if extensive grazing / reed production / alder forest then costs down to 0-4 ) TEEBcase Peatland restoration for carbon sequestration, Germany) Source: Federal Environmental Agency 2007; MLUV MV 2009; Schäfer 2009 Restored peatland in Trebeltal 2007 Foto: D. Zak,

24 Urban forestry in North Rhine Westphalia, Germany Municipal forests, managed for multiple ecosystem services: Management more costly than income from timber, Municipal budgets pressed, discussion on selling forests Conflicts between different users, little understanding for foresters day to day work Ecosystem services prioritized by foresters: Recreation Wood Habitat Water supply Climate regulation Forest-oriented education of school and kindergarden children

25 Exemplifying table of ES and their potential indicators ES Activities Contribution of forest management Potential indicators Recreation Walking Jogging Hiking Biking Downhill biking Paint ball & other games Walking dogs Provision of infrastructure (paths, benches etc.) Visitor management Conflict moderation Etc. Accesibility of forests No of parking lots No of public transport stops Number of visitors Willingness to pay of visitors for specific attractions Information signs Etc.

26 Napa Creek Living River Initiative - broad civic movement for integrated river management to prevent damage from flooding - costs covered by increasing local sales tax by 1% for 20 years - various ecosystem services were enhanced for the local population (flood prevention, recreation, tourism ) - insurance rates were reduced, property values increased TEEBcase by Judie Lucido und Kaitlin Almack available on teebweb.org

27 Vision: combination of governance instruments Legislation to set the frame Incentives to flexibly and efficiently adjust management Deliberative fora to collectively agree on desirable combination of services and the value they provide us as society Sustainable use of landscapes

28 Thank you! For further information: Scientific coordination: Some funders and important contributors: 28