the costs of pricing nature: the implications of payment for ecosystem services in europe

The costs of pricing nature: The implications of payment for

ecosystem services in Europe

Bethany Squire & Alexandra BosbeerQuaker Council for European Affairs

Outline

1. Problem: Trends in ecosystem change in Europe

2. One solution: Overview of EU initiatives in payment for ecosystem services (PES)

3. Does it work? Main concerns4. What to do? Other solutions

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Source: European Environment Agency

2000 - 2006

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Degraded ecosystem services

Service

Agro-ecosystems

Forest

Grass-land

Heath/scrub

Wetlands

Lakes and rivers

Crops/timber mixedLivestockWild foods degradedWaterGeneticPollinationClimate regulationPest regulationErosion regulationWater regulation

enhanced

RecreationAesthetic

Status 1990-2010, based on EEA 2010 (Rubicode)

Alien species increasingSource: European Environment Agency

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EU initiatives: Soils and water

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Biodiversity Targets

2010 : halt the loss of biodiversity2020 : halt the loss of biodiversityTarget 2: Maintain and restore ecosystems and their services:

Member States to map and assess state of ecosystems and services by 2014, assess the economic value of such services, &, by 2020, promote integration of these values into accounting at EU & national levels.

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Weaknesses

• Provisioning services easiest to value– Integration: CAP and CFP

• Market is not amenable to reflecting complexities

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Case study: Emissions Trading Scheme (ETS)

• Left to market – demand assumed• 2005 = €40 2013= €4• Managing emissions credits = fast-growing sector

of financial services• Halting emission of CO2 => secondary objective

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Problems & opportunities

• Market ≠ public interest• ‘Business as usual’• Exacerbating scarcity to maximize profits• Behavioural economics• Social justice issues– Exporting land demand–Human well-being

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Potential solutions

• Raising awareness of values vs valuing – Public decision-making

• Wider picture– Non-provisioning services– ‘Mainstreaming’– Combination of methods: regulation and pricing

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Questions or more information:

You are ‘civil society’!

abosbeer@qcea.orgQuaker Council for European AffairsSquare Ambiorix 50, 1000 Brusselswww.qcea.orgSign up with us for action alerts to respond to EU consultations.Quaker Council for European Affairs office@qcea.org