The Quest to Make Conservation Profitable

Vision

A future in which conservation is mainstream

• economically attractive and common-place • sustaining Earth’s biodiversity and vital

life-support systems

Realizing the Vision

Increase flow of $$ into conservation

Allocate $$ flow in new ways

Realizing the Vision

1. Working Landscapes2. Ecosystem Services3. Financial Incentives

Increase flow of $$ into conservation

Allocate $$ flow in new ways

Realizing the Vision

1. Working Landscapes2. Ecosystem Services3. Financial Incentives

Complement traditional conservation approaches with new strategic foci

Conservation Value ofWorking Lands

Con

s. V

alue

Intensity of Land Use

Conservation Value of Working Lands

Con

s. V

alue

Intensity of Land Use

Conservation Value ofWorking Lands

Con

s. V

alue

Intensity of Land Use

Distribution of Biodiversity in Hawaii

Biodiversity in Hawai’i

Mature Forest

Koa PlantationRanchland Koa Plantation

FOR BIODIVERSITY: Absolutely vital

1. Reserves core part of strategy2. Window of opportunity

Conservation Value of Working Lands

Realizing the Vision

1. Working Landscapes2. Ecosystem Services3. Financial Incentives

Complement traditional conservation approaches with new strategic foci

Ecosystem Servicesi. Production of Goods

Ecosystem Servicesii. Life-support Processes

Ecosystem Servicesiii. Life-fulfilling Conditions

Ecosystem Servicesiv. Preservation of Options

Conservation Value of Working Lands

FOR ECOSYSTEM SERVICES: Absolutely vital

1. Supply, scale of delivery2. Window of opportunity

Realizing the Vision

1. Working Landscapes2. Ecosystem Services3. Financial Incentives

Complement traditional conservation approaches with new strategic foci

Capturing Conservation Values

• Goal?• Who pays?• How much?• To whom?• For what?• For how long?

Goal: which elements of ecosystem capital are most important?

Past focus: aesthetic and taxonomic criteria

Future focus: ecosystem service criteria

Outcome of Biosphere 2 Experiment

• O2 levels plummeted• CO2 and N2O levels skyrocketted• Water purification failed• 19 of 25 vertebrate spp went extinct• All pollinators went extinct• Crazy ants, cockroaches, katydids rampant

Crop Pollination• 2/3 of crops require it

• Honeybee declines worldwide

• Can wild bees to do the job?

• Value of their habitats?

coffee

tomatoapple

Harnessing coffee for conservation

How valuable is forest to farmers?

Do forest pollinators benefit nearby coffee?

The value of forest to farmers Coffee near forest:• more diverse bees• more pollination• 20% higher yields

Value of forest:

• $60,000/year to 1 farm

• 10x more than current conservation incentive payments

$$

1.0 km

With remnants

The Value of Forest to Farmers

1.0 km

With remnants Without remnants

The Value of Forest to Farmers

1.0 km

With remnants Without remnants

The Value of Forest to Farmers

Lowerbound value ~US$60,000 / yr

Aligning Economic Incentives with Conservation

• Goal?• Who pays?• How much?• To whom?• For what?• For how long?

Paying for Ecosystem Servicesag

ricul

tura

biod

iver

sida

d

estabilización de la clima

purificacióndel agua

$$

Paying for Ecosystem Servicesag

ricul

tura

biod

iver

sida

d

estabilización de la clima

purificacióndel agua agua clima

biod

iver

sida

dag

ricul

tura

$$

$$

$$$$

$$

Experiments =>Models of Success

WATER PURIFICATIONWATER PURIFICATIONFLOOD CONTROLFLOOD CONTROLBIODEGRADATIONBIODEGRADATIONINTEGRATED APPROACHESINTEGRATED APPROACHES

•• importance of serviceimportance of service•• valuation of ecosystem capitalvaluation of ecosystem capital•• capturing ecosystem service valuescapturing ecosystem service values

(Daily & Ellison 2002)

NYC -- Water Purification

PHYSICAL CAPITAL

• FILTRATION PLANT

• US$ 6-8 BILLION

ECOSYSTEM CAPITAL

• RESTORATION OF WATERSHED

• US$ 1-1.5 BILLION

Investment in Ecosystem Capital

Investment in Ecosystem Capital

Napa ~ Flood Control

PHYSICAL CAPITAL

• DIKES, LEVEES, CONCRETE CHANNELS

• US$ 150 MILLION

ECOSYSTEM CAPITAL

• RESTORATION OF NATURAL FLOODPLAIN

• US$ 200 MILLION

Investment in Ecosystem Capital109 buildings removed; 9 bridges (re)moved

650 acres wetlands created or restored

NAPA ~ A “RIVER CITY”

NAPA ~ A “RIVER CITY”

Biodegradation ~ Costa Rica

Pulp

Costa Rica ~ Biodegradation

PHYSICAL CAPITAL

• LIVESTOCK FEED PRODUCER

• US$ 2-3 MILLION

ECOSYSTEM CAPITAL

• NATURAL BIODEGRADATION

• US$ 0.5 MILLION

Del Oro – ACG Contract

Pest control $1/ha-yrWater supply $5/ha-yrOrange peel degradation $12/truckloadProtection from disease gratis

TOTAL $24,000/yr

ECO – O.K.

Murray-Darling Basin• covers > 1 million km2

• supplies 75% Australia’s

irrigation water

• yields >40% Australia’s

agricultural production

• supplies 3 million people

with drinking water

Annual Salt Contribution to Rivers, NSW

MT/km2

Hypothetical Farm Business

CommodityWheatWoolTimberWater filtrationCarbon sequestrationSalinity controlBiodiversity

Share (%)401510157.57.55

Costa RicaPayment for Ecosystem Services

Climate Stabilization

Water Purification

Biodiversity Resources

Scenic Beauty

US$20 / acre-yr

Aligning Economic Incentives with Conservation

• Goal?• Who pays?• How much?• To whom?• For what?• For how long?

Realizing the Vision

1. Working Landscapes2. Ecosystem Services3. Financial Incentives

Increase flow of $$ into conservation

Allocate $$ flow in new ways

Realizing the Vision

1. Working Landscapes2. Ecosystem Services3. Financial Incentives

Increase flow of $$ into conservation

Allocate $$ flow in new ways

1. Governments2. Local Institutions3. Private Sector

Realizing the Vision

1. Working Landscapes2. Ecosystem Services3. Financial Incentives

Increase flow of $$ into conservation

Allocate $$ flow in new ways

1. Governments2. Local Institutions3. Private Sector

The Natural Capital Project

1. MAPPING ES FLOWS– In biophysical, economic,

cultural terms2. IMPLEMENTATION

– Pilot projects– Symbolic trades

3. SCALING UP– Brain Trusts in

Conservation Finance & Communications

To succeed, To succeed,

conservation must become conservation must become

economically profitable and commoneconomically profitable and common--placeplace