Putting a Price Tag on Ecosystem Goods and Services

Natural

Capital and

Valuing

Ecosystems

Goods and

Services

Enrique “Ricky” NunezCountry Executive Director Conservation International Philippines Foundation,

Inc.

February 2, 2017Puerto Princesa, Palawan.

CI focuses on securing the reservoirs of natural capital that sustain humanity

“people need nature to thrive”

our goal:

lasting human well-being

fresh water | food | climate resilience | livelihoods

Natural Capital and Natural

Capital Accounting

Natural capital is commonly defined as the extension of the

economic notion of capital to nature: the stocks of natural assets

(plants, animals, water, soils, minerals) that yield a flow of

renewable and non-renewable goods and services.

Natural capital accounting (NCA) refers to the measurement of

stocks of natural resources (both renewable and non-renewable)

and the flows of benefits they provide. NCA seeks to capture and

integrate the contribution of nature into the systems that the

public and private sectors use to make decisions.

CI’s Natural Capital Accounting

Strategy

Empowering businesses and

governments to integrate the value of

nature into their decisions

Valuing Ecosystems Services Overview

1. What is the relationship between people

and nature?

2. What do ecosystems services provide?

3. What are the threats and impacts facing

ecosystem services?

4. What are some approaches for

managing ecosystems?

5. CI’s ES initiatives and why value

ecosystems services?

How have you used natural resources today?

What is the relationship between

people and nature?

Direct relationship (easy to see):

Natural resources come from inside of (or very close to) the community

and are gathered directly by community

Fishing as food source

fresh water for drinking

forest materials for building

local plants for medicine

What is the relationship between

people and nature? Indirect relationship (more difficult to see):

Natural resources that people rely on come from outside of the

community and/or are not gathered by the community

Fish imported from another area

River water collected near the coast

that has been cleaned by forests

upstream

What is an ecosystem?

An ecosystem is a group of plants and animals that live together in a specific place that has a particular environment that enables them to survive.

The environment is the characteristics of the surrounding area, for example soil, rocks and water.

Ecosystems provide essential

services for people all over

the world.

What are ecosystem services?

Ecosystem services are the resources and

processes that nature provides which benefit

people and their livelihoods, or means of support

and subsistence.

Regulating climate regulation, disease

regulation, water purification,…

Cultural aesthetic, spiritual,

educational, recreational,…

Provisioning food, fresh water, wood and

fiber, fuels,…

Supporting e.g. photosynthesis, soil functions, nutrient cycle,…

Source: Millennium Ecosystem Assessment (2005)

The concept of ecosystem services:

services provided by ecosystems that benefit people

2

February

What are ecosystem services?

Services that:

provide food, water, timber, and medicines for daily needs;

support economic development, such as non-timber forest products, logging, fisheries, tourism, and hydro-power;

control climate, floods, disease, wastes, and water quality;

support processes such as providing nutrients to soil and aquatic systems and pollination; and

cultural services that are a source

of beliefs, traditions, and

also enjoyment.

What are ecosystem services?

Everyone benefits from ecosystem services whether

you live in a rural or urban community. Different

ecosystems provide different services.

What ecosystem services can the forest provide for this man?

Forest Services:

protect against erosion,

maintain watersheds by absorbing and storing rainfall,

provide habitat for insects and other wildlife that help to

pollinate plants,

maintain cloud cover - creating a cooling effect and increasing

rainfall as well as supporting drinking water and crops, and

provide alternative livelihood resources, building materials and

food supplies, and medicines.

Nature is Speaking…

Can you identify the services and what

values do they provide?

-Natureisspeaking.org.ph

Silonay Mangrove Conservation Area

Calapan City in Oriental Mindoro

Silonay Mangrove Conservation Area

Calapan City in Oriental Mindoro

Mangrove Services :

help to protect shorelines from erosion due to sea

level rise and storms,

provide fish habitat,

protect against flooding, and

help keep saltwater out of fresh groundwater

systems.

Coral Reef Services :

protect against flooding and erosion from storm surge in

many regions,

Maintain and provide important fishery habitat,

Provide fish and marine species breeding grounds.

Provide source of tourism income

There are more ecosystems and

many more services that they

provide.

What threats and impacts ecosystem

services face?

Natural Threats and Impacts?

Human Impacts?

What impacts are ecosystem services

facing? Natural Impacts

Earthquakes

Volcanic eruptions

Tsunamis

Storms

• Human Impacts– Pollution

– Over-fishing and over-hunting

– Unsustainable development

– Climate Change

What are some approaches and

tools for managing ecosystems?

The MPA and

Enforcement

Networks in the

VIP--- Sulu-Sulawesi Seascape ---

What are some approaches and

tools for managing ecosystems?Community Managed Forests

Ecosystems Services in

development planning

Why focus on IES in development planning?

Explicit recognition of the contribution of ecosystems to human well-being.

Visible and understandable connection between natureand different sectors; path to a more sustainable and green economy.

Helps us identify and understand different dependencies and impacts of human activities on ecosystems.

Identification of winners and losers.

Identification of economic risks and opportunities.

01.02.2017

• An approach that systematically assess, value and integrate ecosystem

services in planning and decision making.

• It recognizes the links between nature and development. It considers the

environmental and economic trade-offs associated with development

measures and helps to systematically incorporate ecosystem service-

related opportunities and risks into the planning and implementation of

strategies.

• It is designed to support advisors, project staff and development planners

to integrate ecosystem services into the design and review of development plans,

sector-specific and spatial planning, environmental and climate assessments, as

well as into project development and proposal formulation.

Integrating Ecosystem Services into Development

Planning and Decision Making.

Do ecosystem services have

have values?

Why value?

• missing or imperfect markets (benefits are not marketed)

• market failures (e.g. non-excludable/externalities/asymmetric information)

• Inform/influence policy:

• making the economic case for investing in nature conservation

• modifying cost-benefit calculations and economic/growth indicators to account for biodiversity & ecosystem services

• identifying opportunities to “capture” income and incentives for conservation

• identifying needs for more equitable benefit-sharing and cost-sharing with stakeholders

• calculating prices, charges and fees for PA utilisation & ecosystem services

• costing & charging environmental damage, penalties and fines

Why do valuation?

Defining the

scope

Screening &

prioritizing

Identifying

conditions &

trends

Appraising

institutional

& cultural

framework

Preparing

better

decision-

making

Implementing

change1

2

3

4

5

6

IES Six – Step Approach

Recognizing the

Value Demonstrating the

ValueCapturing the Value

Reduce negative

Impacts on ES

Reduce

Dependence on ES

Increase Provision of

ES

Total economic value

approach

Use value Non use value

Direct use

value

Goods and

services used

directly

Provision

Cultural,

recreation

Indirect use

value

Goods and

services used

indirectly

Regulation

services

Option

value

Potential use

by the next

generation

Bequest

value

Importance for

next generation

Existence

value

Related to the

existence of ES

Supporting

services

(habitat for

species)

Easier to value Harder to value

CI-P’s Ecosystems Services and ES

Valuation initiatives Mapping of Ecosystems Services as contribution to PA Masterplan development

TEV of MMPL and Endowment Challenge Fund Capitalization

Quirino Forest Carbon Project – completed validation and verification

Cost Effectiveness of Coastal Protection Services in Silonay Mangrove Forest

Conservation and Ecotourism area – An EbA to CC intervention

National Blue Carbon Technical and Policy Working Group

How valuable is the Mt. Mantalingahan Protected Landscape

Presidential Proclamation 181523 June 2009

120,457 hectares

2013 Best Protected Area showcasing Civil Society Partnership

Natural Capital of Mt. Mantalingahan Forest cover: 79%11 forest types

Plants: 920 species Mammals: 35 species Birds: 129 speciesReptiles: 30 speciesAmphibians: 14 speciesGlobally threatened: 23 species

New Discoveries: at least 11 species(both flora & fauna)

Saccolaimus saccolaimus

Pin-tailed parrot finch

Erythrura prasina

Coelogyne

Palawan soft-furred mountain rat

Palawanomys furvus

© CI Phils

© CI Phils © CI Phils

Medinilla sp.

© CI Phils

© CI Phils

Total Economic Value: US$ 5.6 B1. Direct Uses Water, Timber Occupants’ land-based livelihood, Occupants’ river-based livelihood, Ecotourism

2. Indirect Uses Carbon stock, Soil conservation, Soil fertility

maintenance, Watershed and biodiversity functions

Protection of coastal & marine ecosystems Ecosystem services of tropical forests Recreation

Natural Capital of Mt. Mantalingahan?

MMPL Management MMPL is managed by a Protected Area Management Board (PAMB) • composed of 71 members• affirmed by the DENR Secretary• guided by an adopted operations manual

MMPL Management Programs(2010-2020)

Resource Management and Protection Community Development and Outreach Tourism and Recreation Institutional Development, Administration and Fiscal

Management

at least US$ 3M(assuming net 5% per annum interest,

to cover the minimum annual management expenses)

Target Endowment Capital

is the first protected area in the country with an endowment fund

US$ 1M challenge capital fundDisbursed October 30, 2016

CI’s Commitment to MMPL endowment

Launch of the Conservation Trust Fund for

Mt. Mantalingahan Protected Landscape (MMPL)Palawan, Philippines

CI disbursed a grant of US$1 Million to PTFCF (endowment manager) as initial capital for the MMPL Endowment, pursuant to a

grant agreement entered into in January 2016. The endowment fund will be launched on October 7, 2016 in Manila.

• PA proclaimed in June 2009

• 120,457 hectares

• habitat of more than 1000 species of

flora & fauna

• home to at least 12,000 indigenous

Palawan men & women

• total economic value is US$5.6B of

MMPL

• first Protected Area in the country

with an endowment fund

Benefits from MMPL Endowment

sustainable financing for adequate and long term protection of the ecosystem services of MMPL such as promoting sustainable ecotourism

livelihood diversification for at least 12,000 indigenous Palawan men and women towards improving their well-being

ensure clean freshwater to all residents of southern Palawan for domestic and agricultural uses

Ensure management effectiveness of MMPL.

stop deforestation and contribute towards carbon sequestration (approx 32MtC)

Cost Benefit Analysis of

Ecosystem Based Adaptation:

Philippines Case Study

EBA Cost Benefit Study

Why ?

Need provide the local and national

government evidence based information to

include Ecosystem Based Adaptation (EBA) as

one of the government strategic approach to

Climate Change Adaptation.

Encourage further investment on EBA

approaches

Least cost analysis: Results

Least cost of implementation and maintenance

at US$ 14,887.00

Protection of Existing Mangroves Building a seawall

Highest cost at US$ 264,474

Total Economic Value (TEV)

Mangroves contribute US$ 174, 000/year to the economy of the community

CONCLUSION

Study indicate benefits that could be translated into economic terms.

Non-market economic valuation methods can help to account for all of the benefits of EbA.

Important to include monetary values of co-benefits, especially with regard to increased mitigation potential, among others

Baseline data is essential to demonstrate achievement of indicators.

Integrated tool (or set of tools) that addresses not only communities’ vulnerabilities but also those faced by local biodiversity and ecosystems.

Integration of ecosystems services in development planning and business decision making.

Maintaining healthy ecosystems results in sustained provision of ecosystem services that will assure human well-being is guaranteed.

healthy ecosystems

marine protected areas, species conservation

ecosystems services

fisheries, carbon sequestration, coastal protection

human well-being

food security, livelihood opportunities, tourism revenue, protection from storms

Maraming Salamat!