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Underpinning research VNN Valuing Peatlands project Links between management, function and flows of ecosystem services and their value in uplands Implications for upland agri-environment schemes Pressure-response functions can cost-effectively show how climate regulation & other services are likely to respond to multiple pressures
Underpinning research Process 1 Pressure 1 Ecosystem service Process 1 Value (£) Pressure 2 Process 1 Ecosystem service Process 1 Pressure 3 Important for managing & valuing multiple upland services…
Underpinning research Developing place-based approaches for Payments for Ecosystem Services in the English Uplands Cost-effective vegetation based proxies for changes in GHG flux post-restoration to underpin future code Feasibility of place-based PES schemes that bundle/layer carbon with other services
Underpinning research NERC internship with Viki Hirst, Charles Cowap, Mark Reed & South West Water Bundling carbon & biodiversity in a new scheme to run alongside existing clean water scheme Exploring pricing, payment & contractual issues
Payments for Ecosystem Services Best Practice Guide 1. Identify PES opportunity10. Identify opportunities for multiple-benefit PES 2. Identify potential PES Implement and actors 9. review PES Identify ES Monitoring, evaluati agreements on & review prospects, pote 3. Assess the ntial buyers prospects for trade and sellers 4. Establish appropriate 8. Formalise the Negotiate institutional set up PES scheme agreements Resolve institutional, legal & technical 5. Address legal issues issues 7. Develop „win- win‟ markets 6. Address technical issues
Visitor Payback for ES Potential of VP to elicit PES from the public? Suite of smart phone apps for Lakes plus VP module 4 investment (not offset) options including peat restoration Interactive maps to learn more
Peatland carbon: in demand Legislative targets Climate (Kyoto Protocol & national legislation) Biodiversity (many peatlands in poor condition designated under UK and EU legislation) Water quality (Water Framework Directive)
Peatland carbon: in demand Market demand for UK land-based carbon reduction: 1-10M tonnes p.a. (BRE, 2008) Woodland carbon code secured 1 million tonnes of CO2 through projects covering 2733 ha in first year Premium for local carbon with co-benefits £8B p.a. corporate carbon accounting for FTSE100
Demand could increase if: Co-benefits can be quantified and either bundled or layered with carbon schemes Benefits can be counted in company carbon accounts under GHG Accounting Guidelines There is effective regulation of UK peatland carbon projects to ensure benefits are: Additional Verifiable Avoid trade-offs with other ecosystem services
Supply Restoration & manage- ment of upland and lowland peats can deliver significant carbon savings over the long-term
Supply Peatland restoration is approximately equivalent to the carbon benefit provided by woodlands Assuming 1km2 restoration delivers 250 tonnes CO2 savings per year, 30 km2 bog rewetting could deliver 0.75 million tonnes CO2 saving over 100 years Plentiful supply: >80% UK deep peats damaged Potential for 1.8M ha UK rewetting
UK Peatland Carbon Code Develop a UK Peatland Carbon Code to: Open, consistent, credible and verifiable basis for good practice peatland restoration Register to account for projects & avoid double counting Standards to ensure projects are of high environmental quality & genuinely additional Technical guidance to calculate emissions savings
UK Peatland Carbon Code Option to include peatland restoration in official carbon accounting to become “carbon neutral” Greenhouse Gas Accounting Guidelines Not possible to trade this carbon Government could count it towards Kyoto targets if we opt in to Wetland Rewetting & Drainage under Article 3.4 Kyoto Protocol
UK Peatland Carbon Code If also designed to meet the requirements of the Verified Carbon Standard: Peatland Code would be cheaper alternative, better tailored to the UK context, that would still provide investors with confidence Possible to generate tradeable carbon credits for voluntary carbon market (and compliance in future?) Similar to UK Woodland Carbon Code & German MoorFutures: we can learn from their experience Export expertise to develop similar peatland regional markets elsewhere internationally
Targets under WFD & Habitats Directive Legislative targets UK climate targets Funding Kyoto targets Co-benefits GHG change from peats UK opt into WDR damaged/restored since Art 3.4 Kyoto 1990 in GHG inventory Climate regulation Private Government CAP Rural Re-wetting/conservation Development eg Agri-environment Peatland CRUsPeatland carbon markets Changes to REDD & Peatland Art 3.4 VCS AAUs EUETS & JI accred- Compliance C market Value of carbon itation Voluntary C market outweighs accreditation & other costs Regional Carbon Market Higher uptake if carbon accounting Peatland becomes mandatory Corporate Social across all sectors UK Peatland projects used in Responsibility Carbon Code corporate C GHG Accounting accounting Guidelines integration Underpinned by robust scientific evidence and monitoring, overseen by a science panel
Next steps Developing metrics DEFRA PES Pilot with German MoorFutures and learning from UK Woodland Carbon Code Plan to launch draft code for CSR (not offset) investment July 2013 Market research to tailor the code to needs of the market
Next steps Consider for inclusion in Defra/DECC GHG Accounting Guidelines for corporate carbon accounting Option to trade on voluntary C markets if prices increase
Conclusions Peatland carbon markets are coming soon – we want to work with people across the sector to devise effective ways of regulating and paying Opportunities to bundle payments for carbon with existing PES schemes e.g. for clean water, and to bundle other services with carbon schemes to get premium prices
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