CIESM The Mediterranean Science Commission “Functional aspects of marine genomics including biotechnological applications” Monaco, October Joint EC-US / CIESM Workshop The Socio Economic Dimension (for Global Reporting and Assessment of the state of the Marine Environment) Paulo A.L.D. Nunes Workshop for the North Atlantic, the Baltic Sea, the Mediterranean Sea and the Black Sea, under the auspices of the United Nations, in support of the Regular Process Egmont Palace, Brussels, Belgium, June 2012 Mediterranean Science Commission

CIESM The Mediterranean Science Commission 1.Recognizing value: a feature of all human societies and communities 2.Demonstrating value: in economic/monetary terms to support decision making 3.Capturing value: introduce mechanisms that incorporate the values of ecosystems into decision making The socio economic dimension: three pillars Source: TEEB

CIESM The Mediterranean Science Commission Recognizing value Oceans and Europe Regional Seas: Are responsible for the provision of a wide range of goods and services and therefore source of socio-economic value, whether or not they enter the marketplace

CIESM The Mediterranean Science Commission Marine Ecosystem Services are capital assets fibre productiontourist attraction navigation carbon sequestration flood protection water purification shore line protection biodiversity recreation beauty genetic resources food production stabilising micro-climate recreation shelter for marine lifegame reserve

CIESM The Mediterranean Science Commission Demonstrating value Conventional measures of national economic performance (e.g : GDP growth) fail to reflect these natural capital assets and their benefits flows. “Gross domestic product, the leading economic measurement, is outdated and misleading… it is like grading a corporation based on one day’s cash flow and forgetting to depreciate assets and other costs” – J. Stiglitz, Nobel Price, economics

CIESM The Mediterranean Science Commission All countries rely on System of National Accounts, but some information is missing or invisible : – Depletion and degradation of marine natural capital offshore oil & gas and minerals, seagrass/coverage, fish stocks, marine genetic materials, water column – Environmental degradation coastal pollution, loss of coastal tourism productivity – Ecosystem services carbon storage (blue carbon), coastal flood mitigation, marine cultural heritage and seascapes Natural Capital Accounting Builds this information as satellite accounts to the System of National Accounts to fill the gap What is natural capital accounting

CIESM The Mediterranean Science Commission Better indicators for monitoring sustainable development/long- term growth – Is GDP growth sustainable or are we just “living off our natural capital?” Why do natural capital accounting? Better management of natural capital for growth & poverty reduction (especially in the context of socio-economic diversity of the Mediterranean Sea) – What is the real contribution of Natural Capital to GDP and household livelihoods; how do the poor depend on natural capital?

CIESM The Mediterranean Science Commission Why do natural capital accounting? Better management of natural capital for growth & poverty reduction (especially in the context of socio-economic diversity of the Mediterranean Sea) – How do we weigh tradeoffs among competing users, for example transport industry, off-shore oil and gas industry, fishermen and coastal tourism? – How much should be invested in natural capital, such as marine protected areas? – How can we make ecotourism work for the poor? – How do we balance marine spatial planning, including tourism, fisheries and other ecosystem services like carbon storage or water quality?

CIESM The Mediterranean Science Commission Source: TEEB IndonesiaIndiaBrazil 99 million 352 million 20 million Ecosystem services dependency Ecosystem services Ecosystem services as a % of classical GDP Ecosystem services as a % of “GDP of the Poor” Natural Capital and inclusive wealth

CIESM The Mediterranean Science Commission Source: TEEB South shore North shore xxx? million yyy? million Ecosystem services dependency Ecosystem services Ecosystem services as a % of classical GDP Ecosystem services as a % of “GDP of the Poor” Natural Capital and inclusive wealth: assessment of the role of the Natural Capital hosted by the Mediterranean sea in terms of poverty alleviation For socio-economic assessment

CIESM The Mediterranean Science Commission Norms, Regulations & Policies Markets Economic Mechanisms Recognizing value Demonstrating value Capturing value Regional Plans Legislations PES Certification MPA Evaluation Capturing the value

CIESM The Mediterranean Science Commission Implementation of Natural Capital Accounting SEEA UN’s System of Environmental and Economic Accounting, developed over past 20+yrs. SEEA is a comprehensive accounting framework, like the System of National Accounts (SNA), that links the use of natural capital by the economy and the impact of the economy on natural capital SEEA Central Framework was adopted as an international statistical standard February 2012, like the SNA This establishes agreed methodology for material natural resources, but more work is needed for the ‘more difficult to measure’ natural capital—ecosystems.

CIESM The Mediterranean Science Commission Beyond Rio+20 WAVES – Wealth Accounting and Valuation of Ecosystem Services, launched by WB President Zoellick in October 2010, at CBD COP 10 '50:50' campaign is a World Bank Group-facilitated initiative that provides a unique opportunity for the public and private sectors to join forces, launched at Rio+20

CIESM The Mediterranean Science Commission 1.Implement natural capital accounting in countries along the North and South shores 2. Incorporate natural capital accounts in policy analysis and marine spatial development planning 3. Scientific credibility —develop methodology for ecosystem accounting for the SEEA with natural scientists 4. Promote global adoption of natural capital accounting beyond the pilot countries Bringing WAVES to the Mediterranean Sea with CIESM

CIESM The Mediterranean Science Commission Thank you