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Valuing ecosystems – can it help business make better decisions?

Valuing ecosystems – can it help business make better decisions?. 1 Pollination. The total economic value of insect pollination worldwide? €49 Billion €153 Billion €387 Billion TEEB, 2010. Synthesis. 2 Deepwater Horizon Damages.

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Valuing ecosystems – can it help business make better decisions?

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  1. Valuing ecosystems – can it help business make better decisions?

  2. 1 Pollination The total economic value of insect pollination worldwide? €49 Billion €153 Billion €387 Billion TEEB, 2010. Synthesis

  3. 2 Deepwater Horizon Damages Value oftheecosystemservicesthatare lost due totheDeepwaterHorizonoilspill in presentvalue (3.5% discount rate)? US$130 billion US$670 billion US$980 billion Source: Costanza, R., Batker, D., Day, J., Feagin, R.A., Martinez, M.L., Roman, J., 2010. The Perfect Spill: Solutions for Averting the Next Deepwater Horizon.

  4. 3 Mangroves Mangroves provide coastal protection for free. How much would it cost to replace this function? US$1.320 per ha US$3.679 per ha US$5.235 per ha Source: Sathirathai, S., Barbier, E. (2001), Valuating Mangrove Conservation in Southern Thailand

  5. 4 PUMA‘s EP&L PUMA calculated the environmental costs in 2010 for water, GHGs, land-use, air pollution and waste production for the entire production process globally. How high werethosecosts? 275 Million Euro 145 Million Euro 71 Million Euro

  6. 5 PUMA II …andthisequalswhatpercentageofthecompany‘s2010 profits? 10% 45% 70%

  7. Valuation of Ecosystems The environment is considered a public good It can be used and destroyed at no cost Valuation can help to internalize adverse impacts and foster sustainable behaviour But: Biodiversity & Ecosystem Services (BES) are very complex, hard to measure, harder to value ….. Should everything be valued? What happens to the species with „no value“?

  8. Valuation in a Corporate Context We are at a very early stage, but the instrument CEV has great potential: raise awareness among companies for the value of BES include BES in the decision making process First lessons learned Estimates depend strongly on assumptions: 5 studies – 5 Values for CO2, range $4,1/tCO2e -66€/tCO2e Valuation Method Benefit Transfer is the method of choice but does it deliver robust estimates? Learning by doing: More companies should test the tool!

  9. What‘s next? Reporting the environmental damages should be mandatory. Quantify impacts – yes! But does valuation add value? Knowing the impacts is good but… … so far no costs have been internalized! Can the costs be passed on to the consumer? How can effective compensation be ensured? Can indirect integration of costs by using market-based instruments such as emissions trading be an alternative?

  10. Contact Marion Hammerl Marion.hammerl@ bodensee-stiftung.org Global Nature Fund (GNF) Tobias Hartmann hartmann@globalnature.org This time without you!

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