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UNDErLyING DrIvErs THE GLOBAL BIODIVERSITY CRISIS AND RELATED POLICY CHALLENGE Figure 1.5: Main direct drivers of change in biodiversity and ecosystems The assessments identify growing demand for goods and services from an increasingly wealthy and expanding population as the main underlying cause of biodiversity loss and ecosystem conversion or degradation. This type of consumption is based on choice, not survival. Source: Millennium Ecosystem Assessment 2005b: 16 In contrast, those living below the poverty line are more likely to directly depend for their livelihood and possibly their survival on local resources or land. short term needs will take precedence over long term considerations particularly where there is no clear and immediate incentive to preserve under-valued ecosystems. <strong>TEEB</strong> for NATIoNAL AND INTErNATIoNAL PoLIcy MAKErs - chAPTEr 1: PAGE 16
THE GLOBAL BIODIVERSITY CRISIS AND RELATED POLICY CHALLENGE At a deeper level, economic signals from policy and market prices rarely reflect the true value of biodiversity, including the social costs and benefits of ecosystem services. Most ecosystem services are unpriced or underpriced (see also chapters 5 and 7), such as: • water: extraction from groundwater aquifers rarely faces resource extraction cost; • fish in the high seas: no-one pays for exploitation rights for this common resource and there are as yet few mechanisms for payments in territorial waters (see chapter 7); • forests: these are often de facto ‘commons’, exploited by the few. Where payment systems exist for the resource extracted (e.g. stumpage fees, concessions) or land conversion fees, these are generally too low to reinvest in future forests; • regulating services provided by ecosystems. As land managers rarely receive income for carbon storage, water regulation, maintenance of air quality or protection against natural hazards, they have little incentive to conserve or manage ecosystems to maintain these services. In general, providing marketable commodities (often through the modification, simplification and degradation of ecosystems) will take precedence. Many ecosystem services are difficult or impossible to price or trade in conventional markets. There is a clear rationale for public intervention to protect services with the following characteristics: • public goods: services such as maintenance of air quality and climate regulation are non-excludable (i.e. people cannot be excluded from consuming them) and non-rival (one person consuming them does not prevent another from doing so); • services with strong externality effects: for a range of regulating services (e.g. water supply, pollination, erosion control), the actions of some landowners and managers generate benefits to neighbouring landowners and communities which tend to be difficult to capture in market transactions; • services for which markets are hard to design: e.g. fisheries are not pure public goods, but are rarely priced because organising and policing markets in fishing rights is complex. More often than not, negative impacts generated by the primary production, transport, mining and energy sectors are not monetised. No compensation for damage is paid. There is an imbalance between rewards from providing marketable goods and services and rewards from providing services that benefit the wider population, including future generations. Responding to these drivers will be critical to address the biodiversity challenge. current losses reflect multiple failures of public policy and, too often, the lack of high-level political backing for conservation. We can turn the situation around by better appreciating the value of ecosystems and biodiversity and integrating such values into all areas of policy making (see chapters 2 and 4). <strong>TEEB</strong> for NATIoNAL AND INTErNATIoNAL PoLIcy MAKErs - chAPTEr 1: PAGE 17 Copyright: © IUCN / Johannes Förster
Page 1 and 2: Part I: The need for action Ch1 The
Page 3 and 4: ThE EcoNoMIcs of EcosysTEMs AND BIo
Page 5 and 6: THE GLOBAL BIODIVERSITY CRISIS AND
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Page 11 and 12: • Enough food could be produced o
Page 13 and 14: MArINE sysTEMs THE GLOBAL BIODIVERS
Page 17: 1.2.3 WHAT IS DRIVING THESE LOSSES?
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Page 33 and 34: EfErENcEs THE GLOBAL BIODIVERSITY C
Page 37 and 38: Part I: The need for action Ch1 The
Page 39 and 40: THE ECONOMICS OF ECOSYSTEMS AND BIO
Page 41 and 42: 10.1 WHY VALUING ECOSYSTEM SERVICES
Page 43 and 44: RESPONDING TO THE VALUE OF NATURE B
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Making this a reality will require
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GHK, CE and IEEP - GHK, Cambridge E
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Torras, M. (2000) The Total Economi
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Part I: The need for action Ch1 The
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ThE ECoNoMICS of ECoSySTEMS AND BIo
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FRAMEWORK AND GUIDING PRINCIPLES FO
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2.3 FRAMEWORK AND GUIDING PRINCIPLE
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2.3.4 BASE POLICIES ON GOOD GOVERNA
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2.4 FRAMEWORK AND GUIDING PRINCIPLE
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REfERENCES FRAMEWORK AND GUIDING PR
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THE ECONOMICS OF ECOSYSTEMS AND BIO
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STRENGTHENING INDICATORS AND ACCOUN
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3.1 STRENGTHENING INDICATORS AND AC
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Endnotes STRENGTHENING INDICATORS A
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Chapter 4: Integrating ecosystem an
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INTEGRATING ECOSYSTEM AND BIODIVERS
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4.1 INTEGRATING ECOSYSTEM AND BIODI
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Endnotes INTEGRATING ECOSYSTEM AND
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Economic valuation methods INTEGRAT
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ANNEx 2: sTAGEs of A PoLIcy AssEssM
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Chapter 5: Rewarding benefits throu
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REWARDING BENEFITS THROUGH PAYMENTS
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5.1 REWARDING BENEFITS THROUGH PAYM
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REGULATORY BASELINES AND ADDITIONAL
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could have adverse consequences for
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• some contained an element of te
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• ancillary provisions e.g. possi
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5.4.2 GREENING INTERGOVERNMEN- TAL
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financial flows involved. Building
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considerable patience as such optio
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CERTIFICATION OF SUSTAINABLE FISHER
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While certification systems can sig
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Endnotes REWARDING BENEFITS THROUGH
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44 http://www.mekongtourism.org/sit
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Chapter 6: Reforming Subsidies Chap
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REFORMING SUBSIDIES Key Messages of
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6 Chapter 6 addresses the need for
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6.1.2 HOW BIG ARE EXISTING SUBSIDIE
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6.2 6.2.1 DISTINGUISHING BETWEEN
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through provision of water and ener
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6.3 6.3.1 AGRICULTURE Subsidies to
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Box 6.4: The EU Common Agricultural
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Second, it has to be borne in mind
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• increases the producer price of
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REFORMING SUBSIDIES Box 6.9: Removi
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In the agriculture sector, the pric
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Some consumer energy subsidies may
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6.4 “People who love soft methods
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6.4.2 RESISTANCE TO CHANGE Subsidie
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The multiple policy objectives ofte
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REFORMING SUBSIDIES Social impacts
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The G-20 Heads of State have recent
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REFERENCES Agnew, D.J.; Pearce, J.;
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OECD - Organisation for Economic Co
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Bernd hansjürgens, Christoph Schr
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Key Messages of Chapter 7 Rewarding
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7.1 BASIC PRINCIPLES FoR hALTING oN
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7.2 REGULATING To AvoID DAMAGE: ENv
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y reducing the release of pollutant
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y reducing uncertainties with respe
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This equivalence can involve the sa
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PoTENTIAL BENEFITS oF oFFSETS AND B
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A biodiversity offset should be des
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7.4 SETTING MoRE ACCURATE PRICES: M
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Market-based instruments can be des
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China’s first water use rights sy
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PoTENTIAL CoST SAvINGS ThRoUGh MBIS
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Despite the potential described abo
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Non-market valuation studies can he
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PoLLUTIoN AND oThER DAMAGING ACTIvI
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The 1973 CITES treaty (Convention o
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7.6 MAKING IT hAPPEN - PoLICy MIxES
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has shown the critical need to stre
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Gutman, P. and Davidson, S. (2007)
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· ·· · · · · · · · · ·
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T H E E C O N O M I C S O F E C O S
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