1. 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

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

3. 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

4. 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

5. 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

6. Task 1: Review of Initiatives using standard format
Screening of reports, proceedings from workshops/meetings and websites
In addition, phone/ contacts with contact persons in 15 EU MS about national initiatives
Two web-based surveys with experts and stakeholders
- Among TEEB conference participants Leipzig March (n=31)
- Among TEEB practitioners and experts (n=18)
Field
Name of Initiative
Institutions
Contact Person
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

7. 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

8. 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

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

10. Task 2: Analysis and synthesis of approaches
Coverage of ES

11. Task 2: Analysis and synthesis of approaches

12. 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

13. 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

14. 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

15. 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

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

17. 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)

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

20. 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

21. Example satellite accounting framework

22. 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)

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

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

25. Source: POLICYMIX

26. 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

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

28. 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)

29. 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)

30. 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)

31. 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)

32. 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)

33. 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)

34. 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

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

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