Examples of (possible) uses of the ESVD
Economic and monetary information on ecosystem services is important in many ways: it can help to demonstrate the welfare effect of investing in nature conservation and landscape restoration, it is essential in attempts to internalize externalities in cost-benefit analysis of land use change and business models, and is increasingly used in natural capital accounting and national conservation strategies.
Some actual and potential uses of ESVD are summarized below:
International Governmental Organisations
With the impact of climate change, land degradation and biodiversity loss becoming increasingly visible, organisations like FAO, IPCC, UNEP (IPBES, TEEB), and UN-Conventions (e.g. CBD), and others are looking for data on the real societal costs of these environmental problems as well as the economic benefits of investing in prevention, mitigation and adaptation. The ESVD can provide this data and when needed integrate into other tools. Some examples are:
- FAO is using ESVD to include the social value of biodiversity in their Biodiversity Integrated Assessment and Computation Tool (B-INTACT)
- Within the context of the UN Decade on restoration (2021-2030), FAO, CBD and others started ‘The Economics of Ecosystem Restoration’-initiative (TEER). TEER aims to develop a global database on the costs and benefits of restoration projects in all major biomes and across a wide range of contexts worldwide.
- With the UN-TEEB-office we are discussing how ESVD can be used to support their MapX, an online platform for managing geospatial data on natural resources” https://www.mapx.org/
- With UNEP and the UN Statistics Division we explore the use of ESVD to develop SEEA (System of Environmental and Economic Accounting), compatible values and value functions
- Within the European Union there are many programs in need of data on Ecosystem Services, including the new Biodiversity 2030-strategy.
Governments (local, regional national and supra-national decision-making bodies)
At all levels of public decision making, similar questions as those mentioned under 1) are relevant but in addition, national, regional and local issues are in need of better data on consequences of programs and projects that affect specific landscapes and ecosystems. The concept of ecosystem services is increasingly used to come to a more balanced decision based on integrated cost-benefit analysis (i-CBA). For example, the UK Dept. for Environment, Food and Rural Affairs (DEFRA (UK) supports the update of ESVD to obtain better data to analyse costs and benefits of flood risk management. With the Government of Costa Rica we are exploring options to use ESVD to improve their PES program and the Canadian Government recently inquired how ESVD can help inform land use decisions in Canada in view of ongoing climate change.
Financial sector
To support the transition to a ‘greener economy’ the financial sector is crucial and we are discussing with several Dutch banks (e.g. ASN, DNB, Rabobank, Robeco) how they can use the ESVD in their decision-making and risk management assessments. Examples are assessment of the impact of deforestation or an analysis of the costs and benefits of sustainable cacao production (see
Business sector and consultants
Increasingly, the business community is willing to change their business model into a more sustainable direction and internalise the (negative and positive) externalities. During ESP conferences we have had presentations by many different companies sharing their views on how they already are, or would like to use the ES-concept in their business model (e.g EcoAcsa, Heidelberg Cement, HIPP, Lafarge-Holcim, SIBELCO, and others). Consultants, like Arcadis, KPMG, and others are developing separate tools to determine the ‘true costs’ of business activities to make an integrated, or social CBA. This will be a major application area of the updated, and upgraded ESVD as this will give the most comprehensive and trust-worthy data available.
NGO’s
An important task of NGO’s is to critically follow the actions of governments and their effects on the environment and human wellbeing and take the role as ‘ frontrunner’ to implement new ideas into practice and show that it can work. A prime example is Commonland (www.commonland.com) which is investing in large-scale, long-term landscape restoration in many parts of the world. ESP is supporting this effort with the development of guidelines to analyse the ‘ true’ societal costs and benefits of these investments.
General public
Information and awareness has to be available for as many people as possible. Through our partnership with NatureToday (www.naturetoday.com ) ESP provides and develops an overview of practical user cases and short insights in the possibilities and experiences regarding the importance of natural capital to our wellbeing. These stories are available for everybody who has some kind of “green” interest. From nature interested citizens to schoolteachers and government employees. We also work closely together with the Capitals Coalition (www.capitalscoalition.org ) a global collaboration of over 300 organisations transforming the way decisions are made by including the value provided by nature to people and society.