This document provides an overview of the TEEB (The Economics of Ecosystems and Biodiversity) for Water and Wetlands project. It discusses the critical role that water and wetlands play in supporting human well-being and the economy. However, the values of water and wetland ecosystems are often not fully reflected in decision making. The TEEB for Water and Wetlands project aims to demonstrate the multiple benefits of water and wetlands, communicate these values to key audiences, and engage decision makers to help integrate natural capital values into policies and investments. It emphasizes the need for tools to better measure ecosystem services from wetlands and the importance of recognizing both public and private values when making decisions about land and resource use.
Patrick ten Brink of IEEP TEEB Water and Wetlands introduction 15 june 2012
1. The Economics of Ecosystems and Biodiversity
for Water and Wetlands
A contribution to Rio + 20
Patrick ten Brink
TEEB for Policy Makers Co-ordinator
Head of Brussels Office
Institute for European Environmental Policy (IEEP)
TEEB for Water and Wetlands side event
13:30 to 15:00 Pavilion 3, Room 6
Rio de Janeiro, 15th June 2012
2. TEEB For Water and Wetlands
Presentation overview
1. TEEB & The TEEB for Water and
Wetlands Project
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to manage better
4. Integrating the values of water and
wetlands into decision making
5. Working recommendations:
Transforming our approach to water
and wetlands
6. Next Steps & Panel questions
3. TEEB’s Genesis, Aims and progress
G8+5 “Potsdam Initiative – Biological Diversity 2010”
Potsdam
1) The economic significance of the global loss of biological diversity
Importance of recognising, demonstrating & responding to values of nature
Engagement: ~500 authors, reviewers & cases from across the globe
TEEB End User
Reports Brussels
Interim Climate TEEB W&W
2009, London 2010 TEEB
Report Issues Update Nature & GE
TEEB Books TEEB Oceans
Synthesis
Ecol./Env.
Economics
literature
CBD COP 9 Input to
Bonn 2008 UNFCCC 2009
India, Brazil, Belgium,
Japan & South Africa
Sept. 2010 TEEB studies
The Netherlands,
BD COP 10 Germany, Nordics,
Nagoya, Oct 2010 Norway, India, Brazil
4. TEEB For Water and Wetlands
Critical issues
The “nexus” among water, food and energy has been
recognised as one of the most fundamental relationships
and challenges for society.
Biodiversity and particularly wetland ecosystems are increasingly
understood to be at the core of this nexus.
Indeed water and wetlands are the foundation of the economic
and environmental wellbeing of humanity across the globe.
5. TEEB For Water and Wetlands
“I believe that the great part of miseries of mankind are
brought upon them by false estimates they have made of
the value of things.”
Benjamin Franklin, 1706-1790
"We are living in a water “bubble” as unsustainable and fragile as
that which precipitated the collapse in global financial markets",
concluding that "We are now on the verge of water bankruptcy"
2009 World Economic Forum
6. TEEB For Water and Wetlands
Critical issues – the need to appreciate the values of W&W
The value of biodiversity and ecosystem services are not fully reflected in the
markets, in price signals, policies and investment decisions
Decision making (at company, policy & citizen level) still too often fails to take into
account the local to global benefits, contributing to a loss of biodiversity and
ecosystem services.
Assessing ecosystem service benefits (and links to biodiversity and
ecosystem functions) and identifying who benefits from what natural capital
is critical for policy focus, interest and instrument choice, design and
implementation.
There is a need to improve the economic signals to help take the values of
nature into account – in positive incentives and in reforming incentives
harmful to the environment – as well as regulatory and governance solutions.
This requires action at all governance levels + mainstreaming nature’s values.
There is a need to assess, demonstrate and communicate both the intrinsic value of
nature and the wide range of benefits provided to people, society and the economy
7. TEEB Water and Wetlands project
• Aim to demonstrate the multiple benefits
of water and wetlands
• Communicate the values - at Rio+20,
Ramsar COP11 (Bucharest, July 2012), IUCN
World Congress (Jeju, September 2012) and
CBD COP11 (Hyderabad, October 2012)
• Engage wider community to share
evidence on the multiple values of W&S
• Engage with decision makers - to
understand what instruments can respond
to the value of W&W
• Stimulate research and commitment to
action
8. TEEB For Water and Wetlands
1. TEEB & The TEEB for Water and
Wetlands Project
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to manage better
4. Integrating the values of water and
wetlands into decision making
5. Working recommendations:
Transforming our approach to water
and wetlands
6. Next Steps & Panel questions
9. 2. Wetlands & ecosystem services
• Water and wetland related ecosystem services (ESS)
• Water services essential for wellbeing, society, economy
• Wetlands essential for the water cycle
• Meeting sustainable water management objectives
cost effectively via Wetlands ecosystem services.
• Ecosystem services from Wetlands – multiple
benefits
• Impacts of wetlands degradation on human well-
being and biodiversity
Q: What are the key benefits of water and
wetlands? And which are easier or more difficult
to demonstrate?
• Despite their benefits, the loss of wetlands
continues
Q: What do you see as the main threats to water and
wetlands (including coastal areas)? Are there particular
ecosystems which are at greatest risks?
10. Evidence base - Assessing values and actions
Assessing the value of working with natural capital has helped determine where
ecosystems can provide goods and services at lower cost than by man-made
technological alternatives and where they can lead to significant savings
• USA-NY: Catskills-Delaware watershed for NY: PES/working with nature saves money (~5US$bn)
• New Zealand: Te Papanui Park - water supply to hydropower, Dunedin city, farmers (~$136m)
• Mexico: PSAH to forest owners, aquifer recharge, water quality, deforestation, poverty (~US$303m)
• France & Belgium: Priv. Sector: Vittel (Mineral water) PES & Rochefort (Beer) PES for water quality
• Venezuela: PA helps avoid potential replacement costs of hydro dams (~US$90-$134m over 30yr)
• Vietnam restoring/investing in Mangroves - cheaper than dyke maintenance (~US$: 1m to 7m/yr)
• South Africa: WfW public PES to address IAS, avoids costs and provides jobs (~20,000; 52%♀)
• Germany : peatland restoration: avoidance cost of CO2 ~ 8 to 12 €/t CO2 (0-4 alt. land use)
Critical to assess where working with nature saves money for public (city, region,
national), private sector, communities and citizens & who can make it happen
Sources: various. Mainly in TEEB for National and International Policy Makers, TEEB for local and regional policy and TEEB cases
11. TEEB For Water and Wetlands
1. TEEB & The TEEB for Water and
Wetlands Project
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to manage better
4. Integrating the values of water and
wetlands into decision making
5. Working recommendations:
Transforming our approach to water
and wetlands
6. Next Steps & Panel questions
12. TEEB For Water and Wetlands
3 Measuring to manage better
• A diverse range of tools help identify, demonstrate and take account of the benefits
of water and wetlands
Strategic Plan 2011-2020 Aichi Target 2: By
• Bio-physical assessments
2020, at the latest, biodiversity values have
• Measurement and indicators been integrated into national and local
• Mapping the interrelationships development and poverty reduction
strategies and planning processes and are
• Assessing the value of nature being incorporated into national accounting,
• Plurality of tools as appropriate, and reporting systems.
• Mix of economic and non economic
• Natural capital and environmental-economic accounts (SEEA, WAVES et al)
• Need a culture of assessment and seeing the whole picture
• Useful to have mix of qualitative, quantitative and monetary insights
Q: Are you aware of any initiatives to improve the measurement of the contributions of
wetland ecosystems to society and the economy ?
Q: Are these initiatives being linked to NBSAP revision efforts?
13. Taking account of public goods
…can change what is the “right” decision on land/resource use
US$ Based only on private gain, the “trade- Shrimp Farm
/ha/yr off” choice favours conversion….. Mangroves
$12,392/ha
10000
$9632/ha
After
Adding Storm
Public protection
5000 Benefits
From
mangroves
$1220/ha Fishery
$584/ha nursery
$584/ha
private profits private private
0 profits profits Net of public
less costs of
subsidies restoration
needed
If public wealth is included, the “trade-off” after 5 years
choice changes completely…..
Important that investment / permit / subsidy choices -ve $11,172/ha
take into account the whole picture of the benefits Source: Barbier et al, 2007
14. TEEB For Water and Wetlands
Valuation of ESS from Kampala wetlands, Uganda
Services provided by the Nakivubo swamp include natural water purification and
treatment & supporting small-scale income activities of poorer communities
Problem recognition: Plans to drain the Nakivubo Swamp (>40sqkm) for agriculture
→ Waste water treatment capacity of the swamp was assessed (Emerton 2004)
Assessment: Maintaining the wetlands: ~235.000$ p.a.
Running a sewage treatment facility of equivalent capacity: ~2Mio. US$ p.a.
Policy Solution: draining plans abandoned & Nakivubo Swamps designated as PA
Sources: TEEBCases for TEEB for
local and regional policy
Recognising and demonstrating the values again critical for decision making. Capacity support .
15. TEEB For Water and Wetlands
1. TEEB & The TEEB for Water and
Wetlands Project
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to manage better
4. Integrating the values of water and
wetlands into decision making
5. Working recommendations:
Transforming our approach to water
and wetlands
6. Next Steps & Panel questions
16. TEEB For Water and Wetlands
4. Integrating the values of water and wetlands into decision making
• Policy synergies: Working with nature can be a cost effective way of meeting a
range of policy, business and private objectives.
• water security (see above) and food and energy security (ensuring water security
for agriculture and energy production), poverty alleviation and meeting sustainable
development goals collectively.
• Integrated decision making : valuable tools to respond to the value of
nature
• Spatial planning and regulation Target 3: By 2020, at the latest, incentives,
including subsidies, harmful to biodiversity are
• Investment and management eliminated, phased out or reformed in order to
• Prices, subsidies and subsidy reform minimize or avoid negative impacts, and
• Payment for ecosystem services (PES) sustainable use of biodiversity are developed
positive incentives for the conservation and
and applied, consistent and in harmony with the
Convention and other relevant international
Q: What instruments have worked, where, how obligations, taking into account national socio-
economic conditions.
have they been launched and made to work, and
what benefits have they brought?
17. TEEB For Water and Wetlands
‘We never know the worth of water 'til the well is dry’. ‘
English proverb
‘Men do not value a good deed unless it brings a reward’
Ovid, B.C. 43 – 18 A.D., Roman Poet
18. Hydrological services: Aquifer recharge;
Improved surface water quality, reduce
Solution: Mexico PSAH: PES to frequency & damage from flooding`
forest owners to preserve forest:
manage & not convert forest
Result
Deforestation rate fell from 1.6 % to 0.6 %.
18.3 thousand hectares of avoided deforestation
Avoided GHG emissions ~ 3.2 million tCO2e
Reduce Deforestation Address Poverty
Investment in good spatially relevant data critical to develop an2010); Muñoz-Piña et al. policy instruments 2007
Munoz evidence base for 2008; Muñoz-Piña et al.
19. Multiple Objectives : PSAH Mexico
Aquifers
Balance of priorities varied over time
A
Poverty Water scarcity
P WS
Deforestation
An instrument can evolve and respond to changing needs
D
Munoz 2010); Muñoz-Piña et al. 2008
20. TEEB For Water and Wetlands
1. TEEB & The TEEB for Water and
Wetlands Project
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to manage better
4. Integrating the values of water and
wetlands into decision making
5. Working recommendations:
Transforming our approach to water
and wetlands
6. Next Steps & Panel questions
21. TEEB For Water and Wetlands
5. Working recommendations: Transforming our approach
to water and wetlands
There is a need to put water at the heart of the transition to a green economy and recognise
the critical role of wetlands and water related ecosystems in the water cycle.
• Appreciating and taking account of the values of nature;
• Commitment to fully integrate management of wetlands and secure their wise use;
• Prioritisation for avoiding loss/conversion ;
• Restoration
• Ensuring equitable benefit sharing and social and economic efficiency .
There will be a need for action at all levels and across stakeholders if the opportunities of
working with nature are to be realised and the risks of losses appreciated and acted upon.
Q: What can different stakeholders do to work with nature and people to
realise the benefits of water and wetlands?
22. TEEB For Water and Wetlands
The water-related investment challenge
• Total costs of replacing aging water supply and sanitation infrastructure in
industrial countries alone: ~US$ 200 billion a year (WBCSD)
• Meeting the MDGs: Estimated investment
requirements for water infrastructure to
meet drinking water and sanitation
objectives alone = up to US$ 22 trillion by
2030 (Davidson, 2010)
• “Natural infrastructure” maintenance
and restoration can contribute to this
- though where and to what extent
depends on local circumstances.
What examples do you have of where working with nature offers cost-effective
solution and/or wider benefits to communities, society and the economy ?
23. Working for Water (WfW): SA
The Manalana wetland (near Bushbuckridge, Mpumalanga)
Restoration within wider PES scheme
Sources: TEEBCases for TEEB for local and regional policy
• Severely degraded by erosion that threatened to consume the entire system
• WfW public works programme intervened in 2006 to reduce the erosion and
improve the wetland’s ability to continue providing its beneficial services
Results
• The value of livelihood benefits from degraded wetland was just 34 % of what could be
achieved after investment in ecosystem rehabilitation;
• Rehabilitated wetland now contributes provisioning services at a net return of 297
EUR/household/year;
• Livelihood benefits ~ 182,000 EUR by the rehabilitated wetland; x2 costs
• The Manalana wetland acts as a safety net for households.
Sources: Pollard et al. 2008; Wunder et al 2008a; http://www.dwaf.gov.za/wfw/
Recognising and demonstrating the values and potential for increased value critically important.
24. TEEB For Water and Wetlands
1. TEEB & The TEEB for Water and
Wetlands Project
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to manage better
4. Integrating the values of water and
wetlands into decision making
5. Working recommendations:
Transforming our approach to water
and wetlands
6. Next Steps & Panel questions
25. TEEB For Water and Wetlands
Next Steps …is this enough to work ou
what to do?
The TEEB for W&W: from Rio, to Ramsar COP11 in Bucharest, and
CBD COP11 in Hyderabad in October 2012.
TEEB for Water and Wetlands initiative aims to reflect the different
perspectives, practice and experiences from across countries and
stakeholders on water and wetlands from around the world.
…always better to look at
the whole board
And engage the full set of
players
Call for Case Studies!
Please do communicate case practices and insights as this will help reflect interesting practices
from around the globe in this work.
Comments on this briefing, answers to the questions and cases examples please send to Patrick
ten Brink (Ptenbrink@ieep.eu) or Dr Daniela Russi (DRussi@ieep.eu)
For further information on the initiative write to Dr Andrew Farmer (AFarmer@ieep.eu).
Please add “Water and Wetlands” in the subject line in any communications
26. TEEB For Water and Wetlands
Panel questions & discussion
Q1: What are the key benefits of water and wetlands? And which
are easier/more difficult to demonstrate?
Q2: What do you see as the main challenges for water and wetlands
in the transition to the green economy? Barriers, gaps, opportunities
and drivers.
Q3: Who can do what to work with nature and people to realise the
benefits of water and wetlands? And what is the one thing you
would do?
27. Thank you
TEEB Reports available on http://www.teebweb.org/
See also www.teeb4me.com
Patrick ten Brink
ptenbrink@ieep.eu
IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of
policies for a sustainable environment. www.ieep.eu
See also IEEP’s award winning Manual of European Environmental Policy
http://www.ieep.eu/the-manual/introduction/ http://www.europeanenvironmentalpolicy.eu/