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“True Cost of Food”
Sustainable Food Trust
London, 6th December 2013

Ecosystems and Food Systems:
Valuing the Connection
Mr. Pavan Sukhdev
CEO, GIST Advisory
Author, ‘Corporation 2020’
UNEP Goodwill Ambassador
TEEB (2010) on Ecosystems & Rural Poverty…
Indonesia
Ecosystem services as a
% of classical
GDP
:
Ecosystem servicedependent poor people :

99 million

India

352 million

Brazil

20 million

Ecosystem services
consumed by the poor as a
% of “GDP of the poor” :

Ecosystem services
Source: Gundimeda and Sukhdev, TEEB for National & International Policy
QUESTION: So why is this NOT happening?
The importance of Small Farm yields ….
• 10 % increase in farm

• Approximately 2.6 billion

yields => 7 % reduction
in poverty in Africa & =>
5 % poverty reduction in
Asia (UNEP, 2011)

people rely on agricultural
production systems for their
livelihood (FAO, 2009)

• Of 525 million small farms

world wide, 404 million are
less than two hectares
(Nagayets, 2005)

• Green farming practices
have increased yields,
especially on small
farms, between 79 %
(Pretty et al, 2006) and
180 % (FAO, 2009).

•Small farms cultivate 60 %
of arable land
(Herren et al. 2010)

…. for solving hunger, poverty, & employment
UNEP – GREEN ECONOMY INITIATIVE
QUESTION: So why is this NOT happening?
Private Profits, Public Losses
Shrimp farms in South Thailand

10,000

$12,392

$9,632

5,000
$584
US$/ha
in 1996

private profits
Shrimp Farm
Mangroves

$1,220

After adding
public benefits
from mangroves
$584

private private
profits profits
less
subsidies

Source: Data from Barbier et al (2007)
All values in NPV over 9 yrs (1996-2004) at 10%

-$9,318

$10,821
Storm
protection
$987 Fisheries
$584 Forest prods.

Net of public
costs of
restoration
after 5 yrs
Private Profits, Public Losses

Global Assessment of Environmental Externalities

• Negative externalities of top 3,000 companies estimated at
US$2.15 trillion per annum

Source: Trucost for UNPRI, 2010.
Negative Corporate Externalities …..
Top 3,000
Listed
Companies

Source: Trucost for
UNPRI, 2010.
….. Are Pushing Planetary Boundaries

Greenhouse
Gases

Natural
Resources

Greenhouse
Gases

Natural
Resources
Natural
Resources
Water
Abstraction
Corporation 2020’s
“Theory of Change”
Four Micro-Policy Reforms for “Corporation 2020” to
become the new “DNA” of Business:Accountable Advertising (Advertising Associations)
Two Principles, Four Strategies, & Industry-wise Standards to
make marketing/ advertising responsible & accountable
Leverage Limits (Central Banks)
Six reforms to govern & limit financial leverage at the point of
credit extension, not just intermediation
Resource Taxation (Finance Ministries)
Replacing Corporation Tax (on Profits) with Resource Taxes
(on Resource Use & Extraction)
Disclosing Externalities (Accountancy Regulators)
Measuring & disclosing all major corporate externalities (+ve
& -ve) using sectoral standards & guidelines
Source:

Source: Why Corporation 2020?, Island Press, 2012
TEEB for Biz Coalition: Valuing Externalities
For Business Sectors / Regions
“TEEB for Agriculture & Food”
Background & Rationale

• Role of biodiversity and ecosystem services in agriculture
– Nutrient cycling, Soil fertility, Genetic diversity
– Pollination, water purification, soil retention
• Dependencies on Nature: well-being, livelihoods, food security,
health, development (“GDP of the poor”)
• Impacts on Nature: intensification, expansion, subsidies
• Context: Different scales & types of food systems & land use

Website: http://www.teebweb.org/agriculture-and-food/
Email: teeb@unep.org; dustin.miller@unep.org
“TEEB for Agriculture & Food”
Research Scope & Approach

For Key Research Questions:•Global meta-analysis
•Policy-relevance
•Open architecture
•Ecosystem functions: Substance flow analysis
•Costs and benefits: measure, model and map

Website: http://www.teebweb.org/agriculture-and-food/
Email: teeb@unep.org; dustin.miller@unep.org
“TEEB for Agriculture & Food”
Expected Outputs

• Conceptual framework for evaluating dependencies & impacts
across different scales and systems
• Set of methods and tools for valuation
• Literature review and synthesis
• Range of policy recommendations
• Examples of Success: national and local decision-making
frameworks & processes
Website: http://www.teebweb.org/agriculture-and-food/
Email: teeb@unep.org; dustin.miller@unep.org
Thank You !
www.teebweb.org
www.gistadvisory.com
www.corp2020.com

Pavan Sukhdev
Founder-CEO, GIST Advisory
Author, Corporation 2020,
& UNEP Goodwill Ambassador

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Pavan Sukhdev

  • 1. “True Cost of Food” Sustainable Food Trust London, 6th December 2013 Ecosystems and Food Systems: Valuing the Connection Mr. Pavan Sukhdev CEO, GIST Advisory Author, ‘Corporation 2020’ UNEP Goodwill Ambassador
  • 2. TEEB (2010) on Ecosystems & Rural Poverty… Indonesia Ecosystem services as a % of classical GDP : Ecosystem servicedependent poor people : 99 million India 352 million Brazil 20 million Ecosystem services consumed by the poor as a % of “GDP of the poor” : Ecosystem services Source: Gundimeda and Sukhdev, TEEB for National & International Policy
  • 3. QUESTION: So why is this NOT happening?
  • 4. The importance of Small Farm yields …. • 10 % increase in farm • Approximately 2.6 billion yields => 7 % reduction in poverty in Africa & => 5 % poverty reduction in Asia (UNEP, 2011) people rely on agricultural production systems for their livelihood (FAO, 2009) • Of 525 million small farms world wide, 404 million are less than two hectares (Nagayets, 2005) • Green farming practices have increased yields, especially on small farms, between 79 % (Pretty et al, 2006) and 180 % (FAO, 2009). •Small farms cultivate 60 % of arable land (Herren et al. 2010) …. for solving hunger, poverty, & employment UNEP – GREEN ECONOMY INITIATIVE
  • 5. QUESTION: So why is this NOT happening?
  • 6. Private Profits, Public Losses Shrimp farms in South Thailand 10,000 $12,392 $9,632 5,000 $584 US$/ha in 1996 private profits Shrimp Farm Mangroves $1,220 After adding public benefits from mangroves $584 private private profits profits less subsidies Source: Data from Barbier et al (2007) All values in NPV over 9 yrs (1996-2004) at 10% -$9,318 $10,821 Storm protection $987 Fisheries $584 Forest prods. Net of public costs of restoration after 5 yrs
  • 7. Private Profits, Public Losses Global Assessment of Environmental Externalities • Negative externalities of top 3,000 companies estimated at US$2.15 trillion per annum Source: Trucost for UNPRI, 2010.
  • 8. Negative Corporate Externalities ….. Top 3,000 Listed Companies Source: Trucost for UNPRI, 2010.
  • 9. ….. Are Pushing Planetary Boundaries Greenhouse Gases Natural Resources Greenhouse Gases Natural Resources Natural Resources Water Abstraction
  • 10. Corporation 2020’s “Theory of Change” Four Micro-Policy Reforms for “Corporation 2020” to become the new “DNA” of Business:Accountable Advertising (Advertising Associations) Two Principles, Four Strategies, & Industry-wise Standards to make marketing/ advertising responsible & accountable Leverage Limits (Central Banks) Six reforms to govern & limit financial leverage at the point of credit extension, not just intermediation Resource Taxation (Finance Ministries) Replacing Corporation Tax (on Profits) with Resource Taxes (on Resource Use & Extraction) Disclosing Externalities (Accountancy Regulators) Measuring & disclosing all major corporate externalities (+ve & -ve) using sectoral standards & guidelines Source: Source: Why Corporation 2020?, Island Press, 2012
  • 11. TEEB for Biz Coalition: Valuing Externalities For Business Sectors / Regions
  • 12. “TEEB for Agriculture & Food” Background & Rationale • Role of biodiversity and ecosystem services in agriculture – Nutrient cycling, Soil fertility, Genetic diversity – Pollination, water purification, soil retention • Dependencies on Nature: well-being, livelihoods, food security, health, development (“GDP of the poor”) • Impacts on Nature: intensification, expansion, subsidies • Context: Different scales & types of food systems & land use Website: http://www.teebweb.org/agriculture-and-food/ Email: teeb@unep.org; dustin.miller@unep.org
  • 13. “TEEB for Agriculture & Food” Research Scope & Approach For Key Research Questions:•Global meta-analysis •Policy-relevance •Open architecture •Ecosystem functions: Substance flow analysis •Costs and benefits: measure, model and map Website: http://www.teebweb.org/agriculture-and-food/ Email: teeb@unep.org; dustin.miller@unep.org
  • 14. “TEEB for Agriculture & Food” Expected Outputs • Conceptual framework for evaluating dependencies & impacts across different scales and systems • Set of methods and tools for valuation • Literature review and synthesis • Range of policy recommendations • Examples of Success: national and local decision-making frameworks & processes Website: http://www.teebweb.org/agriculture-and-food/ Email: teeb@unep.org; dustin.miller@unep.org
  • 15. Thank You ! www.teebweb.org www.gistadvisory.com www.corp2020.com Pavan Sukhdev Founder-CEO, GIST Advisory Author, Corporation 2020, & UNEP Goodwill Ambassador

Hinweis der Redaktion

  1. http://www.thedailygreen.com/cm/thedailygreen/images/ZK/fire-deepwater-horizon-300.jpg
  2. Agricultural production depends on services provided by healthy natural ecosystems, particularly supporting (e.g. nutrient cycling, soil fertility) and regulating services (e.g. pollination, water purification, soil retention), but also genetic resources including wild relatives of crop and livestock that can play an especially important role in adapting production systems to changing climatic conditions. Main research focus on assessing, in economic terms, the extent of dependencies and impacts between the agricultural sector (including welfare) and biodiversity and ecosystem services (BES), with an emphasis on poor local communities Although large-scale agriculture may deliver the biggest impacts to BES and will not be sidelined in the proposed study analysis, the role of small-scale farmers and producers (which use 60% of all agricultural land, and suffer disproportionately from the impacts) needs to be brought into the bigger picture in order to restore balance to the agri discourse
  3. This question, where TEEB will bring a fundamental comparative advantage, will explore how biodiversity and key ecosystem services deliver all types of economic benefits to the agriculture sector and beyond as a key contributor to human health, livelihoods and well-being. A meta-study synthesizing findings from the broad range of studies from existing agriculture research and undertaking a comparative analysis of selected agro-ecosystems[1] including a particular focus on smallholder production systems; Strong lines of communication and collaboration efforts with focal points of related projects/initiatives identified throughout and beyond project scoping (see Annex E) in order to minimise duplication and optimise synergies; The employment of spatial modeling, remote sensing (GIS) and similar techniques to measure, model and map the flows of cost and benefit trade-offs between agricultural production and ecosystem service provision, and developing scenarios to inform relevant decision-makers; Using substance flow analysis to identify main waste flows from production/consumption of provisional services and evaluate associated options and costs/benefits of recycling for sustained ecosystem service production and develop scenarios to inform relevant decision makers. [1] See Jackson et al. (2012). Social-ecological and regional adaptation of agrobiodiversity management across a global set of research regions. Global Environmental Change 22(3): 623–639.
  4. Conceptual framework to analyze the production benefits from biodiversity and ecosystem services to agriculture and to address linkages within and between different sectors Set of methods and tools to estimate the economic values of biodiversity and ecosystem services as public goods in agriculture Synthesis of findings from existing studies based on different agro-ecosystems with particular attention to smallholder production systems Range of policy mixes supporting biodiversity and ecosystems including direct economic incentives to end users, structural incentives, policies and strategies, legal frameworks, and improved knowledge and innovation Integration of key international findings and recommendations into national and local decision-making frameworks and processes, including the revision of National Biodiversity Strategies and Action Plans (NBSAPs) …The co-chairs report of the 7th Trondheim Conference on Biodiversity (Trondheim, Norway, 27-31 May 2013) concluded that, in order to increase understanding of the interplay between ecology, economy and society, the “development of common objectives across sectors, and increased efforts to develop and implement mutually supportive activities are essential”. In this context, agricultural biodiversity was explicitly referred to as an area where such actions would be particularly valuable.