The Economics of Ecosystems and Biodiversity initiative TEEB

The Economics of Ecosystems and Biodiversity initiative (TEEB) Patrick ten Brink TEEB for Policy Makers Co-ordinator Head of Brussels Office, Institute for European Environmental Policy (IEEP) The European Biodiversity Conference: “European Biodiversity: The Private Sector Offer” Session: The EU Voluntary and Regulatory Framework: What are the Policy Needs for Biodiversity? European Parliament, Brussels 1 December 2009 - Room P 7 C 050, Building PHS, 60 Rue Wiertz, 1050 Building on and borrowing from the work & insights of the wider TEEB team and contributors of supporting studies, call for evidence and other contributions 3/2/2021 1

TEEB’s Genesis and progress “Potsdam Initiative – Biological Diversity 2010” 1) The economic significance of the global loss of biological diversity TEEB Interim Report @ CBD COP-9, Bonn, May 2008 Stromstad Sept. Brussels 13 Nov

Critical issues The values of biodiversity and ecosystems are missing • Many not known (but this is changing); widespread lack of awareness • They are generally not integrated into the economic signals, into markets – the economy is therefore often not part of the solution • Values are not taken systematically into account in assessments and decision making • The value of nature is not reflected in national accounts nor in leading macro economic indicators Inappropriate incentives; misinterpretation of right solutions, insufficient evidence base at policy makers’ finger tips and weaker public support for action There is not enough political will or conviction or awareness of benefits/cost to launch due policies Biodiversity loss continues – eroding natural capital base without realising its value

The Global Loss of Biodiversity 2000 Source: L Braat presentation COP 9 Bonn May 2008 on the COPI Study; building on MNP data

The Global Loss of Biodiversity 2050 Source: L Braat presentation COP 9 Bonn May 2008 on the COPI Study; building on MNP data

Global Fish stocks Source: adapted from FAO 2005 q Half of wild marine fisheries are fully exploited; a further quarter already over-exploited q At risk : $ 80 -100 billion income from the sector q est. 27 million jobs q over a billion people rely on fish as their main or sole source of animal protein

TEEB Climate Issues Update - September 2009 - Coral reef emergency Forest carbon for climate mitigation National accounting forest carbon Ecosystem investment for climate adaptation

Needs - All colours of Carbon Brown, Green, Blue & Black Carbon • Need as ambitious commitments as possible 450 ppm and 2 degrees already accepting major losses • REDD+ (suitably designed and implemented to (be able to) take wider set of ecosystem services into account) • Investment in ecological infrastructure for adaptation (ecosystem based adaptation) & mitigation • Natural capital accounts – carbon-biomass (but in wider ecosystem service context and process). – Start from existing work on forests/agriculture extend to other ecosystems. • SEEA / extended income accounts 8

Value of ecosystem services – climate mitigation, climate adaptation & many others

TEEB for Policy Makers report - launched 13 November 2009 - The Global Biodiversity Crisis Measuring what we manage Available Solutions Responding to the value of nature

Global Loss of Fisheries… Is there a Solution ? Open Access & Perverse Subsidies drive fisheries losses … We are fishing down the food web to ever smaller species… …. And do reserves work ? Reserves all over the world show large increases in spawning stocks. . (Source : Prof. Callum Roberts, University of York)

73% of the United States Haddock catch is now taken within 5 km of the closed area boundaries Source: Fogarty et al. (2007)

Protected Areas (PAs) Global key facts 120, 000 PAs, 13. 9% land, 5. 9% territorial seas, 0. 5% high seas Current expenditure ~ US$ 6. 5 to 10 billion/year Coad et al. 2009 Gutman and Davidson 2007 Total annual costs of managing the network ~ US$ 14 bn James et al 1999 & 2001 Financing gap very real: expenditure ~30% of needs in developing countries Financing needs for 15% land, 30% marine: ~ US$ 45 bn/year Gutman and Davidson 2007 Benefits at a global level far outweigh the costs > factor of 10+ bigger globally Benefits at local level can be > costs, but not always – depends inter alia on payment for ecosystem services Finalisation of the networks – notably MPAs Address financing gap – new funding, new instruments (eg PES) In EU: use of funding – better integration (EAFRG, LFA, EFRD etc) New Biodiversity fund ? PAs as constructive motors of local economies

Subsidy Reform 1 trillion US$/year spent on subsidies – value for money ? Establish transparent and comprehensive subsidy inventories Develop prioritised plans of action for subsidy removal or reform, for implementation in the medium term

The values of nature and economic signals The values of nature are often invisible in markets, to citizens – Business/citizens face the “wrong incentives” - that do not reflect that value of nature. We are running down our natural capital without knowing its value Full cost recovery – water (WFD), timber, etc Polluters paying not society – eg pesticide & fertiliser charges, pollution taxes – eg liability and compensation Rewarding benefits – payments for ecosystem services (PES) • • eg carbon & REDD; eg PES and water for cities; eg HNV agriculture and public goods Eg Fair sharing of benefits – access and benefits sharing (ABS)

Rewarding the respect for nature • Markets of goods and services building on and “respectful” of nature growing – Medicines/pharmaceuticals; Ecotourism; Biotrade – (Certified) products of low impact – forestry, fisheries, organic etc. • No longer fringe market sectors. Being mainstreamed. Supply side • Support certification / labelling / capacity building • Recognition of standards / equivalence • Development of standards and their use/verification. Increase demand side • Minimum standards in purchase decision • Labelling • Green public procurement (GPP) • Voluntary schemes to green the supply chain

Regulation • Regulation remains a fundamental tool to avoid damage to biodiversity – – Requirements for WWT, WM, APC etc ELVs, EQS, BAT, product standards, product rules (PIC), trade rules Requirements for EIA, SEA, IA Habitats and Birds directives • Its timely implementation and enforcement critical Implement existing legislation and measures - WFD, UWWTD, REACH + Natura: MPAs Implement better – eg EIA, SEA & no-net-loss provisions New legislation? - eg for invasive alien species?

Instruments and measures Contributions to natural capital Past loss/ degradation No net loss from 2009 level Halting biodiversity loss Opportunities/benefits of ESS Investment in natural capital +ve change Regulation Better governance Economic signals : PES, REDD, ABS (to reward benefits) Charges, taxes, fines (to avoid degradation/damage: Alternative natural capital Subsidy reform (right signals for policy) Development path Sustainable consumption (eg reduced meat) Markets, certification/logos & GPP Agricultural innovation Investment in natural capital: green infrastructure Predicted future loss of natural capital (schematic) – with no additional policy action 2009 Restoration PAs 2050 `

Thank you Where do you see particular policy needs? Where and how can the private sector help address the challenges? ` For full TEEB for Policy Makers report – see TEEB website http: //www. teebweb. org/ Patrick ten Brink, ptenbrink@ieep. eu IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment in Europe 3/2/2021 19

Annex ` IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment in Europe 3/2/2021 20

TEEB – Final Report June 2010 TEEB D 0: Ecological and Economic Foundations TEEB D 1: TEEB for National and International Policy-Makers TEEB D 2: TEEB for Local Policy. Makers and Administrators TEEB D 3: TEEB for Business TEEB D 4: TEEB for Citizens

TEEB D 1: TEEB for National and International Policy-Makers - Structure Part I The need for action Chapter 1 The global biodiversity crisis and related policy challenge Chapter 2 Framework and guiding principles for the policy response Part II Measuring what we manage: information tools for decision-makers Chapter 3 Strengthening indicators and accounting systems for natural capital Chapter 4 Integrating ecosystem and biodiversity values into policy assessment Part III Available solutions: instruments for better stewardship of natural capital Chapter 5 Rewarding benefits through payments and markets Chapter 6 Reforming subsidies Chapter 7 Addressing losses through regulation and pricing Chapter 8 Recognising the value of protected areas Chapter 9 Investing in ecological infrastructure Part IV The road ahead Chapter 10 Responding to the value of nature

TEEB timeline 2008 TEEB Phase I May 08 Interim report (CBD COP 9, Bonn) 2009 2010 TEEB Phase II Sep 09 TEEB Climate Issues Update (Strömstad) Nov 09 D 1 for policy makers Spring / Summer 2010 D 0, D 2, D 3 & D 4 Final TEEB synthesis & publications CBD COP 10 (Oct 2010, Nagoya, Japan)