Ecosystems and Food Systems: Valuing the Connection
Mr. Pavan SukhdevCEO, GIST Advisory
Author, ‘Corporation 2020’UNEP Goodwill Ambassador
“True Cost of Food”Sustainable Food Trust
London, 6th December 2013
10.04.23 2Source: Gundimeda and Sukhdev, TEEB for National & International Policy
Indonesia India Brazil
99 million 352 million 20 millionEcosystem service- dependent poor people :
Ecosystem services
Ecosystem services consumed by the poor as a % of “GDP of the poor” :
Ecosystem services as a % of classical GDP :
TEEB (2010) on Ecosystems & Rural Poverty…
QUESTION: So why is this NOT happening?
• Green farming practices have increased yields, especially on small farms, between 79 % (Pretty et al, 2006) and 180 % (FAO, 2009).
• 10 % increase in farm yields => 7 % reduction in poverty in Africa & => 5 % poverty reduction in Asia (UNEP, 2011)
• Approximately 2.6 billion people rely on agricultural production systems for their livelihood (FAO, 2009)
• Of 525 million small farms world wide, 404 million are less than two hectares (Nagayets, 2005)
•Small farms cultivate 60 % of arable land (Herren et al. 2010)
UNEP – GREEN ECONOMY INITIATIVE
The importance of Small Farm yields ….
…. for solving hunger, poverty, & employment
QUESTION: So why is this NOT happening?
Private Profits, Public LossesShrimp farms in South Thailand
MangrovesShrimp 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
Source: Data from Barbier et al (2007)
All values in NPV over 9 yrs (1996-2004) at 10% discount rate
$584 Forest prods.$987 Fisheries
$10,821Storm protection
• Negative externalities of top 3,000 companies estimated at US$2.15 trillion per annum
Source: Trucost for UNPRI, 2010.
Private Profits, Public LossesGlobal Assessment of Environmental Externalities
Source: Trucost for UNPRI, 2010.
Top 3,000 Listed Companies
Negative Corporate Externalities …..
Water Abstraction
Greenhouse Gases
Greenhouse Gases
Natural Resources
Natural Resources
Natural Resources
….. Are Pushing Planetary Boundaries
Four Micro-Policy Reforms for “Corporation 2020” to become the new “DNA” of Business:-
Source: Why Corporation 2020?, Island Press, 2012
Resource Taxation (Finance Ministries) Replacing Corporation Tax (on Profits) with Resource Taxes
(on Resource Use & Extraction)
Accountable Advertising (Advertising Associations) Two Principles, Four Strategies, & Industry-wise Standards to
make marketing/ advertising responsible & accountable
Leverage Limits (Central Banks)Six reforms to govern & limit financial leverage at the point of
credit extension, not just intermediation
Disclosing Externalities (Accountancy Regulators) Measuring & disclosing all major corporate externalities (+ve
& -ve) using sectoral standards & guidelines
Source:
Corporation 2020’s“Theory of Change”
TEEB for Biz Coalition: Valuing Externalities For Business Sectors / Regions
“TEEB for Agriculture & Food” Background & Rationale
• Role of biodiversity and ecosystem services in agriculture– Nutrient cycling, Soil fertility, Genetic diversity– Pollination, water purification, soil retention
• Dependencies on Nature: well-being, livelihoods, food security, health, development (“GDP of the poor”)
• Impacts on Nature: intensification, expansion, subsidies• Context: Different scales & types of food systems & land use
Website: http://www.teebweb.org/agriculture-and-food/ Email: [email protected]; [email protected]
For Key Research Questions:-
•Global meta-analysis
•Policy-relevance
•Open architecture
•Ecosystem functions: Substance flow analysis
•Costs and benefits: measure, model and map
“TEEB for Agriculture & Food” Research Scope & Approach
Website: http://www.teebweb.org/agriculture-and-food/ Email: [email protected]; [email protected]
• Conceptual framework for evaluating dependencies &
impacts across different scales and systems
• Set of methods and tools for valuation
• Literature review and synthesis
• Range of policy recommendations
• Examples of Success: national and local decision-making
frameworks & processes
Website: http://www.teebweb.org/agriculture-and-food/ Email: [email protected]; [email protected]
“TEEB for Agriculture & Food” Expected Outputs
Thank You !www.teebweb.org
www.gistadvisory.comwww.corp2020.com
Pavan Sukhdev
Founder-CEO, GIST AdvisoryAuthor, Corporation 2020,
& UNEP Goodwill Ambassador
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