teeb phase 2 introduction by patrick ten brink of ieep at the eeb biodiversity seminar 11 dec 08

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1 Second phase of the TEEB Initiative Presentation to the EEB Biodiversity Seminar Thursday 11 December 2008 The Economics of Ecosystems and Biodiversity (TEEB) Patrick ten Brink, Head of Brussels Office, IEEP TEEB D1 Co-ordinator [email protected] D1 An initiative of the G8+5, BMU (D) & the European Commission Supported by Defra (UK), UNEP, the EEA, OECD and the CBD Secretariat Building on and borrowing from the work & insights of the wider TEEB team and contributors of supporting studies, call for evidence and other contributions

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TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Page 1: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

1

Second phase of the TEEB Initiative

Presentation to the EEB Biodiversity SeminarThursday 11 December 2008

The Economics of Ecosystems and Biodiversity (TEEB)

Patrick ten Brink,

Head of Brussels Office, IEEP

TEEB D1 Co-ordinator

[email protected]

D1

An initiative of the

G8+5, BMU (D) & the European Commission

Supported by

Defra (UK), UNEP, the EEA, OECD and the CBD Secretariat

Building on and borrowing from the work & insights of the wider TEEB team and contributors of supporting studies, call for evidence and other contributions

Page 2: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Presentation Structure

1. TEEB Background and Aims

2. TEEB Phase 1: Recap on results & impacts from phase 1

3. TEEB Phase 2: Ambitions, Activities, Content and Process

4. TEEB and some reflections

1. Role of NGOs

2. Communication

3. TEEB and the financial crisis

Page 3: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Background: TEEB’s Genesis

Potsdam 2007: meeting of the environment

ministers of the G8 countries and the five

major newly industrialising countries

“Potsdam Initiative – Biological Diversity 2010”

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

In a global study we will initiate the process of analysing

the global economic benefit of biological diversity,

the costs of the loss of biodiversity and

the failure to take protective measures versus the costs of effective conservation.

Page 4: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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TEEB’s Goals

• Assess and communicate the urgency of action to address ecosystems and biodiversity loss – by presenting the economic, societal and human value of the benefits of ecosystems and biodiversity, and the scale of the benefits lost,

• Show how we (can) take into account the value of ecosystems and biodiversity in our decisions and choices,

• Address the needs of policy-makers, local administrators, business and citizens (the “end-users”) – interests, opportunities, & responsibilities.

Phase 1 (2007-2008):

• Preliminary scoping work,

• Some first analysis,

• Clarification as to how to address the wider goals,

• Preliminary identification of experts and organisations to contribute

Phase 2 (2008-2010):

• Additional analysis within wider Valuation framework

• Broaden the scope of studies (methods; ecosystem services (ESS) and biomes)

• Focus on End-user products

• Stronger Involvement from different experts & organisations

Source: adapted from Pavan Sukhdev

Page 5: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Recap: why the concern?Past Losses

� Global Forest Area has shrunk by approximately 40% since 1700. Forests have completely disappeared in 25 countries [1].

� Since 1900, the world has lost about 50%of its wetlands. [2].

� Some 20% of the world’s coral reefs - have been effectively destroyed by fishing, pollution, disease and coral bleaching and approximately 24% of the remaining reefs in the world are under imminent risk of collapse through human pressures.[3]

� In the past two decades, 35% of mangroves have disappeared. Some countries have lost up to 80% through conversion for aquaculture, overexploitation and storms.[4]

� The rate of species extinction is estimated to be 100 to 1,000 times more rapid than the “natural” extinction rate (MA 2005).

[1] United Nations Forest and Agriculture Organisation, 2001.Global Forest Resources Assessment 2000; United Nations Forest and Agriculture Organisation, 2006 Global Forest Resources Assessment 2005.[2] http://www.ramsar.org/about/about_wetland_loss.htm[3] Wilkinson C., 2004: Status of Coral Reefs of the World: 2004 report [4] Millennium Ecosystem Assessment, 2005: Global Assessment Report 1: Current State & Trends Assessment. Island Press, Washington DC. Detail: Chapter 19 Coastal Systems. Coordinating lead authors: Tundi Agardy and Jacqueline Alder. Original reference: 35%: Valiela et al. 2001; 80% reference: Spalding et al. 1997

Page 6: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Biodiversity loss - 1700 to 2050

Source: building on Ben ten Brink (MNP) presentation at the Workshop: The Economics of the Global Loss of Biological Diversity 5-6 March 2008, Brussels, Belgium.

73%

62%

MSA statistics indicate that in the “Policy Inaction” scenario : � Global objective (significant reduction in rate of loss) unlikely by 2050 � Stricter European goal (halting further loss ) unlikely by 2050 � CBD goals (for 2010) unlikely over short term

Page 7: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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2000The Global Loss of Biodiversity

Source: L Braat presentation COP9 Bonn May 2008 on the COPI Study; building on MNP data

Page 8: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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2050The Global Loss of Biodiversity

Source: L Braat presentation COP9 Bonn May 2008 on the COPI Study; building on MNP data

� Europe – at Risk

India - at Risk

Africa – at Risk.

The World – at Risk.

Page 9: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Mapping changes : from Biodiversity & Ecosystems to Economic Values

Source: L. Braat & P. ten Brink (eds.)

Change inEconomicValue

Policies Nat. Reg. Loc. Int.

Changein

Land use,Climate,Pollution,Water use

(Human)Drivers

ChangeIn

EcosystemServices

Changein

Biodiversity

Changein

Ecosystemfunctions

Natural Drivers

Page 10: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Valuation & Ecosystem service losses COPI calculation: A

Annual Loss of economic value of ecosystem services that would have been

available had biodiversity remained at 2000 levels. Estimate for 2050.

2000 20502010 2030

Services that `would

have been there,

had biodiversity

been halted.Ecosystem

service level

Relative to 2000

A

Losses

continue

into the

future

Source: P ten Brink in L. Braat & P. ten Brink (eds.) 2008 COPI Study

Page 11: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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TEEB – Interim ReportCOP-9, Bonn, May 2008

Economic Size & Welfare Impact of Losses is enormous

Strong Links betweenPoverty / MDG’s & Biodiversity Losses

Discount Rates are an ethical choice

Key Messages from the Interim Report…..

MDG1: Eradicateextreme povertyand hunger

MDG5: Improvematerial health

MDG4: Reducechild mortality

Source: Pavan Sukhdev

Page 12: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Change of Landuse (area coverage) across all biomes – Global Total

0%108.4108.4World Total *

0%0.20.2Artificial surfaces

9%20.819.1Cultivated grazing

626%0.50.1Woody biofuels

44%15.811.0Intensive agriculture

-39%3.05.0Extensive agriculture

70%7.04.2Forest managed

-9%3.03.3Bare natural

-11%58.065.5Natural areas

2000 to 2050million km2million km2Area

Difference 20502000Actual

Source: L. Braat & P. ten Brink (eds.) 2008 COPI

� Natural areas loss is 7.5m km2 - broadly equivalent to the area of the Australia.

�Losses: natural, bare natural areas & extensive agriculture broadly equals the USA

Page 13: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Loss of Quality / DegradationGlobal total

Loss of quality - due to pollution, fragmentation, infrastructure and climate

impacts (Global average all biomes)

Mean Species Abundance indicator

18%World Total

14%Cultivated grazing

0%Woody biofuels

-2%Intensive agriculture

8%Extensive agriculture

20%Forest managed

8%Bare natural

11%Natural areas

MSA loss 2000 to 2050

Mean species abundance change for different land

use categories

Source: L. Braat & P. ten Brink (eds.) 2008 COPI

Page 14: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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COPI - Some key results

• The welfare loss grows with each year of biodiversity and ecosystem loss.

• Over the period 2000 to 2010 this amounts to around 50 billion Euros extra loss

per year, every year.

• By 2010 the welfare losses from the loss of ecosystem services amount to 545

billion EUR in 2010 or just under 1% of world GDP.

• The value of the amount lost every year rises, until it is around 275bn

EUR/yr in 2050.

• The loss of welfare in 2050 from the cumulative loss of ecosystem services

between now and then amounts to 14 trillion (10^12) Euros under the fuller

estimation scenario

• This is equivalent in scale to 7% of projected global GDP for 2050 – across

land-based biomes

Source: P ten Brink in L. Braat & P. ten Brink (eds.) 2008 COPI Study

Page 15: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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The loss grows with each year of biodiversity and ecosystem loss.

Land based ecosystems only

-7.1%-13938World Total

-0.40%-786Cultivated grazing

0.19%381Woody biofuels

0.67%1303Intensive Agriculture

-0.57%-1109Extensive Agriculture

0.95%1852Forest managed

-7.97%-15678Natural areas

Equivalent to %

of GDP in 2050Billion EURArea

Relative to 2000Relative to 2000

Global COPI Loss of Ecosystem services

from land based ecosystems

Source: P ten Brink et al in L. Braat & P. ten Brink (eds.) 2008 COPI Study for DGENV

Other biomes - need for complementary focus in Phase 2

Page 16: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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-6.3%-0.8%

Losses of ESS from natural areas in forest biomes as share

of % GDP

195.5World GDP in 2050 (trillion (10^12) EUR)*

-12310-1552Natural areas

-5.5%-0.7%Losses of ESS from forests as share of % GDP

-10791-1317Forest Total

-1025-133Temperate deciduous forest

-701-47Cool coniferous forest

-1372-190Temperate mixed forest

-2332-249Warm mixed forest

-3362-536Tropical forest

-1999-163Boreal forest

Fuller Estimation

Partial

EstimationForest biomes

Global COPI Loss of Ecosystem services

Forestry biomes

Source: P ten Brink et al in L. Braat & P. ten Brink (eds.) 2008 COPI Study Building on FEEM forestry per hectare values

Page 17: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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What ESS could already be included (forests)?

Not included - (10 services)

Provisioning services

� Biochemicals, natural medicines, pharmaceuticals

� Ornamental resources

� Fresh water

Regulating services

� Temperature regulation, precipitation

� Erosion control

� Technology development from nature

� Regulation of human diseases

� Biological control and pollination

� Natural hazards control / mitigation

Cultural services

• Living comfort due to environmental amenities

Included - (8 services)

Provisioning services

� Food, fiber, fuel

Regulating services

� Air quality maintenance

� Soil quality maintenance

� Climate regulation (i.e. carbon storage)

�Water regulation (i.e. flood prevention,,

aquifer recharge etc.)

�Water purification and waste management

Cultural services

� Cultural diversity, spiritual and religious

values, educational values, aesthetic and

cultural

� Recreation and ecotourism

Source: L. Braat & P. ten Brink (eds.) 2008 COPI Study

Need for focus in Phase 2

Page 18: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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A : 50-year impact of inaction B : Natural Capital Loss every year

Lost Welfare equivalentto 5.5 % of GDP (from forest biomes overall) … or…

Natural Capital Lost fromUSD 1.35 x 10 12 to 3.10 x 10 12(@ 4% Discount Rate) (@ 1% Discount Rate)

COPI – Forestry Biome Different ways of calculating the loss

Source: P ten Brink in L. Braat & P. ten Brink (eds.) 2008 COPI Study for DGENV

Page 19: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Impacts of Phase 1

Impacts of Phase 1

• Press coverage and visibility – the buzz

• Awareness and understanding – broadening the audience & new perceptions

• Formal Engagement by other into the TEEB process – voting with their feet/pockets

• Integration of TEEB into other processes and activities – others are listening

• Policy debate – TEEB in the corridors of power

And in TEEB phase II, the above +

• Policy influence – Realising commitments +Words turn to commitment

• Practical influence – Action on the ground

Page 20: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Press Echo to TEEB I, May 2008

Source: Dr Carsten Neßhöver, Heidi Wittmer & Christoph Schröter-Schlaack, Presentation in Vilm, 26.8.2008

Page 21: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Awareness & understanding –broadening the audience & new

perceptions

Broadening the audience & high level access….

• Into realms of Economics and Finance experts – nature: natural capital: value

• Other Government departments reaches - reaches the parts of government that other studies cannot reach

• other sectors “integration” – understanding of value of nature and need to safeguard inputs

• Court of auditors: national responsibility of dealing with limited resources.

New Perceptions (in some quarters) / strengthened perceptions

• The dangers of discounting as done to date / dispute the dogma

• New understanding of reliance, resilience and risk

• GDP of the Poor

• Not Economy vs Ecology, but ecology underpins much of the economy

• Nature is fundamental to welfare and wellbeing

• Need to re-orientate the signals within our economies/societies

• Need to reward practice that offers benefits,

• Ensure responsibility for damages

Page 22: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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� “India” Example (from GIST’s Green Accounting for Indian States

Project, 2002-03 data)

� 480 Million people in small farming, animal husbandry, informal forestry, fisheries….

� ESS add “only 7.3%” to classical GDP

or

� ESS add 57 % to “GDP of the Poor”

Deep Links with Poverty “GDP of the Poor” most seriously impacted by ecosystem losses…

Source: Pavan Sukhdev

Page 23: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Ethics of discountingThree hidden stories

1. Declining Growth Paths in the per-capita flow of nature’s services …imply that discount rates should be negative

2. Marginal Utility of $1 to the Rich vs Poor … is too different to merit the same discounting treatment

3. Inter-generational Equity … following ‘market practice’ means valuing nature’s utility to your grandchild at one-seventh of your own !

Most of the 29 valuation studies in our meta-study of forest valuationsuse discount rates between 3%-5%

1,000,0000 %1,000,000

608,0391 %1,000,000

371,3282 %1,000,000

140,7134 %1,000,000

Presentvalue of

the futurecash flow

Annualdiscount

rate

Cash flow50 years in the future

Source: Pavan Sukhdev

Page 24: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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GDP & natural capital loss How they (don’t) fit

2000 2050

Services that would have been there, had biodiversity been

halted

Ecosystem service level

Population 9100 million

GDP (OECD Scenarios) 2.8%/year

GDP, with feedback on economic losses from

biodiversity losses integrated -illustrative

Relative to 2000

Population: 6092 million

GDP: 41.4$ trillion (PPP) (10^12)

GDP/capita: 680$ (PPP)

GDP adjusted for well-being impact of biodiversity loss - illustrative

Source: Patrick ten Brink (IEEP), Leon Braat (Alterra), Mark van Ooorshot (MNP), Matt Rayment (GHK)

If we measure it right – we are most probably going in the wrong direction

The assumption of continued economic

group will be compromised by eroding our natural

capital

Page 25: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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..some quotes…

Simon Kuznets - GDP's creator – already in 1934 said that “The welfare of a nation can scarcely be inferred from a measurement of national income”.

& after almost 30 years further thought, added“Distinctions must be kept in mind between quantity and quality of growth, between its costs and return, and between the short and the long term. Goals for more growth should specify more growth of what and for what.”

On GDP and natural resourcesA country could cut down all its forests and deplete its naturalresources and this would show only as a positive gain to GDP despite of the loss of capital.

Source: Millenium Ecosystem Assessment (MA) 2005 see http://www.millenniumassessment.org

Page 26: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

26Source: Ben ten Brink (MNP) presentation at the Workshop: The Economics of the Global Loss of Biological Diversity 5-6

March 2008, Brussels, Belgium. Original source: Pauly (UBC, Canada)

� Half of wild marine fisheries are fully exploited, with a further quarter already over-exploited

� at risk : $ 80-100 billion income from the sector

� at risk : est. 27 million jobs

� but most important of all…..

At risk : over a billion people rely on fish as their main or sole source

of animal protein, especially in developing countries.

Global Loss of Fisheries……Human Welfare Impact

We are fishing down the food web to ever smaller species…

Perverse Subsidies are a key driver of the loss of fisheries : Need for new policy orientation?

Page 27: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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Impacts of Phase 1Engagement into the Process

• Formal Engagement by other into the TEEB process - voting with their feet/pockets/time

Engagement in TEEB• CBD support TEEB formally• UNEP on board - thematic/expert input, not just secretariat• UK on board to support TEEB Phase II• German government (not just initiators and funders, but also going to do TEEB Germany)• European Parliament Interest• …..

Links of TEEB to others – TEEB is seeking to build links and wider engagement. • UNDP : Latin America…• Ecosystem value work in China….• Japan – building• USA - building • VROM et al workshop on IPES (February 2009)• CBD workshop on perverse incentives (..maybe May 2009) • EEB Biodiversity seminars! (tip of the iceberg)

What potential links are there that you recommend TEEB make?

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TEEB Phase 2: Ambitions, Process and milestones

• Overview

• D0

• D1

• D2

• D3

• D4

D0

D4

D3

D2

D1

Page 29: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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TEEB – Final ReportsSep 2009 - June 2010

Citizen / ConsumerOwnership

Business Risks & Opportunities

Decision Supportfor Local Administrators

Policy opportunities for National & International Policy-Makers

Science & EconomicsFoundations, Policy Costs & Costs of Inaction

D0

D4

D3

D2

D1

Source: Pavan Sukhdev

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The Process for TEEB Phase 2

Inputs from Science and Economicsexperts through the Call for Evidence, participation in Working Groups, etc

D0

2008 2009 2010

Continuous involvement of End-User Groups

D4

D3

D2

D1

Val‘n Framework, Methodologies, Cost Analyses

TEEB for Policy-Makers

TEEB for Citizens/Consumers

TEEB for Business

TEEB for Administrators

End-User Outreach

CBD COP10 Nagoya, Japan

CBD COP9 -Bonn, Germany

D0

D4

D3

D2

D1

Source: adapted from Pavan Sukhdev

Page 31: TEEB Phase 2 Introduction by Patrick ten Brink of IEEP at the EEB Biodiversity Seminar 11 Dec 08

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The Operational Framework of TEEB – Phase II

E4E2 E3E1

Workshops – Call for Evidence – Synthesis Papers – etc….

D1: Policy- Maker

D2: Administrator

D3: Business

D4:Citizen/consumer

Study Leader Group Advisory Board

Peer Review Group

E13 E14E10 E11 E12E8 E9E6 E7

D0: Science & Economics

E5

Workshops – Call for Evidence –Synthesis Papers – etc….

Scientific Coordination

Group

TEEB Secretariat

Source: Pavan Sukhdev

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TEEB Phase 2D0: Valuation Framework, Methodologies,

Cost Analyses - Scientific Challenges

• The scientific tome / basis of the wider TEEB work

• Solid, referenced analysis on TEEB issues, building on

• Phase 1 TEEB work and supporting effort

• Existing work across the world

• Contributions from across the planet - “big names” & other committed

• New work launched within the D0 context

• European Commission

• Others (Germany, UK, UNDP, etc)

• Develop further the TEEB valuation framework / guidelines to facilitate others doing similar work.

D0

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TEEB Phase 2D0: Valuation Framework, Methodologies,

Cost Analyses - Scientific Challenges

• Develop further the TEEB valuation framework, e.g.

• further develop the framework of ecosystem services and benefits,

• investigate the state of knowledge on ecosystem dynamics,

• exploring how to reflect thresholds

• Recommend valuation methodology and do TEEB analysis, e.g.

• examine further some values not addressed in depth during Phase I (e.g. resilience values of biodiversity, option values such as bio-prospecting, non-use values such as bequest & existence values),

• address additional biomes (e.g, oceans, poles)

• Evaluation of policy costs

• the costs and opportunity costs of conservation policies versus the costs of ‘business-as-usual’ within an existing policy framework (e.g. agriculture, fisheries, infrastructure, climate change, etc)

D0

Source: adapted from Pushpam Kumar

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TEEB for Policy MakersObjectives and Outcomes:

• Raise awareness of policy makers across the globe of the importance and

urgency of action to address ecosystems degradation and biodiversity loss.

• Help improve the understanding of the benefits of ecosystems and biodiversity

and the risk and costs of losing these benefits.

• Inform about the consequences of international and national policies on

biodiversity and ecosystems (i.e. subsidies, trading rules, benefits sharing).

• Identification of opportunities for action, such as applying new or reforming

existing policy tools; improve the way we measure our societal and economic

wellbeing taking account of ecosystem benefits and losses

• Support policy action, by providing information and tools to help provide

information that can be integrated into decision making.

D1

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Structure and content being developed continuously taking into account insights & suggestions –detailed wireframe on http://ec.europa.eu/environment/nature/biodiversity/economics/pdf/d1.pdf

The D1 (Policy Level) TEEB Report: Structuring the issues

(The “wireframe”)D1

What package of instruments and responses do we need

to respond to the challenge?Using the whole Policy Toolkit to address the challenge 9

Protected areas, and addressing the financing and

implementation challengeProtecting areas, ecosystems, habitats and species8

What instruments and market signals can help ensure

that the polluter pays ?Policies to Address the Losses of Biodiversity7

Can we save money and avoid the destruction of

biodiversity?Aligning Today’s Subsidies to Tomorrow’s Priorities 6

What policy instruments can help and how to make the

markets give the right signals?Policies to Reward (unrecognised) Benefits of

Ecosystems and Biodiversity

5

What tools work, what needs and opportunities are there

for their use?Evaluation Tools that (can) Integrate the Value of

Biodiversity

4

What should we measure to ensure a proper stewardship

of our natural capital?Measuring to Manage our Natural Capital 3

Who can take up the biodiversity challenge; what tools

can help ?Policy Responses: Actors and instruments 2

Why is there Urgency for Action to address biodiversity

loss?The Biodiversity Policy Challenge 1

Questions being addressedTitleCh

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Examples of issues of particular interestWhere can TEEB help ?

Working suggestions of areas where particular focus in TEEB is valuable -due to value of good practice and/or need for new initiatives or progress:

• Integrated policy making – the costs and benefits of losing biodiversity

• Payments for Environmental Services (PES)

• REDD (Reducing Emissions from Deforestation and Degradation)

• Environmental Harmful Subsidy (EHS) reform

• Adjusted national income accounting

• Ecological footprints

• (Criminal) Liability for damages

• …

• …

What areas do you see as particularly important to give due focus to?

D1

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Deep Links with PovertyExamples Rewarding Unrecognized Benefits

� Panama Canal : Insurance firms and shipping companies are financing

a 25-year project to reforest the water catchment of the canal to restore freshwater flow to its locks… the fear of loss due to closures of the Canal had been making shipping insurance premiums mount.

�Costa Rican PES : Payments for Environmental Services are virtually

a national strategy for forest and biodiversity conservation and sustainable development

�Guyana : A Private Equity firm recently bought the rights to environmental

services from a 370,000 hectare rainforest reserve in Guyana anticipating that its services (water storage, biodiversity maintenance, rainfall regulation, etc) will gain value. Revenues will be shared 80% with the local community. Benefits sharing

Source: Pavan Sukhdev

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TEEB D1 Organisation and Process

D1 Core Group

Call for Evidence

Direct contributions: advice on content + contributions of

ideas, insights, recommendations and material (text,

data, maps, case examples, quotes, messages, photos)

+ Peer Review

Thematic Workshops

D1 “wireframe” – The “contents of D1”

http://ec.europa.eu/environment/nature/call_evidence.htm

Advisors & Authors / Contributors & Peer Reviewers

D1 Report

Co-ordinate process + develop

“wireframe” + substantial

content contributions +

responsible for overall output &

“make it happen”

On-line

Sept’ 09

January to May 09

Peer ReviewJune 09

Oct to Jan 08 for D1

Focused on policy makers.

Expectation: 150-200 pages

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TEEB Phase 2D2: TEEB for Local Administration

Still being developed

Aim: support awareness of the implications/trade-offs in local decisions &

• Provide tools and information to local administrations to help them in their practical work – permit decisions, inspection, enforcement, court cases, setting local taxes/charges/fines (if and where possible) etc

Topics to be addressed:

• Tools to help local authorities with permit decisions (eg land conversion requests)

– eg clarify ecosystem services that should not be ignored,

– seek to provide some indicative values for potential use / benchmark,

– provide examples to demonstrate precedent.

• Help provide information to local authorities to help with conflict resolution over protected areas.

• Information to support local courts

– Eg to support implementation of liability cases / criminal law for environmental damage

What areas do you see as particularly important to give due focus to?

D2

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TEEB Phase 2D3: TEEB for Businesses

Topics to be addressed:

• Tools to help business managers identify biodiversity risks and liabilities

– Value of biodiversity ecosystem services as an input to their processes, dependence and need to safeguard the inputs.

– Potential liabilities – damages, costs (fees/charges).

• The concept of “no net loss” or “net positive impact” on biodiversity and implications for business accounting systems

• New biodiversity business opportunities, including bio-friendly segments within established sectors, e.g. eco-agriculture, eco-tourism, certified forestry, as well as new sectors, e.g. biocarbon, biodiversity banking

• How to make business assets / capacities / skills more relevant to conservation through public-private partnerships

• Mainstreaming ecosystem indicators and values in corporate management and annual reporting systems

• The role of environmental regulation and market structures in pricing ecosystem assets and liabilities

• How business can help build a green economy and green jobs

D3

Source: adapted from Joshua Bishop

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TEEB Phase 2D4: TEEB for Citizens/Consumers

Still being developed – balance of citizen focus and consumer focus open

Re Consumers, need for:

• Information on impact of consumer choices on biodiversity / ecosystems – eg the food we eat, clothes we buy, cars we drive (& the fuel), house we live in (and heat), and holidays we take..

• Tools to help consumers measure their impacts so as to respond to a need for responsibility.– Eg food miles or footprints or rucksacks?

– Benefits of organic for health and for the environment

• Examples of policies to help consumers - from different countries

Re Citizens & peoples, arguably need for:

• Rights, ethics and responsibility (and potential roles – eg spot the impact eg IAS)

• Realities for forest peoples

• GDP of the poor

• Ethics – who reaps the ecosystem services (eg biofuels-food tension)

D4

What do you see as particularly important to give due focus to?

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TEEB and NGOs

1. Opportunity to get your messages across – for policy makers (D1),

administration (D2), for business (D3) and for individuals (D4)

2. There is no “TEEB for NGOs”, as NGOs have something to say for the 4

end user groups. Opportunity for engagement in Ds (contributors,

advisors, core group)

3. From NGOs, TEEB needs messages, insights, data, case examples,

photos, maps and quotes – we need global representation. Help with

practice in Latin America, Africa, and Asia most welcome – examples

and names of experts who know.

4. NGOs invaluable in getting the communication “buzz” in the

public/press + issues into the policy corridors.

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TEEB and Communication – how to get the messages across

The challenge – not just identifying the message, but getting it across and being

taken seriously – into agendas, into action.

� TEEB: 5 deliverables, including 4 specific end user focused products

� Pavan Sukhdev (and others): wide range of high level presentations

� Big numbers and the press

� National/local numbers and country relevance

� Wide Engagement and involvement of into the process

� Clarifying links between high level issues - climate change, financial losses

� Case examples, interesting facts, quotes, lessons/insights + spotting the

needs and opportunities.

What do you see as initiatives that TEEB should focus on ?

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TEEB and Communication – how to get the messages across

Eg: how to get companies to use values for “green

accounting”?

Underline the material benefits of ecosystem services to their

operations (ie dependency on ecosystem inputs?)

+ underline the risks / liabilities of loss of inputs, or damage to

ecosystems

+ clarify economic opportunities and competitiveness advantages.

+underline the long term context – the financial crisis gives a new

hope for moving away from short-termism?.

D3

D0 D3D2D1 D4

“No one would look just at a firm’s revenues to assess how well it was doing. Far more relevant is the balance sheet, which shows assets and liability. That is also true for a country.”

Joseph Stiglitz, 2005 in Foreign Affairs, see http://www.foreignaffairs.org/.html

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TEEB and Communication – how to get the messages across

Eg: how to get countries to use values for “green

accounting”?

Underline the importance of ecosystem services to the economy and

societies wellbeing/development.

Demonstrate the benefits of using a more complete evidence base

Demonstrate the linkage of TEEB issues to others they recognise

intuitively or already commit to addressing (natural hazards,

food dependency, climate change, migration, development etc)

A country could cut down all its forests and deplete its naturalresources and this would show only as a positive gain to GDP despite of the loss of capital.

Source: Millenium Ecosystem Assessment (MA) 2005 see http://www.millenniumassessment.org

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TEEB and the Financial Crisis parallels and differences

1. The loss of natural capital is losing us more money than the stock

market collapse

2. The risk of natural capital loss is hardly factored in – has been off the

decision makers’ radar….

3. Running down natural capital is like running down out savings – and

when our savings run out, the situation is fragile, explosive, implosive

4. Short termism rules the decision (eg discount rate, quarterly

objectives) - the long term again not in our economic compass.

5. The market signals have often encouraged loss of natural capital – a

loss in the faith in markets… need to fix the compass

1. The loss of natural capital is losing us more money than the stock market collapse

2. Ecological losses have been leading to human disasters (starvation, not making ends meet (…suicides by Indian farmers), migrations) but not taken as seriously as banking losses

3. The risk of natural capital loss - to the economy to societies - is hardly factored in – has been off the decision makers’ radar….

4. Running down natural capital is like running down out savings – and when our savings run out, the situation is fragile, explosive, implosive

5. The insurance market will not be able to cope with the losses

6. Short termism rules the decision (eg discount rate, quarterly objectives) - the long term again not in our economic compass.

7. The market signals have often encouraged loss of natural capital – a loss in the faith in markets… need to fix the compass

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According to various estimates, these conservation areas produce some $4-5 trillion of utility per year from various ecosystem services

Approximately 60% (15 out of 24) of the ecosystem services evaluated in this assessment are being degraded or used unsustainably-MA,2005

Any Rescue Action/ Plan for Ecological Crisis?

International Financial Crisis and Rescue Action (Source: BBC, Oct 2008)

Global Ecological Crisis

Rescues committed to and rescues still to be committed to…

Source: Pavan Sukhdev

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Summary

• Loss of biodiversity and ecosystem services cannot continue into the future without undermining wellbeing and welfare of societies, economies and individuals.

• Sustainable progress needs a reorientation of market signals and a revision of policies in light of a greater appreciation of the role / importance of ecosystems and biodiversity to societies.

• TEEB is a response to the need and Phase 1 has launched the issues

• TEEB Phase 2 has a lot to do - to clarify the messages, ensure ownership and visibility of the messages and that they are heard and responded to. Contribute to a Green New Deal

• This requires engagement by all end-users and NGOs have an important contribution to make.

• Without rising to the challenge we are creating a basis for a crisis much beyond the current financial turned economic turned social crisis.

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http://ec.europa.eu/environment/nature/biodiversity/economics/index_en.htm

or google „TEEB Europa“ TEEB website will be up soon

For contributions

• Call-for-Evidence http://ec.europa.eu/environment/nature/call_evidence.htm

• Other contributions/engagement – please contact TEEB core teams/coordinators

• DO: Pushpam Kumar; D1: Patrick ten Brink; D3: Joshua Bishop

Wider TEEB Contact (and also cc generally):

TEEB Scientific Coordination via [email protected]

TEEB is currently funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety and the EU Commission, Directorate General for the

Environment, with additional contributions from other partners.

Thank you! - Further information….