Barriers & Opportunities to Payments for Ecosystem Services in England
India teeb launch pavan sukhdev
1. 10th February, 2010
Pusa Institute, New Delhi
India TEEB
Pavan Sukhdev
Study Leader – TEEB
& Special Adviser & Head - Green Economy Initiative
United Nations Environment Programme
2. TEEB‟s origins …
“Potsdam Initiative – Biological Diversity 2010”
……the economic significance of the global loss of
biological diversity….
TEEB Interim Report
CBD COP-9, Bonn, May 2008
TEEB Climate Issues Update
Strömstad September 2009.
TEEB Main Reports
Nov. 2009 – Oct. 2010
3. Main Assets Built by TEEB
TEEB Reports TEEB
& Databases Approach
Constant review Collaborative
and updates stewardship
TEEB TEEB
Community Brand
Vibrant & Evolving, dynamic,
expanding jointly owned
4. TEEB approach to “valuation”
1. Recognizing value: a feature of all human
societies and communities
2. Demonstrating value: in economic terms,
to support decision making
3. Capturing value: introduce mechanisms
that incorporate the values of ecosystems
into decision making
5. Applying TEEB Approach …
Norms,
Regulations
Regional Planning & Policies
Legislations
Recognizing Economic
value PA Evaluation Mechanisms
Certification
Demonstrating
value PES
Markets
Capturing
value
Ch.5 Ch.4 Ch.3 Ch.3
6. Examples : Integrating ecosystem services into
land use plans in Baoxing County, Sichuan, China
REGIONAL PLANNING
An ecosystem service mapping and
modeling tool (InVEST) used to plan
development zones that avoid areas of high
ecosystem service provision and
conservation importance
Developments were reconsidered by local
government officials during the making of
the next Baoxing County Land Use Master
Plan 2010 where mapping had highlighted
that activities were planned in areas of
several critical ecosystem services
7. Examples : Tubbataha Marine Park, Philippines
UNESCO World Heritage site, contains 396 species of corals & has higher
species diversity per square metre than the Great Barrier Reef
LEGISLATIONS
After1998 Bleaching –
Stakeholders meeting
“No-take” areas agreed, & later,
President passed the Tubbataha
Reefs Natural Park Act in 2010
( 10 mile buffer zone around the
no-take marine reserve) thus
increasing Park by 200%
10% annual increase in live
coral cover.
fish biomass is four-folds better
than the average healthy reef
8. Examples : Kampala Wetland
Services provided by the Nakivubo swamp include natural water purification
and treatment & supporting small-scale income activities of slum dwellers
PROTECTED AREA (Nakivubo designated a part
EVALUATION of the city’ s greenbelt zone)
Ecosystems services provided
by the swamp equal USD 1
million -1.75 million / year
If the swamp is converted then
additional investment into a
sewage treatment plant would
be required with running costs
of over USD 2 million / year
9. Examples : „Satoyama‟ Landscapes
75 - 100% reduction in pesticides, traditional winter flooding rice
farming adopted, & White Stork rice & other certified products sold
at a “premium” Konotori no Mai / Flying Oriental White Stork
PES
2003 - 2007: farmers paid 40,000 JYen per 1,000m2
of rice paddies .Currently granted 7,000 JYen per
1,000m2 by Toyo-oka City
CERTIFICATION
Rice sold at 23 % higher rate for reduced pesticide
use, and 54 % more for organic farming
White Stork habitat increased from 0.7 ha in 2003 to 212.3 ha
Extinct in 1971, now has over 40 breeding pairs
1 billion JPY annually in tourism, & municipal income raised by 1.4 %
10. A Key Finding :
Natural capital and poverty reduction
Indonesia India Brazil
21% 10%
16%
Ecosystem services as a
90%
% of classical GDP
79% 84%
Ecosystem services 99 million 352 million 20 million
dependency
47% 11%
25%
Ecosystem services as a 53%
% of “GDP of the Poor”
75%
89%
Ecosystem services
Source: Gundimeda and Sukhdev, D1 TEEB
19.04.2011 10
11. A Key Recommendation :
Measuring better to manage better
Natural resources are economic assets, whether or not they enter the
marketpace
Conventional measures of national economic performance (eg : GDP
Growth) fail to reflect these stocks and their benefits flows.
Rapidly upgrade the System of National Accounts (SNA) to include
changes in natural capital stocks and ecosystem service flows
(CBD Strategic Plan – Target 2 ... in [..])
URGENT : physical accounts for forest stocks / carbon storage
need to be in place (e.g. for orderly development of REDD+)
Ch.3 Ch.3,5
12. A Key Recommendation :
Financial Disclosure and “Net Positive Impact”
Corporate financial reporting standards & purchasing policies do not
generally require attention to environmental externalities
Disclose all major externalities in the annual reports and accounts
of business and other organizations
Reflect all environmental liabilities and changes in natural assets of
the Corporation in its statutory accounts
Principles of „No Net Loss‟ or „Net Positive Impact‟ (avoidance,
mitigation, restoration, compensation, etc) should be integrated
into normal business practice
Ch.3-5
13. Main Implementation Demands
• TEEB Capacity Building for Developing Countries
• “Country” and “Regional” TEEB Assessments
• Green National Accounts (WB, UNEP & Others)
• Estimating Business Sector Externalities (TEEB Foundation)
• Identifying & closing Ecology & Valuation Knowledge Gaps
• Communicating the Issue to Society at Large
14. India TEEB Deliverables & Timelines
Date (To Be Discussed at Stakeholder Meeting)
Deliverable Details
Nov 2012 Interim Report To include three State-level examples
with one District from each and two
communities in every District
Dec 2013 Final Reports Comprehensive India-wide examples
(estimated)
Dec 2013 Green Accounting India TEEB inputs to World Bank’s
(estimated) Inputs Wealth Accounting project
Dec 2015 TEEB Process Valuations Processes at State level,
(estimated) Implementation for Wealth Accounting and Green National
India Accounts at State and national level,
Eco-certification norms, Payments for
Ecosystem Services, etc, instituted
across states
15. India TEEB “Community” …
(This Includes You All Today)
Type of organization Number
Ministries 17 and more…
Educational institutes 16 and more…
Corporate sector 9 and more…
Civil society organisations 15 and more…
16. Ecosystems as assets for local development
1. 10 existing and 89 planned hydroelectric dams in Brazil need forested
watersheds for low sediment load (est. economic value of enhanced useful
life $ 600 million p.a.)
2. Silvo-pastoral management in Colombia.
The problem : Pasture degradation resulting in income loss,
further expansion of pasture area.
Focus on Ecosystem services : to tackle poor pasture practices,
soil erosion, increased water runoff, and biodiversity loss
Policy response : Silvo-pastoral management on 3,500 ha by
planting improved grasses, fodder, shrubs, trees. GEF funding for
biodiversity and carbon fixation (PES) to cover initial investment
costs.
(picture: CIPAV)
Results:
1. Enhanced local benefits: nutrient recycling, fruit, fodder, timber,
water flow regulation, protection against landslides.
2. After the project, farmers still keep the silvopastoral systems
Source: without the PES, due to its multiple benefits.
TEEBcase Silvopastoral Project
17. The opportunity: Maintaining, restoring or enhancing ecosystem
services
• To save municipal costs
– Quito’s drinking water comes cheaper from 2 national
parks
– Kampala’s wetlands effectively treat sewage
• To protect against natural hazards
– mangroves protect against typhoons in northern
Vietnam
• To boost the local economy
– it pays to protect sharks in the Maldives
• To help tackle poverty
– woodland restoration secures essential services to
agropastoralists in Tanzania
Source: all examples are TEEBcases (teeb.org)