Why Do We Need Market Based Instruments to Conserve and Manage Alberta s Riparian Lands?
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1 Why Do We Need Market Based Instruments to Conserve and Manage Alberta s Riparian Lands? Judy Stewart, LL.M. Bow River Basin Council Workshop March 23, 2012
2 Outline What are riparian lands? Conserving riparian lands in the public interest BRBC riparian land outcomes and objectives What are market based instruments? Why do we need market based instruments?
3 What are riparian lands? Riparian Lands - A Draft Definition Riparian lands are transitional areas between upland[1] and aquatic ecosystems. They have variable width and extent both above and below ground. These lands are influenced by and/or exert an influence on associated water bodies[2], which includes alluvial aquifers[3] and floodplains[4], when present. Riparian lands usually have soil, biological, and other physical characteristics that reflect the influence of water and/or hydrological processes.
4 Explanatory Notes [1] For the purpose of this definition, upland is considered to be the land that is at a higher elevation than the alluvial plain or stream terrace or similar areas next to still waterbodies, which are considered to be lowlands. [2] A water body is any location where water flows or is present, whether or not the flow or the presence of water is continuous, intermittent or occurs only during a flood, and includes but is not limited to wetlands and aquifers (generally excludes irrigation works). Source: Water Act.
5 Explanatory Notes [3] For the purpose of this definition, alluvial aquifers are defined as groundwater under the direct influence of surface water (GUDI). [4] For the purpose of this definition, floodplain is synonymous with flood risk area. The flood risk area is the area that would be affected by a 100-year flood. This event has a one percent chance of being equaled or exceeded in any year.
6 Keys to understanding riparian lands Transition zones between aquatic and upland ecosystems Variable width and extent both above and below ground Influenced by and influence water or hydrological processes
7 The Extent and Width of Riparian Lands Diagram taken from Riparian Zones, online: USDA Natural Resources Conservation Service, <
8 Where are riparian lands? Public and private lands Near or adjacent to watercourses, water bodies, springs and seeps Alluvial aquifers Floodplains
9 Core functions of riparian lands water quality protection, water storage, flood conveyance, bank stability, biodiversity, habitat and food, soil health, nutrient storage
10 Riparian Zones Three management zones identified Adjacent Biodiversity Maintenance None of these zones are buffers to anything else-they perform distinct valuable ecological functions.
11 Three zones streamside Fisher and Fischenich, 2000
12 Conserving and Managing Riparian Lands in the Overall Greater Public Interest Municipal authority Part 17 of Municipal Government Act Section 60 Section 7 Provincial authority Water Act Environmental Protection and Enhancement Act Public Lands Act Alberta Land Stewardship Act Federal authority Fisheries Act
13 Bow River Basin Council 4 Riparian Land Outcomes 1. Existing riparian land including associated upland areas are kept intact or restored, ecologically functional, appreciated and valued. 2. Core ecological functions of healthy riparian lands are maintained (e.g. water quality protection, water storage and flood conveyance, bank stability, biodiversity, soil health, etc.).
14 Bow River Basin Council 4 Riparian Land Outcomes 3. Invasive plant species are reduced, especially in riparian lands adjacent to watercourses and water bodies. 4. Enhanced knowledge and understanding of - the importance of the composition, structure and health of the upland area to the health of riparian lands; and - the functions provided by riparian land and how to conserve and manage for those functions.
15 Bow River Basin Council Plan Measurable Objectives No net loss of area of functioning riparian lands. Restoration of degraded riparian lands to functioning riparian lands. The percentage of Bow Basin Municipalities with riparian conservation, restoration and management guidelines, policies and/or bylaws based on no further loss of riparian lands.
16 What are Market Based Instruments? Instruments of environmental policies in which a change in technology, behaviour or products is encouraged through financial incentives, such as Subsidies Taxes Price differentiation Market creation Source: Environmental Programme for the Danube River Basin Glossary
17 Market Based Instruments are Public Goods So-called MB instruments are public goods Government or agency created systems in which market operates. Who pays, who benefits? Who benefits, who pays?
18 Market Based Instruments in Alberta Land Stewardship Act Market-based instruments 23 The Lieutenant Governor in Council may (a) support or advance research and development into the creation, application and implementation of instruments, including market-based instruments, to support, enhance and implement the purposes of this Act and objectives and policies in or proposed for a regional plan;
19 Section 23 continued (b) establish, support or encourage pilot projects to investigate or test instruments, including market-based instruments, to advance or implement the purposes of this Act and objectives and policies in or proposed for a regional plan.
20 ALSA Market Based Instruments Not defined Section 25- Instruments 25 The Lieutenant Governor in Council is responsible for establishing, supporting or facilitating funding and cost-sharing initiatives, mechanisms and instruments to support or enhance any one or more of the following:
21 Instruments (c) instruments, including market-based instruments, designed or intended to support, encourage or enhance all or any of the following: (i) the protection, conservation and enhancement of the environment; (ii) the protection, conservation and enhancement of natural scenic or aesthetic values; (iii) the protection, conservation and enhancement of agricultural land or land for agricultural purposes.
22 New Instruments and schemes in ALSA are public goods Division 4: The Exchange Stewardship Units- not interests in land Conservation off-set schemes Counterbalancing an activity Division 5: Transfer of development credit schemes
23 ALSA activity Anything that requires a statutory consent, and Anything that, under an enactment must comply with a rule, code of practice, guideline, directive or instrument
24 Why Do We Need Market Based Instruments? Instruments are tools that: * reflect human intent * encourage * prohibit and restrict * enable and authorize * impede * penalize
25 Market Based Instruments perpetuate myths Public good does not exist Everything is for sale All benefits are monetary Competition is only way People don t know right from wrong People are not stewards People are irresponsible People have no regard for neighbours People don t care about the future
26 Tools in the Current Riparian Land Toolbox Policies Laws Regulations Codes Guidelines Best Management Practices Technology Watershed management by agreement Voluntary Stewardship Activities Education MBIs-incentives, tax advantages, subsidies
27 Maybe we don t need technocrats, experts and economists to manage our public affairs turn public policy development over to business corporations and the market levy taxes on things we want-we do levy taxes on polluters and wasters encourage free riders on public systems
28 Healthy riparian lands create healthy watersheds Functions provided by healthy riparian lands are currently free inputs to a number of economic endeavours. Who should pay to conserve and manage these valuable function inputs now and in the future? Who pays, who benefits? How do we ensure that everyone pays and everyone benefits?
29 Query these How does the market system align with ecological systems that evolve and change rapidly? What constraints could we put on the market with respect to riparian land ownership and stewardship? Can technology act as a substitute for riparian lands? Can money? Are MBI a means to conservation and managment, or an end in themselves?
30 Capitalism and Ecological Management David W. Orr in Nature by Design capitalism and ecological management are two fundamentally different value systems that aim at different things. Markets, driven by the logic of self-interest, are intended to maximize profits and minimize costs for owners of capital in the short term. Ecosystems, in contrast, operate by the laws of thermodynamics and processes of evolution and ecology that are played out over the long term.
31 Questions? Dedicated to those who think this is riparian land restoration 2008
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