Trends in Policy and Practice of Ecosystem Services Assessment and Natural Capital Management 14 June 2017, Paju-si, Republic of Korea Rudolf de Groot International Forum on applying ecosystem Services to transboundary nature management

1. Trends and actions needed in Policy & Practice of Ecosystem Services Assessment and Natural Capital management 2. Role of Ecosystem Services Partnership (ESP), and ESP Asia RO in supporting actions needed - Integrated Planning and Management appraoches - Economic theory, practice and financing instruments - New policies and institutions - Awareness raising and capacity building CONTENT

Habitat/ Support What are Ecosystem Services? Food Medicins & models Timber Water Provisioning Pollination Air quality C-seq Biol. control Regulating Recreation Inspiration Cultural

Cost of ecosystem loss 2-5% of GDP per year (Science, 2002) (2-3 Trillion$ damage-costs, replacement & restoration costs, etc.) Cost of ecosystem loss Erosion cost Lively- Hood lossWater pollution cost Flooding cost Air pollution cost Crop loss

Figure 4 – Top journals publishing papers on ecosystem services (from SCOPUS search, April 3, 2017) MA (2005) TEEB (2010) Twenty years of ecosystem services: how far have we come and how far do we still need to go? Robert Costanza1, Rudolf de Groot2, Leon Braat3, Ida Kubiszewski1, Lorenzo Fioramonti4, Paul Sutton5, Steve Farber6, and Monica Grasso7. Subm. To Ecosystem Services (June 2017) Costanza et al, 1997 Daily, 1997 1992 2012 CBD 2010 -> 2012

How turn value into real money? (and action) ? True costs of ecosystem destruction and loss are ignored Real benefits (‘value’) of ecosystem services not taken into account

1.1 (New) more integrated Planning & Management approaches

Integrated Ecosystem Management  Community Based Ecosystem Management (CBEM)  Community Based Natural Resource Management (CBNRM)*  Ecological management  Ecosystem approach  Ecosystem Based Management (EBM)  Ecosystem Management Approach  Integrated Coastal Zone Management (ICZM)  Integrated (water) management (IWM)  Integrated resource management  Landscape (Seascape) management  Watershed management  Bio-regional approach -> Nature Based Solutions UNESCO - Man and Biosphere Program (1972) (work with nature instead of against nature) MAB-areas: people and nature – better together https://www.youtube.com/watch?v=5EhLKoAU5Vc Many terms ........

Examples of Integrated Management Approaches (“nature and people”) UNESCO-MAB / WHS – Zoning [movie] eg. Commonland-approach (3 zones) Transboundary (Nature) Reserves (TBR) -(eco-) Peace Parks DMZ: tourism area for Ecology, Peace & Security IUCN – WCPA/CEM: Ecosystem (Based) Approach & Nature Based Solutions (NBS)

Guidelines to value and capture the economic benefits of ecosystem conservation and restoration (2016-2017) monetising the “4 returns” from Commonland-projects www.commonland.com

1.2 (New) Economics and innovative financing mechanisms (nature conservation and restoration still seen as a cost)

De Loonse en Drunense Duinen (3500 ha) (The Netherlands) Cost per ha: 142 euro/yr Benefits per ha: 15.338 euro/yr Important Ecosystem Services  Recreation  Air filtration  Real estate value increase (proximity to Natura 2000)  CO2 sequestration  Water-filtration 100 x

BC ratio of ecosystem restoration 3 1 22 6 16 31 3 18 75 - 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 Co ral re efs Co as tal Ma ng ro ve s Inl an d w etl an ds La ke s/r ive rs Tr op ica l fo res ts Ot he r f or es ts Wo od lan d/s hr ub lan d Gr as sla nd s B C ra tio Benefit – Cost Ratio of Ecosystem Restoration Grasslands: 75 x Coral reefs: 3 x Blignaut et al. screened 20.000 publ.; 95 selected for further analysis * Assumptions: high cost scenario, average benefit scenario, time horizon = 40 years (including 10% annual operation costs; discount rate = 1 %) * De Groot et al., 2013

Investing in nature restoration pays ! „Every dollar invested .... saves any- where between 7,5 and 200 US$ in damage & repair costs“ TheEconomist (23 April 2005)

STEP 6. Capturing the value - Reward/Pay providers of “free services” -“Punish” environmental damage (liability) 1. Government run finance mechan. (public incentives: subsidies/taxes) - Agri-environmental schemes [“farming for nature”] - Conservation payments (e.g.watershed-prot.[NYC] REDD+ (forests->blue C. & restoration) - Other (eg. tax-incentives for green investments) 2. Government supported market creation - Offsets, eg Carbon credits [145 billion$ 2009/800 US$/ha/y – Ecosystem Market Place] - Other “eco-assets” (eg. salinity credits, wetland banking, high-rise buildings(!)) 3. Private market arrangements [PES – payment for use of ES] - User fees (eg. resources (water), eco-tourism, bioprospecting) - Biorights (compensate local people for not damaging ES, i.e cons.easem/Perrier) -Ecolabelling: Cert.Agr.Products (40 billion $ 2008/2,5% of total market) FSC: 5 billion, Fair Trade, etc)

Source: http://www.hobgreeneconomy.org/, Heart of Borneo – Green economy policy package to deliver sustainable development and conservation PES arrangements

Public – Private arrangements: Streekfonds & Streekrekening: (Regional Fund & Regional Account) National Landscape “Groene Woud”

Regional Account (Rabobank, ASN etc.) Recreation Regional fund 5% bonus on market-interest rate -> Streekfonds (at 2% interest rate this is 0,1% of total savings) Streekfonds & Streekrekening (Regional Fund & Regional Account) > 200.000€/year for projects Water retention Nature prot. Capturing fine dust Local produce Housing

Regional Funds in the Netherlands Supported by: RaboBank, Min. of Infrastructure, Min. of Economic Affairs, National Greenfund (a.o. lotteries & donations)

1.3. (New) Policies & Institutions REPORT TO THE PRESIDENT [USA] SUSTAINING ENVIRONMENTAL CAPITAL: PROTECTING SOCIETY AND THE ECONOMY Executive Office of the President JULY 2 011 [FEMA, April 2013] EU Biodiversity Strategy 2020 (May 2011) “our life insurance, our natural capital” All member states should have National TEEB study done by 2014

STEPS: < 2014: map & quantify TEEB in Europe 1. Identify & Asses a. Indicators b. Mapping c. Quantification 2. Estimate Values a. In physical units b. Monetary 3. Capture Values -subsidies/taxes -Payments for ES -Policy change -Institutional change < 2020: Valuation ready < ?? : Instit. change ?

Obama-directive 7 October 2015:

Ecosystem Services Partnership ESP www.es-partnership.org Measuring Progress Toward Sustainability UNESCO, UNU, UNEP

2. ESP (Asia) can help .... Develop guidelines and Tookits Develop a database with ‘success stories’ Develop a network of LT-ESA sites .... (incl. stakeholder-dialogue + innvovative governance & financing mechanisms Training and Education / awareness

2a. Guidelines & Toolkits http://biodivcanada.ca/default.asp?lang=En&n=B443A05E-1 . Ecosystem Services Toolkit (Canada) – Febr. 2017 http://www.aboutvalues.net/about_values/GIZ, Germany: VALUES “Commonland Guidelines: on benefits and financing of ecosystem restoration (2016-ongoing) (US) Federal Resource Management and Ecosystem Services Guidebook (2016) https://nicholasinstitute.duke.edu/initiatives/national- ecosystem-services-partnership/federal-resource- management-and-ecosystem-services-online-guidebook https://nespguidebook.com/ -> Special Workshop at ESP9 Conference in Shenzhen (11-15 Dec. 2017)

Integrated Ecosystem Assessment Tools Also GIS based software (OPAL, InVEST, GISCAME), guidelines (SEA, ESR for IA, ESIA), toolkits (TESSA) and modelling frameworks (MIMES) > 80 !

2b. Pilot- and Demonstration Sites long-term studies in Pilot or Demonstration sites applying these integrated ESA&M-approaches in close collaboration with involved stakeholders Long-Term ‘ESA’ Sites (analogue to LTER-sites) -Baviaanskloof Biosphere Reserve, S.Africa (since 2006) -Commonland-cases: Spain, S.Africa, Australia, NL -Ansan Reed-wetland? [indicators] Link to IPBES TSU’s on Capacity Building (Norway) and Training & Education (S.Korea) -Urban Forest project – 2016 (Korea Univ., Prof Jeon)

“Earth Collective/Living Lands ” (2006 – present) Website: www.earthcollective.net http://livinglands.co.za/ “Working for Woodlands” “Working for Water and Food Learning Village

2c. databases on, for example, ES-indicators, monetary values, case studies and success stories. http://www.oppla.eu/ OpenNESS-project – OPPLA March 2017 www.es-partnership.org

2d. education and training programs to increase awareness and skills of scientists, policy-makers, practitioners and the general public. GIZ Training on VALUES Wageningen, NL, 2016 Baviaanskloof, SA (Living Lands) ESP Asia RO in S.Korea Nature for Peace trail; exhibits, etc