Potential for PES in the uplands

Mark Reed

Plan Upland ecosystem services Opportunities and barriers for PES in uplands

Focus on carbon Considering water quality and other ecosystem

services

A land of many uses

The Future?

Opportunities for PES1. Climate regulation through carbon

sequestration and storage in peat soils

2. Regulation of water quality

3. Regulation of flood risk

4. Regulation of wildfire risk

5. Cultural ecosystem services

1. Climate regulationPotential to enhance this service: UK’s largest carbon store Losing carbon from degraded peatlands Restoration can stem loss & absorb carbon Short-term CH4 problem, long-term GHG benefit Co-benefits

Market demand Market demand estimated between 1-10M

tonnes carbon reduction p.a. (BRE, 2009) Companies and individuals Companies interviewed more interested in CSR

than tradable credits Pay premium for UK-based carbon from land-

based project that has co-benefits Must meet rigorous, recognise standards

Supply Many land owning organisations want to restore

damaged peatlands but do not have the means Keen to use private investment For example:

National Trust, Country Land & Business Association, National Park Authorities, AONBs

Intermediaries Many exist and have expressed an interest in

carbon sequestration in peatlands Need cost-effective verification and some form

of accreditation e.g. Voluntary Carbon Standard (VCS)

Barriers May not be possible to satisfy additionality

criteria to access voluntary carbon markets Peatland restoration in RDPs

Accessing compliance carbon markets under Kyoto would require legislative changes at UK and EU levels

To count towards Government commitments under Kyoto and domestic climate legislation, all peatlands need to be counted in GHG inventory

One way around this... CSR scheme: private investment in restoration Co-ordinate/integrate with existing schemes?

UELS, Glastir

Conservative analysis: carbon payments could subsidise restoration options by around 20% In some cases, could completely pay for options or

generate surplus Depends on carbon price & restoration costs/access

If in GHG inventory, CSR scheme (no tradable credits) counts towards legislative targets

One way around this... GHG Accounting Guidelines allow UK

companies who have reduced emissions at source to become carbon neutral via offsetting

Consultation on a UK forest carbon code Worth consulting on a peatland code? Initial work done to outline technical, legal,

financial and organisational design of code If consistent with VCS requirements, voluntary

carbon markets remain future option

2. Regulation of water quality Land management (including restoration) can

reduce DOC and POC Benefits for water companies United Utilities (paid by OFFWAT) already

paying for WQ via land managment Interest varies between companies

Those without major DOC problems not interested Those who perceive WQ

legal responsibility of land managers under WFD won’t pay people to keep law

3. Regulation of flood risk Evidence that restoration reduces steam

peakflow and hence may reduce downstream flood risk

Effect is short-lived and once the capacity of the soil to store water has been reached (e.g. following a heavy storm), restoration has little

effect on flood risk

4. Regulation of wildfire risk Restoration raises water table Reduces risk of wildfires burning deep into peat No market for wildfire risk regulation, but may

contribute towards the attractiveness of PES schemes based on carbon or water

5. Cultural Ecosystem Services Hard to monetarise, but options emerging Visitor payback

“Our Man at the Top”: £50K from £2 accommodation surcharge in the Lake District

Spatial planning approaches Section 106 agreements/CIL

Habitat banking: biodiversity credits to offset impacts of development Like for like under Habitats/Birds Directives Given upland designations, unlikely to be significant

Conclusion PES by water companies happening already Possible to overcome carbon scheme barriers? Markets for cultural services at early stage of

development, no markets for wildfire regulation Bundling co-benefits with carbon and/or water

may increase the attractiveness/value of carbon/water schemes