Water and Green Economy_MKettunen

Water, ecosystem services and nature: putting the ‘green’ into green economy

Marianne Kettunen

Senior policy analyst, Institute for European Environmental Policy (IEEP) (London & Brussels) Guest researcher at the Finnish Environment Institute (SYKE) (Helsinki)

Stockholm World Water Week

Water and Green Growth: Examining the Links 23 August 2011 – Stockholm, SE

© M. Kettunen

Outline

• The socio-economic role of nature (biodiversity, ecosystems, ecosystem services & water)

• The Economics of Ecosystems and Biodiversity (TEEB) –initiative

• The ‘green’ in green economy: opportunities for water & nature

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2001- 05 © M. Kettunen

Biodiversity underpins ecosystem services: direct and indirect benefits & resilience

2001- 05

© Guardian

2001- 05 © M. Kettunen Water, nature & ecosystem service

© M. Kettunen © SYKE Kuvapankki © www.clevergreen.co.za ©www.cleanwaterteam.com

Nature needs water …

Water (quantity & quality) needs nature …

Ecosystem services: water retention, aquifer recharge water regulation water purification

TEEB initiative (2008-2010): assessing the value of biodiversity & ecosystem services

• Demonstrate biodiversity, ecosystems & their services

have multiple values – to economy, society, business & individuals

• Highlight the benefits (vs. costs) of protecting nature & natural capital

• Show how to assess the value of bd and ES – and how it can be used

• Show how to integrate these values into everyday decision-making

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Not appreciated by economy !

- Adopted from TEEB Policy-makers 2009 / 2011, based on a presentation by Ben ten Brink -

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Rockström et al. 2009. Planetaring boundaries: Exploring the safe operating space for humanity. Ecology and Society 14(2).

2050 2000

The Global Loss of Biodiversity

- TEEB Interim report 2008 -

(c) L. Braat presentation COP9 Bonn May 2008, based on the work by MNP

2050

The Global Loss of Biodiversity

Green infrastructure: opportunities for water & nature

Cost savings: flood management (regional)

• Situation: The Napa River Basin (California) suffers from frequent flooding.

• Assessment: Levees & channel modification to prevent flooding were deemed unsustainable by the citizens (eg with several negative impacts to water quality)

• Outcome: A comprehensive flood control plan to restore river’s original capacity to handle flood waters was adopted. Significant mitigation of damages and over US$ 1.6 billion savings in flood protection.

• Costs of managing green infra < Costs of damage & manmade infra

- See TEEB for local & regional policy makers 2010 for references -

© Andre Kunzelmann / UFZ


Cost savings: flood management (local)

• Situation: Surface runoff from the city of Nummela (Fin) has been increasing since the expansion of the city, affecting the quality of surrounding water bodies.

• Assessment: Management of surface runoff via ‘natural’ means (eg through wetland restoration) more sustainable and cost effective than manmade solutions. Such approach also brings co-benefits for recreation.

• Outcome: Restoration costs for 1 ha of wetland were 62 000 EUR total (inc. infra for recreation) vs. costs of manmade infra 50 000 EUR / every 100 meters.

• Costs of restoring green infra < Costs of manmade infra

- Hannele Ahponen & Outi Salminen for TEEB Nordic (upcoming) -

© Ympäristölehti 3/2010


Cost savings: waste water management

• Situation: Plans to drain the Nakivubo Swamp (Kampala, Uganda) (>40 km2) for agriculture.

• Assessment: Waste water treatment & nutrient retention capacity of the swamp was assessed. Maintaining wetland (vs. manmade solutions) resulted in benefits worth ~1 – 1.75 million $ / year. Also ~2 million $ / year avoided costs of running a sewage treatment facility.

• Outcome: Plans for draining the wetland were abandoned and Nakivubo Swamps gazetted as protected area.

• Costs of green infra < Costs of manmade infra

©http://oc.wikipedia.org/wiki/Kampala



Cost savings: drinking water management

• Situation: In the Andean region, upstream ecosystems regulate water supply and purify water for downstream users.

• Assessment: Maintaining ecosystems’ natural capacity to maintain and purify water provides a low-cost option for maintaining access to clean, regular water supply.

• Outcome: ‘Water Funds’ was established to compensate upstream land users for managing forest and grasslands in sustainable manner.



©http://conservationvalue.blogspot.com/2006_05_01_archive.htm


Protected areas: benefits for biodiversity & water management

• 1/3 of the world’s 100 largest cities draw a large part of their drinking water from PAs.

• PAs & forests purify water for NY city = US$ 6 billion (total) savings in water treatment costs

• 80% of Quito’s drinking water originate from two PAs

• Venezuela’s national PA system prevents sedimentation that would reduce farm earnings by around US$ 3.5 million/year.


- See TEEB for national & international / local & regional policy makers 2010 for references -


Business opportunities: payments for ecosystem services (PES)


- See TEEB for national & international policy makers 2010 for references -

• Situation: Vittel natural mineral water (FR) depends on high quality water from Vosges Mountains (no pre-treatment allowed by law).

• Assessment: Costs of managing upstream ecosystems in a manner that guarantees continued supply of clean water are lower than the costs of moving the sourcing of water elsewhere.

• Outcome: Farmers upstream are paid to adopt best low-impact farming practises.

• Maintaining green infra → maintaining business opportunities

©http://www.globalpackagegallery.com/main.php/v/bev/bottled+water/?g2_page=2

Conclusions: nature, water & green economy

• A ‘truly green’ green economy rests on sustainably managing natural capital, inc. nature & water.

• Interdependency: quantity & quality of water resources depends on nature ↔ nature depends on quality & quantity of water

• Ecosystem services provide several opportunities for / support to green economy

• Investment in green infrastructure leads to cost savings, creates business opportunities and - if appropriately planned and implemented – can provide win-wins for both water management and biodiversity.


TEEB 2010 onwards: Independent regional / national / thematic assessments

• National TEEB initiatives: TEEB / TEEB inspired ecosystem & ecosystem service assessments in Brazil, India, Germany, the Netherlands, Norway …

• Regional TEEB initiatives: “The State and Economics of the Key Ecosystem Services in the Nordic Countries – TEEB Nordic” (May 2011- May 2012). Funded by the Nordic Council of Ministers and led by IEEP and the Finnish Environment Institute (SYKE)

• Thematic TEEB initiatives / synthesis: TEEB Water & Wetlands (Ramsar, IUCN &

IEEP) TEEB for Cities, TEEB, natural capital & green economy … • For information & cooperation: please contact Benjamin Simmons for UNEP

Green Economy & TEEB global ([email protected]), Marianne Kettunen for TEEB Nordic ([email protected]) and Andrew Farmer for TEEB Water& Wetlands ([email protected])

Marianne Kettunen Institute for European Environmental Policy (IEEP)

[email protected]

This presentation builds on the work carried out in the context of TEEB for National & International / Local & Regional Policy-makers (2009 - 2010)

Thank you

IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for

a sustainable environment in Europe.

See IEEP Manual of European Environmental Policy: http://www.europeanenvironmentalpolicy.eu/

TEEB Reports: http://www.teebweb.org/ Summaries (in range of languages) and chapters

Contribution to Governance solutions - Understanding the value of nature

Book announcement: The Economics of Ecosystems and Biodiversity in

National and International Policy Making now available from Earthscan

TEEB Interim Report (May 2008)

TEEB for Policy Makers (Nov 2009)

TEEB for Business (July 2010)

TEEB for Local Policy (Sept. 2010)

Climate Issues Update (Sept. 2009)

TEEB Synthesis (Oct. 2010)

TEEB Foundations (Oct. 2010)

Edited By Pushpam Kumar (Univ. of Liverpool)

'A landmark study on one of the most pressing problems facing society, balancing economic growth and ecological

protection to achieve a sustainable future.‘

Simon Levin, Moffett Professor of Biology, Department of Ecology and Evolution Behaviour, Princeton University, USA

Edited By Patrick ten Brink (Institute for European environmental Policy, IEEP)

'This work is a landmark. It shows not only that we have been extraordinarily wasteful, destructive and inefficient in our treatment of the natural environment but also how careful analysis and measurement can

help us change our ways towards a more productive and responsible relationship with our environment. It provides a fundamental contribution which shows how careful attention to ecosystems and biodiversity can

help guide our response to the two defining challenges of our century: managing climate change and overcoming poverty.‘

Professor Nicholas Stern, London School of Economics

TEEB reports and TEEB Books

Career

Water and Green Economy_MKettunen