1. 5/9/20151 The Economics of Ecosystems and Biodiversity initiative (TEEB) Patrick ten Brink TEEB for Policy Makers Co-ordinator Head of Brussels Office, Institute for European Environmental Policy (IEEP) The European Biodiversity Conference: “European Biodiversity: The Private Sector Offer” Session: The EU Voluntary and Regulatory Framework: What are the Policy Needs for Biodiversity? European Parliament, Brussels 1 December 2009 - Room P7 C050, Building PHS, 60 Rue Wiertz, 1050 Building on and borrowing from the work & insights of the wider TEEB team and contributors of supporting studies, call for evidence and other contributions

2. TEEB’s Genesis and progress “Potsdam Initiative – Biological Diversity 2010” 1) The economic significance of the global loss of biological diversity TEEB Interim Report @ CBD COP-9, Bonn, May 2008 Brussels 13 Nov Stromstad Sept.

3. Critical issues The values of biodiversity and ecosystems are missing Many not known (but this is changing); widespread lack of awareness They are generally not integrated into the economic signals, into markets – the economy is therefore often not part of the solution Values are not taken systematically into account in assessments and decision making The value of nature is not reflected in national accounts nor in leading macro economic indicators Inappropriate incentives; misinterpretation of right solutions, insufficient evidence base at policy makers’ finger tips and weaker public support for action There is not enough political will or conviction or awareness of benefits/cost to launch due policies Biodiversity loss continues – eroding natural capital base without realising its value

4. 2000 The Global Loss of Biodiversity Source: L Braat presentation COP9 Bonn May 2008 on the COPI Study; building on MNP data

5. 2050 The Global Loss of Biodiversity Source: L Braat presentation COP9 Bonn May 2008 on the COPI Study; building on MNP data

6. Global Fish stocks  Half of wild marine fisheries are fully exploited; a further quarter already over-exploited  At risk : $ 80-100 billion income from the sector  est. 27 million jobs  over a billion people rely on fish as their main or sole source of animal protein Source: adapted from FAO 2005

7. TEEB Climate Issues Update - September 2009- Coral reef emergency Ecosystem investment for climate adaptation National accounting for forest carbon Forest carbon for climate mitigation

8. Needs - All colours of Carbon Brown, Green, Blue & Black Carbon Need as ambitious commitments as possible - 450ppm and 2 degrees already accepting major losses REDD+ (suitably designed and implemented to (be able to) take wider set of ecosystem services into account) Investment in ecological infrastructure for adaptation ( ecosystem based adaptation) & mitigation Natural capital accounts – carbon-biomass (but in wider ecosystem service context and process). –Start from existing work on forests/agriculture extend to other ecosystems. SEEA / extended income accounts 8

9. Value of ecosystem services – climate mitigation, climate adaptation & many others

10. TEEB for Policy Makers report - launched 13 November 2009 - The Global Biodiversity Crisis Responding to the value of nature Available Solutions Measuring what we manage

11. Global Loss of Fisheries… Is there a Solution ? We are fishing down the food web to ever smaller species… (Source : Prof. Callum Roberts, University of York) …. And do reserves work ? Reserves all over the world show large increases in spawning stocks.. Open Access & Perverse Subsidies drive fisheries losses …

12. 73% of the United States Haddock catch is now taken within 5km of the closed area boundaries Source: Fogarty et al. (2007)

13. Protected Areas (PAs) Global key facts 120,000 PAs, 13.9% land, 5.9% territorial seas, 0.5% high seas Coad et al. 2009 Current expenditure ~ US$ 6.5 to 10 billion/year Gutman and Davidson 2007 Total annual costs of managing the network ~ US$ 14bn James et al 1999 & 2001 Financing gap very real: expenditure ~30% of needs in developing countries Financing needs for 15% land, 30% marine : ~ US$ 45 bn/year Gutman and Davidson 2007 Benefits at a global level far outweigh the costs > factor of 10+ bigger globally Benefits at local level can be > costs, but not always – depends inter alia on payment for ecosystem services Finalisation of the networks – notably MPAs Address financing gap – new funding, new instruments (eg PES) In EU: use of funding – better integration (EAFRG, LFA, EFRD etc) New Biodiversity fund ? PAs as constructive motors of local economies

14. Subsidy Reform Establish transparent and comprehensive subsidy inventories Develop prioritised plans of action for subsidy removal or reform, for implementation in the medium term 1 trillion US$/year spent on subsidies – value for money ?

15. The values of nature and economic signals The values of nature are often invisible in markets, to citizens – Business/citizens face the “wrong incentives” - that do not reflect that value of nature. We are running down our natural capital without knowing its value Full cost recovery – water (WFD), timber, etc Polluters paying not society – eg pesticide & fertiliser charges, pollution taxes – eg liability and compensation Rewarding benefits – payments for ecosystem services (PES) eg carbon & REDD; eg PES and water for cities; eg HNV agriculture and public goods Eg Fair sharing of benefits – access and benefits sharing (ABS)

16. Rewarding the respect for nature Supply side Support certification / labelling / capacity building Recognition of standards / equivalence Development of standards and their use/verification. Markets of goods and services building on and “respectful” of nature growing –Medicines/pharmaceuticals; Ecotourism; Biotrade –(Certified) products of low impact – forestry, fisheries, organic etc. No longer fringe market sectors. Being mainstreamed. Increase demand side Minimum standards in purchase decision Labelling Green public procurement (GPP) Voluntary schemes to green the supply chain

17. Regulation Implement existing legislation and measures - WFD, UWWTD, REACH + Natura: MPAs Regulation remains a fundamental tool to avoid damage to biodiversity –Requirements for WWT, WM, APC etc –ELVs, EQS, BAT, product standards, product rules (PIC), trade rules –Requirements for EIA, SEA, IA –Habitats and Birds directives Its timely implementation and enforcement critical New legislation? - eg for invasive alien species? Implement better – eg EIA, SEA & no-net-loss provisions

18. Instruments and measures Contributions to natural capital Past loss/ degradation Predicted future loss of natural capital (schematic) – with no additional policy action 2009 2050 Halting biodiversity loss Opportunities/benefits of ESS Investment in natural capital +ve change Alternative natural capital Development path Regulation PAs Restoration Investment in natural capital : green infrastructure Economic signals : PES, REDD, ABS (to reward benefits) Charges, taxes, fines (to avoid degradation/damage: Subsidy reform (right signals for policy) Better governance ` Sustainable consumption (eg reduced meat) Markets, certification/logos & GPP Agricultural innovation No net loss from 2009 level

19. 5/9/201519 Thank you ` Where do you see particular policy needs? Where and how can the private sector help address the challenges? For full TEEB for Policy Makers report – see TEEB website http://www.teebweb.org/ Patrick ten Brink, ptenbrink@ieep.euptenbrink@ieep.eu IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment in Europe

20. 5/9/201520 Annex ` IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of policies for a sustainable environment in Europe

21. TEEB – Final Report June 2010 TEEB D4: TEEB for Citizens TEEB D3: TEEB for Business TEEB D2: TEEB for Local Policy- Makers and Administrators TEEB D1: TEEB for National and International Policy-Makers TEEB D0: Ecological and Economic Foundations

22. TEEB D1: TEEB for National and International Policy-Makers - Structure Part I The need for action Chapter 1 The global biodiversity crisis and related policy challenge Chapter 2 Framework and guiding principles for the policy response Part II Measuring what we manage: information tools for decision-makers Chapter 3 Strengthening indicators and accounting systems for natural capital Chapter 4 Integrating ecosystem and biodiversity values into policy assessment Part III Available solutions: instruments for better stewardship of natural capital Chapter 5 Rewarding benefits through payments and markets Chapter 6 Reforming subsidies Chapter 7 Addressing losses through regulation and pricing Chapter 8 Recognising the value of protected areas Chapter 9 Investing in ecological infrastructure Part IV The road ahead Chapter 10 Responding to the value of nature

23. TEEB timeline 2008 20092010 TEEB Phase I TEEB Phase II May 08 Interim report (CBD COP9, Bonn) Final TEEB synthesis & publications CBD COP10 (Oct 2010, Nagoya, Japan) Sep 09 TEEB Climate Issues Update (Strömstad) Nov 09 D1 for policy makers Spring / Summer 2010 D0, D2, D3 & D4