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5.5
REWARDING BENEFITS THROUGH PAYMENTS AND MARKETS
DEVELOPING MARKETS FOR
GREEN GOODS AND SERVICES
Market mechanisms that reflect the values of biodiversity
are well established for some goods and services
and have been growing steadily over the last decade 27 .
This trend reflects the increasing awareness of many
consumers and producers that conventional production
and consumption practices threaten the long-term viability
of ecosystems. This section outlines progress on
market development in key sectors (5.5.1) and identifies
barriers to the success of ‘green’ products and services
(5.5.2) before considering ways to expand the reach of
biodiversity-friendly markets (5.5.3).
5.5.1 SUPPORT FOR BIODIVERSITY-
FRIENDLY PRODUCTS AND
SERVICES
Market niches are available for products and services
that can reliably distinguish themselves
from their competitors by demonstrating conservation
credentials, including:
• products characterised by reduced direct impacts
on biodiversity, due to adoption of more efficient
or low-impact production and processing methods
(e.g. reduced impact forestry or fisheries);
• products with reduced indirect impacts on biodiversity
as a result of decreased pollution load (e.g.
biodegradable detergents);
• products and services based on the sustainable
use of ecosystem services and biodiversity (e.g.
ecotourism or biotrade).
While most product markets still do not treat biodiversity
as a key concern, there is growing evidence from
across the world that conservation can enhance a
company’s competitive position and be an opportunity
in all sectors. In some cases, biodiversityfriendly
products and services can:
• attract market share or premiums for certain
products and their suppliers;
• facilitate access to previously inaccessible markets
or create entirely new markets;
• offer enhanced product differentiation in increasingly
competitive global markets;
• reinforce and validate positive community relations
and improved corporate image;
• improve employee morale, retention and productivity;
and
• support the poor where they are directly involved
in production (Bishop et al. 2008).
BUSINESS ACTION ON GREENING
SUPPLY CHAINS
For most business sectors and companies, biodiversity
conservation is still seen as a liability rather than a profit
centre. The main drivers of private investment in biodiversity
come from legal requirements, charitable impulses
and informal pressure from shareholders, local
communities and NGOs. The business case for such investment
is more often expressed in terms of protecting
firms’ market share or minimising risk to reputation.
However, there are exceptions. Some retailers committed
themselves in the early 1990s to stock only timber
products certified as meeting strict environmental performance
standards. For example, the B&Q Do-It-
Yourself chain in the UK, owned by Kingfisher, was one
of the companies responsible for setting up the Forest
Stewardship Council (see below) to provide a credible
mechanism to demonstrate responsible purchasing of
timber products.
Such private voluntary actions can help make markets
work better for the environment. When large companies
choose to direct their purchasing power in a particular
direction, they can have a large impact on trade and
production practices around the world. Such initiatives
require vision and commitment from the top as well as
TEEB FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 5: PAGE 45