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Soomaa NP © Arne Ader
30

ecosystem services versus commercial forestry

Nov 10, 2014

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Economy & Finance

Zoltan Kun

I used this presentation during the TBLI Europe 2012 conference in Zurich on 8 November. I argue that investors should start valuing the non-use value of forests! There are 4 examples in the presentation which demonstrate that non-use values might deliver more than exploiting nature!
The presentation is divided into 4 parts:
introducing PAN Parks and how we define wilderness
introducing the concept of economics of wilderness through payment for ecosystem services
presenting 4 examples across Europe
explaining the sense of urgency to safeguard Europe's last pieces of wilderness
Investors! Change your way of thinking and go for wilderness!
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This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: ecosystem services versus commercial forestry

Soomaa NP © Arne Ader

Page 2: ecosystem services versus commercial forestry

Paanajärvi NP © Viktor

Gritsuk

Zoltan KUN, Executive DirectorPAN Parks Foundation

THE ECONOMICS OF WILDERNESSPayment for Ecosystem Services vs Commercial Forestry

Page 3: ecosystem services versus commercial forestry

Paanajärvi NP ©Viktor Gritsuk

Who we are

• PAN Parks works to protect Europe’s wilderness, the continent’s most undisturbed areas of nature

• the first European-wide organisation focusing on the protection of wilderness areas

Page 4: ecosystem services versus commercial forestry

Fulufjallet NP © Vitantonio Dell’Orto

NO extractive use such as:•hunting•fishing•mining•logging•grazing•grass cutting•road and building constructionis allowed in wilderness

How to define wilderness?

Page 5: ecosystem services versus commercial forestry

Fulufjället NP © Vitantonio Dell’Orto/exuviaphoto.com

Page 6: ecosystem services versus commercial forestry

Peneda-Geres NP © Marcos Veiga

Page 7: ecosystem services versus commercial forestry

Archipelago NP © Janne Görling

Page 8: ecosystem services versus commercial forestry

Archipelago NP © Janne Görling

Page 9: ecosystem services versus commercial forestry

Borjomi-Kharagauli NP © Konstantin Gabrichidze

Page 10: ecosystem services versus commercial forestry

Oulanka NP © Kimmo Salminen

Page 11: ecosystem services versus commercial forestry

Soomaa NP © Arne Ader

Page 12: ecosystem services versus commercial forestry

Wilderness Quality Index of Europe

• Based on GIS data sets (road density, population density, etc...)

• Management practice is not considered!

Page 13: ecosystem services versus commercial forestry

The European Wilderness Preservation System

Page 14: ecosystem services versus commercial forestry

Borjomi-Kharagauli NP © Kote Gabrichidze

The Economics of Wilderness

Why dealing with the economics of wilderness?

• the European Parliament calls on the Commission and Member States to co-operate with local non-governmental organisations to promote the value of wilderness (point 6);

Page 15: ecosystem services versus commercial forestry

Wilderness is not a priceless heritage for future generations!• Europeans are not valuing wilderness as much as they should!

Oulanka NP ©Michael Hennemann

The Economics of Wilderness

Page 16: ecosystem services versus commercial forestry

Insert Braat and Ten Brink figure about the inkage between land use and level of ecosystem services

Page 17: ecosystem services versus commercial forestry

Rila NP © Nicolas Cegalerba

The Economics of Wilderness

Making wilderness areas financially viable means seizing opportunities of emerging markets for ecosystem services• Payments for Ecosystem Services

Page 18: ecosystem services versus commercial forestry

Archipelago NP © Heidi Arponen

To protect wilderness we need to diversify incomes• payments for carbon offset• payments for water-related and nature disaster mitigation• peatbog restoration • payments for recreational services

The Economics of Wilderness

Page 19: ecosystem services versus commercial forestry

The Economics of Wilderness

Examples• Economic impact of Finnish National Parks• Wild Nephin managed by Coiltte• The valuation of Tatra, and Slovensky raj• Sveaskog Ecoparks

Oulanka NP ©Hannu Hautala

Page 20: ecosystem services versus commercial forestry

The Economics of Wilderness

Economic impact of Finnish National Parks through visitation• 85 M EUR / year• 1,100 man-year• visitor related income in Oulanka NP 14,7 M EUR

http://www.metla.fi/julkaisut/workingpapers/2010/mwp149.pdf

Page 21: ecosystem services versus commercial forestry

Ireland

Mayo

Wild Nephin

Westport

Atlantic Ocean

Location

The Economics of Wilderness

Page 22: ecosystem services versus commercial forestry

Type of value Low range Mid range High range

Individual use value

€145,000 €225,000 €528,000

Existence & bequest values

€270,000 €450,000 €1,056,000

Option values €225,000 €450,000 €1,056,000

Indirect values

Tourist income

€75,000 €150,000 €225,000

Public Good Values

The Economics of Wilderness

Page 23: ecosystem services versus commercial forestry

The Economics of Wilderness

Tatra and Slovensky raj National Park• Conclusion: the smaller park with better management practice creates higher value

Reasonale mean value740,327 k EUR / year

No extractive use!

Page 24: ecosystem services versus commercial forestry

The Economics of Wilderness

Sveaskog’s example• Ecoparks are large connected ecological landscapes• important outdoor pursuits forests, providing many opportunities for different activities• 36 ecoparks planned in Sweden

more information at http://www.sveaskog.se/en/forestry-and-environment/nature-conservation/eco-parks/

Page 25: ecosystem services versus commercial forestry

Annual land take in Europe between2000-2006 was over 111,000 ha/year

Page 26: ecosystem services versus commercial forestry

The size equal to Crete was covered by

concrete in 7 years (2000-

2006)

The size equal to Crete was covered by

concrete in 7 years (2000-

2006)

Our goal: 5% of Europe must be

wilderness

Our goal: 5% of Europe must be

wilderness

4% of Europe is covered by

artificial surface in 2006

4% of Europe is covered by

artificial surface in 2006

If increases with the current

trend, we will have 5%

artificial surface by

2017

Page 27: ecosystem services versus commercial forestry

Archipelago NP © Seppo Keränen

The Million Project

To ensure guaranteed protection of 1 million hectares of wilderness

in Europe by 2015

Page 28: ecosystem services versus commercial forestry

Majella NP ©MNP

Building partnerships with protected areas

• Making a commitment to resolve a major challenge

• Improving wilderness management in partner protected areas (biodiversity offsets)

• Biz & Biodiversity EU programme

The Economics of Wilderness

Page 29: ecosystem services versus commercial forestry

Paanajärvi NP ©Viktor Gritsuk

We can protect (and still benefit from) the last pieces of Europe’s wilderness together!

Join us in The Million Project!

Page 30: ecosystem services versus commercial forestry

PAN Parks works to protect

Europe’s wilderness, the

continent’s most undisturbed

areas of nature

www.panparks.org