Multidisciplinary Research Week 2013 at the University of Southampton. #MDRWeek. World Water Day and International Year of Water Cooperation 2013. ‘The Economics of Ecosystems and Biodiversity (TEEB): Water and Wetlands’, Presentation by Dr Daniela Russi, Policy analyst, Institute for European Environmental Policy (IEEP). See the latest videos, interviews, pictures, tweets and views from the floor at: www.southampton.ac.uk/multidisciplinary

1. World Water Day: Water Cooperation
Multidisciplinary Research Week 2013
‘The Economics of Ecosystems and Biodiversity
(TEEB): Water and Wetlands’,
by Dr Daniela Russi, Policy analyst, Institute for European
Environmental Policy (IEEP).

2. The Economics of Ecosystems and Biodiversity
(TEEB): Water and Wetlands
Presentation of the Final Report
dr. Daniela Russi
Policy analyst
Institute for European Environmental Policy (IEEP)
Friday 22 March 2013
World Water Day
University of Southampton

3. Presentation overview
1. TEEB & the TEEB for Water and
Wetlands
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to integrate the values of
water and wetlands into decision
making
4. Wetlands and poverty alleviation
5. Recommendations: transforming our
approach to water and wetlands

4. Presentation overview
1. TEEB & the TEEB for Water and
Wetlands
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to integrate the values of
water and wetlands into decision
making
4. Wetlands and poverty alleviation
5. Recommendations: transforming our
approach to water and wetlands

5. TEEB’s genesis, aims and progress
G8+5 “Potsdam Initiative – Biological Diversity 2010”
Potsdam
The economic significance of the global loss of biological diversity
Importance of recognising, demonstrating & responding to values of nature
Engagement: ~500 authors, reviewers & cases from across the globe
TEEB End User Reports
Brussels 2009, London
Interim Report Climate Issues TEEB W&W
2010 TEEB Books
Update Nature & GE
TEEB Synthesis TEEB Oceans
Ecol./Env.
Economics
literature
CBD COP 9 Input to
Bonn 2008 UNFCCC 2009
India, Brazil, Belgium, Jap
an & South Africa
Sept. 2010 TEEB studies
The
BD COP 10 Netherlands, German
Nagoya, Oct 2010 y, Nordics, Norway, I

6. TEEB Water and Wetlands – available at http://www.teebweb.org/wetlands/
Core Team
Case contributions
Reviewers
Discussions at Rio+20, Ramsar COP 11,
CBD COP11
Full Report: Russi D., ten Brink P., Farmer A., Badura T., Coates D., Förster J., Kumar R. and Davidson N. (2013).
The Economics of Ecosystems and Biodiversity for Water and Wetlands. IEEP London, Brussels.
Executive Summary: ten Brink P., Russi D., Farmer A., Badura T., Coates D., Förster J., Kumar R. and Davidson N.
(2013) The Economics of Ecosystems and Biodiversity for Water and Wetlands. Executive Summary.

7. 1. TEEB & the TEEB for Water and
Wetlands
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to integrate the values of
water and wetlands into decision
making
4. Wetlands and poverty alleviation
5. Recommendations: transforming our
approach to water and wetlands

8. What are wetlands?
The broad definition of the Ramsar convention:
 Areas where the water table is at or near the surface level, or the land is
covered by shallow water
 Areas of marine water the depth of which at low tide does not exceed 6m
Photo credit: Nick Davidson
 A list of islands or bodies of marine water deeper than 6m (e.g. coral reefs)
The definition includes human-made wetlands (e.g. aquaculture, farm
ponds, inundated agricultural land)
Inland wetlands cover at least 9.5 M km2 (i.e. 6.5% of the Earth)
Inland and coastal wetlands cover a minimum of 12.8 M km2

9. Wetlands &
ecosystem services
Without wetlands, the water
cycle, carbon cycle and nutrient cycles
would be significantly altered
Wetlands provide water for
drinking, irrigation, energy
production, forestry…
They also provide multiple ESS
(e.g. regulation of water quality and
quantity, reduction of flood and drought
risk, nutrient cycling, cultural ESS, …)

10. The evidence base: range of values of ecosystem services
Open oceans (14)
Woodlands (21)
Sources: de Groot et al 2012 building on TEEB 2010
Grasslands (32)
Temperate Forest (58)
Rivers and Lakes (15)
Tropical Forest (96)
Inland wetlands (168)
Coastal systems (28)
Coastal wetlands (139)
Coral reefs (94)
1 10 100 1,000 10,000 100,000 1,000,000 10,000,000
Values of both coastal and inland wetland ecosystem services
are typically higher than for other ecosystem types

11. Wetlands : historical loss of natural capital
 Since 1900 the world has lost around 50% of its wetlands
(UNWWAP 2003) and around 60% loss in Europe (EEA 2010)
 Between 1980 and 2005, 20% of
mangroves have disappeared.
Some countries have lost up to
80% (FAO 2007)
http://upload.wikimedia.org/wikipedia/commons/9/95/World_map_mangrove_distribution.png
 ~20% of the world’s coral reefs destroyed
 24% of the remaining reefs under
imminent risk of collapse through human
pressures (Wilkinson C., 2004; Nellemann et al 2008)

12. Consequence: loss of ESS
Losses in human well-being and negative economic
impacts on communities, countries and business
Photo credit: Nick Davidson
We need to reverse this trend, as wetlands provide natural
infrastructure that can help meet a range of policy objectives

13. 1. TEEB & The TEEB for Water and
Wetlands
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to integrate the values of
water and wetlands into decision
making
4. Wetlands and poverty alleviation
5. Recommendations: transforming our
approach to water and wetlands

14. Taking account of public goods can change what is the
“right” decision on land/resource use
US$ Based only on private gain, the “trade-off” Shrimp Farm
/ha/yr choice favours conversion….. Mangroves
$12,392/ha
10000 after
$9632/ha
adding Storm
public protection
5000
benefits
$1220/ha from Fishery
$584/ha nursery
$584/ha mangroves
private profits private private
0
profits profits Net of public
less costs of
subsidies restoration
needed after
5 years All values are NPV
If public wealth is included, the “trade-off” choice over 9 years and a
changes completely….. 10% discount
-ve $11,172/ha rate, given in 1996
US$.
Source: Barbier et al, 2007

15. Instruments to manage & protect wetland ESS
by integrating the values of water and wetlands into decision making
 Site management and investment
 Regulation and land-use planning, including establishment of PA and
zoning, IWRM, ICZM, MSP
 Property rights (ownership, use, access, etc.)
 Market – based instruments:
• Taxes, fees, charges, including subsidy reform
• Tradable permit schemes, water banks
• Liability rules
• Payment for Ecosystem Services
• Voluntary schemes, including offsets

16. 1. TEEB & The TEEB for Water and
Wetlands
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to integrate the values of
water and wetlands into decision
making
4. Wetlands and poverty alleviation
5. Recommendations: transforming our
approach to water and wetlands

17. TEEB For Water and Wetlands
The importance of healthy wetlands for the poor
 Poorest communities tend to depend more on ESS for their
livelihood and as insurance against risks
 They have less access to alternatives (e.g. water depuration/mineral
water; few alternative livelihood options)
 Over 600 M of the rural poor currently live on lands prone to degradation and
water stress, and in upland areas, forest systems, and drylands that are
vulnerable to climatic and ecological disruptions (Comprehensive Assessment of Water
Management in Agriculture, 2007).
 Over a billion people in developing countries rely
on fish as a primary source of protein
(World Bank and FAO, 2009)

18. TEEB For Water and Wetlands
Ensuring healthy and well-preserved
wetlands is crucial to alleviate poverty
 Water plays a key role in agriculture, fishing and energy production
 Improving/restoring wetlands is often a cost-effective way to
improve not only water security, but also food and energy security
 Wetland wise management improves resilience to climate change by
mitigating its effects (e.g. increased storms, droughts and floods)
 Well preserved wetlands contribute to social
cohesion and economic stability by ensuring
livelihood for local communities and
preserving cultural identity

19. TEEB For Water and Wetlands
How? Examples:
 Water sanitation can be improved through wetland restoration
 Access to clean freshwater can be ensured by healthy wetlands
 Restored wetlands can provide livelihood for local communities
(e.g. by supporting viable fish populations or attracting tourists)

20. Mexico PSAH: Hydrological services: Aquifer recharge
PES to preserve forest Improved surface water quality, reduce
frequency & damage from flooding
Different payments to forest owners: Results:
• e.g. cloud forest US$ 40 per ha/year; Deforestation rate fell from 1.6 % to 0.6 %.
• e.g. other tree-covered land US$ 30 per 18.3 thousand hectares of avoided deforestation
ha/year Avoided GHG emissions ~ 3.2 million tCO2e
78% of payment
Reduce Deforestation to forests owners
Address Poverty
in areas with high
marginalization -
within this 1/3
under the extreme
poverty line
Source: Muñoz-Piña et al (2008); Muñoz et al (2010)
PES can help reduce both environmental degradation and poverty

21. Valuation of ESS from Nakivubo wetlands, Uganda
Services provided by the Nakivubo swamp include natural water purification and
treatment & supporting small-scale income activities of poorer communities
Plans to drain the Nakivubo Swamp (>40sqkm) for agriculture
Assessment of waste water treatment options (Emerton 2004):
Maintaining the wetlands: ~235.000$ p.a.
Running a sewage treatment facility of equivalent capacity: ~2Mio. US$ p.a.
Policy Solution: draining plans abandoned & Nakivubo Swamps designated as PA
Recognising and demonstratingTEEBvalues is critical for decision making
Sources: TEEBCases for the for local and regional policy

22. Establishment of a MPA: Tubbataha Reefs, Philippines
UNESCO World Heritage site, contains 396 species of corals & has higher species
diversity per square meter than the Great Barrier Reef
Problem Recognition - 1998 Bleaching & losses
>>Stakeholders meeting
Policy Solution
“No-take” areas agreed +user fee for divers
Impacts of policy
• Increase live coral cover at 40% from
1999 to 2003, 50% in 2004
• Fish biomass in nearby reefs doubled
since 2000
• Between 1999 and 2004 perceived fish Sources: Tongson
catches increased from 10 to 15-20 kg/day 2007, Samonte-Tan et al.
2008, Dygico 2006; in
• Significant increase in living standards from 2000 to 2004 TEEBCases for TEEB for
Healthy ecosystems improve livelihood options local and regional Policy

23. Working for Water (WfW): the Manalana wetland, SA
 Severely degraded by erosion that threatened to consume the entire system
 In 2006 WfW public work programme invested €86,000 to reduce erosion and
improve the wetland’s ability to continue providing its beneficial services
 The value of livelihood benefits from degraded wetland was just 34 % of what
could be achieved after investment in ecosystem rehabilitation
Results:
• Rehabilitated wetland now contributes provisioning services at a net return
of 297 EUR/household/year;
• Livelihood benefits ~ 182,000 EUR by the rehabilitated wetland; x2 costs
• The Manalana wetland acts as a safety net for households.
Recognising and demonstrating the valuesal. 2008; Wunder et al 2008a; http://www.dwaf.gov.za/wfw/
Sources: Pollard et and potential for increased value is critically important

24. 1. TEEB & The TEEB for Water and
Wetlands
2. Water and wetlands: what benefits
do we derive and what do we risk
losing?
3. Measuring to integrate the values of
water and wetlands into decision
making
4. Wetlands and poverty alleviation
5. Recommendations: transforming our
approach to water and wetlands

25. TEEB For Water and Wetlands
Transforming our approach to water and wetlands
 Wetlands protection/improvement should be integrated in water
management at all levels, involving all categories of stakeholders
 Protecting/restoring wetlands is a way to improve water security,
energy security, food security
 In many cases win-win solutions
can be achieved (e.g. improving
biodiversity while ensuring water
security and enhancing livelihoods)

26. Thank you !
TEEB Reports available on www.teebweb.org, www.ramsar.org and www.ieep.eu
See also www.teeb4me.com
Daniela Russi drussi@ieep.eu
IEEP is an independent, not-for-profit institute dedicated to the analysis, understanding and promotion of
policies for a sustainable environment. www.ieep.eu

27. World Water Day: Water Cooperation
Multidisciplinary Research Week 2013
See the latest videos, interviews, pictures, tweets and views
from the floor at:
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