The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Session 2: Biodiversity Loss
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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“What is nature worth?” Video
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Biodiversity loss: The decline of genetic diversity and distribution and abundance of species diversity, the loss of ecosystem structures, and/or the impairment of ecological functions
Ecosystem degradation: A persistent reduction in the capacity to provide ecosystem services.
Natural capital: An extension of the economic notion of capital (manufactured means of production) to environmental 'goods and services'.
Let’s define….
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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2000
The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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2050
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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2000 2050 2000 2050
Level of Biodiversity in the World from 2000 and 2050:OECD/Globio
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Impact of Biodiversity Loss Deforestation in the Amazon Deforestation in the Amazon
Houses collapsing due to coastal erosion in Alaska Houses collapsing due to coastal erosion in Alaska
Pollution in the mangroves of Bali Pollution in the mangroves of Bali
Litter at the docks in Seychelles Litter at the docks in Seychelles
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Population size (reaching ~9 billion people)
Lifestyle changes (increasing urbanisation and per capita income growing 2-4 times)
Governance and policy responses (coordinating responses to global challenges)
Land conversion and habitat loss (converting 10-20% of additional grassland and forestland)
Overexploitation incl. overfishing (increasing pressure)
The Key drivers
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Key drivers cont… Invasive alien species (continuing
spread)
Reactive nitrogen flow (increasing by another 66% – already doubled during the past 50 years)
Climate change (continuing global warming – expected to become the predominant global cause of ecosystem degradation and ecosystem service loss)
Pollution (mainly from excessive pesticide use in agriculture and aquaculture; urban and industrial effluents; mining waste; and excessive fertilizer use etc)
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Source: FAO 2005a: 7
Source: Nellemann et al 2008: 22
Fisheries exploitation
Forestry – deforestation, afforestation
Biodiversity (loss)
Coral reefs at risk
The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
The Impact on ecosystems
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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MA’s major findings regarding ecosystems
The structure and functioning of the world’s ecosystems has changed rapidly the past 50 years
20% of the world’s coral reefs have been lost and more than 20% are degraded
35% of mangrove area has been lost in the last several decades
Rate of species extinction is estimated to be 100 to 1,000 times more rapid than the “natural” extinction rate
In the past two decades, 35% of mangroves have disappeared. ©UNEP/GRID-Arendal
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• FAO: Global Forest Area has shrunk by approximately 40% since 1700, Forests have completely disappeared in 25 countries
• Ramsar: Since 1900, the world has lost about 50% of its wetlands
• Global coral reef monitoring network: Some 20% of the world’s coral reefs- have been effectively destroyed by fishing, pollution, disease and coral bleaching approximately 24% of the remaining reefs in the world are imminent risk of collapse through human pressures
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Additional findings from other resources…
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
What is happening to Biodiversity?
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
©2005 Millennium Ecosystems Assessment
Why does Biodiversity loss matter?
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“Has The Earth passed its tipping point?” Video
© Institute on Environment, Minnesota, 2010
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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GDP & Natural Capital Loss How they (don’t) Fit
Year 2000
Year 2050
Services that would have been there, had biodiversity been
halted Ecosystem service level
Population 9100 million
GDP (OECD Scenarios) 2.8%/year
GDP, with feedback on economic losses from
biodiversity losses integrated - illustrative
Relative to 2000
Population: 6092 million
GDP: 41.4$ trillion (PPP) (10^12)
GDP/capita: 680$ (PPP)
GDP adjusted for well-being impact of biodiversity loss - illustrative
The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Key Reasons to End the Economic Invisibility of
Nature
Costs and risks of business as usual (BAU) are too large to ignore
BAU can also exacerbate poverty
Economic solutions exist across policy & business which begin by valuing nature
To realize the productive and employment potential of Natural Capital stewardship
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Responding to natures Invisibilities; A Recap so far
The value of biodiversity and ecosystem services is not being fully reflected in the markets, price signals and policies
Decision making (at company, policy & citizen level) often fails to take into account the local to global benefits of biodiversity and ecosystem services
Assessing ecosystem service benefits is critical
There is a need to improve the economic signals to help take the values of nature into account
There is a growing recognition of the need to improve and invest political capital in natural capital accounts and integrated environmental and economic accounts
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The Economics of Ecosystems & BiodiversityThe Economics of Ecosystems & Biodiversity
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Group Exercise 3
• Identify: In pairs of two, 1) Identify the drivers of biodiversity loss? 2) What types of biodiversity loss are currently happening in your country.
• Brainstorm: what possible solutions could there be for these issues in your country?
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