Economics of Ecosystem Services in DEPI, UNEP

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1 Wealth Accounting and Valuation of Ecosystem Services (WAVES) Partnership Meeting The World Bank, Washington DC March, 2011 Economics of Ecosystem Services in DEPI, UNEP Pushpam Kumar, Ph. D. Chief, Ecosystem Services Economics Unit United Nations Environment Programme (UNEP)

2 Specific Programmes 1. Ecosystems and Valuation Valuation for Forest Functioning - Resilience Ecosystem Services - (PASEF). Expanding Structure access to Environmental Finance in Senegal (MDG Fund) Core ecosystem processes e.g. water cycling e.g. water for households, industry and irrigation insurance value Mainstreaming multilateral environmental agreements Ecosystem into poverty functions reduction in Lao PDR and e.g. water Southern provisioning, Sudan purification, (UNDA 6 th regulation tranche) Guidance Ecosystem Manual service for benefits the Valuation of Regulating Services output value economic value of the ecosystem Insurance and output value as part of the economic value of the ecosystem

3 Ecosystem services Biodiversity 2. Ecosystem Science Millennium Ecosystem Assessment Follow-up Initiative (MA Follow-up): Linear Driver 1 Nonlinear Driver 2 Sub-global assessments (SGAs) in Thailand and Guatemala Biodiversity Environmental change MA Follow up Capacity development for effective use of ecosystem assessment in developing countries (European Commission) Service 1 Service 2 Non-linearity causes compounding uncertainly in ecosystem service provision when environmental changes drive biodiversity loss

4 3. Trade offs Capacity-building in national planning to address trade C off between food security and ES in Cuba and Punjab State (India). (UNDA 7 th tranche) Regulating ecosystem services B provisioning services can increase to quite high levels before regulating services decline with increases in provisioning services regulating services linearly decrease Project for Ecosystem Services (ProEcoServ) in Trinidad and Tobago, Chile, Vietnam, South Africa and Lesotho (GEF) A increase in provisioning services produces a rapid loss of regulating services Provisioning ecosystem services

5 UNDA 7th tranche in Cuba Flagship projects MDG-F project in Senegal UNDA 6th tranche project in Lao PDR ProEcoServ in Trinidad and Tobago UNDA 6th tranche project in Southern Sudan Guatemala SGA in Thailand ProEcoServ in Chile UNDA 7th tranche in Punjab, India ProEcoServ in Vietnam ProEcoServ in Lesotho and South Africa

6 Ecosystems and Valuation: 1. Development of Ecotaxation Scheme. Valuation for forest ecosystem services (PASEF) Senegal

7 Partners: Centre De Suivi Ecologique CSE Direction de l Environnement et des Etablissements Classés DEEC Agence Nationale de la Statistique et de la Démographie ANSD Outputs: Assessment of conditions and trends, drivers of changes, of forest ecosystem services; The economic valuation of forest ecosystem services; The development of an eco-taxation scheme for forest ecosystem services; The development green accounts for forestry sector for Senegal

8 Ecosystems and Valuation: 2. Mainstreaming multilateral environmental agreements into national poverty reduction strategies Lao PDR Southern Sudan

9 Partners: Outputs: Centre for Environmental Economics and Policy in Africa - CEEPA, Pretoria Natural Economic Research Institute (NERI) - Ministry of Planning and Investment (MPI) Lao PDR 30th May th June 2011 Southern Sudan national workshop An overall framework for a case study in Southern Sudan as a policy paper on linking ecosystem services and poverty alleviation Research in Lao PDR: Ecosystem services valuation and policy-making with a focus on poverty reduction and ecosystem degradation. September 2011 Kenya final workshop to share experience and lessons learned

10 Ecosystem Science: 3. Millennium Ecosystem Assessment Follow-up: SGA Thailand Guatemala

11 Guatemala SGA (PEI) Thailand SGA (PEI) Partners: FLACSO Outputs: 1. Implementation Phase launched and Implementation and execution arrangements in place. 2. Mid-term report for the implementation phase produced. Partners: - Centre of Human Well-being of Khon Kaen University (KKU) - Thailand Environment Institute (TEI) Outputs: SGA in 3 pilot provinces 1- Design of the assessment, conceptual framework, scope and scale, sources of information, stakeholders and users 2- Trends and conditions in ecosystem services and human well-being in the pilot sites 3- Scenario development and policy options and responses

12 Trade-Offs: 4. Project for Ecosystem Services (ProEcoServ) Trinidad and Tobago Chile Vietnam Lesotho and South Africa

13 Partners: Outputs: University of West Indies (UWI), Trinidad and Tobago Council for Scientific and Industrial Research (CSIR), South Africa and Lesotho Institute of Strategy and Policy on Natural Resources and Environment (ISPONRE), Vietnam Centre for Advanced Studies in Arid Zones (CEAZA), Chile Inception Workshop 6-8 June 2011 Nairobi provided by the Natural Capital Project (NCP) team, to focus on InVEST. [Focus on Mainstreaming through Accounting and Valuation] Partners to attend Workshop: World Bank (WB) European Environment Agency (EEA) Ecosystem Services and Poverty Alleviation (ESPA) World Resource Institute (WRI) International Human Dimensions Programme (IHDP)

14 Global Project on Wealth Accounting: 5. Inclusive Wealth Report Partners: IHDP ASU Cambridge Outputs: A zero order draft technical document describing the methodology for computing inclusive wealth of nations and the various components A zero order draft technical document that focuses on the inclusion of ecosystem services within the wealth accounting framework A prototype database for the economic and social values developed and made available to stakeholders

15 Thank you all