1. The costs of pricing nature: The implications of payment for ecosystem services in Europe Bethany Squire & Alexandra Bosbeer Quaker Council for European Affairs

2. Outline 1.Problem: Trends in ecosystem change in Europe 2.One solution: Overview of EU initiatives in payment for ecosystem services (PES) 3.Does it work? Main concerns 4.What to do? Other solutions Quaker Council for European Affairs office@qcea.org

3. Source: European Environment Agency 2000 - 2006 Quaker Council for European Affairs office@qcea.org

4. Degraded ecosystem services Service Agro- ecosystems Fores t Grass- land Heath/ scrubWetlands Lakes and rivers Crops/timbermixed Livestock Wild foodsdegraded Water Genetic Pollination Climate regulation Pest regulation Erosion regulation Water regulationenhanced Recreation Aesthetic Status 1990-2010, based on EEA 2010 (Rubicode)

5. Alien species increasing Source: European Environment Agency Quaker Council for European Affairs office@qcea.org

6. EU initiatives: Soils and water Quaker Council for European Affairs office@qcea.org

7. Biodiversity Targets 2010 : halt the loss of biodiversity 2020 : halt the loss of biodiversity Target 2: Maintain and restore ecosystems and their services: Member States to map and assess state of ecosystems and services by 2014, assess the economic value of such services, &, by 2020, promote integration of these values into accounting at EU & national levels. Quaker Council for European Affairs office@qcea.org

8. Weaknesses Provisioning services easiest to value – Integration: CAP and CFP Market is not amenable to reflecting complexities Quaker Council for European Affairs office@qcea.org

9. Case study: Emissions Trading Scheme (ETS) Left to market – demand assumed 2005 = €40  2013= €4 Managing emissions credits = fast-growing sector of financial services Halting emission of CO 2 => secondary objective Quaker Council for European Affairs office@qcea.org

10. Problems & opportunities Market ≠ public interest ‘Business as usual’ Exacerbating scarcity to maximize profits Behavioural economics Social justice issues – Exporting land demand – Human well-being Quaker Council for European Affairs office@qcea.org

11. Potential solutions Raising awareness of values vs valuing – Public decision-making Wider picture – Non-provisioning services – ‘Mainstreaming’ – Combination of methods: regulation and pricing Quaker Council for European Affairs office@qcea.org

12. Questions or more information: You are ‘civil society’! abosbeer@qcea.org Quaker Council for European Affairs Square Ambiorix 50, 1000 Brussels www.qcea.org Sign up with us for action alerts to respond to EU consultations. Quaker Council for European Affairs office@qcea.org