The Economics of Ecosystems and Biodiversity (TEEB) THE VALUE OF NATURE Georgina Langdale

1. The Economics of Ecosystems and Biodiversity (TEEB) THE VALUE OF NATURE Georgina Langdale Thursday 3 March 2011

2. About TEEB Launched by Germany and the European Commission in response to a proposal by the G8+5 Environment Ministers (Potsdam, Germany 2007) Goals: Develop a global study on the economics of biodiversity loss Review current state of the science and economics of ecosystems and biodiversity, and make Address needs of the “end-users” : policy makers, local administrators, corporations and citizens To mainstream the economics of ecosystems and biodiversity Supported by the EC and governments of Germany, UK, Netherlands, Norway, Sweden, Japan. Hosted by UNEP.

3. Joan-Martinez Alier Edward Barbier Achim Steiner Jacqueline McGlade Yolanda Kakabadse Ahmed Djoghlaf Giles Atkinson Lord Stern Jochen Flasbarth Peter H. May Herman Mulder Walter Reid Julia Marton-Lefevre Karl-Goran Maler Ladislav Miko TEEB Advisory Board

4. Different levels of values and valuation Knowledge gaps The “known-unknowns” and “unknown-unknowns” Full range of ecosystem services from biodiversity Qualitative Review Type of benefits; health, social, income, wellbeing Quantitative Review of Effects Quantitative: e.g. number people benefiting from wood from forests Monetary Value Monetary: e.g. avoided water purification costs, tourist value Source: TEEB Interim Report, revised

5. TEEB approach to “valuation” Recognizing value: a feature of all human societies and communities Demonstrating value: in economic terms, to support decision making Capturing value: introduce mechanisms that incorporate the values of ecosystems into decision making

6. Millennium Ecosystem Assessment (2005)

7. Nature Counts • Saving municipal costs • Quito and New York’s drinking water comes cheaper from national parks than filtration plants • Kampala’s wetlands effectively treat sewage • Protecting against natural hazards • mangroves protect against typhoons in northern Vietnam • Boosting the local economy • it pays to protect sharks in the Maldives • Tackling poverty • woodland restoration secures essential services to farmers and villages in India Source: all examples are TEEBcases (teeb.org)

8. Recognizing value Demonstrating value Capturing value Applying TEEB Approach … Norms, Regulations & Policies Regional Planning Legislations Economic Mechanisms PA Evaluation Certification Markets PES Ch.3 Ch.5 Ch.4 Ch.3

9. TEEB – a series of reports

10. Bring economics of nature into the mainstream • Make Nature’s values visible • Assess and communicate role of biodiversity and ecosystem services in economic activity and for human well being • Economics and ethics demand attention to the values of BES • Account for Risk and Uncertainty • Include Natural Capital in National accounts • Recognise links between poverty and ecosystem loss • Invest in ecological infrastructure • Disclose impacts on biodiversity and ecosystem services • Change incentives / reform environmentally harmful subsidies • Invest in protected areas

11. Example: Kampala, Uganda • Plans to drain the Nakivubo Swamp (>40sqkm) for improved agri production • Waste water treatment capacity of the swamp was assessed (Emerton 2004) • Maintaining the wetlands: ~235.000$ p.a and provides USD 1.75m benefits a year • Running a sewage treatment facility with equivalent capacity: ~2.000.000$ p.a. • Thus, draining plans were abandoned and Nakivubo Swamps gazetted as protected area

12. Investments in Ecological Infrastructure • Investment in Protected Areas holds exceptional high returns: • investing USD$ 45 billion could secure nature-based services worth some USD$ 4.5 - 5.2 trillion annually(Balmford et al. 2002) • when degradation has been excessive, restoration may help to regain productive potential: • eucalyptus plantation for re-vegetation after intensive grazing and farming in Australia costs about $1200/ha but yields benefits in increased land productivity worth $33000/ha (Dorrough and Moxham 2005) • planting mangroves along coastline in Vietnam cost USD$ 1.1 million but saved USD$ 7.3 million annually in dyke maintenance (GRID-Arendal 2002; Reid and Huq 2005)

13. So is anybody listening? India, Brazil, EU... NZ, Caribbean, Coral Triangle, Tanzania... China, Russia, Peru, Argentina, pan-Africa... Media attention in around 77 countries Over 2000 articles

14. Making Nature Count Thank You ! www.teebweb.org www.teeb4me.com