Caribbean Large Marine Caribbean Large Marine Ecosystem Project (CLME)Ecosystem Project (CLME)

Valuation of Marine Ecosystem Goods & Services in the Caribbean: A review and framework for future work

Patrick Debels Laverne WalkerRegional Coordinator Senior Project OfficerPatrickD@unops.org LaverneW@unops.org

Foundational capacity building project (co-)financed by GLOBAL ENVIRONMENT FACILITY

(GEF4)GEF Contribution: aprox. US$ 7 million

Start Date: May 2009 End Date: Feb 2014

UNDP/GEFUNDP/GEF

CLME:CLME:Sustainable Management of the Sustainable Management of the

Shared Living Marine Resources of the Shared Living Marine Resources of the Caribbean and North Brazil Shelf Large Marine EcosystemsCaribbean and North Brazil Shelf Large Marine Ecosystems

CLME+ = 2 LMEs: the CARIBBEAN LME and the NORTH BRAZIL SHELF LME26 countries + >10 dependent territories

CLME+ : 3 distinct ecosystem types support the most important fisheries & biodiversity

1. REEFS & associated habitats2. PELAGIC ecosystem3. CONTINENTAL SHELF ecosystem

CLME TDAs:3 ecosystems, 3+1* (key) problems

* “Climate proofing” of actions: robustness + contributions to enhancing resilience

Degradation

ROOT CAUSES OF THE 3 CLME+ ISSUES

ANALYSIS AND ADVICE: DSS

REVIEW AND EVALUATION & MONITORING

IMPLEMENT-ATION

DECISION MAKING

sLMR governance: sLMR governance: ““running” through the Policy Cyclerunning” through the Policy Cycle

7

DATA & INFORMATION

TRANSBOUNDARY DIAGNOSTIC

ASSESSMENTS

PILOT PROJECTS

CASE STUDIES

GOVERNANCE ANALYSIS

IMS-REMPPROTOTYPE

The development of the CLME SAP

Review of ES G&S Review of ES G&S valuation work in the valuation work in the

CaribbeanCaribbean(CERMES & partners)(CERMES & partners) CLME

STRATEGICACTION

PROGRAMME(SAP)

BASIS FOR THIS PRESENTATION:

• Schumann, P. 2011. Wilmington, NC: University of North Carolina Wilmington (CERMES report for CLME RGF case study)

“The Valuation of Marine Ecosystem Goods and Services in the Caribbean”

• Kushner, B., R. Waite, M. Jungwiwattanaporn, and L. Burke, 2012 (Working Paper. Washington DC: World Resource Institute)

“Influence of Coastal Economic Valuations in the Caribbean: Enabling Conditions and Lessons Learnt”

Ecosystem with the most information

Reefs in the Caribbean: 19,000 km2

Net present value: US$ 49.5 billion

Total Annual Net Benefits: US$ 1.85 billion

Fisheries: US$ 391 millionCoastal Protection: US$ 720 millionTourism/recreation: US$ 663 millionBiodiversity value: US$ 79 million

Status of Marine Valuations in the CLME: Coral Reef Ecosystem

Limited valuation studies availableLimited valuation studies available

Existing valuations: focus on provisioning services Existing valuations: focus on provisioning services commercial fisheriescommercial fisheries

Exceptions: analyses of cultural services (tourism & Exceptions: analyses of cultural services (tourism & recreation) - sports fishing & whale watching:recreation) - sports fishing & whale watching:

billfishing - Puerto Rico: billfishing - Puerto Rico: US$US$ 44 million44 million whalewatching - Dominican Rep. (1999): US$ 5.2 Mwhalewatching - Dominican Rep. (1999): US$ 5.2 M shark diving - Bahamas (2007): US$ 78 millionshark diving - Bahamas (2007): US$ 78 million

Status of Marine Valuations in the CLME: Pelagic Ecosystem

Status of Marine Valuations in the CLME: Continental Shelf Ecosystem

Received the least attention

Limited information available

A few studies exist

commercial shelf fisheries (e.g. shrimp)

Analysis of Economic Valuations Studies within the CLME

Economic valuations studies have been limited to:

o nearshore recreation opportunities (protected areas)

Reef valuations: far more attention than other ecosystem types

o reefs in MPAs received particular attention (recreation & tourism)

Caribbean small-scale fishers: highly dependent on reefs for livelihoods

Pelagic & Continental Shelf ES: valuation work = modest compared to the near shore zones

o market values of capture fisheries, offshore recreational opportunities

Summary

• Economic valuation information available on the Caribbean has increased over the last 30yrs

• Over 200 economic studies on monetary value of marine ecosystems exist (MESP)

Yet, the impact of these studies on policy or decision making regarding

ecosystem/marine resources management are not very clear

Analysis of impacts of Economic Valuations Studies

in the CLME

Valuation studies increased awareness about economic importance of marine ecosystems

Very few valuation studies which have directly influenced policy, legislation or investment

o St. Maarten study helped establishing first national parko Belize’s : legal ban on bottom trawlingo Bonaire study > visitor fee setting: sustainably financed MPA

Valuation to guide decision making: to be done on a scale appropriate to the policy question

WRI’s Coastal Capital series: most impact on raising awareness of the economic values associated with coastal and marine resources

A clear policy question

Local demand for valuation

Strong local partnership & stakeholder engagement

Good governance & high transparency

Opportunities for revenue raising

Effective communications & access to decision makers and/or media A clear presentation of methods,

assumptions & limitation

KEY ELEMENTS KEY ELEMENTS forfor

SUCCESFULSUCCESFULECONOMIC ECONOMIC VALUATION VALUATION

application and application and influenceinfluence

MARKET PRICE APPROACH

REPLACEMENT COST

APPROACH

MARKET PRICE APPROACH

COST (DAMAGE) AVOIDANCEAPPROACH

PRODUCTION FUNCTION APPROACH

TRAVEL COST METHOD

HEDONIC PRICING METHOD

CONTINGENT VALUATION

METHOD

REVEALED PREFERENCE

METHOD

BENEFITS TRANSFER APPROACH

META ANALYSIS

ECONOMIC IMPACT

ANALYSIS

ANALYSIS AND ADVICE: DSS

REVIEW AND EVALUATION & MONITORING

IMPLEMENT-ATION

DECISION MAKING

Policy CyclePolicy Cycle

18

DATA & INFORMATION

STRATEGY 2 (Sust. Fisheries):MANDATES

WECAFC

DAI

AAA

DMIMP

RAE

DAI

AAA

DM

IMP

RAE SICA/

OSPESCA

DAI

AAA

DMIMP

RAEOECSGCFI

DAI

AAA

DMIMP

RAE

DAI

AAA

DMIMP

RAE

CRFM

CRFM

DM = Decision-Making IMP = Implementation RAE = Revision & Evaluation DAI = Data & Informatiion AAA = Analysis & Advice

Economic values associated with the pelagic and continental shelf ecosystems remain largely unspecified

Valuation work continues to be absent from a number of countries (e.g. Central America)

Contribution of reefs & other coastal ecosystems to fisheries production, climate regulation and habitat provision largely undocumented

Gaps within the CLME

Economic impacts related to overfishing largely unexplored:

National economies? Employment? Food security? Tourism?

Valuing the cultural and food security benefits of small-scale fisheries

Valuing the research and education contributions of marine ecosystems

Gaps within the CLME

CLME+ SAP: The Strategic Action Programme for the Sustainable Managment of the Shared

Living Marine Resources of the Caribbean and North Brazil Shelf LME

• High-level endorsed 10-year Strategic Action Programme

• Provides a road-map towards sustainable living marine resources management

• Identifies priority Strategies and Actions within the CLME+

• Advance the implementation of EBM/EAF within the CLME+

DETAILED VISION STATEMENT

adequately valued

CLME SAP:6 main STRATEGIES

and 4 sub-strategies

S1 – Protection of the Marine EnvironmentS2 – Sustainable FisheriesS3 – Inter-sectoral Coordination

S4 – EBM, Reef Ecosystems

S4a Spiny Lobster Fisheries S4b Queen Conch Fisheries

S5 – EAF, Pelagic Ecosystem

S5a Flyingfish Fisheries S4b Large Pelagics Fisheries

S6 – EBM/EAF, Continental Shelf

TRANSBOUNDARY DIAGNOSTIC

ASSESSMENTS

PILOT PROJECTS

CASE STUDIES

GOVERNANCE ANALYSIS

IMS-REMPPROTOTYPE

SAP “UMBRELLA”

Exisitng Projects New ProjectsImplementation of new projects under the SAPsupported by the GEF

The “umbrella” SAP for the CLME

PROJECT / PROGRAMME COORDINATION & OVERSIGHT

Way Forward Obtain better understanding of key conditions for valuation influence on decision-makers

Standardized approaches to monitor and evaluate the influence of valuations Identify and build the capacity of “in-country” champions that understand and can communicate with policy makers on economic valuation

Coordinated approach towards future work on valuation in the region among countries and agencies

Identify mechanisms to allow for an increased interest in valuations for the pelagic and continental shelf ecosystems

Thank you

www.clmeproject.org

CLME Project Coordination UnitCartagena, Colombiainfo@clmeproject.org