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

The Future of Wetlands - 40 Years of Global Wetland Conservation International Conference

25 Oct 2011 Finlandia Hall, Helsinki, Finland

© M. Kettunen

Key messages

• Value: nature (inc. wetlands) has socio-economic importance, most of which not reflected by the current economic systems.

• Valuation: valuation can support more holistic decision-making and boost wetland conservation.

• Future opportunities: wetlands can be a ‘green’ in green economy.

Context: the value of nature

© M. Kettunen

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2001- 05 © M. Kettunen

Biodiversity underpins ecosystem services: direct and indirect benefits & resilience

2001- 05

© Guardian


Wetlands & water related ecosystem service

© M. Kettunen © SYKE Kuvapankki © www.clevergreen.co.za ©www.cleanwatertea

m.com

Wetlands need water …

Water (quantity & quality)

needs wetlands …

Wetland ecosystem services: water retention, aquifer recharge water regulation water purification


2001- 05

Wetlands & other ecosystem services

© photos: www.ramsar.org

Agriculture

Subsistence

Aesthetics

Recreation / Bird watching

Carbon storage

Fisheries

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

• Demonstrate biodiversity, ecosystems & their services

have multiple values – to economy, society, communities, 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).

Source: TEEB case by L. Brander & K. Schyut (2010) The economic value of world’s wetlands (benefit transfer) www.teebweb.org

© Photos EEA report

http://www.teebweb.org/

© M. Kettunen

Solutions: how can valuation help?

© M. Kettunen

TEEB approach

1. Recognising value: in addition to its intrinsic value, nature supports all human wellbeing

2. Demonstrating value: in economic terms (qualitative/ quantitative / monetary) to support decision making

3. Capturing value: introduce mechanisms that incorporate the values of ecosystems into decision making

Source: TEEB final synthesis report 2010

Usefulness of economic valuation

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Value plurality Commodity-type values

Ethical / cultural convictions

Monetary easier / more

robust

Monetary valuations more

difficult / less robust

(c) J. Forster (UFZ), redrawn from O‘Connor and Frame (2008) in TEEB Foundations (2010), Chapter 4 .

• Advocacy & awareness raising: examples of benefits lost / costs related to the loss of wetlands

• Concrete support to decision-making: enabling all values of wetlands are accounted for (eg public, non-market values) → identifying trade-offs, making more sustainable decisions

• Wetlands as an investment (eg. restoration): seeing wetlands as green infrastructure that support both biodiversity and ecosystem services

How can valuation help wetland conservation?

Future: wetlands & the Green Economy

© M. Kettunen

Mission: “the conservation and wise use of all wetlands through local and national actions and international cooperation, as a contribution towards achieving sustainable development throughout the world”.

Wise use: “the maintenance of their ecological character, achieved through the implementation of ecosystem approaches, within the context of sustainable development”.

→ A strong and relevant legacy to build on!

The Ramsar convention: a pioneer in conservation & sustainable use of wetlands

Green infrastructure: opportunities for wetlands

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: 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.

• Costs of green infra < Costs of manmade infra

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

©http://conservationvalue.blogspot

.com/2006_05_01_archive.htm


Cost savings: climate change mitigation

• Situation: drainage of 930,000 ha peatlands in Germany for agriculture cause emissions of 20 Mio. t of CO2-eq. per year. Total damage of these emissions amounts to 1.4 billion EUR

• Assessment: peatland restoration considered as low cost and biodiversity friendly mitigation option

• Outcome: Restoration of 30,000 ha peatlands (10%) → emission savings of ~ 300,000 t CO2-eq., avoidance cost of 8 to 12 EUR / t CO2. In combination with alternative land use options (extensive grazing, reed production or alder forest) costs decrease to 0 to 4 EUR / t CO2.

• Costs of restoring green infra < Costs of manmade infra

- Federal Environmental Agency 2007; MLUV MV 2009; Schäfer 2009. See TEEB for local & regional policy makers 2010 -

©http://conservationvalue.blogspot

.com/2006_05_01_archive.htm Restored peatland in Trebeltal 2007

Foto: D. Zak, http://www.fv-berlin.de


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.

• Costs of green infra < Costs of manmade

infra

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


Business opportunities: payments for ecosystem services (PES)

©http://oc.wikipedia.org/wiki/Kampal

a

- 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.p

hp/v/bev/bottled+water/?g2_page=2

Conclusions

© M. Kettunen

Conclusions: wetlands & green economy

Key conclusions

• A ‘truly green’ green economy rests on sustainably managing natural capital, eg. wetlands.

• Ecosystem services provided by wetlands underpin / provide opportunities for green economy.

• Investing in wetlands (green infrastructure) can lead to cost savings, create business opportunities and - if appropriately planned and implemented – provide win-wins for biodiversity and socio-economic development.

Key messages to the Ramsar community:

• There is a need to identify / communicate / capture the value(s) of wetland – to avoid future losses and support restoration.

• Ramsar community is well placed to identify, communicate and ‘market’ the best possible win-wins for biodiversity & ecosystem services.

Starting now: TEEB for Water & Wetlands!

• A joint effort between Ramsar, IUCN Water Programme and IEEP to provide a targeted TEEB synthesis for water & wetlands.

• Case studies, examples and cooperation with Nordic and Baltic countries warmly welcomed!

• For information & cooperation: please contact Marianne

Kettunen ([email protected]) and Andrew Farmer ([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, ecosystem services and nature:putting the ‘green’ into green economy_MKettunen