Ecosystem Values Assessment & Accounting (EVA)

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1 Ecosystem Values Assessment & Accounting (EVA) Issues and Consideration for PTEC Daniel Juhn, Rosimeiry Portela Hedley Grantham, Sara Litke May 14 th, 2013 Washington, DC

2 Outline Intro to EVA Observations Objectives, components, analytical framework, timeline Site selection Scope, policy targets and scale of implementation Policies, ES and site: A matrix for implementation Biophysical and Economic Valuation in the context of chosen analytical framework Issues for consideration

3 Some observations as we developed EVA Addressing some of (our own) confusion how methods, terminology, different initiatives and tools fit together Clarify areas of overlap and specify effective or appropriate methods for implementation Refining an analytical framework that clarifies how the various tools described in TEEB relate to each other and where other major initiatives like WAVES correspond.

4 Ecosystem Values Assessment & Accounting (EVA) EVA is a pilot initiative to design and field test a replicable and scalable framework for incorporating nature s value into decisionmaking and informing more sustainable policies and practices. Funded by the Moore Foundation. Implemented by the Moore Center for Science and Oceans, and CI Peru

5 Ecosystem Values Assessment & Accounting (EVA) Framework is broad to accommodate the range of analyses, tools, and approaches Demonstrate how structured implementation at the national, or subnational, scale can change policies or major economic decisions to account for nature s contribution to well-being At end of project: synthesizing the refined framework as well as key tools and approaches to facilitate scale-up and replication.

6 Components of EVA 0. Scoping 1. Information on the state and expected changes of relevant ecosystems, on biophysical and economic values of stocks and flows of ecosystem services, as well as on trends and thresholds in their provision. 2. Translate these values into information that can be used to inform policy and decisions, such as natural capital accounting. 3. Identify key opportunities for supporting policies that incorporate this ecosystem services information into more effective decision making and management for both the public and private sector.

7 0. SCOPING A Proposed framework for EVA in practice 1. Foundation: Information on state and potential loss of ecosystems and ecosystem services 2. Means/models/methods for incorporating the value of natural capital into decision making 3. Policies that change incentives for sound management of ecosystems and ecosystem services State of ecosystems/threats/drivers of change, including: Land characterization State of biodiversity Drivers of change Field-based assessments: Biodiversity and ecosystem services Climate change risks Ecosystem services, including Biophysical estimates Economic valuation (monetary and nonmonetary) Qualitative description Maps of sources, flows and sinks Trends in ES delivery Relationships between ecosystem loss and ES delivery Critical loss of key ES Thresholds Development/Investment Decisions Major development project/investment(s) Ecosystem impacts, dependencies on ES Cost-benefit analysis, cost effectiveness Green development scenarios Opportunities to Green Sectors Selected economic sector or subsector ES dependencies and impacts Opportunities for greener markets Value chains and trade-off analyses Spatial planning Policies, development and conservation plans to be informed by spatial planning Suitability analysis and spatial priorities Scenarios for the landscape and potential benefits, costs Tradeoff analysis Natural Capital Accounting/WAVES Key policy/planning issues/questions to be informed by NCA Physical flows and economic values of selected accounts Experimental system design for implementation of key accounts Analytical support to the design of policy changes Regulation Tax/subsidy Market creation Payment for Ecosystem Services Property rights Information requirements Analytical support for business practices change Management of ES dependencies Better practices in supply chain Management of impacts on ES Participation in national development plans Offsets Macroeconomic Analysis Scope of existing macro-economic models ES variables and relevant sectors/risk factors Comparing development scenarios

8 Timeline Site Selection Develop Analytical Framework Scoping Implementation Review

9 Site Selection: Why Peru? Pass 1: (Essential Criteria) A. Known decision-making processes or existing policy or planning frameworks B. State of critical natural capital C. State of human well-being Pass 2: (Highly Desirable Criteria) D. Country is a CI geographic priority and/or an existing CI program with well-established relationships with stakeholders in public and private sectors, and civil society, and (available staff and resources to actively collaborate with project activities) E. Existing datasets F: Stable government, good governance, strong high-level advocate and/or other enabling conditions for implementation Pass 3: (Additional Factors) G: Cost-effectiveness H. Existing project country of related initiatives (TEEB, WAVES, etc) I. Relevance to other stakeholder/donor priorities, potential for new partnerships with credible agencies

10 Scoping Background Information: State of NR and economic dependency Ecosystems and Natural Resources Background/State and Trends Review of National Planning Framework and Development Objectives Policy and Decision-Making Priorities Potential areas for project assessment/intervention Scale/Site for Implementation Development of a matrix for determination of policy, site and ecosystem services

11 Policy Targets How can EVA support the incorporation of natural resources information into policy and decisionmaking processes and planning to support more sustainable use and management of natural resources and contribute to economic development in Peru? 1. Agenda Ambiental 2. Aichi Targets 3. Decentralization, etc Resulting in initial expression of interest in Forest and Water

12 Scale for Implementation Given priority policies, at which scale should EVA be implemented and what ecosystem services should EVA focus? Subnational demonstration with possible national level analysis. Possible tie with other project at site level scale providing us with a continuum of site, landscape, regional, national Development of a matrix for determination of policy, site and ecosystem services

13 A Matrix of Policies, ES and Site Selection For a given policy identify priorities: Amount of progress so far toward achieving the result Policy tools currently being used to achieve this result Ministries are involved or will be affected Regional / local governments involved or to be affected Probability of achieving by target date Identify whether/how EVA help achieve this objective/result: Peru's strengths to help achieve this result (without EVA) Gaps in Peru's capabilities that EVA could fill to achieve this objective / result? Amount / type / quality of existing data? Type / quality of info EVA could provide to inform this objective

14 A Matrix of Policies, ES and Site Selection For a given region identify: Studies conducted in the region Priority for the region/ commitment from the regional and local government Ecosystem services identified and assessed in the region compatibility with accounting or other proposed analytical assessments Data availability Expected impacts (social, economic and environmental aspects).

15 Biophysical and Economic Valuation in the context of chosen analytical framework Approaches to support use of data in identified in the context of needs and proposed uses (NCA, CBA, Value Chain, etc) Modeling approaches: Under consideration: ARIES, OSIRIS, IDRISI, NatCap s, etc. Other Geospatial Models? Economic Valuation: Under consideration: Market prices, rent, replacement cost, others? Aggregation methods and scaling up for both biophysical and economic measures

16 Issues for Consideration Matrix design and implementation: What critical issues to consider? Modeling approaches: What are the pros and cons of different tools? What are synergies? Economic valuation approaches: What are the appropriate methods, how to avoid common pitfals (eg. consumer surplus), and address distributional issues? Aggregation and scaling up: Which protocols could be developed/tested to reduce inaccuracies based on partial analysis? Integration into account: How far do we go? What additional data will be required?

17 Thank you