TEEB Training Session 3: The ‘TEEB Approach’ ©TEEB

TEEB Training Using Economic Information to Improve Policy Coherence; An Introduction ©TEEB::TEEB “Mofilm 3rd prize” YouTube ©TEEB

TEEB Training TEEB Origins and Genesis  Founded on the (MA) concept of ecosystem services for human well-being, under-pinned by biodiversity  Focus on underlying economic drivers of ecosystem decline and mainstreaming into economic decisions  Fill gap in economic evidence provided by the MA  Inspired by the Stern Review’s economic arguments for action on climate change ©TEEB

TEEB Training “Potsdam Initiative – Biological Diversity 2010” ……the economic significance of the global loss of biological diversity…. TEEB Interim Report CBD COP-9, Bonn, May 2008 TEEB Main Reports Nov – Oct TEEB Climate Issues Update Strömstad September TEEB’s Origins and Genesis continued… ©TEEB

TEEB Training Final Synthesis Report October 2010 Business July 2010 Local & Regional Policy-Makers September 2010 National & International Policy- Makers November 2009 Ecological & Economic Foundations October 2010 Interim Report May 2008 Climate Issues Update September 2009 TEEB Reports (phase II) ©TEEB

TEEB Training Why valuation makes sense Understanding the value of ecosystem services can help to:  Generate better information about the ‘value’ of nature’s services  Identify ‘true’ costs of business as usual  Improve decision making when tradeoffs are necessary and useful information is lacking  Provide a basis for policy formation and analysis  Set incentives and regulating use  Existing market signals often lack appropriate consideration of the value of, the damage to, and incentives for, the sustainable use of biodiversity and ecosystem services ©TEEB

TEEB Training Importance (and costs) of maintaining natural capital Value of services often taken for granted:  Water supply/regulation: Catskills Mountains $2bn natural capital solution vs $7bn technological solution (pre-treatment plant)  Pollination: 30% of 1,500 crop plant species depend on bee and other insect pollination. Value of bees for pollination ~ Eur29 billion to EUR 70 billion worldwide per annum  Fish stock existence/productivity: Global market $80bn, 1.2 billion people reliant, stock collapses have major (local/national) implications  Flood control services of floodplain: eg River Bassee floodplain: ~ 91.5 – 305 million EUR / year ©TEEB

TEEB Training Recognize, Demonstrate, Capture  TEEB follows a three tiered approach towards ecosystem valuation by recognizing, demonstrating and capturing value.  This approach helps to make nature more economically visible and ultimately influence key actors to change their decisions and behaviors ©TEEB

TEEB Training THE TEEB APPROACH RECOGNIZING VALUE: This means that society clearly acknowledges and understands the range of benefits, goods and services provided by ecosystems. The simple fact of recognizing is sometimes sufficient to ensure conservation and sustainable use. This may be the case especially where the spiritual or cultural values of nature are strong. ©TEEB

TEEB Training THE TEEB APPROACH DEMONSTRATING VALUE : In economic terms to support decision making, to consider the full costs and benefits of a proposed use of an ecosystem. ©TEEB

TEEB Training THE TEEB APPROACH CAPTURING VALUE : Final tier of the economic approach involves the introduction of mechanisms that incorporate values of ecosystems into decision-making, through incentives and price signals (this can include payments for ecosystem services, reforming environmentally harmful subsidies, introducing tax breaks for conservation, creating new market for sustainably produced goods) ©TEEB

TEEB Training  A narrow, market-centric view of nature which just focuses on monetization of nature  A mechanism that puts a price tag on nature to sell mother Earth  Nature commoditization  About private profits Valuation vs. Monetization TEEB is not: TEEB is:  Both market AND non-market valuation which expands beyond monetary valuation methodologies using also quantitative and qualitative methodologies  A holistic view of valuing nature which takes into account environmental and social values and not just the market values of nature. ©TEEB

TEEB Training Why TEEB?  Because the economic invisibility of nature is a problem.  Because addressing losses requires knowledge from many disciplines (ecology, economics, policy..) to be synthesized, integrated and acted upon  Because different decision making groups (policy-makers, local managers down to citizens) need different types of information & guidance  Because successes need be understood, broadcast, replicated and scaled.. ©TEEB

TEEB Training According to Benjamin Franklin: “I believe that a great part of the miseries of mankind are brought upon them by false estimates they have made of the value of things.” Benjamin Franklin, Why TEEB? ©TEEB