Multidisciplinary Research Week 2013

World Water Day: Water Cooperation

‘The Economics of Ecosystems and Biodiversity (TEEB): Water and Wetlands’,

by Dr Daniela Russi, Policy analyst, Institute for European Environmental Policy (IEEP).

The Economics of Ecosystems and Biodiversity (TEEB): Water and Wetlands

Presentation of the Final Report

dr. Daniela Russi Policy analyst

Institute for European Environmental Policy (IEEP)

Friday 22 March 2013World Water Day

University of Southampton

Presentation overview

1. TEEB & the TEEB for Water and Wetlands

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

3. Measuring to integrate the values of water and wetlands into decision making

4. Wetlands and poverty alleviation

5. Recommendations: transforming our approach to water and wetlands

Presentation overview

1. TEEB & the TEEB for Water and Wetlands

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

3. Measuring to integrate the values of water and wetlands into decision making

4. Wetlands and poverty alleviation

5. Recommendations: transforming our approach to water and wetlands

TEEB’s genesis, aims and progress

“Potsdam Initiative – Biological Diversity 2010”

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. Economicsliterature

G8+5Potsdam

TEEB End User Reports Brussels 2009, London

2010

CBD COP 9Bonn 2008

Input to UNFCCC 2009

BD COP 10 Nagoya, Oct 2010

TEEB Books

TEEB W&WNature & GETEEB Oceans

TEEB studies The Netherlands,

Germany, Nordics, Norway, India, Brazil

Full Report: Russi D., ten Brink P., Farmer A., Badura T., Coates D., Förster J., Kumar R. and Davidson N. (2013). The Economics of Ecosystems and Biodiversity for Water and Wetlands. IEEP London, Brussels.

Executive Summary: ten Brink P., Russi D., Farmer A., Badura T., Coates D., Förster J., Kumar R. and Davidson N. (2013) The Economics of Ecosystems and Biodiversity for Water and Wetlands. Executive Summary.

Core Team

Case contributionsReviewers

Discussions at Rio+20, Ramsar COP 11, CBD COP11

TEEB Water and Wetlands – available at http://www.teebweb.org/wetlands/

1. TEEB & the TEEB for Water and Wetlands

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

3. Measuring to integrate the values of water and wetlands into decision making

4. Wetlands and poverty alleviation

5. Recommendations: transforming our approach to water and wetlands

What are wetlands? The broad definition of the Ramsar convention:

Areas where the water table is at or near the surface level, or the land is covered by shallow water

Areas of marine water the depth of which at low tide does not exceed 6m

A list of islands or bodies of marine water deeper than 6m (e.g. coral reefs) The definition includes human-made wetlands (e.g. aquaculture, farm ponds, inundated agricultural land) Ph

oto

cred

it: N

ick

Dav

idso

n

Inland wetlands cover at least 9.5 M km2 (i.e. 6.5% of the Earth)

Inland and coastal wetlands cover a minimum of 12.8 M km2

Wetlands & ecosystem services

Without wetlands, the water cycle, carbon cycle and nutrient cycles would be significantly altered

Wetlands provide water for drinking, irrigation, energy production, forestry…

They also provide multiple ESS(e.g. regulation of water quality and quantity, reduction of flood and drought risk, nutrient cycling, cultural ESS, …)

Coral reefs (94)

Coastal wetlands (139)

Coastal systems (28)

Inland wetlands (168)

Tropical Forest (96)

Rivers and Lakes (15)

Temperate Forest (58)

Grasslands (32)

Woodlands (21)

Open oceans (14)

10 100 1,000 10,000 100,000 1,000,000 10,000,000

Values of both coastal and inland wetland ecosystem services are typically higher than for other ecosystem types

The evidence base: range of values of ecosystem services

Sour

ces:

de

Gro

ot e

t al 2

012

build

ing

on T

EEB

2010

Wetlands : historical loss of natural capital

Since 1900 the world has lost around 50% of its wetlands (UNWWAP 2003) and around 60% loss in Europe (EEA 2010)

Between 1980 and 2005, 20% of mangroves have disappeared. Some countries have lost up to 80% (FAO 2007)

http://upload.wikimedia.org/wikipedia/commons/9/95/World_map_mangrove_distribution.png

~20% of the world’s coral reefs destroyed 24% of the remaining reefs under

imminent risk of collapse through human pressures (Wilkinson C., 2004; Nellemann et al 2008)

Phot

o cr

edit:

Nic

k D

avid

son

Consequence: loss of ESS

Losses in human well-being and negative economic impacts on communities, countries and business

We need to reverse this trend, as wetlands provide natural infrastructure that can help meet a range of policy objectives

1. TEEB & The TEEB for Water and Wetlands

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

3. Measuring to integrate the values of water and wetlands into decision making

4. Wetlands and poverty alleviation

5. Recommendations: transforming our approach to water and wetlands

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

All values are NPV over 9 years and a 10% discount rate, given in 1996 US$.

Instruments to manage & protect wetland ESSby integrating the values of water and wetlands into decision making

Site management and investment Regulation and land-use planning, including establishment of PA and

zoning, IWRM, ICZM, MSP Property rights (ownership, use, access, etc.) Market – based instruments:

• Taxes, fees, charges, including subsidy reform • Tradable permit schemes, water banks• Liability rules • Payment for Ecosystem Services • Voluntary schemes, including offsets

1. TEEB & The TEEB for Water and Wetlands

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

3. Measuring to integrate the values of water and wetlands into decision making

4. Wetlands and poverty alleviation

5. Recommendations: transforming our approach to water and wetlands

The importance of healthy wetlands for the poor Poorest communities tend to depend more on ESS for their

livelihood and as insurance against risks

They have less access to alternatives (e.g. water depuration/mineral water; few alternative livelihood options)

Over 600 M of the rural poor currently live on lands prone to degradation and water stress, and in upland areas, forest systems, and drylands that are vulnerable to climatic and ecological disruptions (Comprehensive Assessment of Water Management in Agriculture, 2007).

Over a billion people in developing countries rely on fish as a primary source of protein(World Bank and FAO, 2009)

TEEB For Water and Wetlands

Ensuring healthy and well-preserved

wetlands is crucial to alleviate poverty Water plays a key role in agriculture, fishing and energy production

Improving/restoring wetlands is often a cost-effective way to improve not only water security, but also food and energy security

Wetland wise management improves resilience to climate change by mitigating its effects (e.g. increased storms, droughts and floods)

Well preserved wetlands contribute to social cohesion and economic stability by ensuringlivelihood for local communities andpreserving cultural identity

TEEB For Water and Wetlands

How? Examples:

Water sanitation can be improved through wetland restoration

Access to clean freshwater can be ensured by healthy wetlands

Restored wetlands can provide livelihood for local communities (e.g. by supporting viable fish populations or attracting tourists)

TEEB For Water and Wetlands

Mexico PSAH:PES to preserve forest

Hydrological services: Aquifer recharge

Improved surface water quality, reduce frequency & damage from flooding

Reduce Deforestation Address Poverty

Source: Muñoz-Piña et al (2008); Muñoz et al (2010)PES can help reduce both environmental degradation and poverty

78% of payment to forests owners in areas with high marginalization - within this 1/3 under the extreme poverty line

Different payments to forest owners:• e.g. cloud forest US$ 40 per ha/year;• e.g. other tree-covered land US$ 30 per

ha/year

Results:

Deforestation rate fell from 1.6 % to 0.6 %.

18.3 thousand hectares of avoided deforestation

Avoided GHG emissions ~ 3.2 million tCO2e

Valuation of ESS from Nakivubo wetlands, Uganda

Services provided by the Nakivubo swamp include natural water purification and treatment & supporting small-scale income activities of poorer communities

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

Sources: TEEBCases for TEEB for local and regional policy

Assessment of waste water treatment options (Emerton 2004): 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 is critical for decision making

Establishment of a MPA: Tubbataha Reefs, Philippines

UNESCO World Heritage site, contains 396 species of corals & has higher species diversity per square meter than the Great Barrier Reef

Problem Recognition - 1998 Bleaching & losses>>Stakeholders meetingPolicy Solution“No-take” areas agreed +user fee for diversImpacts of policy• Increase live coral cover at 40% from

1999 to 2003, 50% in 2004• Fish biomass in nearby reefs doubled

since 2000 • Between 1999 and 2004 perceived fish

catches increased from 10 to 15-20 kg/day• Significant increase in living standards from 2000 to 2004

Sources: Tongson 2007, Samonte-Tan et al. 2008,

Dygico 2006; in TEEBCases for TEEB for

local and regional Policy

Healthy ecosystems improve livelihood options

Working for Water (WfW): the Manalana wetland, SA

Severely degraded by erosion that threatened to consume the entire system

In 2006 WfW public work programme invested €86,000 to reduce erosion and

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

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

could be achieved after investment in ecosystem rehabilitation

Results:

• 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 is critically important

1. TEEB & The TEEB for Water and Wetlands

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

3. Measuring to integrate the values of water and wetlands into decision making

4. Wetlands and poverty alleviation

5. Recommendations: transforming our approach to water and wetlands

Transforming our approach to water and wetlands

Wetlands protection/improvement should be integrated in water management at all levels, involving all categories of stakeholders

Protecting/restoring wetlands is a way to improve water security, energy security, food security

In many cases win-win solutionscan be achieved (e.g. improvingbiodiversity while ensuring watersecurity and enhancing livelihoods)

TEEB For Water and Wetlands

Thank you !

TEEB Reports available on www.teebweb.org, www.ramsar.org and www.ieep.eu

See also www.teeb4me.com

Daniela Russi drussi@ieep.eu

IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment. www.ieep.eu

Website: www.southampton.ac.uk/multidisciplinary

Blog: http://blog.soton.ac.uk/multidisciplinary/tag/mdrweek/

Follow us on Twitter @Multisoton #MDRWeek

See the latest videos, interviews, pictures, tweets and views from the floor at:

Youtube: Search #MDRWeek

World Water Day: Water CooperationMultidisciplinary Research Week 2013