Presentation at World Bank Land and Poverty conference 11 April 2013. Looks at the potential wide range of benefits which may arise from the use of the ecosystems service approach in sharing benefits from rural land management. This is built around a case study of Exmoor's potential for water management and carbon storage in the south west of England. Policy and practical lessons are taken from this case study for consideration in the broader context of land and its role in the alleviation of poverty.

1. Annual World Bank Conference on Land and Poverty 2013
Ecosystem Service Markets as a means of
sharing land management benefits: UK case
study
Charles Cowap
RICS, London, UK
Harper Adams University
11 April 2013
Charles Cowap
MBA MRICS FAAV

2. New land management
Requirements are emerging
New markets
New challenges to
professional practice
New environmental, social
and economic
opportunities and
challenges
Charles Cowap
MBA MRICS FAAV

3. Peat’s Story
Charles Cowap
MBA MRICS FAAV

4. Distribution of upland peatlands in the South
West of England
Charles Cowap
MBA MRICS FAAV

5. The mires on Exmoor
Drainage for agricultural
improvement
Charles Cowap
MBA MRICS FAAV

6. Domestic and commercial peat cutting for
fuel
Cutting carried on until the end of the c20th
Charles Cowap
MBA MRICS FAAV

7. Where?- the pink bits
5,000 m
Charles Cowap
MBA MRICS FAAV

8. Charles Cowap
MBA MRICS FAAV

9. Context: Exmoor example Wimbleball Resr &
R Haddeo
R Exe
Exmoor
R Barle
Replenishment
Exebridge Pumping
Pumping Approx 5 miles,
Station lifting water from
120 to 240 m
CO 2 AOD
Charles Cowap
MBA MRICS FAAV

10. Economics
+ OTHER ESS
CARBON
PAYMENTS???
Future
Profit for reinvestment
Storage/Abstraction
or distribution
Costs
Savings for water
Treatment Costs
buyers
Incentive payments to
Pumping Costs landowners –
managers - occupiers
Charles Cowap
MBA MRICS FAAV

11. Top Three Concerns
• Confidence
• Revenue/Cost
• Scheme Relationships
Charles Cowap
MBA MRICS FAAV

12. Top Three Questions
• Legal/ownership concerns
• Revenue and cost
• Confidence
Charles Cowap
MBA MRICS FAAV

13. PROSPECTUS
• Proposed scheme(s)
• Basis(es) of offer
Charles Cowap
MBA MRICS FAAV

14. Questions for consideration
• Contractual aspects • Relationship other
• Land tenure schemes
• Effects on other • Other business
interested parties considerations
• Practical farming • Maintenance
considerations obligations
• Animal welfare and • Tax
health • Impact on value
• Public liability • Security/risk
Charles Cowap
MBA MRICS FAAV

15. Financial evaluation
Costs saved Extra costs, eg
• Eg some livestock purchases • Access time to more difficult
ground
• Vet and med bills
• Insurance
Extra Revenue eg • Feed
• PES income • Machinery costs (if
• Contracting opportunities for contracting to be offered)
SWW Lost Revenue
• Eg some livestock LWG or
sales
+ Balance: financially Balance positive: not financially
worthwhile worthwhile
• Consider capital and tax
implications
Charles Cowap
MBA MRICS FAAV

16. POLICY CONTEXT
Charles Cowap
MBA MRICS FAAV

17. Foresight Land Use Futures 2010
Charles Cowap
MBA MRICS FAAV

18. White Paper
• Growing a Green Economy
• Green market opportunities
– Ecosystem Market
Taskforce
• Valuation of Nature
– Natural Capital Committee
Charles Cowap
MBA MRICS FAAV

19. Top 10 Business Opportunities
1= Biodiversity Offsetting (BDO) and
Conservation Banking
• Estimated size of market £50 – 300 million
pa from housing, plus other sectors
• Brokerage, certification and registration
• Additional costs to builders/developers
deducted from land value
1= Peatland Carbon Code and Carbon Credits
• Peat restoration for carbon storage
• Management schemes and incentives
• Certification and brokerage
Charles Cowap
MBA MRICS FAAV

20. 2. Woodfuel and Woodburning Stoves
3. UK ecosystem knowledge economy
4. Layered PES
– Different Environmental Services
to different buyers
– Eg 
Charles Cowap
MBA MRICS FAAV

21. 6. Carbon sequestration
7. Sustainability certification
– Opportunities for
intermediaries
8. Sustainable tourism
Charles Cowap
MBA MRICS FAAV

22. 9= Global centre of excellence in
ESS certification
9= Water re-use technology
11 Reducing insurance risk
through green infrastructure
12 Environmental bonds
http://www.valuing-nature.net/opportunities-uk-business-
protect-and-value-natures-services-report-published-
today [accessed 19 July 2012]
Charles Cowap
MBA MRICS FAAV

23. NEW VALUATION
REQUIREMENTS ARE
EMERGING
Charles Cowap
MBA MRICS FAAV

24. Charles Cowap
MBA MRICS FAAV

25. Charles Cowap
MBA MRICS FAAV

26. SOME WORK HAS BEEN
DONE ALREADY
Charles Cowap
MBA MRICS FAAV

27. Charles Cowap
MBA MRICS FAAV

28. Charles Cowap
MBA MRICS FAAV

29. Charles Cowap
MBA MRICS FAAV

30. We face challenges to valuation
ECONOMIC APPRAISAL
Charles Cowap
MBA MRICS FAAV

31. Charles Cowap
MBA MRICS FAAV

32. And Now
ECOSYSTEM SERVICES
Charles Cowap
MBA MRICS FAAV

33. Charles Cowap
MBA MRICS FAAV

34. Charles Cowap
MBA MRICS FAAV

35. ECOSYSTEM
SERVICES
Charles Cowap
MBA MRICS FAAV

36. From TEEB Foundations, Chapter 5
APPROACHES FOR THE
ESTIMATION OF NATURE’S
VALUES
Charles Cowap
MBA MRICS FAAV

37. Market Contingent Cost
Analysis Valuation Methods
Deliberative
Avoided
Valuation
Group Replacement Cost
Valuation Cost Methods
Regime Shift
Methods Analysis
Insurance
Resilience Ecological Value
Value Risk
Footprint
Analysis Joint
Mitigation Analysis
Input/Output Production Cost
Analysis Function Method
Charles Cowap
MBA MRICS FAAV

38. Valuation
WHERE DOES IT FIT?
Charles Cowap
MBA MRICS FAAV

39. Thinkpiece
• Royal Charter
– Promote the usefulness
of the profession to public
advantage
• New opportunities in land
management
• New ways of working in
development
• New points to reflect in
conventional valuations
• New types of valuation
Charles Cowap
MBA MRICS FAAV

40. And we should offer:
• Our expertise
• In Land Tenure and its
relationship to land
management and
development
• Our experience of valuation in
challenging commercial
markets
• Our expertise in brokerage
Charles Cowap
MBA MRICS FAAV

41. Key points from RICS Launch ESS Language – a
problem?
Experts: Problems of long term
Michel Pittini control v opportunism Need for compelling
Director for Sustainable evidence
Land Use, Rural Evidence and
Analysis, Defra Is it going to pay a firm’s
salary bill?
ESS – or Biodiversity
Prof Alister Scott Dumping??
Birmingham City
University One stop shops to realise
Rapidity of recent
value? Does DCLG
Paul Collins, progress – catch up!
understand? Joined up
Nottingham Trent University government needed
What are we learning
Duncan Cairns, Land merely a from abroad? NZ was
Director, Environment Bank Ltd commodity for big doing this 25 years ago
business?
Charles Cowap
MBA MRICS FAAV

42. So to conclude:

• New markets
• New challenges to professional
practice

•

New environmental, social and
economic opportunities and
challenges
Charles Cowap
MBA MRICS FAAV

43. Contact Details
Translating new knowledge for rural professional practice
 cdcowap@gmail.com
 07947 706505
Twitter: @charlescowap
Blog: http://charlescowap.wordpress.com/
Slideshare: http://www.slideshare.net/cdcowap
Charles Cowap
MBA MRICS FAAV