June 2009 Katheryne Davis Emily Knudsen Laura Musikanski Jacqui Sullivan

1. Breathe – Brokerage for the Restoration of Ecosystems And The Health of the EnvironmentA Proposal for a Local Ecosystem Services Brokerage June 2009 Katheryne Davis Emily Knudsen Laura Musikanski Jacqui Sullivan

2. Agenda • Project Objectives • Ecosystem Services - Problem Defined • Elements of a Brokerage • The Brokering Process • Regulatory Influences • Similar Efforts • Stakeholder Feedback • Questions

3. Project Objectives • Project: “Breathe” • Feasibility / Initial Business Plan for Brokerage • Analogous to Real Estate Agent • Facilitates Contractual Agreements between • Buyers and Sellers • Handout and Scenario Client : Sustainable Seattle • Dedicated to Healthy Communities, Economies, and Ecosystems • Create opportunities to learn about sustainable living principles and practices. • Develop tools to monitor the community’s progress toward long-term sustainability. • Foster dialogue among diverse constituencies.

4. Definition – Ecosystem Services • “Ecosystem” coined by Roy Clapham in1930 • Ecosystem: living and non-living entities and their relationship within a discrete environment or habitat. • Ecosystem Services: • Benefits obtained from naturally occurring processes

5. Clean Air Water Filtration Animals Food

6. Sources of Ecosystem Services

7. Problem Statement – Ecosystem Services • Pressures on Ecosystem Services: • Pollution, introduction of non-native invasive species, consumption beyond the regenerative capacity • Scientific Evidence: • Millennium Ecosystem Assessment (MEA) • World Research Institute • IPCC Working Group Report- Kyoto Agreement • IUCN Red List “We must find new ways to provide for a human society. It presently has outstripped the limits of global sustainability.” Peter Raven, former president of the American Association for the Advancement of Science.

8. Short Answer Conserve, Preserve, and Restore Ecosystem Services

9. Addressing the Problem • Millennium Ecosystem Assessment • Katoomba Group • WRI Ecosystem Services Review • Willamette Valley Ecosystem Marketplace • Goals of Environmental Policy Act

10. Categorizing Ecosystem Services MEA Classification • Provisioning • Production of food, fuel, genetic resources and fresh water • Regulating • Consistency in the climate, disease and pest control, pollination, flooding and storm protection, • Supporting • Pure water, clean air, nutrient cycles (decomposition, regeneration) • Cultural • Recreation, culture spiritual values, education and knowledge systems

11. Examples of Service Providers

12. Examples of Buyers/Investors • Corporations • Foundations & Trusts • Land Developers • Architectural and Design Firms • Group Pooling (citizens, companies) • Government Agencies

13. Understanding Ecosystem Services • What Services should you care about? • Who are the Providers? • How are Services valued? • What is the impact of the economy? • How is an investment protected? • How do Providers obtain funding? • How do Laws influence the investment in ecosystem services?

14. Ecosystem Service Providers Map Handout • Modeled after MEA, Katoomba, class materials, and local resources • A tool for access and education • A first iteration

15. Local Focus and Why Local • Relevance • Urgency • Action-orientation • Global-local connect • Embedded intergenerational attributes • Niche

16. The Brokering Process

17. Verification of Service Providers Potential Criteria • When under regulation • compliance level • Transparency • Code of ethics • Auditing and tracking • Long term management system • Insurance program/long term • Level of expertise of service provider, associations • Place of headquarters • Partner with industry-specific experts, as available • Funding / Source of Funding

18. Public Education & Outreach • Markets & Marketplace -people are just starting to understand • Need to educate future generations & public • A means for the public to value ecosystem services • Decision and valuation process/function are to be defined

19. Drivers • Economically Beneficial • Comparatively cheaper • Competitive advantage • Clean Conscience • Health of Humanity • Laws and Regulations • Existing laws and Future trends • Beyond compliance

20. Provider: Seattle Tilth Law / Regulation • Water Quality Trading Policy and the CWA Service • Food – Crops via sustainable practices • Clean Water • Secondary Benefits: Erosion Control, Pest Regulation, Nutrient Cycling

21. Provider: Cascade Land Conservancy Law / Regulation • CAA • Western Climate Initiative (impending) Service • Clean air via preserved forestland • Secondary benefits: biodiversity, water quality, climate regulation, wild foods

22. Similar Efforts • Clearinghouses • Market places • Consultancies • Agency Programs • Conferences

23. Example: Willamette Valley Ecosystem Marketplace

24. Example: Katoomba Group

25. Stakeholder Input • Interviews: • Sean Schmidt, Executive Director, Sustainable Seattle • Director of Climate Change Initiatives for a Large Foundation • Burr Stewart, Strategic Planning Manager, Port of Seattle • Ross MacFarlane, Senior Advisor, Climate Solutions • Edie Sonne Hall, Manager of Environmental Affairs, Weyerhaeuser • Feedback: • Enthusiastic • Perspective dependant upon interests • Need for Partnering/Alliance Creation • Local Focus is Important • Need for education • Commoditization v. Preservation, Conservation & Restoration • Policy • Going Forward

26. Questions?

27. Back Up Slides

28. SWOTstrengths, weaknesses, opportunities, threats • Strengths • Local focus- greater engagement for potential buyers/investors • Relatively Empty Marketplace • Scientifically-based need for Ecosystem Services (UN Millennium Ecosystem Assessment, Red List, etc)

29. SWOTstrengths, weaknesses, opportunities, threats • Weaknesses • Novelty- Hard to explain, hard to grasp, • Conceptual • Inter-generational Aspect –stewardship dilemma • Credibility – must be established • Funding- and the Economy today • Pricing model for the services • Regulations that do not account for ecosystem value • How to partner appropriately

30. SWOTstrengths, weaknesses, opportunities, threats • Opportunities • Partnership/Collaboration with service providers • Resource expansion for service providers • Ensured stewardship of service providers • Pooling for small buyers/investors (like a mutual fund) • Involvement/Partnership with university students ( research, verification) • Enabling better regulations that support conservation, preservation, or restoration of ecosystem services • Reconciliation and updating of environmental regulations

31. SWOTstrengths, weaknesses, opportunities, threats • Threats • Failure of service provider • Some impossible tasks- verification of an ecosystem services • Other organization could enter the space and wipe the Brokerage out • Lack of cooperation of service providers • Larger conservation organizations may be threatened and try to shut it down (if they see this as a means to commoditize ecosystem services- rare seeker example)

32. Willamette Valley Ecosystem Marketplace Tools: • Confidential Business Information Guidelines • Conflict of Interest Code • Conflict of Interest Form • Credit Certificate • Draft NPDES Permit Language for Thermal Load Issues • Monitoring Report • Riparian Planting Protocols • Standard Agreement for Credit Exchange • Standard Agreement for Credit Registration • Standard Agreement for Credit Verification Services • Synthesis Map • Temperature Offset Verification Protocol • Verification Report • Veritifer Accreditation

33. Business Plan:Going Forward… • Organizational Structure: Governmental Agency Program (Ecology, EPA) or Non-Governmental Organization • Narrowing down identification of potential buyers • Positioning • Source of Funding • Forming Partnerships • Reconciliation of incongruent laws