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The costs of pricing nature: The implications of payment for ecosystem services in Europe Bethany Squire & Alexandra Bosbeer Quaker Council for European Affairs

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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 concerns 4.What to do? Other solutions Quaker Council for European Affairs office@qcea.org

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Source: European Environment Agency 2000 - 2006 Quaker Council for European Affairs office@qcea.org

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Degraded ecosystem services Service Agro- ecosystems Fores t Grass- land Heath/ scrubWetlands Lakes and rivers Crops/timbermixed Livestock Wild foodsdegraded Water Genetic Pollination Climate regulation Pest regulation Erosion regulation Water regulationenhanced Recreation Aesthetic Status 1990-2010, based on EEA 2010 (Rubicode)

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Alien species increasing Source: European Environment Agency Quaker Council for European Affairs office@qcea.org

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EU initiatives: Soils and water Quaker Council for European Affairs office@qcea.org

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Biodiversity Targets 2010 : halt the loss of biodiversity 2020 : halt the loss of biodiversity Target 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. Quaker Council for European Affairs office@qcea.org

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Weaknesses Provisioning services easiest to value Integration: CAP and CFP Market is not amenable to reflecting complexities Quaker Council for European Affairs office@qcea.org

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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 CO 2 => secondary objective Quaker Council for European Affairs office@qcea.org

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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 Quaker Council for European Affairs office@qcea.org

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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 Quaker Council for European Affairs office@qcea.org

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Questions or more information: You are civil society! abosbeer@qcea.org Quaker Council for European Affairs Square Ambiorix 50, 1000 Brussels www.qcea.org Sign up with us for action alerts to respond to EU consultations. Quaker Council for European Affairs office@qcea.org