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2.1 FRAMEWORK AND GUIDING PRINCIPLES FOR THE POLICY RESPONSE Why IS BIoDIvERSITy NEGLECTED IN DECISIoN-MAKING? Biodiversity policy is not a new field. In recent decades, nearly all countries have adopted targets and rules to conserve species and habitats and to protect the environment against pollution and other damaging activities. Policies and measures that have positively affected biodiversity and ecosystem services can take a wide variety of forms (see Box 2.1). BOX 2.1: Examples of policies that have provided biodiversity conservation benefits • Growth of protected area systems in developed and developing countries; • Development of integrated water resource ma nagement (e.g. EU Water framework Directive); • Legal recognition of liability for environmental damage (e.g. for oil spills); • Incentives to reward biodiversity management (e.g. payments for ecosystem services in Costa Rica); • Protection of critical habitats (e.g. through the Natura 2000 network, EU habitats Directive); • Market based instruments (e.g. green tax transfer scheme between states in Brazil, wetland mitigation banking in US); • Regulations to stop or limit the release of pollutants into rivers and groundwater systems, improve air quality and reduce the emissions of greenhouse gases (GhG) into the atmosphere. Despite this progress, the scale of the global biodiversity crisis (see Chapter 1) shows that current policies are simply not enough to tackle the problem efficiently. Some of the reasons are only too familiar to policy-makers, such as lack of financial resources, lack of capacity, information and/or expertise, overlapping mandates and weak enforcement. But there are also more fundamental economic obstacles in this policy field which we need to understand to make meaningful progress. A root cause of the systematic neglect of ecosystems and biodiversity in economic and development policy is their characterisation as a public and often global good: • benefits take many forms and are widespread, which makes it difficult to ‘capture’ value and ensure that beneficiaries pay for them. for example, a forest provides local benefits to local people (timber, food, other products); the forest ecosystem mediates water flows and provides regional climate stability; and forests are globally important because they sustain biodiversity and act as long-term carbon sinks; • existing markets and market prices only capture some ecosystem services (e.g. ecotourism, water supply). More commonly, individuals and businesses can use what biodiversity provides without having to pay for it, and those providing the service often don’t get due recompense; • costs of conservation and restoration are paid immediately, often at local level, yet many benefits occur in the future. for example, creating a protected area to save endangered species can cause short-term losses to user groups, which may lead us to give little or no weight to the possible long-term benefits (e.g. discovery of medicinal traits in such species). further factors include: • uncertainty about potential future benefits is matched by ignorance about the risks of inaction. We know too little about why each species is important, what its role in the food web is, what could happen if it goes extinct and the ‘tipping points’ of different ecosystems. Uncertainties lead policy makers to hesitate: spending money on policies with clear returns seems preferable to spending on policies with less assured outcomes; <strong>TEEB</strong> foR NATIoNAL AND INTERNATIoNAL PoLICy MAKERS - ChAPTER 2: PAGE 4
FRAMEWORK AND GUIDING PRINCIPLES FOR THE POLICY RESPONSE • deterioration of ecosystem services and biodiversity often occurs gradually: marginal impacts of individual and local action can add up to severe damage at the global scale. for example, small-scale assessment of individual development projects (e.g. forest clearance for agriculture or housing) can indicate a positive cost-benefit ratio but cumulative impacts in terms of deforestation and habitat fragmentation can be far higher. These factors all contribute to a systematic bias in decision-making. Decisions about management of biodiversity involve trade-offs: if we want to keep ecosystem services, we often give something up in return. Currently, where trade-offs have to be made between biodiversity conservation and other policy areas (e.g. agriculture, industry, transport, energy), the lack of compelling economic arguments means that decisions very often go against biodiversity. Newly constructed highway cutting protected area near Leipzig, Germany. <strong>TEEB</strong> foR NATIoNAL AND INTERNATIoNAL PoLICy MAKERS - ChAPTER 2: PAGE 5 Source: André Künzelmann, UFZ
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Part I: The need for action Ch1 The
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ThE EcoNoMIcs of EcosysTEMs AND BIo
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THE GLOBAL BIODIVERSITY CRISIS AND
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1.2 THE GLOBAL BIODIVERSITY CRISIS
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• Enough food could be produced o
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MArINE sysTEMs THE GLOBAL BIODIVERS
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1.2.3 WHAT IS DRIVING THESE LOSSES?
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STRENGTHENING INDICATORS AND ACCOUN
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3.5 STRENGTHENING INDICATORS AND AC
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Endnotes STRENGTHENING INDICATORS A
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Chapter 4: Integrating ecosystem an
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INTEGRATING ECOSYSTEM AND BIODIVERS
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4.1 INTEGRATING ECOSYSTEM AND BIODI
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Endnotes INTEGRATING ECOSYSTEM AND
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Economic valuation methods INTEGRAT
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ANNEx 2: sTAGEs of A PoLIcy AssEssM
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Chapter 5: Rewarding benefits throu
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REWARDING BENEFITS THROUGH PAYMENTS
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5.1 REWARDING BENEFITS THROUGH PAYM
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REGULATORY BASELINES AND ADDITIONAL
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could have adverse consequences for
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• some contained an element of te
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• ancillary provisions e.g. possi
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5.4.2 GREENING INTERGOVERNMEN- TAL
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financial flows involved. Building
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considerable patience as such optio
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CERTIFICATION OF SUSTAINABLE FISHER
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While certification systems can sig
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Endnotes REWARDING BENEFITS THROUGH
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44 http://www.mekongtourism.org/sit
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Chapter 6: Reforming Subsidies Chap
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REFORMING SUBSIDIES Key Messages of
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6 Chapter 6 addresses the need for
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6.1.2 HOW BIG ARE EXISTING SUBSIDIE
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6.2 6.2.1 DISTINGUISHING BETWEEN
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through provision of water and ener
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6.3 6.3.1 AGRICULTURE Subsidies to
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Box 6.4: The EU Common Agricultural
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Second, it has to be borne in mind
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• increases the producer price of
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REFORMING SUBSIDIES Box 6.9: Removi
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In the agriculture sector, the pric
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Some consumer energy subsidies may
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6.4 “People who love soft methods
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6.4.2 RESISTANCE TO CHANGE Subsidie
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The multiple policy objectives ofte
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REFORMING SUBSIDIES Social impacts
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The G-20 Heads of State have recent
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REFERENCES Agnew, D.J.; Pearce, J.;
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OECD - Organisation for Economic Co
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Bernd hansjürgens, Christoph Schr
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Key Messages of Chapter 7 Rewarding
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7.1 BASIC PRINCIPLES FoR hALTING oN
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7.2 REGULATING To AvoID DAMAGE: ENv
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y reducing the release of pollutant
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y reducing uncertainties with respe
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This equivalence can involve the sa
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PoTENTIAL BENEFITS oF oFFSETS AND B
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A biodiversity offset should be des
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7.4 SETTING MoRE ACCURATE PRICES: M
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Market-based instruments can be des
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China’s first water use rights sy
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PoTENTIAL CoST SAvINGS ThRoUGh MBIS
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Despite the potential described abo
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Non-market valuation studies can he
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PoLLUTIoN AND oThER DAMAGING ACTIvI
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The 1973 CITES treaty (Convention o
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7.6 MAKING IT hAPPEN - PoLICy MIxES
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has shown the critical need to stre
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Gutman, P. and Davidson, S. (2007)
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Part I: The need for action Ch1 The
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· ·· · · · · · · · · ·
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T H E E C O N O M I C S O F E C O S
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