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Together with equity and social considerations, three closely-related principles should guide the choice and design of policy instruments: The (PPP) is anchored in the 1992 Rio Declaration on Environment and Development (UNEP 2009a) and embedded in a growing number of national environmental policies (e.g. most oECD countries and EU Member States). It requires environmental costs to be ‘internalised’ and reflected in the price of goods and services. To this end, the polluter has to take measures to prevent or reduce pollution and in some cases pay taxes or charges for pollution and compensate for pollution impacts. For ecosystem degradation, this means that the polluter should pay directly for clean up and restoration costs or pay a fine that would help offset damage costs. The is a variant of the PPP. Where an action provides a benefit e.g. use of natural resources, recipients should pay for the cost of providing that benefit. This could be used to argue that e.g. users of a clean beach should contribute towards beach cleaning expenses. The provides that the full costs of environmental services should be recovered from the entity benefiting from the service. There is a growing trend internationally for this principle to be applied directly and explicitly to energy, electricity and water pricing which means that full costs are passed on to consumers. TEEB FoR NATIoNAL AND INTERNATIoNAL PoLICy MAKERS - ChAPTER 7: PAGE 5
7.2 REGULATING To AvoID DAMAGE: ENvIRoNMENTAL STANDARDS Friedrich List German Economist (1789-1846) Regulation has long been – and still is – the most widely used instrument for environmental protection. It is used to . A clearly defined regulatory framework provides . Regulation needs to be conducive to business, compatible with commercial activities and set a level playing field to encourage capacity building, local training and compliance with best professional standards (see TEEB D3 Report for Business forthcoming). A for the establishment of market-based policies such as trading schemes, biodiversity offsets and banking (see 7.4). Regulation is the reference point upon which market-based instruments can build and needs to be underpinned by adequate monitoring and enforcement arrangements (see 7.5). Environmental regulation sets rules and standards across a range of areas (see Box 7.2). As in many other fields of law, the regulatory toolkit includes a battery of prohibitions, restrictions, mandatory requirements, standards and procedures that directly authorise or limit certain actions or impacts. The term is often used as a generic term for regulatory instruments promulgated by a (government) authority (c.f. non-enforceable self-regulation and social norms). There are three basic types of regulatory instruments for biodiversity and ecosystem services: • usually involves emissions standards, ambient quality standards and technical standards (e.g. Best Available Techniques (BAT)); performance standards (e.g. air quality management); or management prescriptions for good practice (e.g. in agriculture); • set restrictions on the use of products (e.g. illegally logged timber, activities damaging to endangered species etc.) or establishes production standards (certification, best practice codes, etc.); • involves regulation of land uses that have direct implications for ecosystem services or habitats. Planning decisions in most countries are devolved to local or regional planning boards (see TEEB D2). Designation and establishment of protected areas is a specific regulatory tool based on spatial planning (see Chapter 8). TEEB FoR NATIoNAL AND INTERNATIoNAL PoLICy MAKERS - ChAPTER 7: PAGE 6
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7.2<br />
REGULATING To AvoID DAMAGE:<br />
ENvIRoNMENTAL STANDARDS<br />
Friedrich List<br />
German Economist (1789-1846)<br />
Regulation has long been – and still is – the most<br />
widely used instrument for environmental protection. It<br />
is used to<br />
.<br />
A clearly defined regulatory framework provides<br />
. Regulation needs<br />
to be conducive to business, compatible with commercial<br />
activities and set a level playing field to encourage<br />
capacity building, local training and compliance with<br />
best professional standards (see <strong>TEEB</strong> D3 Report for<br />
Business forthcoming).<br />
A<br />
for the establishment of market-based<br />
policies such as trading schemes, biodiversity offsets<br />
and banking (see 7.4). Regulation is the reference point<br />
upon which market-based instruments can build and<br />
needs to be underpinned by adequate monitoring and<br />
enforcement arrangements (see 7.5).<br />
Environmental regulation sets rules and standards<br />
across a range of areas (see Box 7.2).<br />
As in many other fields of law, the regulatory toolkit includes a battery of prohibitions, restrictions, mandatory<br />
requirements, standards and procedures that directly authorise or limit certain actions or impacts. The term<br />
is often used as a generic term for regulatory instruments promulgated by a<br />
(government) authority (c.f. non-enforceable self-regulation and social norms).<br />
There are three basic types of regulatory instruments for biodiversity and ecosystem services:<br />
• usually involves emissions standards, ambient quality standards and technical<br />
standards (e.g. Best Available Techniques (BAT)); performance standards (e.g. air quality management);<br />
or management prescriptions for good practice (e.g. in agriculture);<br />
• set restrictions on the use of products (e.g. illegally logged timber, activities damaging<br />
to endangered species etc.) or establishes production standards (certification, best practice codes, etc.);<br />
• involves regulation of land uses that have direct implications for ecosystem services or<br />
habitats. Planning decisions in most countries are devolved to local or regional planning boards (see <strong>TEEB</strong> D2).<br />
Designation and establishment of protected areas is a specific regulatory tool based on spatial planning<br />
(see Chapter 8).<br />
<strong>TEEB</strong> FoR NATIoNAL AND INTERNATIoNAL PoLICy MAKERS - ChAPTER 7: PAGE 6