Download - Patrick ten Brink of IEEP TEEB Water and Wetlands introduction 15 june 2012

The Economics of Ecosystems and Biodiversity for Water and Wetlands

A contribution to Rio + 20

Patrick ten Brink TEEB for Policy Makers Co-ordinator

Head of Brussels Office

Institute for European Environmental Policy (IEEP)

TEEB for Water and Wetlands side event 13:30 to 15:00 Pavilion 3, Room 6

Rio de Janeiro, 15th June 2012

http://www.bafu.admin.ch/?lang=en

Presentation overview

1. TEEB & The TEEB for Water and Wetlands Project

2. Water and wetlands: what benefits do we derive and what do we risk losing?

3. Measuring to manage better

4. Integrating the values of water and wetlands into decision making

5. Working recommendations: Transforming our approach to water and wetlands

6. Next Steps & Panel questions

TEEB For Water and Wetlands

TEEB’s Genesis, Aims and progress

“Potsdam Initiative – Biological Diversity 2010”

1) The economic significance of the global loss of biological diversity

Importance of recognising, demonstrating & responding to values of nature

Engagement: ~500 authors, reviewers & cases from across the globe

Interim

Report

India, Brazil, Belgium,

Japan & South Africa

Sept. 2010

TEEB

Synthesis

Climate

Issues Update

Ecol./Env. Economics literature

G8+5

Potsdam

TEEB End User

Reports Brussels

2009, London 2010

CBD COP 9

Bonn 2008 Input to

UNFCCC 2009

BD COP 10

Nagoya, Oct 2010

TEEB

Books

TEEB W&W

Nature & GE

TEEB Oceans

TEEB studies

The Netherlands,

Germany, Nordics,

Norway, India, Brazil

http://www.teebweb.org/ForLocalandRegionalPolicy/tabid/1020/Default.aspx

http://www.routledge.com/books/details/9781849712514/

The “nexus” among water, food and energy has been recognised as one of the most fundamental relationships

and challenges for society.


Biodiversity and particularly wetland ecosystems are increasingly understood to be at the core of this nexus.

Critical issues

Indeed water and wetlands are the foundation of the economic and environmental wellbeing of humanity across the globe.

“I believe that the great part of miseries of mankind are brought upon them by false estimates they have made of

the value of things.”

Benjamin Franklin, 1706-1790


"We are living in a water “bubble” as unsustainable and fragile as that which precipitated the collapse in global financial markets", concluding that "We are now on the verge of water bankruptcy"

2009 World Economic Forum

The value of biodiversity and ecosystem services are not fully reflected in the

markets, in price signals, policies and investment decisions

Decision making (at company, policy & citizen level) still too often fails to take into

account the local to global benefits, contributing to a loss of biodiversity and

ecosystem services.

Critical issues – the need to appreciate the values of W&W

Assessing ecosystem service benefits (and links to biodiversity and

ecosystem functions) and identifying who benefits from what natural capital

is critical for policy focus, interest and instrument choice, design and

implementation.

There is a need to improve the economic signals to help take the values of

nature into account – in positive incentives and in reforming incentives

harmful to the environment – as well as regulatory and governance solutions.

This requires action at all governance levels + mainstreaming nature’s values.

There is a need to assess, demonstrate and communicate both the intrinsic value of nature and the wide range of benefits provided to people, society and the economy


TEEB Water and Wetlands project

• Aim to demonstrate the multiple benefits of water and wetlands

• Communicate the values - at Rio+20, Ramsar COP11 (Bucharest, July 2012), IUCN World Congress (Jeju, September 2012) and CBD COP11 (Hyderabad, October 2012)

• Engage wider community to share evidence on the multiple values of W&S

• Engage with decision makers - to understand what instruments can respond to the value of W&W

• Stimulate research and commitment to action

2. Wetlands & ecosystem services

Q: What are the key benefits of water and

wetlands? And which are easier or more difficult

to demonstrate?

• Water and wetland related ecosystem services (ESS) • Water services essential for wellbeing, society, economy • Wetlands essential for the water cycle

• Meeting sustainable water management objectives

cost effectively via Wetlands ecosystem services.

• Ecosystem services from Wetlands – multiple benefits

• Impacts of wetlands degradation on human well-being and biodiversity

• Despite their benefits, the loss of wetlands

continues

Q: What do you see as the main threats to water and

wetlands (including coastal areas)? Are there particular

ecosystems which are at greatest risks?

Evidence base - Assessing values and actions

Assessing the value of working with natural capital has helped determine where

ecosystems can provide goods and services at lower cost than by man-made

technological alternatives and where they can lead to significant savings

• USA-NY: Catskills-Delaware watershed for NY: PES/working with nature saves money (~5US$bn)

• New Zealand: Te Papanui Park - water supply to hydropower, Dunedin city, farmers (~$136m)

• Mexico: PSAH to forest owners, aquifer recharge, water quality, deforestation, poverty (~US$303m)

• France & Belgium: Priv. Sector: Vittel (Mineral water) PES & Rochefort (Beer) PES for water quality

• Venezuela: PA helps avoid potential replacement costs of hydro dams (~US$90-$134m over 30yr)

• Vietnam restoring/investing in Mangroves - cheaper than dyke maintenance (~US$: 1m to 7m/yr)

• South Africa: WfW public PES to address IAS, avoids costs and provides jobs (~20,000; 52%♀)

• Germany : peatland restoration: avoidance cost of CO2 ~ 8 to 12 €/t CO2 (0-4 alt. land use)

Sources: various. Mainly in TEEB for National and International Policy Makers, TEEB for local and regional policy and TEEB cases

Critical to assess where working with nature saves money for public (city, region,

national), private sector, communities and citizens & who can make it happen

3 Measuring to manage better

Q: Are you aware of any initiatives to improve the measurement of the contributions of

wetland ecosystems to society and the economy ?

Q: Are these initiatives being linked to NBSAP revision efforts?

• A diverse range of tools help identify, demonstrate and take account of the benefits of water and wetlands

• Bio-physical assessments • Measurement and indicators • Mapping the interrelationships

• Assessing the value of nature

• Plurality of tools • Mix of economic and non economic

• Natural capital and environmental-economic accounts (SEEA, WAVES et al)

• Need a culture of assessment and seeing the whole picture • Useful to have mix of qualitative, quantitative and monetary insights

Strategic Plan 2011-2020 Aichi Target 2: By 2020, at the latest, biodiversity values have been integrated into national and local development and poverty reduction strategies and planning processes and are being incorporated into national accounting, as appropriate, and reporting systems.


Shrimp Farm

private

profits

less

subsidies

Net of public

costs of

restoration

needed

after 5 years

private

profits

Mangroves

0

10000

US$

/ha/yr

private profits

5000

If public wealth is included, the “trade-off”

choice changes completely…..

$584/ha

$1220/ha

$9632/ha

$584/ha

-ve $11,172/ha

$12,392/ha

Source: Barbier et al, 2007

After

Adding

Public

Benefits

From

mangroves

Based only on private gain, the “trade-

off” choice favours conversion…..

Taking account of public goods

…can change what is the “right” decision on land/resource use

Fishery

nursery

Storm

protection

Important that investment / permit / subsidy choices take into account the whole picture of the benefits

Valuation of ESS from Kampala wetlands, Uganda Services provided by the Nakivubo swamp include natural water purification and

treatment & supporting small-scale income activities of poorer communities

Problem recognition: Plans to drain the Nakivubo Swamp (>40sqkm) for agriculture

→ Waste water treatment capacity of the swamp was assessed (Emerton 2004)

Assessment: Maintaining the wetlands: ~235.000$ p.a.

Running a sewage treatment facility of equivalent capacity: ~2Mio. US$ p.a.

Policy Solution: draining plans abandoned & Nakivubo Swamps designated as PA

Recognising and demonstrating the values again critical for decision making. Capacity support .

Sourc

es: T

EE

BC

ases for

TE

EB

for

local and r

egio

nal polic

y



Q: What instruments have worked, where, how

have they been launched and made to work, and

what benefits have they brought?

• Policy synergies: Working with nature can be a cost effective way of meeting a

range of policy, business and private objectives. • water security (see above) and food and energy security (ensuring water security

for agriculture and energy production), poverty alleviation and meeting sustainable development goals collectively.

• Integrated decision making : valuable tools to respond to the value of

nature • Spatial planning and regulation • Investment and management • Prices, subsidies and subsidy reform • Payment for ecosystem services (PES)

Target 3: By 2020, at the latest, incentives,

including subsidies, harmful to biodiversity are

eliminated, phased out or reformed in order to

minimize or avoid negative impacts, and

positive incentives for the conservation and

sustainable use of biodiversity are developed

and applied, consistent and in harmony with the

Convention and other relevant international

obligations, taking into account national socio-

economic conditions.


‘ ‘We never know the worth of water 'til the well is dry’.

English proverb

‘Men do not value a good deed unless it brings a reward’

Ovid, B.C. 43 – 18 A.D., Roman Poet


Solution: Mexico PSAH: PES to

forest owners to preserve forest:

manage & not convert forest

Result

Deforestation rate fell from 1.6 % to 0.6 %.

18.3 thousand hectares of avoided deforestation

Avoided GHG emissions ~ 3.2 million tCO2e

Hydrological services: Aquifer recharge;

Improved surface water quality, reduce

frequency & damage from flooding`

Munoz 2010); Muñoz-Piña et al. 2008; Muñoz-Piña et al. 2007.

Reduce Deforestation Address Poverty

Investment in good spatially relevant data critical to develop an evidence base for policy instruments

Multiple Objectives : PSAH Mexico

Balance of priorities varied over time

Munoz 2010); Muñoz-Piña et al. 2008

Aquifers

Water scarcity

Deforestation

Poverty

P

A

WS

D An instrument can evolve and respond to changing needs


Q: What can different stakeholders do to work with nature and people to

realise the benefits of water and wetlands?

There is a need to put water at the heart of the transition to a green economy and recognise the critical role of wetlands and water related ecosystems in the water cycle.

• Appreciating and taking account of the values of nature;

• Commitment to fully integrate management of wetlands and secure their wise use;

• Prioritisation for avoiding loss/conversion ;

• Restoration

• Ensuring equitable benefit sharing and social and economic efficiency .

There will be a need for action at all levels and across stakeholders if the opportunities of working with nature are to be realised and the risks of losses appreciated and acted upon.


The water-related investment challenge

• Total costs of replacing aging water supply and sanitation infrastructure in industrial countries alone: ~US$ 200 billion a year (WBCSD)


• Meeting the MDGs: Estimated investment requirements for water infrastructure to meet drinking water and sanitation objectives alone = up to US$ 22 trillion by 2030 (Davidson, 2010)

• “Natural infrastructure” maintenance and restoration can contribute to this - though where and to what extent depends on local circumstances.

What examples do you have of where working with nature offers cost-effective

solution and/or wider benefits to communities, society and the economy ?

Working for Water (WfW): SA

The Manalana wetland (near Bushbuckridge, Mpumalanga)

Restoration within wider PES scheme

• Severely degraded by erosion that threatened to consume the entire system

• WfW public works programme intervened in 2006 to reduce the erosion and

improve the wetland’s ability to continue providing its beneficial services

Results

• The value of livelihood benefits from degraded wetland was just 34 % of what could be

achieved after investment in ecosystem rehabilitation;

• Rehabilitated wetland now contributes provisioning services at a net return of 297

EUR/household/year;

• Livelihood benefits ~ 182,000 EUR by the rehabilitated wetland; x2 costs

• The Manalana wetland acts as a safety net for households.

Sources: Pollard et al. 2008; Wunder et al 2008a; http://www.dwaf.gov.za/wfw/

Recognising and demonstrating the values and potential for increased value critically important.

Sourc

es: T

EE

BC

ases for

TE

EB

for

local and r

egio

nal polic

y

http://www.dwaf.gov.za/wfw/

Next Steps The TEEB for W&W: from Rio, to Ramsar COP11 in Bucharest, and CBD COP11 in Hyderabad in October 2012. TEEB for Water and Wetlands initiative aims to reflect the different perspectives, practice and experiences from across countries and stakeholders on water and wetlands from around the world.

…always better to look at

the whole board

And engage the full set of

players

…is this enough to work out

what to do?

Call for Case Studies! Please do communicate case practices and insights as this will help reflect interesting practices

from around the globe in this work.

Comments on this briefing, answers to the questions and cases examples please send to Patrick

ten Brink ([email protected]) or Dr Daniela Russi ([email protected])

For further information on the initiative write to Dr Andrew Farmer ([email protected]).

Please add “Water and Wetlands” in the subject line in any communications


Panel questions & discussion

Q1: What are the key benefits of water and wetlands? And which are easier/more difficult to demonstrate?

Q2: What do you see as the main challenges for water and wetlands in the transition to the green economy? Barriers, gaps, opportunities and drivers.

Q3: Who can do what to work with nature and people to realise the benefits of water and wetlands? And what is the one thing you would do?


Thank you

TEEB Reports available on http://www.teebweb.org/

See also www.teeb4me.com

Patrick ten Brink

[email protected]

IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of

policies for a sustainable environment. www.ieep.eu

See also IEEP’s award winning Manual of European Environmental Policy

http://www.ieep.eu/the-manual/introduction/ http://www.europeanenvironmentalpolicy.eu/

http://www.teebweb.org/

mailto:[email protected]

http://www.ieep.eu/

http://www.ieep.eu/the-manual/introduction/




http://www.europeanenvironmentalpolicy.eu/

http://ec.europa.eu/

http://www.bafu.admin.ch/?lang=en

Download - Patrick ten Brink of IEEP TEEB Water and Wetlands introduction 15 june 2012

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