Secretariat of the Convention on Biological Diversity FAO, ICRAF, Bioversity International, IFAP

1. African Regional Expert Workshop on Sustainable Use of BiodiversityNairobi, 12 to 15 December 2006 Secretariat of the Convention on Biological Diversity FAO, ICRAF, Bioversity International, IFAP

2. Background SU one of the 3 components of biodiversity, most significant 3 years of discussions leading to Addis Ababa May 2003, reported to SBSTTA. Decision VII/12 adopted in COP 7 in Kuala Lumpur, 2004, invites SCBD to organize technical workshops to: • Apply AA to agriculture • Consider ecosystem services assessment, financial costs and benefits associated with biodiversity • Attention to domestic species, breeds and varieties.

3. Objectives of regional workshops • Understand application of the Addis Ababa Principles of Sustainable Use • Understanding ecosystem services, including tools and methods to assess them • Understanding financial costs and benefits and tools to assess them • Assess applicability of Addis Ababa Principles of Sustainable Use to Agricultural Biodiversity • Focus on regional realities (African)

4. Background documents • Agenda and annotations • Articles about status of agriculture in Africa • Report on Buenos Aires workshop, September 2005 • Background document includes: • Obstacles to implementation of AB PoW in 3rd National Reports • Overview of activities undertaken by selected African parties as to SU of AB • Application of 2010 biodiversity target to AB

5. Proposed outputs • Guidelines for sustainable use of agricultural biodiversity based on the AA Principles • Basis for monitoring related to 2010 biodiversity target and indicators: any way to measure? • Contribution to AB PoW for SBSTTA 13 (FAO) • Workshop report

6. Buenos Aires workshop results • All 14 principles apply to AB – how could the AB PoW fully incorporate AA? • It may be appropriate to develop a specific set of principles for AB: economic dimension highlighted, ecosystem services included in national accounts • Links between sustainable use, conservation and viability of rural lifestyles • Internalization of management costs include subsidies on sustainable practices, technical support, ownership rights, labeling and certification • Role of invasive species (principle 8?) • Suggestion to create applied research agencies, environmental information system

7. Buenos Aires workshop results • Consider effects of expansion of agricultural frontier • Consider including urban and peri-urban agricultural biodiversity components • Include issues related to commercialization, including call for improved market access for sustainable products • SBSTTA could include guidance on GEF and other donors to consider AB • Internalize costs and benefits globally, at a level that makes it possible to implement AB programmes for conservation and SU. • Apply all financial mechanisms that are used for conservation (such as debt-for-nature, debt relief, grants) to agricultural biodiversity, in particular to foster and maintain traditional agricultural systems, removing perverse incentives.

8. Key terms & concepts Agricultural biodiversity … Includes all components of biological diversity of relevance to food and agriculture – the variety and variability of plants, animals and micro-organisms at genetic, species and ecosystem level which are necessary to sustain key funcions in the agroecosystem, its structures and processes.

9. Key terms & concepts Sustainable use … The use of components of biological diversity that does not lead to long-term decline of biological diversity while maintaining the potential to meet the needs and aspirations of present and future generations

10. Key terms & concepts Ecosystem services … • Provisioning - food, water, fiber and fuel • Regulating - climate, water quality, disease • Cultural - spiritual, aesthetic, recreation • Supporting - primary production, soil formation

11. Key terms & concepts Ecosystem Approach • Biodiversity is considered with economic and social factors • Management is integrated • Social process

12. Addis Ababa Principles Principle 1: Get the legal framework right Congruent policies, laws and Institutions at all levels of government - with links between them

13. Addis Ababa Principles Principle 2. Responsibility with accountability • Empowerment and stewardship • Access rights • Government oversight • Monitoring • Authority

14. Addis Ababa Principles Principle 3. Avoid perverse incentives • Market distortions • Habitat degradation • Inequity

15. Addis Ababa Principles Principle 4. Use adaptive management • Change is natural and sustainable use can be positive! • cyclic, learning-oriented approach to the management of complex environmental systems that are characterized by high levels of uncertainty about system processes • Traditional knowledge • Monitoring and evaluation: resources, laws, institutions, markets (forces and distortions)

16. Addis Ababa Principles Principle 5. Minimize adverse impacts on the ecosystem services • Management goals and practices • Understand role of managed resource • Monitor impact of use

17. Addis Ababa Principles Principle 6. Invest in appropriate research • Applied - to answer management questions • Interdisciplinary • Government vs private

18. Addis Ababa Principles Principle 7. Get the scale (time and space) of use right • Jurisdictional • Ecological • Socio-Economic

19. Addis Ababa Principles Principle 8. Seek international cooperation where necessary • Shared resources • Management needs • Optional approaches to cooperation

20. Addis Ababa Principles Principle 9: Use an interdisciplinary and participatory approach wherever possible • Governance • Resource managers • Local stakeholders • Others

21. Item 4 – Addis Ababa Principles Principle 10: Know the current and potential value of the resource

22. Item 4 – Addis Ababa Principles Principle 11: Minimize waste and adverse environmental impacts • Incidental take • Multiple products

23. Item 4 – Addis Ababa Principles Principle 12: Ensure equitable distribution of benefits meet local needs • Who shares? Role of local and indigenous communities • Balancing risks with benefits • Incentives

24. Item 4 – Addis Ababa Principles Principle 13: Management costs should be covered by income (integral costing) • Direct costs and opportunity costs • Benefit flows • Economic incentives

25. Item 4 – Addis Ababa Principles Principle 14: Educate people about sustainable use • Capacity enhancement • Communications • Public awareness

26. Aligning the principles for action Policy Related No Principle 1 Provide a legal/policy framework 2 Delegate responsibility and accountability 3 Remove perverse incentives 7 Link jurisdictional authority to scale of use 8 Where needed, promote international cooperation 13 Internalize management costs Support/Service Related No Principle 6 Promote/support interdisciplinary research 10 Economic valuation 14 Provide education on sustainable use Management Related No Principle 4 Use adaptive management 5 Minimize impact on the ecosystem 9 Take an interdisciplinary approach 11 Minimize waste 12 Distribute benefits equitably

27. Ecosystem services assessment Global status of ecosystem services

28. Ecosystem services assessment Ecosystem values and valuation

29. Methods for valuation • 1) Market Price MethodEcosystem products or services are bought and sold in commercial markets (danger of market failures and externalities) • 2) Productivity MethodProducts or services that contribute to the production of commercially marketed goods • 3) Hedonic Pricing MethodEcosystem or environmental services that directly affect market prices of some other good. Most commonly applied to variations in housing prices that reflect the value of local environmental attributes. • 4) Travel Cost MethodEcosystems or sites that are used for recreation. Value of a site is reflected in how much people are willing to pay to travel to visit the site.

30. Still more economic theories... • 5) Damage Cost Avoided, Replacement and Substitute Cost MethodsCosts of avoided damages resulting from lost ecosystem services, costs of replacing ecosystem services, or costs of providing substitute services.  • 6) Contingent Valuation MethodEstimates non-use, or “passive use” values. Asks people to directly state their willingness to pay for specific environmental services, based on a hypothetical scenario. • 7) Contingent Choice MethodTradeoffs among sets of ecosystem or environmental services or characteristics. Does not directly ask for willingness to pay—this is inferred from tradeoffs that include cost as an attribute. • 8) Benefit Transfer MethodTransferring existing benefit estimates from studies already completed for another location or issue.

31. Resources on ecosystem services valuation Universities of Maryland and Rhode Island: www.ecosystemvaluation.org IUCN guidelines for protected area managers on the economic values of protected areas: www.biodiversityeconomics.org/valuation Ramsar guide for policy makers and planners on the economic valuation wetlands: www.ramsar.org/lib_valuation_e.htm

32. Source: MEA Ecosystem services assessment Benefits flows from selected countries

33. Financial costs & benefits

34. Financial costs & benefits Disparity between private and social costs and benefits of biodiversity conservation and sustainable use is an important reason for biodiversity decline. Individual land users often fail to capture the social benefits of biodiversity conservation and sustainable use.

35. Financial costs & benefits:Responses • Demonstrate value in accordance with TEV: identify all benefits, undertake valuation • Use economic tools (incentives, penalties): • Incentives, subsidies • Penalties • User fees (entry, payments for environmental services) • Increase market volume and value for biodiversity goods and services

36. Thank you! WWW.BIODIV.ORG