ecosystem valuation and water risk: ed pinero
TRANSCRIPT
Ecosystem ValuationWhat, Why, How?
One Water Leadership ConferenceSeptember, 2013
Edwin Pinero
Chief Sustainability Officer
September 2013
The Challenges- WHAT?“Ecosystem Services” is a widely used term- but what does it really mean? Services provided by the ecosystem
Valuation- how to determine their worth? Scope- What is all included?Performance Assurance- how do you know you
valued properly?Governance- who decides? Who controls?
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Ecosystem Services- WHAT?Storm water managementFlood controlCoastal stabilizationWaste treatmentBiodiversityRecreationAestheticsCarbon management/air qualityAnd many others!Community infrastructure, not just stormwater infrastructure
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Ecosystem Services Valuation- WHAT?The ecosystem is more than a passive victim of our actions, it plays an active and important role-
So……. what is that worth? Getting beyond the “warm and fuzzy” factor
What does it mean to value Ecosystem Services?•Valuing the benefits provided by ecosystem
services•Valuing losses from ecosystem degradation
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The Value Proposition- WHY?Communities “use” the ecosystemOpportunities to leverage the ecosystem- nature’s efficiencyInterest growing among stakeholdersRegulatory and legal requirementsGives a “value-based lens”- quantifying environmental, social, economic, and financial elements- comparing alternativesCan speak “CFO-ese” and “CEO-ese” (ROI, Risk management, business case, and others)Improves decision making- and that is good!
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Why “hire” the ecosystem as a service provider?
Incredibly efficient and adaptable!!!!!3.5 Billion years of experience!!!!!
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The Issue with Water
Water is “managed” by ecosystem services, butWater IS an ecosystem servicePrice vs. Cost vs. ValueTypically undervalued ESV needs to be able to recognize the this true cost to make informed business decisions
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Crépieux-Charmy Ecosystem ValuationA water supply catchment area near Lyon, FranceThe local ecosystem is not only a catchment area for water supply but provides heritage value, carbon sequestration, water purification, Intent is for ecologic management of the areaWhat is it worth in terms of water supply?•Natural filtration vs. water treatment•Carbon sequestration•Natural heritage value; including recreation and
educationalIs it worth it?•Yes! Maintaining the ecosystem is 16x less cost than
installed water treatment and 45x less cost than alternatives to replace the economic benefit of carbon sequestration and loss of heritage value 8
CCED Ecosystem ValuationGroup of municipalities with a new waste water treatment systemWhat is the additional value of this plant to the ecosystem due to improved discharge quality?•Tourism- nicer beaches•Tourism- water recreation activities•Heritage value•Flood control•Compost production•Reuse of wastewaterThese are all in addition to the direct benefit of the wastewater treatment
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New Alberta Wetlands PolicyRecognizes that wetlands are valuable for various reasons and that wetlands vary by the ecosystem value, and should be governed accordinglyAllows for flexible wetlands management based on relative ecosystem valueValues are assigned by category and prioritizedProtection and governance hierarchy established based on valuation
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The WBCSD Guide- HOW?Why a guide now? ESV has been going for decades!•Historically driven by legal and regulatory frameworks-
to assign liability and compensation•Many techniques exist•Complicated and variable vocabularyA need for some consistency, transparency, rigor Divided in into Screening Phase (Do I even need to do this?) and the Methodology Phase- (How to?)Was pilot tested by approximately 14 member entities; including water services sector
Very useful to public sector as well
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