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Putting a Price Tag on Ecosystem Goods and Services

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Putting a Price Tag on Ecosystem Goods and Services

  1. 1. Natural Capital and Valuing Ecosystems Goods and Services Enrique “Ricky” Nunez Country Executive Director Conservation International Philippines Foundation, Inc. February 2, 2017 Puerto Princesa, Palawan.
  2. 2. CI focuses on securing the reservoirs of natural capital that sustain humanity “people need nature to thrive”
  3. 3. our goal: lasting human well-being fresh water | food | climate resilience | livelihoods
  4. 4. Natural Capital and Natural Capital Accounting Natural capital is commonly defined as the extension of the economic notion of capital to nature: the stocks of natural assets (plants, animals, water, soils, minerals) that yield a flow of renewable and non-renewable goods and services. Natural capital accounting (NCA) refers to the measurement of stocks of natural resources (both renewable and non-renewable) and the flows of benefits they provide. NCA seeks to capture and integrate the contribution of nature into the systems that the public and private sectors use to make decisions.
  5. 5. CI’s Natural Capital Accounting Strategy Empowering businesses and governments to integrate the value of nature into their decisions
  6. 6. Valuing Ecosystems Services Overview 1. What is the relationship between people and nature? 2. What do ecosystems services provide? 3. What are the threats and impacts facing ecosystem services? 4. What are some approaches for managing ecosystems? 5. CI’s ES initiatives and why value ecosystems services?
  7. 7. How have you used natural resources today?
  8. 8. What is the relationship between people and nature?  Direct relationship (easy to see):  Natural resources come from inside of (or very close to) the community and are gathered directly by community  Fishing as food source  fresh water for drinking  forest materials for building  local plants for medicine
  9. 9. What is the relationship between people and nature?  Indirect relationship (more difficult to see):  Natural resources that people rely on come from outside of the community and/or are not gathered by the community  Fish imported from another area  River water collected near the coast that has been cleaned by forests upstream
  10. 10. What is an ecosystem?  An ecosystem is a group of plants and animals that live together in a specific place that has a particular environment that enables them to survive.  The environment is the characteristics of the surrounding area, for example soil, rocks and water.  Ecosystems provide essential services for people all over the world.
  11. 11. What are ecosystem services? Ecosystem services are the resources and processes that nature provides which benefit people and their livelihoods, or means of support and subsistence.
  12. 12. Regulating  climate regulation, disease regulation, water purification,… Cultural  aesthetic, spiritual, educational, recreational,… Provisioning  food, fresh water, wood and fiber, fuels,… Supporting  e.g. photosynthesis, soil functions, nutrient cycle,… Source: Millennium Ecosystem Assessment (2005) The concept of ecosystem services: services provided by ecosystems that benefit people
  13. 13. What are ecosystem services? Services that:  provide food, water, timber, and medicines for daily needs;  support economic development, such as non-timber forest products, logging, fisheries, tourism, and hydro-power;  control climate, floods, disease, wastes, and water quality;  support processes such as providing nutrients to soil and aquatic systems and pollination; and  cultural services that are a source of beliefs, traditions, and also enjoyment.
  14. 14. What are ecosystem services?  Everyone benefits from ecosystem services whether you live in a rural or urban community. Different ecosystems provide different services.
  15. 15. What ecosystem services can the forest provide for this man?
  16. 16.  Forest Services:  protect against erosion,  maintain watersheds by absorbing and storing rainfall,  provide habitat for insects and other wildlife that help to pollinate plants,  maintain cloud cover - creating a cooling effect and increasing rainfall as well as supporting drinking water and crops, and  provide alternative livelihood resources, building materials and food supplies, and medicines.
  17. 17. Nature is Speaking… Can you identify the services and what values do they provide? -Natureisspeaking.org.ph
  18. 18. Silonay Mangrove Conservation Area Calapan City in Oriental Mindoro
  19. 19. Silonay Mangrove Conservation Area Calapan City in Oriental Mindoro
  20. 20.  Mangrove Services :  help to protect shorelines from erosion due to sea level rise and storms,  provide fish habitat,  protect against flooding, and  help keep saltwater out of fresh groundwater systems.
  21. 21.  Coral Reef Services :  protect against flooding and erosion from storm surge in many regions,  Maintain and provide important fishery habitat,  Provide fish and marine species breeding grounds.  Provide source of tourism income
  22. 22. There are more ecosystems and many more services that they provide.
  23. 23. What threats and impacts ecosystem services face? Natural Threats and Impacts? Human Impacts?
  24. 24. What impacts are ecosystem services facing?  Natural Impacts  Earthquakes  Volcanic eruptions  Tsunamis  Storms • Human Impacts – Pollution – Over-fishing and over-hunting – Unsustainable development – Climate Change
  25. 25. What are some approaches and tools for managing ecosystems? The MPA and Enforcement Networks in the VIP --- Sulu-Sulawesi Seascape ---
  26. 26. What are some approaches and tools for managing ecosystems? Community Managed Forests
  27. 27. Ecosystems Services in development planning
  28. 28. Why focus on IES in development planning?  Explicit recognition of the contribution of ecosystems to human well-being.  Visible and understandable connection between nature and different sectors; path to a more sustainable and green economy.  Helps us identify and understand different dependencies and impacts of human activities on ecosystems.  Identification of winners and losers.  Identification of economic risks and opportunities. 01.02.2017
  29. 29. • An approach that systematically assess, value and integrate ecosystem services in planning and decision making. • It recognizes the links between nature and development. It considers the environmental and economic trade-offs associated with development measures and helps to systematically incorporate ecosystem service- related opportunities and risks into the planning and implementation of strategies. • It is designed to support advisors, project staff and development planners to integrate ecosystem services into the design and review of development plans, sector-specific and spatial planning, environmental and climate assessments, as well as into project development and proposal formulation. Integrating Ecosystem Services into Development Planning and Decision Making.
  30. 30. Do ecosystem services have have values? Why value?
  31. 31. • missing or imperfect markets (benefits are not marketed) • market failures (e.g. non-excludable/externalities/asymmetric information) • Inform/influence policy: • making the economic case for investing in nature conservation • modifying cost-benefit calculations and economic/growth indicators to account for biodiversity & ecosystem services • identifying opportunities to “capture” income and incentives for conservation • identifying needs for more equitable benefit-sharing and cost-sharing with stakeholders • calculating prices, charges and fees for PA utilisation & ecosystem services • costing & charging environmental damage, penalties and fines Why do valuation?
  32. 32. Defining the scope Screening & prioritizing Identifying conditions & trends Appraising institutional & cultural framework Preparing better decision- making Implementing change1 2 3 4 5 6 IES Six – Step Approach Recognizing the Value Demonstrating the Value Capturing the Value Reduce negative Impacts on ES Reduce Dependence on ES Increase Provision of ES
  33. 33. Total economic value approach Use value Non use value Direct use value Goods and services used directly Provision Cultural, recreation Indirect use value Goods and services used indirectly Regulation services Option value Potential use by the next generation Bequest value Importance for next generation Existence value Related to the existence of ES Supporting services (habitat for species) Easier to value Harder to value
  34. 34. CI-P’s Ecosystems Services and ES Valuation initiatives  Mapping of Ecosystems Services as contribution to PA Masterplan development  TEV of MMPL and Endowment Challenge Fund Capitalization  Quirino Forest Carbon Project – completed validation and verification  Cost Effectiveness of Coastal Protection Services in Silonay Mangrove Forest Conservation and Ecotourism area – An EbA to CC intervention  National Blue Carbon Technical and Policy Working Group
  35. 35. How valuable is the Mt. Mantalingahan Protected Landscape Presidential Proclamation 1815 23 June 2009 120,457 hectares 2013 Best Protected Area showcasing Civil Society Partnership
  36. 36. Natural Capital of Mt. Mantalingahan Forest cover: 79% 11 forest types Plants: 920 species Mammals: 35 species Birds: 129 species Reptiles: 30 species Amphibians: 14 species Globally threatened: 23 species New Discoveries: at least 11 species (both flora & fauna) Saccolaimus saccolaimus Pin-tailed parrot finch Erythrura prasina Coelogyne Palawan soft-furred mountain rat Palawanomys furvus © CI Phils © CI Phils© CI Phils Medinilla sp. © CI Phils © CI Phils
  37. 37. Total Economic Value: US$ 5.6 B 1. Direct Uses  Water, Timber  Occupants’ land-based livelihood,  Occupants’ river-based livelihood, Ecotourism 2. Indirect Uses  Carbon stock, Soil conservation, Soil fertility maintenance, Watershed and biodiversity functions  Protection of coastal & marine ecosystems  Ecosystem services of tropical forests  Recreation Natural Capital of Mt. Mantalingahan?
  38. 38. MMPL Management MMPL is managed by a Protected Area Management Board (PAMB) • composed of 71 members • affirmed by the DENR Secretary • guided by an adopted operations manual
  39. 39. MMPL Management Programs (2010-2020)  Resource Management and Protection  Community Development and Outreach  Tourism and Recreation  Institutional Development, Administration and Fiscal Management
  40. 40. at least US$ 3M (assuming net 5% per annum interest, to cover the minimum annual management expenses) Target Endowment Capital is the first protected area in the country with an endowment fund
  41. 41. US$ 1M challenge capital fund Disbursed October 30, 2016 CI’s Commitment to MMPL endowment
  42. 42. Launch of the Conservation Trust Fund for Mt. Mantalingahan Protected Landscape (MMPL) Palawan, Philippines CI disbursed a grant of US$1 Million to PTFCF (endowment manager) as initial capital for the MMPL Endowment, pursuant to a grant agreement entered into in January 2016. The endowment fund will be launched on October 7, 2016 in Manila. • PA proclaimed in June 2009 • 120,457 hectares • habitat of more than 1000 species of flora & fauna • home to at least 12,000 indigenous Palawan men & women • total economic value is US$5.6B of MMPL • first Protected Area in the country with an endowment fund
  43. 43. Benefits from MMPL Endowment  sustainable financing for adequate and long term protection of the ecosystem services of MMPL such as promoting sustainable ecotourism  livelihood diversification for at least 12,000 indigenous Palawan men and women towards improving their well-being  ensure clean freshwater to all residents of southern Palawan for domestic and agricultural uses  Ensure management effectiveness of MMPL.  stop deforestation and contribute towards carbon sequestration (approx 32MtC)
  44. 44. Cost Benefit Analysis of Ecosystem Based Adaptation: Philippines Case Study
  45. 45. EBA Cost Benefit Study Why ?  Need provide the local and national government evidence based information to include Ecosystem Based Adaptation (EBA) as one of the government strategic approach to Climate Change Adaptation.  Encourage further investment on EBA approaches
  46. 46. Least cost analysis: Results Least cost of implementation and maintenance at US$ 14,887.00 Protection of Existing Mangroves Building a seawall Highest cost at US$ 264,474
  47. 47. Total Economic Value (TEV) Mangroves contribute US$ 174, 000/year to the economy of the community
  48. 48. CONCLUSION  Study indicate benefits that could be translated into economic terms.  Non-market economic valuation methods can help to account for all of the benefits of EbA.  Important to include monetary values of co-benefits, especially with regard to increased mitigation potential, among others  Baseline data is essential to demonstrate achievement of indicators.  Integrated tool (or set of tools) that addresses not only communities’ vulnerabilities but also those faced by local biodiversity and ecosystems.  Integration of ecosystems services in development planning and business decision making.  Maintaining healthy ecosystems results in sustained provision of ecosystem services that will assure human well-being is guaranteed.
  49. 49. healthy ecosystems marine protected areas, species conservation ecosystems services fisheries, carbon sequestration, coastal protection human well-being food security, livelihood opportunities, tourism revenue, protection from storms
  50. 50. Maraming Salamat!