Valuating and Financing Forest Ecosystem Services the Example of Germany
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1 Valuating and Financing Forest Ecosystem Services the Example of Germany Thünen Institute of International Forestry and Forest Economics Silva joint session of the ECE Committee on Forests and the Forest Industry and the FAO European Forestry Commission Agenda Item 4, Financing Sustainable Forest Management and Forest Ecosystem Services November, 3rd 2015, Engelberg, Switzerland
2 Content 1. Valuating Forest Ecosystem Services - changes, not stocks - an example from Germany 2. Financing Forest Ecosystem Services - property rights - general remarks - current situation in Germany 3. Conclusion Seite 2
3 Valuating FES: changes, not stocks Forest Ecosystem Services (according to MEA) Provisioning services e. g. timber Regulating services e. g. protection against avalanches, e. g. flood regulation Cultural services e.g. recreation World without? (Valuation only against a reference) => Comparison of alternative options => Balancing FES MEA: Millennium Ecosystem Assessment 2005 Seite 3
4 Valuating FES: an example from Germany Reference point for comparisons: forest management as today Utility of cultural services: for 67,23 million people (adults) in Germany Positive values: willingness to pay/utility Negative values: compensation request/disutility provisioning ecosystem services regulating ecosystem services Bio energy strategy Nature protection strategy Value added through timber use?? Carbon sequestration and substitution?? Share of coniferous trees Source: Weller, Elsasser, in preparation cultural ecosystem services Harvest age Biodiversity 0 (no change) 3.82 (Sub-)total (in billion ) Seite 4
5 Financing FES: property rights forest owners payments -> free contracts < = > society instrument command and control freedom of tailor-made transaction decision supply costs voluntary high high -> subsidies -> compensation mandatory low low -> laws and regulations Seite 5
6 Financing FES: general remarks requires: - allocation of property rights with the forest owners - preferably voluntary instruments basic decision: what to finance? input output measures/actions outcome/results/performance responsibility? risk of failure Seite 6
7 Financing Forest Ecosystem Services in Germany I Current situation in Germany: safeguarding of FES under both allocation approaches, but laws and regulations prevailing - free access to forests for recreation purposes - free use of groundwater volume under forests through water supply companies (individual companies offer payments for specific measures, e. g. Gemeindewerk Kaufering) - accounting for carbon sequestration under Art 3.4 KP but no full benefit sharing with forest owners - laws and regulations as well as subsidies and compensation payments in case of Habitat Directive Implementation laws and regulations: establishment of nature conservation areas Seite 7
8 Financing Forest Ecosystem Services in Germany II Habitat Directive continued payments: 3.9 million /yr. recently on 2.7 million ha, i. e. 1.4 /ha/yr. range of individual payment schemes: /ha/yr. objects of funding: area based lump sum or individual measures Further forest funding (under the Joint Task on Agricultural Structures and Coastal Protection), top three positions 23 million /yr. for forest restructuring (planting/fostering broadleaved trees) 8.3 million /yr. soil protective liming 7.9 million /yr. forest road construction and maintenance => funding of measures but no payments for specific FES Seite 8
9 Conclusion Valuation of FES on change level rather appropriate than on stock level Valuation of FES can help to find optimum forest management solutions (i. e. FES provision) Financing FES requires (re)allocation of property rights to forest owners In German forest policy both existing, payments and command and control Input based payments for generic measures prevailing in Germany Values proved to be significantly higher than payments Seite 9
10 Thank you for your attention! Contact Prof. Dr. Thünen Institute of International Forestry and Forest Economics Leuschnerstrasse 91 Tel D Hamburg Fax: Internet: Foto: Dr. Markus Dög Foto: Dr. Markus Dög Foto: Dr. Markus Dög Seite 10
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