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The Economic Benefits of GIGI Workshop 31 Oct 07
The Two Parts to my Presentation:
# Brief explanation of what the Natural Economy NW Programme is and our progress to date,
# Summary of the findings emerging from the draft Ecotec report on the Economic Benefits of Investing in GI, commissioned by NENW.
What is Natural Economy Northwest?• A three-year partnership programme that
maximises the benefit from existing and new investment in the region’s natural environment - delivering RES Action 113.
• A multi-agency/cross-sectoral partnership resourced by Natural England, the Northwest Regional Development Agency and the SITA Trust.
• The Shared Vision – “A prosperous economic future with a thriving natural environment”.
RES Action 113
Develop the economic
benefits of the region’s natural
economy through better
alignment of environmental activities and
economic gain ……. and
develop a strategy for Green Infrastructure
and Transport Corridors
NENW Programme
• Business Plan sets out several programmes of activity ranging from promotional and influencing activity, training work, engaging with selected demonstration projects to commissioning reports and providing technical support.
• Two key strands of activity are the Natural Tourism Programme and the GI Programme-my focus from here on in.
NENW ORGANISATIONAL STUFF!
• Programme managed by Natural England using funds comprising the clever matching of a SITA Landfill programme with primarily NWDA funding ( with some from NE), which pays for the small staff team, on costs, plus limited budget for pump priming, technical support, monitoring and communications.
• Formal governance is via a small Board representing the key partners.
• Wider NENW Steering Group includes the key stakeholders- NWDA, NWRA, GONW, EnvAg, Forestry Comm., Community Forests and other NGOs, UU, Tourist Boards, Natural England…….
• NENW GI Steering Group includes the above, and has two key roles a) to direct the GI Strand of the NENW prog and b) to enable increasing coordination between the agencies on GI in the Region.
• The NENW Natural Tourism Steering Group provides a similar function for the NENW Natural Tourism Strand.
• The NENW Staff are all seconded to the Programme.
What is Green Infrastructure?
The region’s life support system; a network of natural environment
components and green & blue spaces that lies within and between the
Northwest’s cities, towns and villages, and which provides multiple social,
economic and environmental benefits.
NENW GI ProgrammeNB - NENW Formal start 15 Jan 2007• Ecotec Policy and Economic Benefits Reviews, & City
Greens study, • Grey Infrastructure & Transport Corridors Review• Lancs GI Strategy• Work with the other 4 SRPs on Strategic Approach to
GI (+ support via Reg GIU)• Strategic Funding Review• Advice for Natural Economy Projects re maximising
econ benefits • Regional GI Synergy/Inter–agency Coordination• Selection of 6+ demonstration projects
Parallel activity on Natural Tourism
The Ecotec Report –The Economic Benefits of GI
• Currently being finalised• Been through many iterations,
including extenal review by reps of the NWDA,NWRA, GONW & NENW steering Group
• Based on a thorough literature review
• Identifies 9 categories of economic benefit
• Seeks to make the link to the NWDA’s Tasking Framework & the 2 types of SAV –ie what they have to deliver.
• For each category, encapsulates the benefits, sets out a model or diagram, and then summarises the evidence in a table, citing the references
• Also summarises the context + links to key policies: eg RES, RSS, Sub-regional Econ Strategies, Sustainable Communities (DCLG), Ecosystem Services (DEFRA), Climate Change and the Sub-National Review
NB Economic development budgets tend to be bigger than environmental ones!!
The Economic Benefits of GI
• Flood alleviation and water management• Enhancing quality of place • Improved health and well being • Increased land and property prices • Creating a setting for inward investment• New opportunities for renewable energy production • Improving the tourism, recreation and leisure offer• New employment in land management and biodiversity.• Climate change alleviation
Supporting services The services that are necessary for the production of all other ecosystem services including soil formation, photosynthesis, primary production, nutrient cycling and water cycling.
Ecosystem services and economic benefits
Flood alleviation& water
management
Climate change
alleviation
Land management
& biodiversity
Tourism recreation
& leisureRenewable energy
production
Creating &
setting for inward
investment
Land & property
prices
Improved
health & well beingQuality of place
Provisioning services The products obtained from ecosystems, including food, fibre, fuel, genetic resources, biochemicals, natural medicines, pharmaceuticals, ornamental resources and fresh water;
Ecosystem services and economic benefits
Flood alleviation& water
management
Climate change
alleviation
Land management
& biodiversity
Tourism recreation
& leisureRenewable energy
production
Creating &
setting for inward
investment
Land & property
prices
Improved
health & well beingQuality of place
Regulating services The benefits obtained from the regulation of ecosystem processes, including air quality regulation, climate regulation, water regulation, erosion regulation, water purification, disease regulation, pest regulation, pollination, natural hazard regulation;
Ecosystem services and economic benefits
Flood alleviation& water
management
Climate change
alleviation
Land management
& biodiversity
Tourism recreation
& leisureRenewable energy
production
Creating &
setting for inward
investment
Land & property
prices
Improved
health & well beingQuality of place
Cultural services The non-material benefits people obtain from ecosystems through spiritual enrichment, cognitive development, reflection, recreation and aesthetic experiences – thereby taking account of landscape values;
Ecosystem services and economic benefits
Flood alleviation& water
management
Climate change
alleviation
Land management
& biodiversity
Tourism recreation
& leisureRenewable energy
production
Creating &
setting for inward
investment
Land & property
prices
Improved
health & well beingQuality of place
Flood alleviation and water management
Investment in GreenInfrastructure
Increase in Land andHouse Prices
Reduction in InsurancePremiums
Improvement in thequality of environment
within urban andsemi-urban locations
Reduction in flood riskfor highly populated
areas
Encouragement ofinward investment
Increase in economicactivity, jobs and growth
BENEFIT VALUE
Lower clean up costs forlocal and central
government
Lower costs toEnvironment Agency of
SUDS vs. Hardengineering solutions
Increased canopy cover, increased greenspace and 'soft surfacing' and sustainableurban drainage schemes (SUDS) reduce and control run off, improve absorption rates &provide storage capacity, resulting in less dramatic flood events for urban areas, thereby reducing the costs resulting from increasingly regular 'catastrophic' events.
Quality of Place
Investment inGreen
Infrastructure
Improved quality oflife for residents
Improvedattractiveness of
place forinvestment
Reduction in poorhealth
Increased house andland prices
BENEFIT VALUE
Increasedinvolvement of
local communitiesin ownership and
management
Reducedmaintenance coststhrough community
ownership andmanagement of green
space
New employmentopportunities fromInward Investment
Enhanced GI provides for an improved sense of quality of place, providing opportunities forrecreation,empowerment through community ownership, and visual amenity, improving the attractiveness of a neighbourhood with effects upon property prices, investment, employment opportunities, and social capital.
Improved Health and Well Being
Investment inGreen
Infrastructure
Reduction inobesity levels
Increase in local airquality - reduced
ozone, CO2
Reduction of illnessassociated with
poor air quality e.g.Asthma
Reduction in costs tothe NHS and waiting
lists
Increase in economicactivity and job
productivity
BENEFIT VALUE
Reduction in stressrelated illness
New opportunitiesfor formal and
informal recreation
Reduction inCoronary Heart
Disease andrelated illnesses
Increased Green Infrastructure provides multiple health & consequent economic benefits, through improved air quality, reduced stress levels, increased opportunities for informal &normal physical activity and recreation, all contributing to the reduction of limiting long term illness, and cost to the health services, reducing days lost to industry through illness& improving productivity.
Land and property prices
Investment inGreen
Infrastructure
Higher demand forneighbourhoods withgood access to green
space
Improved naturalenvironments within
urban and urbanfringe locations
Increase in HousePrices
Uplift in land values
BENEFIT VALUE
Improvement to thepublic realm and
urban designNew employment
opportunities
Developing green space and undertaking env. improvements in key locations has significantbenefits for housing and land prices. Proximity to high quality & accessible GI directly impactspositively upon house prices. Greener cities increase visitors and spend on city centre retailand leisure, improving rental values & increasing employment opportunities.
Creating a setting for inward investment
The creation and development of green space and landscaping can encourage and attracthigh value industry and workers. This can provide many benefits to urban areas in terms of improvements in quality of life and an improved green environment can increase opportunities for adding GVA to local economies.
Investment inGreen
Infrastructure
Improved quality of lifeand environment,
encouraging propertydevelopers and investors.
Revitalisation of DUN landon permanent andtemporary basis
Increased Land/Property Prices
Growth in theoccupancy of vacantunits within MarketTowns/Key Service
Centres
Increase in economicactivity
BENEFIT VALUE
Green Business Parksattracting knowledgeeconomy businesses
Renewable energy production
Investment inGreen
Infrastructure
New use for DUNland for sustainable
woodlands
Increase in thenumber of peopleaccessing green
space andrecreation
opportunities inwoodlands
Growth in localaccess to wood,biofuel, charcoal
markets
Reduction in CO2Levels
Increase inproduction ofbiofuels and
biomass
BENEFIT VALUE
New employmentopportunities in
renewable energysector
Opportunities foragricultural sector
diversification
Increased GI provides substantial opportunities to generate and encourage the development of renewable sources of energy. Rural areas and the agricultural industry undergoing structural change are provided with diversification opportunities to supply local markets for biofuels and biomass, which in turn has mitigation effects for climate change through cleaner energy generation and reduced fossil fuel use.
Tourism, recreation and leisure
Investment inGreen
Infrastructure
Increased numbers ofpeople accessing new
woodlands andgreenspace for new
recreationopportunities
“Green Cities” - moreattractive to investors
and visitors
Safeguarding andcreating jobs for thoseemployed in Tourism
sector
Increased economicoutput through Natural
Tourism
BENEFIT VALUE
New urban employmentfrom new visitor
economyGrowth in Natural
Tourism
GI plays a strong role in the generation of new recreation & leisure opportunities and also stimulates economic activity within agriculture, forestry, and public services. The potential to create green spaces within built up areas reconnects urban communities with the land. Greening city centres attracts new visitors, in turn supporting urban retail and tourism sectors.
Land management and biodiversity
Investment inGreen
Infrastructure
Growth in ruraldiversification
opportunities for theLand Based Sector
Improved managementof the countryside
through StewardshipSchemes
Safeguarding andcreating jobs for thoseemployed in the Land-
based sector
Increased economicoutput through Natural
Tourism and NicheMarkets
BENEFIT VALUE
Increased economicgrowth through local
procurement foragricultural sector
GI plays a strong role in supporting direct and indirect employment in agriculture, forestry, land management and conservation industries. The potential to create green spaces within built up areas reconnects urban communities with the land and improves opportunities for local food marketing.
Climate change alleviation
Investment inGreen
Infrastructure
BENEFIT VALUE
Providing Adaption- microclimate control- water management
Enabling Mitigation- carbon sink
- carbon sequestration- O2 production
Improved Local AirQuality
Reduced CarbonEmissions
Local EnergySolutions
Reduced costs toindustry andhouseholds
Delivering ClimateChange Levy Targets
GI provides natural air conditioning for urban areas (adaptation), reducing the need for power consumption for heating and cooling, alongside its contribution towards greenhouse gas absorption (mitigation) and longer term benefits in terms of managing the impacts of climate change.
Commercial development set within GI
Pond balances storm flow
Whole landscape scale benefits of GI
Sustainable drainage system
Motorway
River
Housing
Country park on reclaimed industrial site provides:
• Healthy leisure and exercise• Urban wildlife• Employment
Cycle route on disused railway line
Trees and green spaces in town ameliorate effects of climate change
GI in flood plain helps to manage risk of downstream urban flooding
Upland grazing and moorland drainage scheme slows and reduces run-off
Woodland provides setting for tourism, biofuels and education
Visitor centre In restored mill
Riverside walk
Allotments
Sports pitchesCity Farm run by community
Riding for the Disabled centre on reclaimed brownfield land
Woodland improves air quality and reduces particulates from motorway
GI adds value to adjacent properties
Biomass operation run by social enterprise supplies fuel to power station
Outstanding Issues
• Quantification and the contribution GI makes to GVA - how to compare the contribution investing in differing “bundles” of GI will make to closing the N/S GVA Gap as against other demands on economic development budgets?
• Free riding - how to get all the benefiting agencies, & other beneficiaries (eg the private sector), to invest to secure “their” benefits?
• Who pays to ensure the ongoing underlying ecosystem services - without which…………??
The Economic Benefits of Investing in GI
Tourism, recreation & leisure sectors
enhanced through new green sector opportunities
Renewable energy market development
and new divsrsification opportunities for
landowners & farmers
Creating a setting for inward investment through greening
industrial zones and city centres
Increasing land & property values
Improved health & well-being, reduced
stress, more exercise, healthier environments
Enhanced quality of place & associated
cohesion and equity
Flood alleviation & improved water
management
Climate change mitigation and
adaptation
New land management & bio diversity
opportunities; direct & indirect employment
Green Infrastructure
interventions & investments
ECOTEC (2007)