The Economic and Business Case for Conserving Biodiversity Joshua Bishop WWF Australia
Transcript
1. The Economic and Business Case for Conserving Biodiversity
Joshua Bishop WWF Australia
2. The Economic and Business Case for Conserving Biodiversity
Joshua Bishop TEEB
3. Outline TEEB overview What is biodiversity worth? Why should
business care? What can business do? Case study
4. Who asked for TEEB? Potsdam Initiative Biological Diversity
2010 In a global study we will initiate the process of analysing
the global economic benefit of biological diversity, the costs of
the loss of biodiversity and the failure to take protective
measures versus the costs of effective conservation.
http://www.bmu.de/files/pdfs/allgemein/application/pdf/
potsdam_initiative_en.pdf
5. Who was involved in TEEB? Study Leader: Pavan Sukhdev (ex-MD
Deutsche Bank) Advisory Board: 14 international scientific &
policy leaders Administration: United Nations Environment Programme
Scientific coordination: UFZ, Leipzig Over 500 individual editors,
authors and reviewers Financial donors and other institutional
partners:
6. What did TEEB deliver? Interim Report May 2008 Climate
Issues Update September 2009 National & International
Policy-Makers November 2009 Business July 2010 Local & Regional
Policy- Makers September 2010 Ecological & Economic Foundations
October 2010 Final Synthesis Report October 2010
7. Outline TEEB overview What is biodiversity worth? Why should
business care? What can business do? Case study
8. UN Convention on Biological Diversitydefines biodiversity
Variety of species ! plants, animals and microorganisms Genetic
differences within each species ! e.g., varieties of crops and
breeds of livestock Variety of ecosystems ! e.g., deserts, forests,
wetlands, mountains, lakes, rivers, and agricultural
landscapes
9. Millennium Ecosystem Assessmentfocused on ecosystem
services
10. Example: Tropical forests and climate Tropical forests
store about 1/4 of all terrestrial carbon 547 gigatonnes (Gt)
Tropical forest capture carbon continuously up to 4.8 Gt CO2 every
year, compared to total emissions p.a. of ~33 Gt Slowing or halting
deforestation is an excellent investment Reducing deforestation by
50% would deliver net benefits of US$ 3.7 trillion (NPV), just
counting the avoided damage costs of climate change Sources:
Trumper et al. (2009), Lewis & White (2009), Eliasch (2008)
10
11. Example: Shrimp farms versus mangrovesUS$/hain 1996 Private
profits Private profits Public benefits (less subsidies)
$12,392ha10000 $9,632ha $10,821ha Storm protection Subsidies -
$8,412ha5000 $1220ha $987ha Fisheries $584ha $584ha $584ha Forest
prod. 0All values in NPVover 9 yrs (1996-2004) Net public costs
ofat 10% discount rate restoration after 5 years - $9,318ha Source:
Barbier (2007)
12. Who is affected by biodiversity loss?Ecosystem services
Indonesia India Brazildependency 99 million 352 million 20 million
21% 16% 10%Ecosystem services as 90% 79% 84%percent of classical
GDP 47% 11% 25%Ecosystem services as 53% 75% 89%percent of GDP of
thePoor Ecosystem servicesSource: Gundimeda and Sukhdev, D1 TEEB
18/04/2012 12
13. Outline TEEB overview What is biodiversity worth? Why
should business care? What can business do? Case study
14. Business impacts on ecosystem services 110 100 Flooding
damage in 1998 ! US$12.2 billion 90 Property loss from estimated
ecological 80 flooding pre - 1998 cost of deforestationCost (US$/m3
1998) Loss of river transport 70 capacity in China (1950-88)
Reservoir and lake 60 sedimentation ! 60% of this cost is 50
Desertification attributed to logging 40 Reduced lumber output !
64% of logging was 30 for construction and Loss of plant nutrients
20 materials sectors Lost water runoff 10 ! External costs = -
Reduced precipitation 178% of the market Market External price of
timber (1998) Price of Cost Timber Source: TEEB for Business, 2010
(Annex 2.1).
15. Business dependence on ecosystemservices Value of insect
pollination to food crops: 153 billion in 2005 = 10% of VA in the
agriculture sector (Gallai et al. 2008) Example: Michigan USA
blueberry crop worth US$ 124 million/year; totally reliant on
pollination by bees at cost of about US $ 1.5 million/year (renting
hives) Example: Wild pollinators increase coffee yields by 20% on
farms within 1 km of forest in Costa Rica (Ricketts et al. 2004)
Pollination services to agriculture are threatened by colony
collapse disorder mainly affecting domesticated bees Source:
Syngenta for TEEB
16. Consumer demand for greenproducts and services Global sales
of organic food and drink = US$ 60 billion in 2009 Sales of
certified sustainable forest products increased four-fold between
2005 and 2007 The global market for eco-labeled fish products grew
by over 50% from 2008 to 2009, to a retail value of US$ 1.5
billion
17. Result: growing business concern about biodiversitySource:
McKinsey & Company (July 2010) Global Survey results: The next
environmental issue for business Based on1,576 responses from
executives representing the full range of regions, industries,
tenures, and functional specialties.
18. Outline TEEB overview What is biodiversity worth? Why
should business care? What can business do? Case study
19. What can business do? Some ideas from TEEB 1. Set ambitious
biodiversity targets 2. Measure, value and report your footprint 3.
Use and improve tools for biodiversity management 4. Build
biodiversity business 5. Support market-friendly environmental
policy
20. 1. Set ambitious targets! BC Hydro: long-term goal of no
net incremental environmental impact.! Coca Cola: Our goal is to
safely return to communities and nature an amount of water
equivalent to what we use in all of our beverages and their
production.! Danone Group: Attain carbon neutrality for the major
Danone brands, including Evian, by the end of 2011.! Marks &
Spencer: Our goal is to become carbon neutral by 2012 in our UK and
Republic of Ireland operations.! Rio Tinto: Our goal is to have a
net positive impact on biodiversity.! Sony: strives to achieve a
zero environmental footprint throughout the lifecycle of our
products and business activities.! Unilever: Today we source 10% of
our agricultural raw materials sustainably. By 2012 we will source
30%; by 2015 50%; and by 2020 100%.! Walmart: Committed to
permanently conserve at least one acre of priority wildlife habitat
for every developed acre.
21. 2. Measure, value & report Top 100 companies Top 100
companies Annual reports Sustainability reports 4% 2% 9% 11% 12%
15% 42% 23% 82% Dont produce sustainability report No mention of
biodiversity or ecosystems Passing mention of biodiversity or
ecosystems Discuss approach to reduce impact on biodiversity
Identify biodiversity as a key strategic issue Source: PwC input to
TEEB Report for Business
22. 2 (continued) How to measure? Climate change: CO2e
Biodiversity and ecosystems:1 Living Planet Index (LPI) Coverage by
PAs of important habitats Wild Bird / Waterbird indices Area of
forest under sustainable mgmt. IUCN Red List Index (RLI)
International IAS policy adoption Marine Trophic Index National IAS
policy adoption Forest / Mangrove / Seagrass extent ODA in support
of CBD Coral reef condition (cover) LPI for utilized vertebrates
Water Quality Index RLI for food & medicinal species Ecological
Footprint RLI for traded bird species Nitrogen deposition rate
Number of Alien Species (in Europe) Business needs indicators for:
Exploitation of fish stocks site, product, group level Climatic
Impact Indicator (on birds) processes & performance Protected
Area extent internal & external reporting1/ Adapted from:
Butchart et al. (2010 ) Global Biodiversity: Indicators of Recent
Declines Science Express (29 April)
23. 2 (continued) How to value?WBCSD Guide to
CorporateEcosystem Valuation shows howto use valuation methods to:
Save costs Reduce taxes Capture new revenue streams Assess
liability & compensation and more
www.wbcsd.org/web/cev.htm
24. 2 (continued) How to report? Water reporting by SAB Miller
Target: increase water productivity by 25% by 2015 Potential
savings: 20 billion litres of water/year
25. 3. Use & improve business tools Integrated Biodiversity
Assessment Tool http://www.biodiversityinfo.org/ibat/ GIS database
for site-level risk assessment Based on World Database of Protected
Areas, World Biodiversity Database, IUCN Red List of Threatened
Species Business and Biodiversity Offsets Program
http://www.forest-trends.org/biodiversityoffsetprogram/ Guidance on
designing and implementing biodiversity offsets to ensure no net
loss Led by Forest Trends, Wildlife Conservation Society and
Conservation International Certification and labelling
http://www.isealalliance.org/ Global hub for social and
environmental standards Members represent fair trade, forest
stewardship, organic agriculture, fisheries, etc.
27. 5. Support business-friendly policy Reform of harmful
subsidies Tax credits and other incentives Voluntary certification
and eco-labelling Payments for Ecosystem Services Environmental
responsibility and liability Environmental trading schemes Public
access to information
28. Outline TEEB overview What is biodiversity worth? Why
should business care? What can business do? Case study
29. Case study of Rio Tinto: mining,biodiversity offsets and
NPI! Our goal is to have a net positive impact on biodiversity (Rio
Tinto 2004)
30. Biodiversity offsets: A key tool forachieving net positive
impact (NPI) Biodiversity offsets are measurable conservation
outcomes resulting from actions designed to compensate for
significant residual adverse biodiversity impacts arising from
project development after appropriate prevention and mitigation
measures have been taken. The goal of biodiversity offsets is to
achieve no net loss and preferably a net gain of biodiversity on
the ground with respect to species composition, habitat structure,
ecosystem function and peoples use and cultural values associated
with biodiversity.
31. Valuing biodiversity offsets in practice: NPI in Madagascar
(Olsen et al. 2011) Madagascar: QMM mine environmental action
includes the protection of 60,000 ha of lowland humid rainforest
adjacent to the mining lease Case study assessed economic benefits
and costs of continued deforestation (estimated 1-2% p.a.) versus
conserving the Tsitongambarika forest (TGK) Source: Asity
Madagascar, 2009
32. The case of Rio Tinto and the Tsitongambarika Forest in
Madagascar 25 NPV of conservation: US$ 17.3 million 30,000,000
Present value US$/TGK Costs: Benefits: 26,839,291 25,000,000
20,000,000 15,000,000 9,763,951 10,000,000 5,000,000 2,939,205
2,511,463 707,325 270,642 198,842 0 In Re Fo Bi So W Ca od ve at re
cu i rb lc er st go iv on rre on m er s ne up nt st se en sit or rv
pl ag co tc y ag y at ric st os io e s ts in n c om e Costs and
ecosystem benefits Note: Present values of costs and benefits
associated with conservation of Source: Olsen TGK (at 5% discount
rate, 30-yr horizon, assuming 1% p.a. deforestation) et al.
(2011)
33. The case of Rio Tinto and the Tsitongambarika Forest in
Madagascar 25 Payments for ecosystem services (PES) 30,000,000
Present value US$/TGK Costs: Benefits: 26,839,291 25,000,000
20,000,000 $ $ $ $ $ $ $ 15,000,000 $ 9,763,951 10,000,000
5,000,000 2,939,205 2,511,463 707,325 270,642 198,842 0 In Re Fo Bi
So W Ca od ve at re cu il c rb e st go iv on rre rs on m er ne up
nt st se en sit or rv pl ag co tc y ag y at ric st os io e s ts in
n c om e Costs and ecosystem benefits Source: Olsen et al.
(2011)
34. For more information www.teebweb.org
35. Investing in HoB for a Green Economy HoB Investing in
Nature for a Economic case for Green policy reform to Economy
underpin HoBs role in a Green Economy (REDD+ finance as transition
mechanism for a GE) Engage private Political platform & sector
to invest in Partners forum to nature and to support HoB3 green
their operations Green Economy Vision for HoB