Valuation of Forest Ecosystem Services Nicolas Kosoy Ecosystem Services and Economics Unit Division of Environmental Policy Implementation

Valuation of Forest Ecosystem Services Key Message More efficient decision-making process Social Impact Environmental Quality Public Participation

Focus: Consequences of Ecosystem Change for Human Well-being

Indirect Drivers of Change Direct Drivers of Change MA Framework Human Well-being and Poverty Reduction Basic material for a good life Health Good Social Relations Security Freedom of choice and action Indirect Drivers of Change Demographic Economic (globalization, trade, market and policy framework) Sociopolitical (governance and institutional framework) Science and Technology Cultural and Religious Direct Drivers of Change Changes in land use Species introduction or removal Technology adaptation and use External inputs (e.g., irrigation) Resource consumption Climate change Natural physical and biological drivers (e.g., volcanoes)

Valuation and Mainstreaming ES The economic benefits derived from ecosystems are vital to the National economies (Forest exports USD 230 Billion, worldwide) Economic valuation of these benefits helps to guide the wise, sustainable use of these resources This will help sustain the National economy, while conserving the environment and alleviating poverty (1.6 billion people depend on forests)

How can economic values help/inform a decision-making process? Economic evaluation studies of ES can be used to support the decision process as tools of policy advice (Born et al. 2005) Based on efficiency- saving money Based on social welfare- improving social conditions

REDD+ and Equity Equity in access Equity in decision-making concerns the way in which individual farmers, rural communities and organisations are able to participate in emerging markets. Equity in decision-making concerns procedural fairness within the project framework, and relates to issues of recognition and inclusion in strategic management decisions Equity in outcome refers to the distribution of project outcomes across project participants, including economic payments and their perceived fairness.

Bundle vs Single ES REDD+ may simplify complexity Natural complexity is disregarded for the sake of facilitating market transactions using a single ES approach

Use value vs Exchange value REDD+ might disrespect plural values and worldviews A single exchange-value denies our co-evolutionary history and imposes a worldview of a monetary market-driven socioecosystem

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