Strahil Christov European Commission, DG Environment, Unit B2 (Biodiversity)

1. A synthesis of approaches to assess and value ecosystem services in the EU in the context of TEEBVilm, 23 May 2013 Strahil ChristovEuropean Commission, DG Environment, Unit B2 (Biodiversity)

2. Contents • Brief overview of EU Biodiversity Strategy to 2020 • TEEB in the context of the Strategy • Study Objectives • Work Description • Task 1 - Review of existing Initiatives • Task 2 - Analysis and synthesis of approaches • Task 3 - Develop common conceptual framework • Task 4 – Recommendations

3. TEEB in the EU 2020 Biodiversity strategy • Rationale behind biodiversity strategy • 6 Sub-targets with some specific measures related to TEEB • Target 2 and related measures • Cross-cutting issues: • Financing • Involvement of the private sector • By 2020, ecosystem services are maintained and enhanced by establishing Green Infrastructure and restoring at least 15% of degraded ecosystems. • MS with assistance of Commission, will map and assess state of Es/ES by 2014, value such services and integrate in Accounting and Reporting Systems by 2020 • Green Infrastructure Strategy by 2012 to encourage investments in GI (and RPF) • No Net Loss initiative by 2015 (through compensation and offsetting schemes)

4. Main objectives • Synthesize and evaluate recent and on-going initiatives and assess the scope for integrating these for accounting and reporting at EU level • Formulate steps for ES assessment and valuation into a coherent framework that can be applied by Member States • Assess different approaches for up-scaling and combining ES values into an EU level assessment

5. Task 1: Review of Initiatives using standard format • Screening of reports, proceedings from workshops/meetings and websites • In addition, phone/email contacts with contact persons in 15 EU MS about national initiatives • Two web-based surveys with experts and stakeholders - Among TEEB conference participants Leipzig 19-22 March (n=31) - Among TEEB practitioners and experts (n=18)

6. Task 2: Analysis and synthesis of approaches • Focus on each step in the ES assessment-valuation-accounting/ reporting process • Identify best practices/data requirements/conditions for success • NOT ONE SINGLE STANDARD APPROACH ! Assessment Valuation Accounting/reporting

7. Task 3: Develop common framework • Develop a common practical framework and guidance for ES valuation and accounting at MS level • Draw on existing initiatives and outcomes of Tasks 1 and 2 • Mapping and Assessment of Ecosystems and their Services (MAES) working group • UK National Ecosystem Assessment (UK NEA) • European Environment Agency (EEA) Common International Classification of Ecosystem Services (CICES) • System of Environmental-Economic Accounting (SEEA) Experimental Ecosystem Accounts Challenges: • Existing initiatives difficult to coherently combine • Missing links between steps in assessment process • Scaling up of ES values

8. Consistent with MAES framework and CICES classification Conceptual framework Adapted from Bateman et al. (2011), Mace al. (2011) and UK NEA (2011)

9. Applying the Conceptual Framework: Choices

10. Task 4: Conclusions and Recommendations • No single standard "TEEB" approach on valuation (see graph) • Different definition of economic value Es/ES • Most efforts on mapping ES, limited in valuation and accounting • Real and hypothetical adjustments (controversial in SNA!), actual and potential ES(stock/flow), Spatial scale and variability in ES values • Choices to be made by MS when applying conceptual framework • Crucial to establish links between biophysical provision of ES and their economic values • When integrating in national accounts, important to maintain coherence with SNA based on guidance developed by statistical offices • Careful, stepwise integration via satellite accounts seems most promising way in order to keep core SNA intact. Full integration requires close collaboration between statistical offices • Further integration and implementation of CICES, MAES, SEEA is needed • Step forward is to launch MS initiatives, allow them to mature through monitoring and refining based on empirical experiences (MAES Pilots)

11. Thank you for your attention • Key document links • EU Valuation Study - http://ec.europa.eu/environment/nature/biodiversity/economics/ • MAES documents - http://biodiversity.europa.eu/ecosystem-assessments/european-level

12. Work description • Task 1: Collect information on relevant initiatives at MS, EU & other levels • Task 2: Analysis and synthesis of different approaches • Task 3: Propose a common framework and draft recommendations • Task 4: Finalize recommendations

13. Task 2: Analysis and synthesis of approaches Number of initiatives addressing each step in the assessment process

14. Identified research priorities TEEB conference survey • 1) Development common framework • 2) Improvement economic valuation methods • 3) Improved insight trade-offs biodiversity & ecosystem services • 4) Improved accounting practices (national and business) • 5) Translation research results into practical policy action • Other: • creation of public awareness • creation of economic incentives • more focus on managed ecosystems • more focus on cultural services in urban areas

15. Key challenges identified in expert survey • Valuation • Reconciling different valuation methods • Lack of reliable large scale valuation studies for key ES • Lack of methods linking non-monetary and monetary valuation • Spatially insensitive valuation methods • Uncertainty precision of values • Accounting • Existing valuation data often not available for well-defined ES • Lack of agreed UN guidance (no proper standards) • Satellite accounts or full integration in core system of NA? • Differences in scales economics and ecosystems • Theoretical adjustments probably impossible with real data

16. 2050 Vision 2020 headline target EU Biodiversity Strategy to 2020 6 Targets: 1 Fully implement nature legislation 2 Maintain & restore ecosystems & services 3 Increase contribution of agri. & forest. to biodiversity 4 Achieve Maximum sustainable yield 5 Combat Invasive Alien Species 6 Help avert global biodiversity loss Actions / Monitoring