Putting a Price Tag on Ecosystem Goods and Services, Ricky Nunez, Country Director, Conservation International Philippines

2. Natural
Capital and
Valuing
Ecosystems
Goods and
Services
Enrique “Ricky” Nunez
Country Executive Director
Conservation International
Philippines Foundation,
Inc.
February 2, 2017
Puerto Princesa, Palawan.

3. CI focuses on securing the
reservoirs of natural capital
that sustain humanity
“people need nature to thrive”

4. our goal:
lasting human
well-being
fresh water | food | climate resilience | livelihoods

5. Natural Capital and Natural
Capital Accounting
Natural capital is commonly defined as the extension of the
economic notion of capital to nature: the stocks of natural assets
(plants, animals, water, soils, minerals) that yield a flow of
renewable and non-renewable goods and services.
Natural capital accounting (NCA) refers to the measurement of
stocks of natural resources (both renewable and non-renewable)
and the flows of benefits they provide. NCA seeks to capture and
integrate the contribution of nature into the systems that the
public and private sectors use to make decisions.

6. CI’s Natural Capital Accounting
Strategy
Empowering businesses and
governments to integrate the value of
nature into their decisions

7. Valuing Ecosystems Services Overview
1. What is the relationship between people
and nature?
2. What do ecosystems services provide?
3. What are the threats and impacts facing
ecosystem services?
4. What are some approaches for
managing ecosystems?
5. CI’s ES initiatives and why value
ecosystems services?

8. How have you used
natural resources today?

9. What is the relationship between
people and nature?
 Direct relationship (easy to see):
 Natural resources come from inside of (or very close to) the community
and are gathered directly by community
 Fishing as food source
 fresh water for drinking
 forest materials for building
 local plants for medicine

10. What is the relationship between
people and nature?
 Indirect relationship (more difficult to see):
 Natural resources that people rely on come from outside of the
community and/or are not gathered by the community
 Fish imported from another area
 River water collected near the coast
that has been cleaned by forests
upstream

11. What is an ecosystem?
 An ecosystem is a group of plants and animals that live
together in a specific place that has a particular
environment that enables them to survive.
 The environment is the characteristics of the surrounding
area, for example soil, rocks and water.
 Ecosystems provide essential
services for people all over
the world.

12. What are ecosystem services?
Ecosystem services are the resources and
processes that nature provides which benefit
people and their livelihoods, or means of support
and subsistence.

13. Regulating
 climate regulation, disease
regulation, water purification,…
Cultural
 aesthetic, spiritual,
educational, recreational,…
Provisioning
 food, fresh water, wood and
fiber, fuels,…
Supporting
 e.g. photosynthesis, soil functions, nutrient cycle,…
Source: Millennium Ecosystem Assessment (2005)
The concept of ecosystem services:
services provided by ecosystems that benefit people

14. What are ecosystem services?
Services that:
 provide food, water, timber, and medicines for daily needs;
 support economic development, such as non-timber forest
products, logging, fisheries, tourism, and hydro-power;
 control climate, floods, disease, wastes, and water quality;
 support processes such as providing nutrients to soil and
aquatic systems and pollination; and
 cultural services that are a source
of beliefs, traditions, and
also enjoyment.

15. What are ecosystem services?
 Everyone benefits from ecosystem services whether
you live in a rural or urban community. Different
ecosystems provide different services.

16. What ecosystem services can the forest provide for this man?

17.  Forest Services:
 protect against erosion,
 maintain watersheds by absorbing and storing rainfall,
 provide habitat for insects and other wildlife that help to
pollinate plants,
 maintain cloud cover - creating a cooling effect and increasing
rainfall as well as supporting drinking water and crops, and
 provide alternative livelihood resources, building materials and
food supplies, and medicines.

18. Nature is Speaking…
Can you identify the services and what
values do they provide?
-Natureisspeaking.org.ph

20. Silonay Mangrove Conservation Area
Calapan City in Oriental Mindoro

21. Silonay Mangrove Conservation Area
Calapan City in Oriental Mindoro

22.  Mangrove Services :
 help to protect shorelines from erosion due to sea
level rise and storms,
 provide fish habitat,
 protect against flooding, and
 help keep saltwater out of fresh groundwater
systems.

23.  Coral Reef Services :
 protect against flooding and erosion from storm surge in
many regions,
 Maintain and provide important fishery habitat,
 Provide fish and marine species breeding grounds.
 Provide source of tourism income

24. There are more ecosystems and
many more services that they
provide.

25. What threats and impacts ecosystem
services face?
Natural Threats and Impacts?
Human Impacts?

27. What impacts are ecosystem services
facing?
 Natural Impacts
 Earthquakes
 Volcanic eruptions
 Tsunamis
 Storms
• Human Impacts
– Pollution
– Over-fishing and over-hunting
– Unsustainable development
– Climate Change

28. What are some approaches and
tools for managing ecosystems?
The MPA and
Enforcement
Networks in the
VIP
--- Sulu-Sulawesi Seascape ---

29. What are some approaches and
tools for managing ecosystems?
Community Managed Forests

30. Ecosystems Services in
development planning

31. Why focus on IES in development planning?
 Explicit recognition of the contribution of ecosystems to
human well-being.
 Visible and understandable connection between nature
and different sectors; path to a more sustainable and
green economy.
 Helps us identify and understand different dependencies
and impacts of human activities on ecosystems.
 Identification of winners and losers.
 Identification of economic risks and opportunities.
01.02.2017

32. • An approach that systematically assess, value and integrate ecosystem
services in planning and decision making.
• It recognizes the links between nature and development. It considers the
environmental and economic trade-offs associated with development
measures and helps to systematically incorporate ecosystem service-
related opportunities and risks into the planning and implementation of
strategies.
• It is designed to support advisors, project staff and development planners
to integrate ecosystem services into the design and review of development plans,
sector-specific and spatial planning, environmental and climate assessments, as
well as into project development and proposal formulation.
Integrating Ecosystem Services into Development
Planning and Decision Making.

33. Do ecosystem services have
have values?
Why value?

34. • missing or imperfect markets (benefits are not marketed)
• market failures (e.g. non-excludable/externalities/asymmetric information)
• Inform/influence policy:
• making the economic case for investing in nature conservation
• modifying cost-benefit calculations and economic/growth indicators to account for biodiversity &
ecosystem services
• identifying opportunities to “capture” income and incentives for conservation
• identifying needs for more equitable benefit-sharing and cost-sharing with stakeholders
• calculating prices, charges and fees for PA utilisation & ecosystem services
• costing & charging environmental damage, penalties and fines
Why do valuation?

35. Defining the
scope
Screening &
prioritizing
Identifying
conditions &
trends
Appraising
institutional
& cultural
framework
Preparing
better
decision-
making
Implementing
change1
2
3
4
5
6
IES Six – Step Approach
Recognizing the
Value Demonstrating the
Value
Capturing the Value
Reduce negative
Impacts on ES
Reduce
Dependence on ES
Increase Provision of
ES

36. Total economic value
approach
Use value Non use value
Direct use
value
Goods and
services used
directly
Provision
Cultural,
recreation
Indirect use
value
Goods and
services used
indirectly
Regulation
services
Option
value
Potential use
by the next
generation
Bequest
value
Importance for
next generation
Existence
value
Related to the
existence of ES
Supporting
services
(habitat for
species)
Easier to value Harder to value

37. CI-P’s Ecosystems Services and ES
Valuation initiatives
 Mapping of Ecosystems Services as contribution to PA Masterplan development
 TEV of MMPL and Endowment Challenge Fund Capitalization
 Quirino Forest Carbon Project – completed validation and verification
 Cost Effectiveness of Coastal Protection Services in Silonay Mangrove Forest
Conservation and Ecotourism area – An EbA to CC intervention
 National Blue Carbon Technical and Policy Working Group

38. How valuable is the Mt. Mantalingahan Protected
Landscape
Presidential Proclamation 1815
23 June 2009
120,457 hectares
2013 Best Protected Area showcasing
Civil Society Partnership

39. Natural Capital of Mt. Mantalingahan
Forest cover: 79%
11 forest types
Plants: 920 species
Mammals: 35 species
Birds: 129 species
Reptiles: 30 species
Amphibians: 14 species
Globally threatened: 23 species
New Discoveries: at least 11 species
(both flora & fauna)
Saccolaimus saccolaimus
Pin-tailed parrot finch
Erythrura prasina
Coelogyne
Palawan soft-furred mountain rat
Palawanomys furvus
© CI Phils
© CI Phils© CI Phils
Medinilla sp.
© CI Phils
© CI Phils

40. Total Economic Value: US$ 5.6 B
1. Direct Uses
 Water, Timber
 Occupants’ land-based livelihood,
 Occupants’ river-based livelihood, Ecotourism
2. Indirect Uses
 Carbon stock, Soil conservation, Soil fertility
maintenance, Watershed and biodiversity
functions
 Protection of coastal & marine ecosystems
 Ecosystem services of tropical forests
 Recreation
Natural Capital of Mt. Mantalingahan?

41. MMPL Management
MMPL is managed by a Protected Area Management Board
(PAMB)
• composed of 71 members
• affirmed by the DENR Secretary
• guided by an adopted operations manual

42. MMPL Management Programs
(2010-2020)
 Resource Management and Protection
 Community Development and Outreach
 Tourism and Recreation
 Institutional Development, Administration and Fiscal
Management

43. at least US$ 3M
(assuming net 5% per annum interest,
to cover the minimum annual management expenses)
Target Endowment Capital
is the first protected area in the
country with an endowment fund

44. US$ 1M challenge capital fund
Disbursed October 30, 2016
CI’s Commitment
to MMPL endowment

45. Launch of the Conservation Trust Fund for
Mt. Mantalingahan Protected Landscape (MMPL)
Palawan, Philippines
CI disbursed a grant of US$1 Million to PTFCF (endowment
manager) as initial capital for the MMPL Endowment, pursuant to a
grant agreement entered into in January 2016. The endowment
fund will be launched on October 7, 2016 in Manila.
• PA proclaimed in June 2009
• 120,457 hectares
• habitat of more than 1000 species of
flora & fauna
• home to at least 12,000 indigenous
Palawan men & women
• total economic value is US$5.6B of
MMPL
• first Protected Area in the country
with an endowment fund

46. Benefits from MMPL Endowment
 sustainable financing for adequate and long term protection of
the ecosystem services of MMPL such as promoting sustainable
ecotourism
 livelihood diversification for at least 12,000 indigenous Palawan
men and women towards improving their well-being
 ensure clean freshwater to all residents of southern Palawan for
domestic and agricultural uses
 Ensure management effectiveness of MMPL.
 stop deforestation and contribute towards carbon
sequestration (approx 32MtC)

47. Cost Benefit Analysis of
Ecosystem Based Adaptation:
Philippines Case Study

48. EBA Cost Benefit Study
Why ?
 Need provide the local and national
government evidence based information to
include Ecosystem Based Adaptation (EBA) as
one of the government strategic approach to
Climate Change Adaptation.
 Encourage further investment on EBA
approaches

49. Least cost analysis: Results
Least cost of implementation and maintenance
at US$ 14,887.00
Protection of Existing Mangroves Building a seawall
Highest cost at US$ 264,474

50. Total Economic Value (TEV)
Mangroves contribute US$ 174, 000/year to the economy of the community

51. CONCLUSION
 Study indicate benefits that could be translated into economic terms.
 Non-market economic valuation methods can help to account for all of
the benefits of EbA.
 Important to include monetary values of co-benefits, especially with
regard to increased mitigation potential, among others
 Baseline data is essential to demonstrate achievement of indicators.
 Integrated tool (or set of tools) that addresses not only communities’
vulnerabilities but also those faced by local biodiversity and ecosystems.
 Integration of ecosystems services in development planning and business
decision making.
 Maintaining healthy ecosystems results in sustained provision of ecosystem
services that will assure human well-being is guaranteed.

52. healthy ecosystems
marine protected areas, species
conservation
ecosystems services
fisheries, carbon sequestration, coastal
protection
human well-being
food security, livelihood opportunities, tourism
revenue, protection from storms

54. Maraming Salamat!