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TEEB An Introduction Bogota, 29 th Feb 2012 Pavan Sukhdev McCluskey Fellow 2011, Yale University Founder & CEO, GIST Advisory Study Leader, TEEB

TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

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Page 1: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

TEEB – An Introduction Bogota, 29th Feb 2012

Pavan Sukhdev

McCluskey Fellow 2011, Yale University

Founder & CEO, GIST Advisory

Study Leader, TEEB

Page 2: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Private “Profits”, Public Losses Shrimp farms in South Thailand

Mangroves

Shrimp Farm

private

profits

less

subsidies

Net of public

costs of

restoration

after 5 yrs

private

profits

10,000

US$/ha

in 1996 private profits

5,000

$584 $1,220

$9,632

$584

-$9,318

$12,392

After adding

public benefits

from mangroves

Data from Barbier (2007)

All values in NPV over 9 yrs (1996-2004) at 10% discount rate

$584 Forest prods. $987 Fisheries

$10,821

Storm protection

Page 3: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Equity and Poverty are important considerations for conservation…

Prof. Joan Martinez Alier defined “The Environmentalism of the poor” as

“an environmentalism of livelihood concerned not only with economic security in the market sphere but also concerned with non-market access to environmental resources”

From :

Page 4: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

“I believe that the great part of the miseries of mankind are brought upon

them by false estimates they have made of the value of things.”

Benjamin Franklin, 1706-1790

Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem..

2. Because addressing losses requires knowledge from many

disciplines (ecology, economics, policy..) to be synthesized,

integrated, & acted upon

3. Because different decision-making groups (policy-makers, local

managers, businesses, citizens) need different types of information

& guidance

4. Because successes need to be understood, broadcast, replicated

and scaled ….

Page 5: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

TEEB (2008-2010) Genesis, Aims, and Progress

“Potsdam Initiative – Biological Diversity 2010”

The economic significance of the global loss of biological diversity….

Importance of recognising, demonstrating & responding to values of nature…

Interim Report

India, Brazil, Belgium,

Japan & South Africa

Sept. 2010

TEEB

Synthesis

CBD

COP11

India

National

TEEB

Work

Sectoral

TEEB

Work

Business

Externalities

Work

Rio+20

Brazil

Climate Issues

Update

Ecol./Env. Economics literature

G8+5

Potsdam

2007

TEEB End User

Reports Brussels

2009, London 2010

CBD COP 9

Bonn 2008 Input to

UNFCCC

2009

BD COP 10 Nagoya, Oct 2010

TEEB

Books

Page 6: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

TEEB’s perspective on Valuation… 1. Recognizing value: a feature of all human societies

and communities… needs no economic models, no „cost-benefit analysis‟

2. Demonstrating value: in economic terms, to support decision making, but without any financial payments

3. Capturing value: through mechanisms to incorporate the economic values of ecosystem services, with financial payments

Page 7: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Norms,

Regulations

& Policies

Markets

Economic

Mechanisms

Recognizing

value

Demonstrating

value

Capturing

value

Regional Plans

Legislations

PES

Certification

PA Evaluation

TEEB perspective on Valuation

Ch.4 Ch.5 Ch.3 Ch.3

Page 8: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Case Study : Integrating ecosystem services into

land use plans in Baoxing County, Sichuan, China

REGIONAL PLANS

An ecosystem service mapping and

modeling tool (InVEST) used to plan

development zones that avoid areas of high

ecosystem service provision and

conservation importance

Developments were reconsidered by local

government officials during the making of

the next Baoxing County Land Use Master

Plan 2010 where mapping had highlighted

that activities were planned in areas of

several critical ecosystem services

Page 9: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Case Study : Tubbataha Marine Park, Philippines UNESCO World Heritage site, contains 396 species of corals & has higher

species diversity per square metre than the Great Barrier Reef

LEGISLATION

After1998 Bleaching –

Stakeholders meeting

“No-take” areas agreed, & later,

President passed the Tubbataha

Reefs Natural Park Act in 2010

( 10 mile buffer zone around the

no-take marine reserve) thus

increasing Park by 200%

10% annual increase in live

coral cover.

fish biomass is four-folds better

than the average healthy reef

Page 10: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Case Study : Kampala Wetland Services provided by the Nakivubo swamp include natural water purification

and treatment & supporting small-scale income activities of slum dwellers

P. A. EVALUATION

Ecosystems services provided

by the swamp equal USD 1

million -1.75 million / year

If the swamp is converted then

additional investment into a

sewage treatment plant would

be required with running costs

of over USD 2 million / year

(Nakivubo designated a part

of the city‟ s greenbelt zone)

Page 11: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Case Study : „Satoyama‟ Landscapes 75 - 100% reduction in pesticides, traditional winter flooding rice

farming adopted, & White Stork rice & other certified products sold

at a “premium”

PES

2003 - 2007: farmers paid 40,000 JYen per 1,000m2

of rice paddies .Currently granted 7,000 JYen per

1,000m2 by Toyo-oka City

CERTIFICATION

Rice sold at 23 % higher rate for reduced pesticide

use, and 54 % more for organic farming

Konotori no Mai / Flying Oriental White Stork

White Stork habitat increased from 0.7 ha in 2003 to 212.3 ha

Extinct in 1971, now has over 40 breeding pairs

1 billion JPY annually in tourism, & municipal income raised by 1.4 %

Page 12: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

TEEB Case Studies on the Environmental Atlas http://www.eea.europa.eu/atlas

Page 13: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Community forest management is a successful avenue to provide health and family planning services as well as relieving environmental pressure in the Khata area of the Terai region in Nepal.

NEPAL Click to access

case study

Selecting a case study : go for “key message”

Page 14: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Community forest management is a successful avenue to provide health and family planning services as well as relieving environmental pressure in the Khata area of the Terai region in Nepal.

NEPAL Click to access

case study

Further case detail can be downloaded

Page 15: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

India launched a national TEEB in Feb 2011, the Indian Institute of Forest

Management (IIFM) in Bhopal is coordinating this study, and an interim report is

expected for CBD COP-11, Hyderabad

Brazil is working on a national TEEB study led by the Ministry of Environment &

Brazil‟s Institute of Applied Economic Research (IPEA), and supported by UNEP,

Conservation International, and others. In addition to the federal level TEEB,

several states have also expressed interest in „state‟-level studies, and a „TEEB

for Business‟ study was launched last month in Sao Paolo.

Lithuania is undertaking a pilot study called “Lithuanian ecosystem services

inventory and valuation”

Georgia, Estonia, Slovakia, Luxembourg and Nepal have expressed interest

in national TEEB studies, and are in touch with the TEEB Office for facilitating

these studies

One Year Since Nagoya….

Page 16: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

• Nordic TEEB - The Nordic Council of Ministers is undertaking a TEEB Nordic study on the “State and Economics of the Key Ecosystem Services in the Nordic Countries” (Finland, Sweden, Norway, Denmark, Iceland and the Nordic islands), to be completed by Rio+20

• United Kingdom – published an economic assessment of natural capital & ecosystem services (see http://uknea.unep-wcmc.org ) similar to a “Country TEEB” study, & a Natural Capital Committee was announced in their Natural Environment White Paper.

• Norway, in March 2011, decided to establish an official committee to review the values of ecosystem services in Norway, and this work has begun.

• Germany is preparing four national TEEB studies, to be prepared by UFZ and delivered by 2015 (TEEB & Climate Change, TEEB for rural areas, TEEB for cities, and a TEEB-Deutschland Synthesis)

• Netherlands launched a TEEB NL with sectoral emphasis on regional landscapes, trade flows, cities, SME‟s and geographical focus on the Bonaire, St. Eustatius and Saba.

• Korea set up a TEEB Korean Committee in February to introduce TEEB and its related activities in the Republic of Korea at national and local levels

One Year Since Nagoya….

Page 17: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Sectoral & Biome Studies

• TEEB for Cities - August 2011, the “TEEB Manual for Cities – Ecosystem Services in Urban Management” was released by GTZ, ICLEI & IUCN to address the specific needs of local policy-makers in urban areas.

• TEEB for Water and Wetlands - A synthesis report is being developed by the Ramsar Secretariat/ Ramsar Scientific & Technical Review Panel (STRP) on freshwater bodies and wetlands to inform & encourage public and private engagement for their conservation and sustainable use.

• TEEB for Oceans - a think-piece is being developed by GRID-Arendal for P. Sukhdev‟s address at the Economist Intelligence Unit‟s World Oceans Summit in Singapore, February 2012

• TEEB for Agriculture – a proposal is being considered to launch a study of the economic impacts of ecosystems on agricultural productivity, and conversely, of the impacts of agricultural practises on biodiversity

One Year Since Nagoya….

Page 18: TEEB An Introduction · Benjamin Franklin, 1706-1790 Why TEEB ? 1. Because the Economic Invisibility of Nature is a Problem.. 2. Because addressing losses requires knowledge from

Thank You !

www.teebweb.org

www.teeb4me.com