conservation makes good economic sense: “eco …...conservation makes good economic sense:...

Conservation makes good economic sense: “eco-civilization” & biodiversity in the oceans

Laurence McCook, Ph.D.麦库克 劳伦斯, 博士

Head of Oceans Conservation,World Wide Fund for Nature Hong Kong

Pew Fellows

in Marine Conservation

Conservation makes good economic sense: “eco-civilization” & biodiversity in the oceans

Laurence McCook, Ph.D.麦库克 劳伦斯, 博士

“President’s Visiting Professorial Fellow” 国际访问学者 客座教授

Prof. Huang Hui, Dr Lian Jiansheng, Dr Lei Xinming,

黄晖 研究员 练健生 博士 雷新明 博士Chinese Academy of Science: Sth China Sea Institute of Oceanology,

中国科学院南海海洋研究所

Chen Zhu, Guangdong Fisheries & Oceans Admin./ Coral Reef Branch, China Pacific Soc.

Prof. Xue Guifang, KoGuan Law School, Shanghai Jiao Tong Univ.

Prof. Put Ang, Chinese University of Hong Kong

Pew Fellows

in Marine Conservation

Marine Natural Capital Accounting in China

• Who’s who

要高度重视海洋生态文明建设，加强海洋环境污染防治，保护海洋生物多样性，实现海洋资源有序开发利用，为子孙后代留下一片碧海蓝天。To give our future generation clear water and blue sky, we must place high priority to ocean eco-civilization development, strengthen the prevention of ocean environment pollution, protect ocean biodiversity and achieve sustainableexploitation of ocean resources.

President XI JinpingOpening remarks,Ocean Economy Conference, ShenZhen, Guangdong, 15 Oct 19

13th 5 Year Plan – “Ecocivilisation”

opportunity for international Leadership

十三五生态文明建设是中国成为世界领袖的机遇

Legal basis for transformative change in marine environmental management海洋环境管理转型的法律基础 -

emphasizes 强调 :

• environmental management环境治理

• marine protection 海洋保护

• improved water management节水管理

• poverty alleviation 扶贫

• Rule of Law 法制建设

13th 5 Year Plan – “Ecocivilisation”

opportunity for international Leadership

十三五生态文明建设是中国成为世界领袖的机遇

“Balancing” environment & economy

环境 / 经济方面

Human Benefits

人类的利益

Environmental Benefits

环境的效益

Growth or sustainability?

Impacts on human well-being:

“Balancing” environment & economy

环境 / 经济方面

Human Benefits

人类的利益

Environmental Benefits

环境的效益

Human Benefits人类的利益Ecosystem Goods & Services:生态服务

Food 食物Coastal Protection 堤防护岸

Tourism 旅游Waste disposal, … 清洁污染

“Balancing” environment & economy

环境 / 经济方面

Human Benefits

人类的利益

Environmental Benefits

环境的效益

Ecosystem Goods & Services:(Millenium Ecosystem Assessment)

Provisioning Services:Products extracted from

ecosystems

• Food: Fish, Seaweeds, etc;

Wild & mariculture

• Oxygen/Clean Air

• Chemicals, Medicines etc

• Genetic Resources

• Energy: wave, wind,

currents

• (Tourism)

Regulating Services:Non-extractive services from

ecosystems

• Coastal (storm) protection

• Climate regulation

• Carbon sequestration

• Waste removal / treatment

• Biological / disease control

Cultural Services:Derived from aesthetic

values:

• TOURISM

• Heritage

• Spiritual/ inspirational/ therapeutic

• Recreational

• Scientific

• Educational

Supporting Services:Services that support ecosystems to provide other services

• Habitat provision ・ Nutrient cycling ・ Primary production

esp. larval supply ・ Biodiversity maintenance

Completing the “Balance Sheet”e.g. over-fishing

Benefit Cost

Fisheries ¥6,590,000

Jobs 890

Biodiversity ❤️

Totals: BIG Lessimportant

Completing the “Balance Sheet”e.g. over-fishing

Benefit Cost

Fisheries ¥6,590,000

Jobs 890

Biodiversity ❤️

Totals: BIG Lessimportant

2 critical problems:

1. ❤️more important than ¥$ to benefit people(but harder to measure) (family)

→ Caution on the whole topic

2. Incomplete…

Completing the “Balance Sheet”e.g. over-fishing

Benefit Costs

Fisheries ¥6,590,000

Jobs 890

Biodiversity ❤️

Tourism

Coastal Protection

Carbon Capture & Heat Sink

Cultural: Heritage etc

Other Provisioning: therapeutic, etc

Other Regulating:

Other Supporting: Nutrient cycling…

Ecosystem Functions (≠ Services)

Totals Big ?

Completing the “Balance Sheet”e.g. over-fishing

Benefit Costs

Fisheries ¥6,590,000 ?

Jobs 890 54,000

Biodiversity ❤️

Tourism ?

Coastal Protection ?

Carbon Capture & Heat Sink ?

Cultural: Heritage etc ?

Other Provisioning: therapeutic, etc ?

Other Regulating: ?

Other Supporting: Nutrient cycling… ?

Ecosystem Functions (≠ Services) ?

Totals Big ?

¥28,000,000,000

Completing the “Balance Sheet”e.g. over-fishing

Benefit Cost

Fisheries ¥6,590,000

Jobs 890

Biodiversity ❤️

Totals: BIG Lessimportant

Completing the “Balance Sheet”e.g. over-fishing

Benefit Costs

Fisheries ¥6,590,000 0

Jobs 890 0

Biodiversity ❤️

Tourism 0

Coastal Protection 0

Carbon Capture & Heat Sink 0

Cultural: Heritage etc 0

Other Provisioning: therapeutic, etc 0

Other Regulating: 0

Other Supporting: Nutrient cycling… 0

Ecosystem Functions (≠ Services) 0

Totals Big Less

Benefit Costs

Fisheries ¥6,590,000 ?

Jobs 890 54,000

Biodiversity ❤️

Tourism ¥28,000,000

Coastal Protection ?Billions

Carbon Capture & Heat Sink >>0

Cultural: Heritage etc $ >>0

Other Provisioning: therapeutic, etc >>0

Other Regulating: >0

Other Supporting: Nutrient cycling… >>0

Ecosystem Functions (≠ Services) >0

Totals Not so big ~very BIG

Completing the “Balance Sheet”e.g. over-fishing

Environment & (good, complete) Economicse.g. Great Barrier Reef as Infrastructure

大堡礁遗产与基础设施

$0

$1

$2

$3

$4

$5

$6

Billion十亿Aust

2004 2012 2016

Income 收入

Current Investment目前的投资

incl. non-market values非货币的价值

“Infrastructure value”Investment“基础设施价值” 投资

• x 4 more investment

• Not business-like…

?Coastal storm protection?

v

v

1 m

v

1 m

Valuing Coastal Processes & Reef Loss

Guidelines for Valuing Coastal Protection Services from Mangroves and Reefs. M W. Beck & G-M Lange (eds)

Bu

ilt C

apit

al F

loo

ded

($

B)

Global Flood Protection Savings from Coral Reefs

Ecosystem Goods & Services & Natural Capital / Natural Resources

1. “Inclusion of non-extractive services substantially alters the outcomes of economic analysis” Armsworth & Roughgarden 01

2. “Total Value” ≠ $Financial value(much greater than) >> $Financial value (c.f. family)

Extractive:Natural Resources

e.g. fish

Marketable $$$¥¥¥

(Non-extractive)e.g. Coastal Protection

(Non-marketable)

e.g. Spiritual, Supporting- primary

production

Ecosystem Goods & Services / Natural Capital

Ecosystem Goods & Services & Natural Capital / Natural Resources

1 & 2. “Total Value” >> $Financial value >> Extractive value

3. “True” Value > or >> current known value

Extractive: e.g. • Fish• Tourism• ?Medicines• ?new?

Marketable $$$¥¥¥

(Non-extractive) e.g.•Coastal Protection•Larval fish habitat•?Unknowns?•?Unknowns?•?Unknowns?•?Unknowns?

(Non-marketable) e.g.

• Spiritual, beauty, heritage• Primary production•Nutrient cycling• ?Unknowns• ?Unknowns• ?Unknowns• ?Unknowns

Ecosystem Goods & Services / Natural Capital

Commons

Shared/public resources, held in common, not owned privately

• Use (extraction/harvest) of common/public resources for private benefit often uncosted & unpaid = subsidy

• Damage to, or loss of, common/public resources for private benefit often uncosted & unpaid = subsidy

Completing the Balance Sheetfor Common Resources

Private Benefit

PrivateCosts

PublicBenefit

Public Costs

Fisheries ¥6,590,000 ?

Jobs 890 54,000

Biodiversity ❤️

Tourism ¥28,000,000

Coastal Protection ?Billions

Carbon Capture & Heat Sink >>0

Cultural: Heritage etc $ >>0

Other Provisioning: therapeutic, etc >>0

Other Regulating: Carbon Capture, etc >0

Other Supporting: Nutrient cycling… >>0

Ecosystem Functions (≠ Services) >0

Totals Not so big ~very BIG

Private Benefit

PrivateCosts

PublicBenefit

Public Costs

Fisheries ¥6,590,000 ?

Jobs 890 54,000

Biodiversity ❤️

Tourism ¥28,000,000

Coastal Protection ?Billions

Carbon Capture & Heat Sink >>0

Cultural: Heritage etc $ >>0

Other Provisioning: therapeutic, etc >>0

Other Regulating: Carbon Capture, etc >0

Other Supporting: Nutrient cycling… >>0

Ecosystem Functions (≠ Services) >0

Totals Not so big ~very BIG

Reversing the “Economic Burden of Proof” for Common Resources

Private responsibility

Current governance, in effect, conflates public & private benefits & assumes:

• Public costs ≈ 0 unless shown otherwise

• Public should pay costs of assessing public costs

– Time & $¥

• Incentivizes environmental degradation & lack of accountability

Public responsibility

Reversing the “Economic Burden of Proof” for Common Resources

• Require full accounting for natural capital as part of economic assessments assessing:

– complete costs

– overall benefits to public

• A due diligence responsibility of developer/s

• Where costs are difficult to assess, require justification & demonstration of reasonable assessment.

• (If its not practical, not economically viable…)

Ocean Catastrophe & Pilot Ocean Accounts

Me 30 Now My children

30 yrs old

The solution: Innovations

The Problems & The Costs

Ocean Accounts -> Policy: Change Discussion of “Economics”

• Demand urgent uptake– We know enough to have a guess

– Best guess is much better than inaction/delay

• Demand more than GDP

• Demand accountability for comprehensive environmental accounts

• “We can’t afford not to act”: Preventing degradation is much cheaper than restoring.– Its also possible

• Ongoing Growth is not sustainable on a finite planet

• Time for economists to step up & call out bad or incomplete economics

Change the business models

• Business runs the world

• Time for business to step up &

• Time for Governments to pressure & reward that

• Environment is not optional, more important than profitability:

– c.f. historical changes in business

• Pay the full costs of “externalities”

✓? Resources (provisioning services)

✘ Pollution (waste removal)

✘ Losses of services

Let’s keep it great

''me like your work because it makes the sea grow better & not get killed as much. I wish could do that work when I grow up.“Alison McCook Mar 2004 Aged 4

WWF Principles for a Sustainable Blue Economy:

wwf.panda.org/our_work/oceans/publications/sustainable_blue_economy_reports.cfm

• Provides social & economic benefits for current & future generations

• Restores, protects & maintains the diversity, productivity, resilience, core functions & intrinsic value of marine ecosystems = Natural Capital

• Is based on clean technologies, renewable energy & circular material flows

• Governed by Public & Private processes that are:

– Inclusive;

– Well-informed, precautionary & adaptive

– Accountable & transparent