TEEB follow-up study Europe Synthesis of approaches to assess and value ES MAES meeting, Brussels, 13 September 2012 Roy Brouwer, Luke Brander, Onno Kuik, Elissaios Papyrakis, Peter Verburg, Ian Bateman

Presentation outline Main objectives Description of work Results so far Main message: there exists no standard TEEB method!

Main objectives Synthesize and evaluate recent and on-going initiatives and assess the scope for integrating these for accounting and reporting at EU level Formulate steps for ES assessment and valuation into a coherent framework that can be applied by Member States Assess different approaches for up-scaling and combining ES values into an EU level assessment

Work description Task 1: Collect information on relevant initiatives at MS, EU & other levels Task 2: Analysis and synthesis of different approaches Task 3: Propose a common framework and draft recommendations Task 4: Finalize recommendations

Task 1: Review of Initiatives using standard format ALTER-NET AQUAMONEY ATEAM BEES BISE CICES CWA Eco-Delivery EEA EA EEA-SCALING-UP Eye-on-Earth ILTER-SEA JRC Atlas of ES MA MA-SGA Natura2000 NATCAP PEER POLICYMIX PRESS RUBICODE SCALES TEEB-NL TEEB GERMANY TEEB-QA RUBICODE UK-BAP UK-NEA UK-ONS-ESA US-EPA US-NRC VNN VOLANTE WAVES

Task 1: Review of Initiatives using standard format Screening of reports, proceedings from workshops/meetings and websites In addition, phone/email contacts with contact persons in 15 EU MS about national initiatives Two web-based surveys with experts and stakeholders - Among TEEB conference participants Leipzig 19-22 March (n=31) - Among TEEB practitioners and experts (n=18) Field Name of Initiative Institutions Contact Person Email Website Established in Steps in Assessment Process Approaches Used Data sources Biomes Categorisation of ES Coverage of ES Scale of Analysis Scale of Aggregation Key strengths Key limitations

Task 2: Analysis and synthesis of approaches Focus on each step in the ES assessment-valuation-accounting/ reporting process Identify best practices/data requirements/conditions for success NOT ONE SINGLE STANDARD APPROACH ! Assessment Valuation Accounting/reporting

Number of initiatives addressing each step in the assessment process Task 2: Analysis and synthesis of approaches Number of initiatives addressing each step in the assessment process

Task 2: Analysis and synthesis of approaches Number of initiatives using common ES classifications

Task 2: Analysis and synthesis of approaches Coverage of ES

Task 2: Analysis and synthesis of approaches

Identified research priorities TEEB conference survey 1) Development common framework 2) Improvement economic valuation methods 3) Improved insight trade-offs biodiversity & ecosystem services 4) Improved accounting practices (national and business) 5) Translation research results into practical policy action Other: creation of public awareness creation of economic incentives more focus on managed ecosystems more focus on cultural services in urban areas

Key challenges identified in expert survey Valuation Reconciling different valuation methods Lack of reliable large scale valuation studies for key ES Lack of methods linking non-monetary and monetary valuation Spatially insensitive valuation methods Uncertainty precision of values Accounting Existing valuation data often not available for well-defined ES Lack of agreed UN guidance (no proper standards) Satellite accounts or full integration in core system of NA? Differences in scales economics and ecosystems Theoretical adjustments probably impossible with real data

Task 3: Develop common framework Develop a common practical framework and guidance for ES valuation and accounting at MS level Draw on existing initiatives and outcomes of Tasks 1 and 2 Challenges: Existing initiatives difficult to coherently combine Missing links between steps in assessment process Scaling up of ES values

Primary & intermediate processes Cultural UK NEA framework (Bateman et al., 2011) Provisioning Regulating Supporting Final ecosystem services Goods Value of goods... ..of which ES value Primary & intermediate processes Physical and chemical inputs Other capital inputs ES contribution to well-being Non monetised Crops, livestock, fish Water availability Trees Peat Wild species diversity £ Primary production Decomposition Soil formation Nutrient cycling Water cycling Weathering Drinking water Food Fibre Energy Equable climate £ ☺ ☺ ☺ + ☺ Natural enemies Detoxification Local climate Waste breakdown Purified water Stabilising vegetation Flood control Natural medicine Pollution control Disease control ☺ Climate regulation Pollination ☺ ☺ Evolutionary processes Ecological interactions Recreation Meaningful places Wild species diversity ☺ Good health

Methodology Meta-analysis Benefits transfer Estimated values Value function Site specific Spatial Data (GIS) Up-scaling procedure Source: Brander et al. (2012)

Examples of application of meta-analysis to ecosystems Wetlands Brouwer et al. (1999) Woodward and Wui (2001) Brander et al. (2006) Ghermandi et al. (2010) Brander et al. (2012) Forests Bateman and Jones (2003) Lindhjem (2007) Zandersen and Tol (2009) Ojea et al. (2010) Barrio and Loureiro (2010)

GIS based value mapping (AQUAMONEY) Source: Brander, Brouwer, Wagentendonk (2010)

Integrated environmental-economic accounting Two main approaches: Satellite accounts around core SNA Often biophysical flows linked to monetary flows in core SNA In some cases also monetary valuation of these biophysical flows, but outside the core SNA

Example satellite accounting framework

Integrated environmental-economic accounting Two main approaches: Satellite accounts around core SNA Often biophysical flows linked to monetary flows in core SNA In some cases also monetary valuation of these biophysical flows, but outside the core SNA Integration of monetary ES values in core SNA Adding/subtracting hypothetical economic values from sectors’ value added and GDP In some cases making the implicit value of provisioning services like mineral resources more explicit within SNA production boundary Example Index of Sustainable Economic Welfare (ISEW)

Task 4: Finalize recommendations Present and discuss draft recommendations with key experts and stakeholders Key issues valuation & integration in accounting frameworks

Task 4: Finalize recommendations Key issues valuation Link between biophysical stocks and flows and values Selection of appropriate valuation methods for key ES

Source: POLICYMIX

Task 4: Finalize recommendations Key issues valuation Link between biophysical stocks and flows and values Selection of appropriate valuation methods for key ES Data availability (data intensive and extensive MS) > standardization values via meta-analysis & benefits transfer Valuing biodiversity and ES

Policymix Ecosystem Functions Services Benefits Values Source: Brouwer et al. (2012)

Policymix Ecosystem Functions Services Benefits Values Biodiversity Biodiversity Biodiversity Relationship biodiversity and ecosystem services? >> Costanza et al. (2007): ∆1% biodiversity ∆0.5% value ES Source: Brouwer et al. (2012)

to ES provision, but only valuation of flow of final ES Policymix Ecosystem Functions Services Benefits Values Biodiversity Biodiversity Biodiversity POLICYMIX: Biodiversity as an invaluable stock of natural capital contributing to ES provision, but only valuation of flow of final ES Source: Brouwer et al. (2012)

to ES provision, but only valuation of flow of final ES Policymix Ecosystem Functions Services Benefits Values Biodiversity Biodiversity Biodiversity Society Economics POLICYMIX: Biodiversity as an invaluable stock of natural capital contributing to ES provision, but only valuation of flow of final ES Source: Brouwer et al. (2012)

to ES provision, but only valuation of flow of final ES Policymix Ecosystem Functions Services Benefits Values Use values Nonuse values Biodiversity Biodiversity Biodiversity Society Economics POLICYMIX: Biodiversity as an invaluable stock of natural capital contributing to ES provision, but only valuation of flow of final ES Source: Brouwer et al. (2012)

Policymix Ecosystem Functions Services Benefits Values ES quantification and mapping: land use and land cover Ecosystem Functions Services Benefits Values Use values Nonuse values Biodiversity Biodiversity Biodiversity Society Economics ES valuation: socio-economic & legal-institutional context Source: Brouwer et al. (2012)

Policymix Δ land use and ES provision Δ ES values Ecosystem Functions ES quantification and mapping: land use and land cover Ecosystem Functions Services Benefits Values Use values Nonuse values Biodiversity Biodiversity Biodiversity Society Economics ES valuation: socio-economic & legal-institutional context Δ incentive structures e.g. Payments for Ecosystem Services Source: Brouwer et al. (2012)

Task 4: Finalize recommendations Key issues integrating values in accounting frameworks Different definition of economic value ES Real and hypothetical adjustments (controversial in SNA!) Actual and potential ecosystem services (stock/flow) Spatial scale and variability in ecosystem service values Careful, stepwise integration via satellite accounts seems most promising way

Next steps September-December Re-think common framework SWOT analysis valuation/accounting methods Presentation recommendations at final workshop (optional) Finalization recommendations

Thank you for your attention r.brouwer@vu.nl