Why value ecosystem services in impact assessment Why

Why value ecosystem services in impact assessment? Why measure biodiversity values in economic terms? Dr. Vinod B. Mathur Source: http: //www. solcomhouse. com/i mages/coral_reef_florida. jpg Professor & Dean, Wildlife Institute of India, Dehradun vbm@wii. gov. in Pre-meeting training course IAIA ‘ 11 Pueblo; 29 -30 May, 2011

Presentation Outline… ● Concept of ecosystem services. ● Economic valuation of biodiversity. ● Application and limitations of economic valuation.

Physics and Environment: The Connect… ● Law of Physics: You can't make something from nothing ● Everything the economy produces requires raw materials and energy provided by nature ● Law of Physics: You can't make nothing from something ● Everything the economy Source: Joshua Farley Community Development and Applied Economics Gund Institute for Ecological Economics produces returns to nature as waste

Ecosystem Goods and Services… Ecosystem Goods “the material products that are obtained from natural systems for human use” (De. Groot et al. 2002). Ecosystem Services “the conditions and processes through which natural ecosystems, and the species that make them up, sustain and fulfill human life” (Daily 1997).

The Millennium Ecosystem Assessment (MEA) identified four broad categories of ecosystem services: ● supporting services ● provisioning services ● regulating services ● cultural services

Supporting services ● Nutrient cycling ● Soil formation ● Primary production ● Bank stabilisation Source: http: //aslo. org/orlando 2008/images/ osm_reef. jpg

Provisioning services Food and fodder ● Plant and animal products ● ● ● ● http: //www. barry-callebaut. com/1506 www. seedman. com/image/h 102. jpg Genetic material and medicines Timber Fiber, oil Non-living materials Water Ornamental resources e. g. shells, flowers http: //www. africanloft. com/isjatropha-the-new-crude-oil/ http: //hipafrica. org/8 f. jpg Devil’s Claw (Harpagophytum procumbens) used as medicine for hundreds of years in Africa http: //www. galenfrysinger. com/ camels. htm

Provisioning services ● Fish and aquatic animals contribute 17% of animal protein in human diet. ● 65% protein comes from plant cereals, beans, peas, nuts and oilseeds. ● 4 varieties of wheat produce 75% of crop in Canada. ● 4 variety of potato produce 72% of crop in USA. ● Every coffee plant in Brazil descends from a single plant. ● Entire soya bean industry is derived from 6 plants. ● From spices (cinnamon, pepper) to critical medications (aspirin, tamoxifen, quinine, digitalis) have been discovered "accidentally" because plants or animals (Source : World Conservation Strategy, 1980)

Regulating services ● Purification of air and water ● Mitigation of floods and droughts ● Detoxification and decomposition of wastes ● Generation of renewal of soil and soil fertility ● Pollination of crops and natural http: //www. tazapress. com/Landscapes-04. html vegetation ● Biological control of pests and disease vectors ● Stabilization of climate

Cultural ● Aesthetic values ● Recreational values ● Social relations and values http: //2. bp. blogspot. com/_Hkq. Qw 7 RZE_w/Rq. Rgamg. BXVI/AAAAAA AABf. U/ui. LIm. Eiv. XL 4/s 1600 -h/Buffalo+Hills+-+Walking+Safari. jpg ● Education and scientific value

ECOSYSTEM SERVICES PROVISIONNING § Food § Micro-organisms, plant and animal products § Genetic material, biochemicals and medicines § Fuels/energy § Fiber § Non-living materials § Fresh Water REGULATING § Purification of air and water HUMAN WELL-BEING § Being able to be adequately nourished § Being able to be free from avoidable disease § Being able to live in an environmentally clean and safe shelter § Being able to have adequate and clean drinking water § Mitigation of floods and droughts § Detoxification and decomposition of wastes § Generation of renewal of soil and soil fertility § Pollination of crops and natural vegetation § Control of a vast majority of potential agricultural pests § Dispersal of seeds and translocation of nutrients § Maintenance of biodiversity, for agricultural, medicinal and industrial enterprise § Protection from the sun’s harmful ultraviolet rays § Partial stabilization of climate § Being able to use traditional medicine ENRICHING § Spiritual uses and relationship of people to land § Being able to cope against extreme natural events like floods, tropical storms and landslides and water § Aesthetic values § Social relations and values § Education and scientific value § Being able to have clean air § Being able to have energy to keep warm and cook § Being able to continue using natural elements found in ecosystems for traditional cultural and spiritual practices § Being able to make sustainable management decisions that respect natural resources and enable the achievement of sustainable income Economic importance of biodiversity and ecosystem services (Source: Duraiappah, 2002).

Characteristics of Ecosystem Services ● Provided at a given rate over time—we can't use them as fast as we want ● If I use it, you still can (except waste absorption) ● Can't be owned ● Non-market goods— no price signal to Source: Joshua Farley Community Development and Applied Economics Gund Institute for Ecological Economics

● Ecosystem Services and Ignorance Linkages between species and environment largely un-explored ● Impacts of losses not adequately assessed in ecological as well as economical terms

Implications of impaired ecosystem functions and services Case Example The Asian tsunami directed world attention on the role of mangroves in shielding the coast from the impacts of tsunami (Source: M. S. Swaminathan Foundation Research) (Source: Wetland International, 2005)

How developments affect ecosystems functioning ? • • • http: //www. chemicalstechnology. com/projects/sabicandmaaden/ • • Destruction of breeding areas Destruction of coastal ecosystems Destruction of terrestrial habitats Fragmentation of contiguous habitats Introduction of alien and invasive species Over harvesting of biodiversity resources Increased vulnerability to natural disasters (floods, droughts, earthquakes) and the disease Pollution of natural resource http: /news. bbc. co. uk/nolpda/ukfs_ne ws/hi/newsid_4669000/4669260. stm Photo by : Andreas Hauser By Hasan Jamali, AP Photo

Trends in human use and conditions of ecosystem services Carpenter S R et al. PNAS 2009; 106: 1305 -1312

Impact Assessment for mainstreaming biodiversity values into decision-making

Why value ecosystem services in impact assessment ? ● MEA findings showed that human use of ecosystem services is expanding, commensurate with growth in earth’s human population and expansion of consumption ● MEA found that ‘nearly two thirds of the services provided by nature to humankind are found to be in decline worldwide. In effect, the benefits reaped from our engineering marvels of the planet have been achieved by running down natural capital assets’ ● Mainstreaming ecosystem services in impact assessment can aid better decision-making that can take into account the costs and

Global Balance Sheet Enhanced § § Crops Livestock Aquaculture Carbon sequestration Degraded § § § § Capture fisheries Wild foods Wood fuel Genetic resources Biochemicals Fresh Water Air quality regulation Regional & local climate regulation Erosion regulation Water purification Pest regulation Pollination Natural Hazard regulation Spiritual & religious Aesthetic values Mixed § Timber § Fiber § Water regulation § Disease regulation § Recreation & ecotourism Bottom Line: 60% of Ecosystem Services are Degraded

State of World’s Conservation Trends in Drivers Source: Millennium Ecosystem Assessment

1360 SCIENTISTS FROM 95 COUNTRIES SAY THE WORLD IS ON THE BRINK OF DISASTER I’VE ASKED FOR SECOND OPINION A Source: Melbourne, Australia, March 30, 2005

Valuation of ecosystems services aid governance and decision making Global feedback Global ecosystems & services Regional ecosystems & services Global governance Regional feedbacks Local ecosystems Ecosystem Regional governance Local governance services Governance Community well-being Ecosystems & services Individual well-being Governance and ecosystem services are interlinked at multiple scales in a manner that may influence ecosystem benefits and the associated human well-being. Impact Assessment allows assessment of negative and positive influences on such linkages between development and ecosystems services for good decisions Carpenter S R et al. PNAS 2009; 106: 1305 -1312

Benefits of using an ecosystem services framework for impact assessment Information Decision Making Value of ecosystem services Economic Valuation methods Human actions Ecosystem services Ecological production function Allows the analyst to capture the full range of environmental impacts more systematically by linking ecological effects to changes in human welfare. Allows a shift in emphasis from a focus mainly on valuing environmental damage to highlighting the value of changes in the

Retooling EIA for integrating ecosystem services and biodiversity: Best practice initiatives Global Ramsar Convention 2007. Regional

Why measure biodiversity values in economic terms?

The Context… Environmental and natural resource degradation can be caused by both ‘too little’ and ‘too much’ economic development. ● A ‘trade off’ needs to be made between environmental conservation and developmental imperatives. ● This can be achieved by incorporating cost –effective measures to restore, sustain and protect natural systems and maintain environmental quality in all stages of project planning, ●

Why is biodiversity valuable? ● Human well-being is dependent both on strong economy and healthy natural environment. ● Biodiversity is a natural capital on which societies depend for economic growth. ● Biodiversity is also intrinsic to the values of beauty and tranquility.

Why should we value biodiversity? Historically, biodiversity has been ‘undervalued’ in development processes ● Biodiversity is seen as having ‘few’ benefits and its loss is seen as having ‘few’ costs. ● We need to understand what and how biodiversity contributes to economic activity and society? ● We also need to understand what are the benefits and costs of an intervention that alters the ecosystem (e. g. development more… project).

Why should we value biodiversity? ● How are costs and benefits of a change in ecosystem distributed? ● Valuation can put biodiversity in the ‘right’ frame and focus. ● The approach should therefore be to ‘measure’ biodiversity values; ‘market’ these values. ● The biodiversity market will then drive its management towards sustainability.

Costs, Benefits & Conservation http: //biodiversityeconomics. org/

Costs, Benefits & Conservation http: //biodiversityeconomics. org/

Costs, Benefits & Conservation Key Issues ● Who ‘gains’ and who ‘loses’ from a project/ activity? ● How can we ‘re-distribute’ losses and gains? ● How can we connect ‘business’ with ‘biodiversity’?

What does valuation tells us? ● ● It provides a ‘sum-total’ of economic benefits and costs of biodiversity conservation. ● At varying time periods as valuation are not static ● Under differential management and economic conditions ● Under varying landuse and investment options It indicates the ‘status’ of biodiversity. ● ● Whether is being degraded or lost and at what rate? It also points to the need for applying better economic policies and instruments for ensuring human well-being.

Applications & limitations of biodiversity valuation ● It highlights costs and benefits and the ‘cost bearers’ and ‘beneficiaries’ that in the past have been ignored. ● Valuation thus provides a set of tools that enable us to make better and informed decisions. ● Unfortunately, valuations generally tend to underestimate biodiversity values at a large scale as interactions more… are too complex to understand.

Applications & limitations of biodiversity valuation ● When benefits relate to attributes such as human life, cultural or religious ethos, valuations raise ethical question especially when they focus on financial or cash benefits at the expense of other types of values that cannot or should not be valued. ● Many times, valuation studies are not definitive and transferable between groups and locations. They are often based on the perception of a particular group at one point of time and may not be universally valid.

Obstacles in biodiversity valuation ● Lack of data/ information on biophysical environment. ● Methodological constraints as well as accuracy of evaluation techniques. ● Ethical issues relating to valuing environmental impacts in monetary terms. ● Lack of understanding of the

Key message… ● It is relatively easy to spend huge money on valuation and yet get results that may not be useful and precise. ● So…… revisit objective of evaluation, look at time, budget and capacity and strengthen the process.

Thank you….