RICS: Challenges to international professional practice: from market value to natural value

Charles CowapMBA MRICS FAAV

Challenges for international professional practice:

From Market Value to Natural Value

Charles Cowap

RICS, London, UK

15 November 2012

Charles CowapMBA MRICS FAAVCharles CowapMBA MRICS FAAV

New land management Requirements are emerging

New markets

New challenges to professional practice


Peat’s Story



Context: Exmoor example

Exmoor

R Barle

R Exe

Wimbleball Resr & R Haddeo

ExebridgePumping Station

Replenishment PumpingApprox 5 miles, lifting water from 120 to 240 m AODCO 2


Top 10 Business Opportunities

1= Biodiversity Offsetting (BDO) and Conservation Banking• Estimated size of market £50 – 300 million

pa from housing, plus other sectors• Brokerage, certification and registration• Additional costs to builders/developers

deducted from land value

1= Peatland Carbon Code and Carbon Credits• Peat restoration for carbon storage• Management schemes and incentives• Certification and brokerage


2. Woodfuel and Woodburning Stoves

3. UK ecosystem knowledge economy

4. Layered PES– Different Environmental Services

to different buyers– Eg


6. Carbon sequestration

7. Sustainability certification– Opportunities for

intermediaries

8. Sustainable tourism


9= Global centre of excellence in ESS certification

9= Water re-use technology

11 Reducing insurance risk through green infrastructure

12 Environmental bonds

http://www.valuing-nature.net/opportunities-uk-business-protect-and-value-natures-services-report-published-today [accessed 19 July 2012]

http://www.valuing-nature.net/opportunities-uk-business-protect-and-value-natures-services-report-published-today




NEW VALUATION REQUIREMENTS ARE EMERGING




SOME WORK HAS BEEN DONE ALREADY





ECONOMIC APPRAISALWe face challenges to valuation



ECOSYSTEM SERVICESAnd Now




ECOSYSTEM SERVICES


APPROACHES FOR THE ESTIMATION OF NATURE’S VALUES

From TEEB Foundations, Chapter 5


Market Analysis

Group Valuation

Contingent Valuation

Cost Methods

Replacement Cost

Methods

Avoided Cost

Methods

Deliberative Valuation

Regime Shift Analysis

Insurance ValueResilience

Value Risk Analysis

Ecological Footprint

Mitigation Cost

MethodInput/Output

Analysis

Joint Analysis

Production Function


WHERE DOES IT FIT?Valuation


Foresight Land Use Futures 2010


Key Questions for RICS

• Is this anything to do with us?

• Our Public Interest Function in this area?

• Our Member Services Function in this area?

• Our Global Positioning?

• What, if anything, needs to be done?


Thinkpiece

• Royal Charter– Promote the usefulness

of the profession to public advantage

• New opportunities in land management

• New ways of working in development

• New points to reflect in conventional valuations

• New types of valuation


And we should offer:

• Our expertise

• In Land Tenure and its relationship to land management and development

• Our experience of valuation in challenging commercial markets

• Our expertise in brokerage


Questions?

http://www.infuzionweb.com/sketches/wp-content/uploads/2007/06/clear-road-with-blue-sky-and-clouds-72dpi.jpg


Contact Details

Translating new knowledge for rural professional practice

[email protected]

07947 706505

Twitter: @charlescowap

Blog: http://charlescowap.wordpress.com/

Slideshare: http://www.slideshare.net/cdcowap

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RICS: Challenges to international professional practice: from market value to natural value

Real Estate