Patrick ten Brink of IEEP TEEB Natura 2000 and Nature & Green Economy EP 3 Dec 2012 final

1. Mainstreaming the Economics of Nature:
EU nature conservation
&
Nature and the Green Economy
Patrick ten Brink
Institute for European Environmental Policy (IEEP)
Public Hearing
Protected areas and green employment
Monday 3.12.12, 14.00-17.00
European Parliament, room PHS 6B054,
Brussels

2. Presentation overview
Part A: Mainstreaming the Economics of Nature
a) TEEB for Policy Makers and the EU
b) Benefits of Natura 2000
Part B: Nature and the green economy
c) Nature and GE

3. “I believe that the great part of miseries of mankind are
brought upon them by false estimates they have made of
the value of things.”
Benjamin Franklin, 1706-1790

4. Biodiversity loss
Species extinction ~ 100 to 1,000 times more
rapid than “natural” extinction rate (MA 2005)
Since 1900, global loss ~ 50%of its wetlands.
[2].
Coral Reefs
 ~ 20% of the world’s coral reefs loss -
effectively destroyed by fishing, pollution, disease and coral
bleaching
~ 24% of remaining reefs under imminent
risk of collapse through human
Source: Nellemann et al 2008: 22
pressures.[3] [2] http://www.ramsar.org/about/about_wetland_loss.htm
[3] Wilkinson C., 2004: Status of Coral Reefs of the World: 2004 report

5. Forests
 Global Forest Area has shrunk by
approximately 40% since 1700.
 Forests have completely disappeared in
25 countries [1].
Mangroves
 In the past two decades, 35% of mangroves
have disappeared.
 Some countries have lost up to 80% through
conversion for aquaculture, overexploitation
and storms.[4]
http://upload.wikimedia.org/wikipedia/commons/9/95/World_map_mangrove_distribution.png
[1]
United Nations FAO, 2001.Global Forest Resources Assessment 2000; United Nations Forest and Agriculture Organisation, 2006 Global Forest Resources Assessment 2005
[4]
Millennium Ecosystem Assessment, 2005: Global Assessment Report 1: Current State & Trends Assessment. Island Press, Washington DC. Detail: Chapter 19 Coastal Systems. Coordinating
lead authors: Tundi Agardy and Jacqueline Alder. Original reference: 35%: Valiela et al. 2001; 80% reference: Spalding et al. 1997

6. Fisheries
Worlds Fisheries :
overexploited
40 %
$50 bn/yr lost econ. value, over
exploitation (World Bank 2008)
40 %
Collapse of fisheries: loss of
20 % livelihoods
2010
Source: Sea Around Us project
Lake Karla, Greece: 1300
fishermen lost their jobs due to the
degradation of the former Lake
Karla in Greece and impacts on
commercial fisheries. (Zalidis and
Gerakis, 1999)
Source: FAO 2005a: 7

7. Ecosystem services
Provisioning services
Food, fibre and fuel
Water provision
Genetic resources
Regulating Services
Climate /climate change regulation
Water and waste purification
Air purification
Erosion control
Biological control
Cultural Services
Aesthetics, landscape, recreation & tourism
Cultural values and inspirational services
Supporting Services: Soil formation &
fertility, photosynthesis, nutrient cycle et al

8. TEEB’s Genesis and Developments
TEEB End User Nature & Green Economy
Reports Brussels TEEB Water & Wetlands
Interim Climate TEEB Oceans
2009, London 2010
Report Issues Update
TEEB TEEB
Synthesis Books
Ecol./Env.
Economics CBD COP 9 Input to
literature Bonn 2008 UNFCCC 2009
India, Brazil, Belgium,
Japan & South Africa
TEEB studies
Sept. 2010
The Netherlands,
Germany, Nordics,
BD COP 10 Norway, India, Brazil,
Nagoya, Oct 2010 South-East Asia

9. TEEB for Policy Makers
The Global Biodiversity Crisis
Measuring what we manage
Available Solutions
• PES (e.g. water), PES: REDD+
• Markets, GPP
• Subsidy reform
• Legislation, liability, taxes & charges
• Protected Areas
• Investment in natural capital (restoration et al)
Transforming our approach to
natural capital
http://www.teebweb.org/

10. Biodiversity (genes, species, ecosystems) & its value is about
Diversity/variety – e.g. pharmaceuticals, food security, biomimicry;
Building on Balmford and Rodriguez et al (2009) Scoping the Science
E.g. genetic resources: > than
Quantity – e.g. timber, carbon storage, fish stock, flood control, water retention
E.g. for fish production: > than
Quality – e.g landscape & tourism, ecosystems & water filtration, resilience
(to climate change, IAS)

11. Values of Working with Nature – evidence base
• Germany : peatland restoration: avoidance cost of CO2 ~ 8 to 12 €/t CO2 (0-4 alt. land use)
• USA-NY: Catskills-Delaware watershed for NY: PES/working with nature saves money (~5US$bn)
• France & Belgium: Priv. Sector: Vittel (Mineral water) PES & Rochefort (Beer) PES for water quality
• Venezuela: PA helps avoid potential replacement costs of hydro dams (~US$90-$134m over 30yr)
• South Africa: WfW public PES to address IAS, avoids costs and provides jobs (~20,000; 52%♀)
Range of policy synergies of Biodiversity: with Water security, climate change, jobs,
health, public and private finance
Sources: various. Mainly in TEEB for National and International Policy Makers, TEEB for local and regional policy and TEEB cases

12. Jobs
EU: 14.6 million jobs (7% employment) highly dependent on ecosystem services
(Nunes et al, 2011)
USA: Nature-based recreation. Wildlife-related recreational activities ~ US$ 122 billion
– just under 1% of GDP in 2006 (US Fish and Wildlife Service 2007).
New Zealand’s South Island (West Coast Region)- additional 1,814 jobs (15% of total jobs in
2004) and extra spending US$ 221m/yr (10% of total spending), mainly from tourism
related to conservation lands (Butcher Partners 2004).
Black Sea and job losses: invasion by a non native comb jellyfish in late 1980s led to
collapse of the fishing industry with a loss of 150,000 jobs. (Lubschenco, 1997)

13. CBD COP 10 Nagoya: Strategic Plan 2011-20
5 strategic goals & 20 headline targets ….extracts…
Target 1: “… people aware of the values of biodiversity …..”
Target 2: “…. biodiversity values have been integrated ….into
strategies… planning … national accounting…. reporting systems.”
…
…
Target 11: “By 2020, at least 17% cover of terrestrial and inland water
and 10% coastal and marine areas …. are conserved through
effectively and equitably managed... systems of protected areas”

14. Protected Areas - “crown jewels” of biodiversity
Current status: ~12.9% terrestrial; 6.3% territorial seas, <1% open
seas (IUCN and UNEP-WCMC 2010)
Intrinsic value
Also: food security
Water security (supply & quality)
Climate mitigation & adaptation,
Knowledge,
Culture
Recreation and tourism Dudley and Stolton, 2010
And other ecosystem services

15. Investment in natural infrastructure
Ecological (green) infrastructure is key for adaptation to climate change
• Afforestation: carbon store+ reduced risk of soil erosion & landslides
• Wetlands and forests and reduced risk of flooding impacts
• Restore Forests, lakes and wetlands to address water scarcity
• PAs & connectivity to facilitate resilience of ecosystems and species
Can help adapt to climate change at lower cost than man-made
technological solutions
Adaptation to climate change will receive hundreds of US$ billions in coming years/decades.
Critically important that this be cost-effective.
Support for identifying where natural capital solutions are appropriate & mobilise resources

16. Eroding Natural Capital Base & Tools for an Alternative
Development Path, Towards a Green Economy
Alternative natural capital development path:
Meeting biodiversity objectives, investing in natural capital
Past loss/
degradation No net loss from current levels
Investment in
Instruments & measures – illustrative
Halting biodiversity loss natural capital;
Restoration & offsets;
Trading and new markets;
PES, REDD, ABS;
Charges, taxes, fines, fees, liability, subsidy reform;
Sustainable production and consumption,
Slowing markets, certification/logos, innovation & GPP;
biodiversity loss Better regulation, assessment,
accounting, integration, monitoring,
enforcement;
Protected areas;
Regulation &
Baseline: Future loss of biodiversity, natural capital standards.
(schematic) – with no additional policy action
Today 2020 2050
Need multi-level governance & engagement (government, business, communities, citizens) & integration.
Source: Patrick ten Brink, own representation

17. Part A: Summary
Mainstream the economics of nature – …is this enough to work out
what to do?
Making Nature’s Values Visible: across sectors,
across policies, seek synergies across disciplines.
Protected areas: biodiversity riches that can also offer
value for money, recreation and cultural identity, tourism.
Ecological infrastructure and benefits: climate
change (mitigation/adaptation), air pollution & health et al
Changing the incentives: payments, taxes, charges,
…always better to look at
subsidy reform, markets
the whole board
And engage the full set of
players

18. Part A:
Mainstreaming the
Economics of Nature
Benefits of Natura 2000

19. Natura 2000
Birds Directive 2009/147/EC in 1979
Habitats Directive 92/43/EEC in 1992.
26,000 sites ~ 18 % of EU
Terrestrial SCIs/SACs: ~ 59 million ha,
Terrestrial SPAs: ~ 49 million ha (Natura
2000 Barometer, 2010).
Marine protected area (MPA) network –
~14.5 million ha2

20. Natura 2000
Conservation Status
Remaining Challenge
Funding a challenge
Costs ~ 5.8 bnEUR/yr
Source: Gantioler et al 2010
But also benefits

21. Illustrative schematic for analysing the value of PAs
BENEFITS
Before First year after A decade in…
designation as designation as
protected area protected area
Management and
investment
Risk of degradation
without PA measures
Ecological services that
would have remained
without protected area
TIME
Opportunity Costs Cost of management,
COSTS
Source: Patrick ten Brink, own representation in TEEB 2011

22. Natura 2000 : An first Economic Assessment
Benefit Numbers
~ €200 - 300 bn/year
Natura 2000 network Building on 3 estimates (different assumptions):
total benefits €223 – 314 bn /yr (a)
€251 – 360 bn /yr (b)
€189 – 308 bn /yr (c)
Current Stock: €600 bn - €1130 bn
Carbon sequestration Annual Sequestration Benefits:
/ storage €79-88 bn increase to 2020 if ecosystem quality is improved;
€82-92 bn to 2020 if a 10% increase: forest area.
Source: ten Brink et al 2010
~€ 50-85 billion /year for 1.7 billion visitor days (~466,000
Tourism expenditures visitors/day average)
~€ 9-20 billion/year directly for Natura 2000
Recreation ~€ 5-9 billion/year for Natura 2000 (4 € / visit )
(non market benefits)

23. Natura 2000 Benefits: jobs
Spain: The implementation of Natura 2000 network > positive impacts on GDP (0.1 - 0.26
per cent at national level). Network estimated to generate an additional 12,792 jobs.
Andalucía, Aragon and the Canarias islands - benefit most from Natura 2000: 0.26 - 0.44
per cent increase in their GDP and between 1346 - 5957 additional jobs created. (Fernandez et al
2008 in Gantioler et al 2010)
Germany: national park Wattenmeer in Germany is responsible of around 23 per
cent of total tourists in the region, with associated gross economic income of over €100
million in 2003 (Neidlein and Walser, 2005)
Finland: The Total annual revenue linked with the visitor spending in national parks was
€70.1 million and supported local employment by creating 893 person-years. In general, it
was estimated that €1 public investment to protected areas provided €20 return.
(Metsahallitus, 2009).

24. Natura 2000 Benefits: interpreting the results
• A first estimate
• Methodological issues
• Impossible to attribute EU wide numbers to all services – eg water, pollination,
natural hazards, HNV farming….
• Whole picture of benefits is needed
• For robust value focus at site level assessments
• EU wide assessment to communicate the benefits beyond intrinsic values
• Useful to attract funding, encourage restoration, wise use & management

25. Part B: Nature and the green
economy
Challenges
• Feeding the 9 billion; Water; Poverty alleviation,
Urbanisation, Jobs, Climate change, Financial crisis
etc
• The rising level of consumption and production will
put increasing stress on the planet’s resources and
ecosystems – limits, scarcity, price volatility, critical
(ecological and social) thresholds...

26. Nature and the Transition to a Green Economy
• Need for a transition towards a “green” economy
that promotes social equity, poverty eradication
and human well-being.
• Increasing appreciation of biodiversity and
ecosystem services and the value of nature.
• Healthy and resilient ecosystems are necessary
for long-term socio-economic development
• Efforts to build a green economy should be based
on an appreciation of the values of nature.

27. The Greening Economy
Environment / Nature
Society
The Economy
Domestic
Natural Capital Economic Sectors Exports
(examples)
Minerals, Energy € - Agriculture, hunting, forestry & fishing
- Oil and Gas; Mining & quarrying
Water, Land €
- Wood and wood products Public
Products & Services
- Food products, beverages & tobacco
€
Timber, Fish, Ag € Sector
- Pulp, paper & paper products
Other Biodiversity - Research & development
Outputs:
€ - Hotels & restaurants
(genes, species,
- Chemicals - Pharmaceuticals
ecosystems) Ecosystem service flows
- Recycling - Manufacturing
- Electricity - Water supply
- Education - Finance & insurance Private
€ €
Imported natural Sector
Outputs from one sector can be
capital
Timber,
Human & intermediate inputs to another
Food , Primary materials Social Capital €
€
& Inputs:
embedded labour, skills, Man-made capital Waste / House-
Biodiversity, knowledge, (inc. financial capital) pollution
Water, holds
Carbon
institutions,
in products culture Social impact
Natural
Impacts on environment capital
Source: ten Brink, Russi and Mazza, 2012 building on ten Brink et al. 2011

28. The Transition to a Green Economy
Current Situation Building Blocks in the Ambitions for the Future
Transition to a Green Economy A Green Economy
Declining Sustainability
in a Brown Economy Improved human well-being and
Business-as-Usual
social equity, while significantly
Approaches reducing environmental risks and
Resource over-exploitation &
pollution pressures Avoiding Unsustainable Trade- ecological scarcities
offs
Climate Change + Staying within a ‘safe operating
Environmental compliance & space’: using resources within the
Biodiversity and natural infrastructure planet’s regenerative capacities &
Good governance
Good Governance
capital loss avoiding critical ecological
+ thresholds
Critical ecological and Active environmental
resource thresholds passed management No net loss of biodiversity and
or at risk climate change within ‘acceptable’
Active Risk Management
limits
Resource scarcity and limited
+
access to a clean Proactive Investment in Natural Sustainability for future
environment Capital generations and business:
available natural capital and a
+ clean environment
Health impacts and man-
made natural disasters Pursuing environmental
sustainability Health and livelihoods for citizens
An economy that is not Eco-efficiency and communities
resource efficient, low carbon + An economy decoupled from
and socially inclusive
Decoupling via Radical environmental impacts and
Source: Patrick ten Brink & Leonardo Innovation & Demand change resource use
Mazza, own representation

29. Building Blocks in the
Transition to a Green Economy Examples of actions
Business-as-Usual
Approaches A: Assessment to understand winners/losers, impacts &
A. Avoiding Unsustainable responses
Trade-offs
+ B: Investment in water and waste infrastructures
B. Environmental compliance &
infrastructure
+
Governance
G. Good
Active environmental C: Flood risk mapping, taxonomy & pathways for IAS
management
C. Active Risk Management D: Restoration of ecological infrastructure & Conservation,
+ protected area management
D. Proactive Investment in
Natural Capital
+
Pursuing environmental E: EHS reform, positive incentives, polluter pays
sustainability
E. Eco-efficiency F: R&D for new products/applications + Information /
+ engagement for demand changes
F. Decoupling via Radical
Innovation & Demand change G: Indicators and Environmental accounts

30. Conclusions
1. Nature provides a wide range of benefits and
values to society and the economy.
2. A green economy aims to incorporate these values
into decision-making across all levels of
governance.
3. There are major opportunities to be realised and
also trade-offs. Transition management is critical
for success.
4. Protected areas are a key element of the transition
to a green economy.

31. Additional information sources
The Economics of Ecosystems and Biodiversity (TEEB) in National and International Policy Making (ed.
Patrick ten Brink) www.teebweb.org or via www.ieep.eu
Estimating the Overall Economic Value of the Benefits provided by the Natura 2000 Network (ten Brink
et al 2011) http://www.ieep.eu/publications/2012/06/estimating-the-overall-economic-value-of-the-benefits-
provided-by-the-natura-2000-network
Costs and Socio-Economic Benefits associated with the Natura 2000 Network (Gantioler et al 2010)
http://ec.europa.eu/environment/nature/natura2000/financing/docs/natura2000_costs_benefits.pdf
Green Infrastructure options (Mazza et al, 2010))
http://www.ieep.eu/assets/898/Green_Infrastructure_Implementation_and_Efficiency.pdf
Nature in the Transition to a Green Economy (ten Brink et al 2012)
http://www.ieep.eu/newsletter/summer-2012/nature-in-the-transition-to-a-green-economy/
The Social Dimension of Biodiversity Policy: Final Report (Nunes et al 2011)
http://ec.europa.eu/environment/enveco/biodiversity/pdf/Social%20Dimension%20of%20Biodiversity.pdf
Recognising the value of protected areas (Kettunen et al 2011) www.cbd.int/database/attachment/?id=1408
The Social and Economic Benefits of Protected Areas: an Assessment Guide (Kettunen and ten Brink
eds 2013 forthcoming) http://www.routledge.com/books/details/9780415632843/

32. Thank you for your attention !
Patrick ten Brink
ptenbrink@ieep.eu
IEEP is an independent not for profit institute dedicated to advancing an environmentally
sustainable Europe through policy analysis, development and dissemination.
For further information see: http://www.ieep.eu
Follow us on twitter: IEEP_EU
For more information about IEEP’s work on Nature and the Green Economy visit
www.ieep.eu and for TEEB also www.teebweb.org

33. Institute for European Environmental Policy (IEEP)
• IEEP is an independent research organisation concerned with policies
affecting the environment in Europe and beyond
• Research and consultancy on the development, implementation and evaluation of
environmental and environment-related policies in Europe
• Policy advise and intelligence
• Capacity-building
• Interdisciplinary staff including natural and social scientists, lawyers and
economists
• Key research areas:
• Governance
• Agriculture and land management
• Biodiversity
• Climate change and energy
• Resources use, waste and chemicals
• Water, marine and fisheries; and
• Environmental Economics (green economy, value of nature, EHS/MBI et al,)