No net loss in the EU Biodiversity Strategy to 2020

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No net loss in the EU Biodiversity Strategy to 2020 Laure Ledoux, Biodiversity Unit, DG Environment, European Commission 1 Ekologisk Kompensation, Stockholm,18-19 October 2011

Structure 1. EU and Interna+onal Policy Context 2. The development of the EU 2020 Biodiversity Strategy: ra+onale, targets, cross cueng issues 3. Target 2 and the no net loss ini+a+ve 4. Exis+ng experiences and lessons learnt 5. Recent developments and next steps 2

1 EU and International Policy context Council conclusions CBD COP 10 outcomes 3

EU Post-2010 policy framework Adoption of EU post-2010 biodiversity vision & headline target Adoption (15-26/03/10) Adoption of new global strategic plan 2011-2020 (vision, mission, 20 targets) CBD COP10 (29/10/10) Development and adoption of post-2010 EU biodiversity strategy Adoption (03/05/2011) 4

Council conclusions (26 March 2010): EU vision and Headline target Adoption of a long-term (2050) vision for biodiversity:. Biodiversity and the ecosystem services we get for free from nature are preserved, valued and, insofar as possible, restored for their intrinsic value, enabling them to support economic prosperity and human well-being, and averting any catastrophic changes linked to biodiversity loss Adoption of a mid-term (2020) headline target 5 Halting the loss of biodiversity and the degradation of ecosystem services in the EU by 2020, and restoring them in so far as feasible, while stepping up the EU contribution to averting global biodiversity loss

The international context: CBD COP-10 Strategic Plan for Biodiversity 2011 2020 2050 vision 2020 mission: Take effec+ve and urgent ac+on to halt the loss of biodiversity 20 Aichi Targets Target 5: By 2020, the rate of loss of all natural habitats, including forests, is at least halved and where feasible brought close to zero, and degradation and fragmentation is significantly reduced. Commitment to significantly increase resources from all sources, including through innovative financial instruments

2 Development of the EU biodiversity strategy Ra+onale: poli+cal, environmental, economic 6 Targets Cross cueng issues: financing involvement of the private sector 7

8

Structure of the Strategy 2050 Vision 2020 headline target 6 Targets: 1 Enhance implementation of nature legislation 2 Restore ecosystems est. Green Infrastructure 3 Sustainable Agriculture & Forestry 4 Sustainable Fisheries 5 Combat Alien Invasive Species 6 Contribute to averting global biodiversity loss ACTIONS

Financing biodiversity and ecosystem services Diversify and scale up sources of financing (public and private sectors) The Commission will promote the development of and use of innovative financing mechanisms, including market-based instruments. Payments for Ecosystem Services schemes should reward public and private goods from agricultural, forest and marine ecosystems. Incentives will be provided to attract private sector investment in green infrastructure and the potential of biodiversity offsets will be looked into as a way of achieving a no net loss approach. The Commission and the European Investment Bank are exploring the scope for using innovative financing instruments to support biodiversity challenges, including through Public Private Partnerships and the possible establishment of a biodiversity financing facility Next Multiannual Financial Framework: Mainstreaming of biodiversity in key EU instruments: CAP reform, Cohesion Policy, Fisheries Policy, External instruments Climate funding co-benefits Life+ projects to provide catalytic funding

3 Target 2 Overall objec+ve and ac+ons No net loss ini+a+ve 11

Target 2 12 By 2020, ecosystem services are maintained and enhanced through the establishment of Green Infrastructure and the restoration of at least 15% of degraded ecosystems. - Action 5: Improve knowledge about ecosystems and their services in the EU - Action 6: Establish priorities for restoration and promote the use of Green Infrastructure - Action 7: Ensure no net loss of biodiversity and ecosystem services - Methodology for assessing the impacts of EU funded projects, plans and programmes on biodiversity - Commission to propose by 2015 an initiative to ensure there is no net loss of ecosystems and their services (e.g. through compensation or offsetting schemes)

EC MS Being done or in the pipeline (EC) 5 Assistance Map & assess state of ecosystems & their services by 2014; assess economic value of ES; promote integration into accounting & reporting at EU & national level by 2020 EU level ecosystem services mapping, TEEB, economic valuation of ES 6a Assistance Strategic framework to prioritisation of ecosystem restoration at sub-national, national and EU level by 2014 6b Green Infrastructure Strategy by 2012 Workshops, working group, studies 7a Tools and methodology to biodiversity proof EU investments by 2014 cooperation Study call for tender; EIA review; EIA & SEA guidance; MFF 7b No net loss of ecosystems & ES by 2015

No net loss in impact assessment 3 options, not mutually exclusive; to be reviewed and further analysed: Clear decision-making framework, to ensure degradation is avoided wherever possible before compensation is envisaged. EIA/SEA possible strengthening (guidance on application based on biodiversity objectives; methodology for the assessment of the impact of biodiversity investments by 2014). Overall non-binding framework at EU level providing guidance and exchanges of best practices for MS who have adopted voluntary or mandatory biodiversity offset policies (eg guidance on scale at which no net loss should be measured; equivalency methodologies; time scale for compensation; prioritisation framework to ensure overall no net loss at EU level.) EU level legal framework for no net loss of ecosystems, making some of the above elements mandatory

4 Existing experiences Exis+ng ini+a+ves in EU MS Lesson learned from other experiences 15

Benefits for government and society 4- Existing schemes (BBOP) Europe: Germany banking UK, France, Sweden initial steps. US wetland and conservation banking Australia: Several states (NSW, Victoria, Northern Territories, Queensland, Western Australia) NZ Brazil s Forest Code; UNDP Habitat Banking in Latin America and Caribbean: A Feasibility Assessment. Africa: South Africa state and national level under development. Namibia: integration into SEA. Asia: Vietnam, Japan, Mongolia.

Benefits for government and society Some lessons learned (BBOP) Need for regulation to require offsetting Clear criteria and indicators Sound principles (mitigation hierarchy ) Keep rules simple whilst allowing flexibility Need for guidance and examples Legal certainty around property rights of credits Need for biodiversity data and mapping as basis for implementation Adequate monitoring and compliance are critical Adaptive learning recommended

5 Recent developments and next steps June council conclusions The roadmap to a resource efficient Europe Next steps and the Common Implementa+on Framework 18

5 Recent developments: June Council conclusions 19 STRESSES the importance of further work to operationalise the 'no net loss' objective of the Strategy for areas and species not covered by existing EU nature legislation and of ensuring no further loss or degradation of ecosystems and their services Preliminary definition: conservation losses in one geographically or otherwise defined area are balanced by a gain elsewhere provided that this principle does not entail any impairment of existing biodiversity as protected by EU nature legislation.

Recent developments: Roadmap to a Resource Efficient Europe Specific section on natural capital and ecosystem services Promote the use of innovative financial and marketbased instruments and explore their wider potential, including a possible establishment of a biodiversity financing facility and PES [ ] Put forward proposals to foster investments in natural capital, to seize the full growth and innovation potential of GI and the restoration economy through a Communication on GI (2012) and a No net loss initiative (2015)

Next steps December Council conclusions Common Implementa+on Framework Ecosystem mapping and assessment: first mee+ng on 22/9, working group as part as CIF and steering commiaee. Green Infrastructure working group No net loss working group; First inter service mee+ng on 24/10 Past DG ENV studies and forthcoming call for tenders: Habitat banking; IFM to enhance private sector financing of biodiversity; op+ons for no net loss in the EU; implemen+ng the restora+on of 15% of degraded areas target Financing issues

Common Implementa+on Framework Commission, Member States, Stakeholder groups WG 1 WG 2 WG 3 WG 4 WG 5 Integrated framework for monitoring, assessment and repor+ng Key dates Early 2014: Mid term review EU strategy + HD Art 17 Report March 2014 5 th nahonal Report to CBD 2014 2015 Fourth Global Biodiversity Outlook + contribuhon to MDG

Thank you for your arenhon 23 Biodiversity homepage: hap://ec.europa.eu/environment/nature/ biodiversity/policy/index_en.htm Environment and economics webpage: hap://ec.europa.eu/environment/enveco/ index.htm For more informahon, contact: Laure.Ledoux@ec.europa.eu

EC study: use of IFM to enhance private sector finance of biodiversity Time frame: Jan-June 2011 Analyse conditions, opportunities and limitations for private sector biodiversity finance: Types of biodiversity projects with a bankable potential; Scoping study on current and potential future demand for projects by private sector Potential contribution of the EC, EIB and other institutions for contributing towards the promotion of bankable biodiversity projects and their funding through specific IFM. Provide advice on future policy options, both EU and international when possible Investment Options to be analysed: Nature conservation within the EU (Natura 2000 network) Supporting businesses with activities related to sustainable biodiversity use Sharing financial risks with business/financial institutions investing in activities related to sustainable biodiversity use Supporting carbon storage actions (REDD+ and possible credits) Supporting the setting up of MBIs, e.g. PES, biodiversity offsetting/mitigation banking Green infrastructure projects 24

Output of 22/09 workshop 4 work streams: - biophysical baseline mapping/assessment of the state of major ecosystems - Biophysical baseline mapping and assessment of defined ecosystem services Alignment of ecosystem service assessments with scenarios of future changes Valuation of ecosystem services for baseline contrasting scenarios and integration into environmental and economic accounting Consensus for launching a common process towards the biophysical mapping and assessment of the state of ecosystems and their services in Europe ; Economic issues to be explored further. Develop a common approach where existing data and information streams for major ecosystems - terrestrial, freshwater, marine and atmosphere - would converge towards the production of an ecosystem assessment at EU level. Operational work plan with clear milestones to be agreed by the MS

Assessing the role of economic instruments in a policy mix for biodiversity conservation and ecosystem services provision Key aims Evaluating roles of economic instruments in a policy mix cost-effectiveness of existing and proposed instruments missing, redundant, synergistic or conflicting instrument roles, comparing across case studies Transferability of policy lessons between Latin America and Europe Timeline 2010-2011: Review of economic instruments and framework development 2011-2013: 7 case studies at national and regional/local levels (contributing to TEEB follow-up) 2013-2014: Comparative analysis, synthesis, policy recommendations and dissemination 26 http://policymix.nina.no