Oceans – the lifeline of Humanity. Ecosystem goods and services valuation for BCLME Nico E. Willemse Sr. Project Manager BCLME SAP Implementation Project.

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Presentation transcript:

Oceans – the lifeline of Humanity

Ecosystem goods and services valuation for BCLME Nico E. Willemse Sr. Project Manager BCLME SAP Implementation Project 2 nd African Regional Targeted Workshop GEF IW Projects and Partners, Nov 2012, UN ECA, Addis Ababa

Background Interim Agreement of 2007 – establishment of BCC in Aug 2008, BCLME SAP Implementation commenced in Jun 2009; BCLME SAP endorsed in 2001 – calls for improved understanding of the value of the ecosystem to improve decision making; BCLME Programme was fisheries heavy so need to learn more about non- fishery sectors to better integrate in work of BCC Increased interest in use of the ecosystem – esp. minerals exploration and production, increased transport and port expansion, increase in tourism and increase in coastal populations.

From Management Board to… New structures – to be established in 2012 CHIEF FINANCE OFFICER

BCLME goods and service valuation Partial Cost-Benefit Analysis (CBA) completed for formal sectors where economic data is collected regularly by authorities and industry – does not look at informal sectors which are data deficient; Focus on direct use values or provisioning services given the time and resources for the assignment; Initial valuation based primarily on data accessible via national, regional and international databases with little data from governments; Sectors/ activities included 1) biodiversity, 2) fisheries, 3) marine recreational activities, 4) mariculture, 5) oil and gas, 6) coastal marine mining, 7) desalination and 8) ports; (next slide) All activities take place in Namibia; for South Africa all except desalination and for Angola all except desalination and coastal marine mining.

Process and Results Inception meeting where stakeholders agreed on what to value; Consultant compiled info on specific data needs for each country; Project and consultant embarked on data collection – very poor responses from countries given they asked for it!!! Consultant accessed some data via databases and compiled a draft report; Valuation output was presented in Jun 2012 especially to demonstrate data needs; Consultant revising the initial valuation as data is received from the countries Partial economic values; direct output of US$54,3 billion/ year; wage income of US$39 billion/ year. Accurate data may provide a higher estimated value – available in Q1 of 2013

Fisheries (1) Commercial, Subsistence and Artisanal Fisheries (1) Commercial, Subsistence and Artisanal CountryDescription ANG Important commercial, subsistence/ artisanal and recreational – 3 rd largest after oil and diamond mining 50% - total protein, of total revenue from prawns, of total revenue from fish exports Food and employment – main source of livelihood for coastal people NAM Industrial with not small-scale – lobster fishery reduce to SSF scale – no policy 90% - exported Employs >14,000 people and 3 rd largest i.t.o. GDP SA >90% of total fish taken from BCLME; employs >26,000 people Coastal people depend directly and indirectly on fish Demersal fishery most important – 80% of total fishery value

Fisheries (2) Commercial, Subsistence and Artisanal Fisheries (2) Commercial, Subsistence and Artisanal Total economic value of US$2.2 billion per annum

Marine aquaculture (1) CountryDescription ANG Tilapia (from Brazil) and torpedo-shaped catfish main species Two main companies employ total of 64 people; 1 manager, 34 labourers and 29 field workers Priority development activity for Angola with lot of potential NAM Blue mussel, European flat oyster, Gracilaria seaweed, Mediterranean mussel, Pacific cupped oyster and abalone Eight companies that employ close to 500 people – sector growth has been slow and limited bays to expand mariculture SA Abalone, black mussel, oyster, prawn, finfish and seaweed with abalone the most important of these in terms of volume and employment No figures reported on employment

Total economic value of US$49.9 million per annum Marine aquaculture (2)

Oil and Gas (1) CountryDescription ANG Sonangol is the sole concessionaire for exploration and production Crude oil refining capacity of 40,000 barrels per day and plans to increase to 200,000 bpd by 2013 – 80% of products to be exported 2 nd largest producer in sub-Saharan Africa with majority exported Significant volumes of liquefied natural gas (LNG) million m3in km of gas pipelines and 87 km of oil pipelines, installations to fuel offshore, 4 main terminals for exports and for domestic supply NAM No crude oil and natural gas production Increased interest for exploration by major foreign nationals SA No significant crude oil production – 191,100 barrels per calendar day (bbl/day) in 2010 Largest natural gas-to-liquids plant in the world with capacity of 45,000 bbl/day 4 refineries and 3 synfuels plants on BCLME side 400,000 bbl/day plant under development to operationalise in 2012

Total economic value of US$303 billion per annum Oil and Gas (2)

Coastal marine mining (1) CountryDescription NAM Diamond mining is largest economic contributor in Namibia Main companies: DeBeers Marine, Sakawe Mining Ltd., Ridgeback Global Resources Plc., and Diamond Fields Namibia Two marine mining sites in southern Namibia Value addition to give Namibians more ownership and majority exported Marine diamonds 56% of total production 1.2 million carats produced in 2010 SA Main diamond mining company is De Beers’ South Africa Sea Areas operation (SASA)and De Beers’ Namaqualand diamond mines are coastal and alluvial, along the Atlantic coast. De Beers owns 74% of the SASA and Namaqualand diamond mines. 33,000 carats 2010 and exploring for gold and other minerals on the seabed

Total economic value of US$942 million per annum Coastal marine mining (2)

Summary of results (1) Values were not estimated for biodiversity, ports and desalination due to the lack of data Coastal and marine resources contribute almost US$269 billion a year of economic impact to the countries of the region; Crude oil contributes the lion’ share with US$266 billion a year; Fisheries of estimated to generate impact of over US$2.1 billion per year; Coastal and marine mining contributes some US$942 million a year; Recreational fisheries and mariculture sectors generate economic impacts of US$16 million and US$ 50 billion, respectively;

Summary of results (2) Valuation demonstrates the importance of joint management of the economic activities the sustainable use of the ecosystems into perpetuity. Countries of the BCLME are advanced in building a permanent institution for joint management with sectorial working groups Also demonstrates the need for the BCC to be strengthened and given the resources and authority to be effective and efficient in executing its mandate.

Challenges and Lessons Highly data dependent - while stakeholders selected the activities/ sectors to be valued – little support with data and information; BCC Info and Data Policy and Protocol not yet endorsed so adds to the difficulty of “chasing” data; Limited time for in-depth valuation and thorough consultations at national levels to further the understanding of valuation the use of outcomes for planning, management and decision making; Target transboundary living marine resources first – fish stocks migrate and if not jointly managed, one country can affect the economic rent and social impacts from fisheries. Identify data sources at inception of the assignment! Ensure that valuations address planning, management and policy needs

BCC Vision: A BCLME that is sustainably used and managed, protected, conserved and contributes to the wellbeing of the people of the region Thank you! Muito Obrigado!