Topic: economic valuation

ADVISORY: WRI Experts to Speak at Annual Conference on Ecosystem Services in Ft Lauderdale

James Anderson — Mon, 10 Dec 2012 17:11:03 -0500

Experts from the World Resources Institute will be joining leaders from business, government, and environment communities at the annual ACES and Ecosystems Markets 2012 Summit. The summit will take place from December 10 – 14 in Ft. Lauderdale, FL.

The goal of the summit is advance ecosystem services science and practice in conservation, restoration, resource management, and development decisions. It is being organized by the University of Florida and sponsored by the U.S. EPA, U.S. Forest Service, American Forest Foundation, World Resources Institute, and others.

WRI experts will discuss ecosystems-for-water programs, coastal ecosystem evaluations in the Caribbean, and processes for incorporating ecosystem services into public and private decision making.

Ecosystem goods and services – like freshwater, fiber, food, flood control, water purification and waste treatment – provide important benefits to business and society. Improving how ecosystem services are incorporated into decision making impacts ecosystems and the quantity, quality and profitability of the benefits they provide.

Full Agenda: http://www.conference.ifas.ufl.edu/aces/glance.html

WRI Experts available for interviews:

Craig Hanson, Director, People and Ecosystems Program

Janet Ranganathan, Vice President, Science and Research

Lauretta Burke, Senior Associate, Coral Reefs Initiative

Todd Gartner, Senior Associate, Conservation Incentives and Markets

For more information, please contact:
James Anderson, Press Officer, World Resources Institute, janderson@wri.org, (202) 729-7608

Influence of Coastal Economic Valuations in the Caribbean: Enabling Conditions and Lessons Learned

Sarah Parsons — Mon, 10 Dec 2012 13:55:24 -0500

Executive Summary

Across the Caribbean, national economies are heavily dependent on coastal ecosystem services. Coral reefs, mangroves, and other coastal ecosystems provide fish habitat, attract tourists, and protect shorelines from storm damage. However, coastal habitats continue to degrade due to local and global pressures. For example, more than 75 percent of the Caribbean’s coral reefs are currently threatened by human activities. These threats to coastal ecosystems stem from both a lack of awareness of the benefits these ecosystems provide and the costs of insufficient protection, and a lack of political will to protect and sustainably manage these ecosystems. Many of the activities that damage coastal ecosystems arise from shortsighted and poorly informed decisions that fail to take long-term ecosystem values and the full range of benefits from coastal ecosystem services into account.

Economic valuation can contribute to better informed and more holistic decision making about resource use and identify opportunities for effective conservation. Over the past 30 years, the economic valuation literature on the Caribbean’s coastal and ocean resources has increased substantially. More than 200 coastal economic valuation studies of the monetary value of marine ecosystem goods and services in the Caribbean currently exist. However, despite this wealth of valuation studies and estimates, it is not clear whether these efforts have had a meaningful impact on policy or decision making concerning the management and use of these valuable natural resources; to date, there has been no assessment to address this critical question. It is also not immediately clear why some valuations have been more influential than others.

To get a more complete picture of the influence of past coastal valuations in the Caribbean, and to identify the key “enabling conditions” for valuations to influence policy, management, or investment decisions, the World Resources Institute (WRI) and the Marine Ecosystem Services Partnership (MESP) conducted semi-structured interviews with more than thirty marine conservation and valuation experts. Several of these interviews took place in the five countries where WRI had conducted coastal valuations. WRI also reviewed past valuation studies in the Caribbean that informants identified as influential. The findings of this review are based on expert opinion and documented cases of influence. Given the large number of total valuations and the difficulty of tracking influence, this review is not exhaustive. This paper identifies a number of variables that likely influence policy, management, and investment outcomes; however, it does not identify the extent to which each variable contributes to influence. We encourage future research on this topic.

Overall, we found that although valuation studies have helped raise awareness about the economic importance of coastal ecosystems in the Caribbean, few have actually had a positive influence on conservation and management- oriented policy, legislation, or investment in the region. We identified only 13 valuation studies that have influenced policy. For example, valuation helped to convince the government of St. Maarten to establish the country’s first national marine park, and the government of Belize to legally ban bottom trawling. Still, these success stories highlight the potential for economic valuation to have influence. We were able to draw out key contextual, procedural, and methodological conditions that likely led to success.

The elements increasing the likelihood of policy influence included:

a clear policy question;
local demand for valuation;
strong local partnerships and stakeholder engagement;
good governance with high transparency;
opportunities for revenue-raising;
effective communications and access to decision makers and/or media; and
a clear presentation of methods, assumptions, and limitations.

This analysis suggests that getting the methodology right—a principal concern of economists—is only part of the equation. Valuation practitioners who aspire to achieve impact must also consider wider contextual and procedural factors (such as governance and stakeholder engagement) when assessing the likelihood that their valuation will be influential. Furthermore, absolute accuracy is not always essential, as many stakeholders use valuation results as a ballpark figure to guide decision making. For this reason, valuation should be done on a scale appropriate to the policy question, minimizing costs as far as possible. More precise valuation may be necessary for questions relating to fees and taxes. In all cases, clear presentation of methods, assumptions, and limitations is critical in order to address critiques and legitimize results.

In the Caribbean, interest in ecosystem valuation to inform smart choices about coastal resource conservation and management and associated land use continues to grow. However, based on the results of this analysis, it is clear that valuation practitioners need to do much more to ensure that valuation studies have greater influence. In order to achieve more meaningful impacts, greater effort is necessary to strategically choose, design, and execute valuation studies; communicate valuation results to target audiences; and share successes and failures of influence with other practitioners. We conclude with next steps for building on this analysis, including:

Conduct further consultations with experts and decision makers in the Caribbean and beyond to enlarge the catalog of valuation success stories, and explore additional opportunities for qualitative and quantitative analysis of trends and causality.
Develop standardized approaches to monitor and evaluate the influence of coastal valuations.
Research the “return on investment” of economic valuation for coastal conservation and management in relation to other conservation tools.

The results of this review will inform WRI and our partners’ efforts to produce a standardized framework for economic valuation of coastal ecosystems in the Caribbean. A standardized valuation framework would help produce comparable and credible values across the Caribbean, legitimizing their use among decision makers and increasing their uptake. Drawing from this review, the framework will also contain advice on how to make future economic valuations as influential as possible, so they can realize their potential to catalyze positive changes in policy, management, and investment—helping both to restore the productivity and increase the economic contributions of coastal resources, while safeguarding the Caribbean’s valuable coastal and marine resources for future generations.

RELEASE: Indonesian President Yudhoyono Honored with “Valuing Nature Award” in NYC

Michael Oko — Mon, 24 Sep 2012 18:10:14 -0400

Three leading global environmental and conservation organizations are honoring Indonesia’s President H.E. Susilo Bambang Yudhoyono with the first-ever “Valuing Nature Award” for his leadership in recognizing the importance of natural resources and working to conserve them. Indonesia, with an area of nearly 2 million square kilometers (772,204 square miles) and over 2 hundred million people, is one of the most important countries when it comes to sustainability, particularly in relation to its globally important biodiversity, forest and marine resources. The award will be presented by the Nature Conservancy, World Resources Institute and WWF at a dinner in New York City, coinciding with the United Nations General Assembly meetings.

President Yudhoyono is specifically being recognized for his leadership in establishing the multilateral Coral Triangle Initiative, which will sustain extraordinary marine and coastal resources in six countries: Indonesia, Malaysia, Papua New Guinea, Philippines, Solomon Islands and Timor-Leste. This region is one of the most biologically diverse areas, home to more than 75 percent of all known coral species and more than 37 percent of coral reef fish. In total, the coral reefs, mangroves, and associated natural habitats are valued at US $2.3 billion. These resources provide jobs, food, and business opportunities for millions of people in the region. Catalyzed by President Yudhoyono, the Coral Triangle Initiative brings together an unprecedented partnership of governments with public sector, private sector, NGOs and others, and offers a model for connecting marine conservation to the health and security of local communities.

Under President Yudhoyono’s administration, Indonesia pledged to achieve 20 million hectares of marine protected areas across the country by 2020, in which the protection will be strictly enforced and sufficiently financed. To date, Indonesia has achieved 13.4 million hectares of marine protected areas, considerably exceeding the target of 10 million hectares by 2010.

The three organizations recognize President Yudhoyono’s significant contributions to valuing nature and look forward to his continued strong conservation leadership.

Following are statements from representatives of the three organizations:

“Some leaders prioritize economic growth, others social equity, and yet others environmental protection. But Indonesia, under President Yudhoyono, is showing that smart environmental policies, smart growth policies, and smart social policies can be mutually reinforcing,” said Andrew Steer, President, World Resources Institute. “The world is watching and admiring this quest for a triple win.”

“There is an urgent need to scale up the pace and collaboration in marine conservation because the challenge simply cannot be conquered by one nation alone,” said Glenn Prickett, Chief External Affairs Officer for The Nature Conservancy. “President Yudhoyono understands this, and recognizes the extraordinary marine life abundance and diversity in the Coral Triangle region. His personal call for action to address threats in this globally important region led to the start of the Coral Triangle Initiative. Today, CTI has given the world a tremendous opportunity to value nature and realize the tangible benefits of it by managing the marine resources in a way that builds our natural capital.”

“The Coral Triangle Initiative has been a powerful catalyst for positive change in a region rich in biological diversity, but that desperately needs better protection for its precious and fragile marine and coastal resources,” said Catherine Plume, Managing Director of World Wildlife Fund’s Coral Triangle Program. “While important actions are underway, we hope that all stakeholders involved in this important initiative will redouble their sustainability efforts in the region.”

# # # #

The Nature Conservancy (TNC) is a leading conservation organization working around the world to protect ecologically important lands and waters for nature and people. The Conservancy and its more than 1 million members have protected nearly 120 million acres worldwide. Visit The Nature Conservancy on the Web at www.nature.org.

The World Resources Institute (WRI) is a global environmental and development think tank that goes beyond research to put ideas into action. We work with governments, companies, and civil society to build solutions to urgent environmental challenges. WRI’s transformative ideas protect the earth and promote development because sustainability is essential to meeting human needs and fulfilling human aspirations in the future. www.wri.org.

WWF is the world’s leading conservation organization, working in 100 countries for nearly half a century. With the support of almost 5 million members worldwide, WWF is dedicated to delivering science-based solutions to preserve the diversity and abundance of life on Earth, halt the degradation of the environment and combat climate change. Visit www.worldwildlife.org to learn more.

Reefs at Risk Revisited in the Coral Triangle

Sarah Parsons — Thu, 05 Jul 2012 10:53:54 -0400

Summary: Reefs at Risk Revisited in the Coral Triangle

Download the 2011 global analysis of threats to coral reefs, Reefs at Risk Revisited

The World Resources Institute produced the report in close collaboration with the USAID-funded Coral Triangle Support Partnership (CTSP). Reefs at Risk Revisited in the Coral Triangle was adapted from WRI’s 2011 global analysis of threats to coral reefs, Reefs at Risk Revisited, and supplemented with more recent and detailed data for the Coral Triangle region.

Threats to coral reefs in the Coral Triangle are much higher than the global average. More than 85 percent of reefs within the Coral Triangle Region are currently threatened by local stressors (such as overfishing, pollution, and coastal development), which is substantially higher than the global average of 60 percent. Nearly 45 percent are at high or very high threat levels. When the influence of recent thermal stress and coral bleaching is combined with these local threats, the percent of reefs rated as threatened increases to more than 90 percent, which is substantially greater than the global average of 75 percent.

Reefs at Risk Revisited in the Coral Triangle studies current and future threats to the Coral Triangle’s reefs, evaluates social and economic vulnerability to reef degradation and loss throughout the six countries, examines reef management initiatives, and identifies solutions to help safeguard reefs.

The Corporate Ecosystem Services Review: Guidelines for Identifying Business Risks & Opportunities Arising from Ecosystem Change

Suzanne Ozment — Tue, 07 Feb 2012 16:32:54 -0500

Summary

Ecosystems provide businesses with numerous benefits or “ecosystem services.” Forests supply timber and wood fiber, purify water, regulate climate, and yield genetic resources. River systems provide freshwater, power, and recreation. Coastal wetlands filter waste, mitigate floods, and serve as nurseries for commercial fisheries.

However, human activities are rapidly degrading these and other ecosystems. The Millennium Ecosystem Assessment— the largest audit ever conducted of the condition and trends in the world’s ecosystems—found that ecosystems have declined more rapidly and extensively over the past 50 years than at any other comparable time in human history. In fact, 15 of the 24 ecosystem services evaluated have degraded over the past half century. The Assessment projected further declines over coming decades, particularly in light of population growth, economic expansion, and global climate change. Left unchecked, this degradation could jeopardize future economic well-being, creating new winners and losers within the business community.

Ecosystem degradation is highly relevant to business because companies not only impact ecosystems and the services they provide but also depend on them. Ecosystem degradation, therefore, can pose a number of risks to corporate performance as well as create new business opportunities. Types of risks and opportunities include:

Operational

Risks such as higher costs for freshwater due to scarcity, lower output for hydroelectric facilities due to siltation, or disruptions to coastal businesses due to flooding
Opportunities such as increasing water-use efficiency or building an on-site wetland to circumvent the need for new water treatment infrastructure

Regulatory and legal

Risks such as new fines, new user fees, government regulations, or lawsuits by local communities that lose ecosystem services due to corporate activities
Opportunities such as engaging governments to develop policies and incentives to protect or restore ecosystems that provide services a company needs

Reputational

Risks such as retail companies being targeted by nongovernmental organization campaigns for purchasing wood or paper from sensitive forests or banks facing similar protests due to investments that degrade pristine ecosystems
Opportunities such as implementing and communicating sustainable purchasing, operational, or investment practices in order to differentiate corporate brands

Market and product

Risks such as customers switching to suppliers that offer eco-certified products or governments implementing new sustainable procurement policies
Opportunities such as launching new products and services that reduce customer impacts on ecosystems, participating in emerging markets for carbon sequestration and watershed protection, capturing new revenue streams from company-owned natural assets, and offering eco-labeled wood, seafood, produce, and other products

Financing

Risks such as banks implementing more rigorous lending requirements for corporate loans
Opportunities such as banks offering more favorable loan terms or investors taking positions in companies supplying products and services that improve resourceuse efficiency or restore degraded ecosystems.

Unfortunately, companies often fail to make the connection between the health of ecosystems and the business bottom line. Many companies are not fully aware of the extent of their dependence and impact on ecosystems and the possible ramifications. Likewise, environmental management systems and environmental due diligence tools are often not fully attuned to the risks and opportunities arising from the degradation and use of ecosystem services. For instance, many tools are more suited to handle “traditional” issues of pollution and natural resource consumption. Most focus on environmental impacts, not dependence. Furthermore, they typically focus on risks, not business opportunities. As a result, companies may be caught unprepared or miss new sources of revenue associated with ecosystem change.

The Corporate Ecosystem Services Review (ESR) is designed to address these gaps. It consists of a structured methodology that helps managers proactively develop strategies to manage business risks and opportunities arising from their company’s dependence and impact on ecosystems. It is a tool for strategy development, not just for environmental assessment. Businesses can either conduct an Ecosystem Services Review as a stand-alone process or integrate it into their existing environmental management systems. In both cases, the methodology can complement and augment the environmental due diligence tools companies already use.

The Ecosystem Services Review can provide value to businesses in industries that directly interact with ecosystems such as agriculture, beverages, water services, forestry, electricity, oil, gas, mining, and tourism. It is also relevant to sectors such as general retail, healthcare, consulting, financial services, and others to the degree that their suppliers or customers interact directly with ecosystems. General retailers, for example, may face reputational or market risks if some of their suppliers are responsible for degrading ecosystems and the services they provide.

This publication describes the five steps for performing an Ecosystem Services Review. It provides an analytical framework, case examples, and helpful suggestions for each step. It concludes by highlighting a number of resources managers can use when conducting an ESR, including a “dependence and impact assessment” spreadsheet, scientific reports, economic valuation approaches, and other issue-specific tools.

As of 2012, an estimated 300 companies have used the Ecosystem Services Review. In addition, complementary tools and guidance now exist to help companies more fully assess business risks and opportunities emerging from ecosystem change. For example, in 2011 the World Business Council for Sustainable Development released the Guide to Corporate Ecosystem Valuation (CEV), which provides information on how to quantitatively, or in some cases monetarily, assess risks and opportunities related to ecosystem services. CEV can therefore be a logical next step after undertaking an ESR. The Economics of Ecosystems and Biodiversity (2010) highlighted new examples of the linkages between business and ecosystem services. The ESR remains a fundamental starting point for companies to assess business risks and opportunities related to ecosystem change.

Global degradation of ecosystems and the services they provide threatens to alter the landscape in which business operates. The Ecosystem Services Review is a proactive approach for companies to manage the risks and opportunities that are emerging. Furthermore, by helping companies make the connection between healthy ecosystems and the bottom line, it will encourage not only more sustainable business practices, but also business support for policies to protect and restore ecosystems.

WRI developed the ESR in collaboration with the Meridian Institute and the World Business Council for Sustainable Development (WBCSD). Five WBCSD member companies—Akzo Nobel, BC Hydro, Mondi, Rio Tinto, and Syngenta—road-tested the methodology, providing feedback and case examples. Since 2008, an estimated 300 companies have used the Ecosystem Services Review. Yves Rocher, Lafarge, and CEMEX have also contributed ESR case studies to demonstrate the experience and results of the method.

Coastal Capital: Jamaica

Maggie Barron — Tue, 28 Jun 2011 12:01:16 -0400

This analysis includes a valuation of coral reef-associated fisheries, potential losses to tourism due to beach erosion, and examines the role of coral reefs in reducing coastal flooding during storms. In addition, we provide a literature review of 16 coral reef valuations conducted in Jamaica.

PRESS RELEASE: New Analysis: Coral Reefs Provide Great Value to Jamaica's Economy

Michael Oko — Mon, 06 Jun 2011 22:04:03 -0400

Coral reefs provide significant value to the Jamaican economy, including tourism, fisheries and shoreline protection, according to new analysis released today. The study finds that reef-related fisheries contribute $34.3 million (USD) annually to Jamaica’s economy. The study also revealed that beach erosion due to the loss of coral reefs could result in $23 million (USD) in lost tourism revenue per year. The analysis, entitled Coastal Capital: Jamaica was carried out by the World Resources Institute (WRI), the University of the West Indies’ (UWI) Marine Geology Unit (MGU), the Mona GeoInformatics Institute (MGI), and the Nature Conservancy (TNC).

“Reefs are not only a source of wonder, they offer great value to Jamaica’s economy,” said Lt. Commander Richard Russell, Chief Executive Officer of the Fisheries Division, Ministry of Agriculture and Fisheries. “Jamaica is world famous for its beautiful sand beaches, and protecting reefs is critical to ensure that Jamaica maintains its status as a top tier destination.”

The analysis looked at tourism, fisheries, and shoreline protection, which represent just three of the many culturally and economically important services reef ecosystems provide in Jamaica. Even without a complete valuation of the other ecosystem services, the country’s coral reefs are clearly valuable. The analysis also found that:

The loss of beach width due to coral reef degradation could reduce tourists by 9,000 - 18,000 visitors annually;
Reef-related fisheries support between 15,000 - 20,000 fishermen, and contribute directly and indirectly to the livelihoods of more than 100,000 people island-wide; and
If further reef degradation occurs, beach erosion rates could increase by more than 50 percent in Montego Bay, 70 percent in Ocho Rios, and 100 percent in Negril over a 10-year period.

“For the first time, we have modeled the link between reef degradation and beach erosion to assess the economic impacts on tourism,” said Benjamin Kushner, Research Analyst at WRI and one of the authors. “Our findings clearly demonstrate how Jamaica’s coastal tourism is tied to the health of its coral reefs.”

According to Reefs at Risk Revisited, a report released by WRI earlier this year, all of Jamaica’s coral reefs are currently under threat, with more than 60 percent in the high to very high categories. The leading threats include overfishing and bad fishing, which threaten all of Jamaica’s reefs; watershed-based pollution and coastal development, which threaten nearly 60 percent of the country’s reefs; and marine-based pollution, which threatens more than 30 percent of its reefs. In addition to these local pressures, global threats, such as climate change and ocean acidification, pose significant challenges to reefs in Jamaica and around the globe.

“Coral reefs provide critical habitat for Jamaica’s fisheries that support thousands of fishermen and provide a range of employment opportunities to many others across the island,” said Richard Waite, Research Analyst at WRI and a lead author of Coastal Capital: Jamaica. “Further loss of Jamaica’s reefs could potentially lead to the loss of thousands of jobs and millions of dollars in annual revenue.”

“In order to turn back the threats to Jamaica’s reefs, we need greater investment to maintain coral reef health and enhance reef-related benefits— and to prevent future losses,” said Ainsley Henry, Acting Director of the Applications Management Division, National Environment and Planning Agency (NEPA). “This important investment would go beyond reefs, adding revenue, creating jobs, and strengthening Jamaica’s economy for generations to come.”

For the summary paper and full technical reports, including the valuation methodology, go to: www.wri.org/coastal-capital.

# # # #

Contact:
Michael Oko, WRI (Washington, D.C.)
E: moko@wri.org; Tel: (202) 729-7684

Cecil Thoms, Ministry of Agriculture & Fisheries (Jamaica)
E: cethoms@moa.gov.jm; Tel: (876) 927-1872

MEDIA ADVISORY: Corporate Ecosystem Valuation Event at World Resources Institute

Michael Oko — Thu, 28 Apr 2011 11:54:26 -0400

Business and NGO Leaders Discuss How to Integrate Ecosystem Valuation into Planning and Financial Analysis

Business and environmental leaders are participating in an event at the World Resources Institute to discuss the new Guide to Corporate Ecosystem Valuation (CEV) and how businesses can incorporate ecosystem valuation into their planning and financial analysis. The event is being hosted by the World Business Council for Sustainable Development (WBCSD), the World Resources Institute (WRI), and the International Union for Conservation of Nature (IUCN) on Tuesday, May 3 from 10:15 a.m. to 12:30 p.m.

Speakers include representatives from Goldman Sachs, Holcim, and Weyerhaeuser, along with leading NGOs, and more.

Ecosystem goods and services – like freshwater, fiber, food, flood control, water purification and waste treatment – enable business and society to function and therefore it will be imperative that business understands how it impacts and depends on its ecosystems.

That’s why the WBCSD created the first-of-its-kind Guide to Corporate Ecosystem Valuation (CEV), a framework that allows business to recognize the actual benefits and value of ecosystem services, giving them new information and insights to include in business planning and financial analysis.

The event is open to media and other interested parties– full agenda below

WHO
Representatives from Goldman Sachs, Holcim, and Weyerhauser

Representatives from the World Business Council for Sustainable Development (WBCSD), the World Resources Institute (WRI), and the International Union for Conservation of Nature (IUCN), and more

WHAT
Event on the Guide to Corporate Ecosystem Valuation

WHERE
World Resources Institute, 10 G St NE, Washington D.C., 8th Floor, Main Conference Room

WHEN
Tuesday, May 3, 2011

TIME
10:15 a.m. to 12:30 p.m.

AGENDA
Moderation by Janet Ranganathan (WRI), Suzanne Ozment (WRI) and Mary Beth West (IUCN)

Introduction and Welcome
Janet Ranganathan, WRI

The Wall Street Perspective
Kuyung-Ah Park, Goldman Sachs

CEV Overview
James Griffiths, WBCSD

Corporate Ecosystem Valuation Road-Tester Panel
Kieran Sikdar, US Business Council for Sustainable Development, Erika Guerra, Holcim, and Jody Strickland, Weyerhaeuser

The Dow Chemical Company and The Nature Conservancy Valuing Nature Collaboration
Mark Weick, Dow, and Michelle Lapinski, TNC

# # #

For more information, please contact:

Michael Oko, Director, Media Relations, World Resources Institute, moko@wri.org, (202) 729-7684

Peter Paul van de Wijs, Managing Director, Communications, World Business Council for Sustainable Development, vandewijs@wbcsd.org, +41 22 839 3141

Nicki Chadwick, Media Relations Officer, International Union for Conservation of Nature, nicki.chadwick@iucn.org, +41 22 999 0229

PRESS RELEASE: WRI Expands Capacity in International Forest and Ecosystems Work

Michael Oko — Wed, 16 Mar 2011 14:29:37 -0400

Two new leaders, Nigel Sizer and Robert Winterbottom, added to roster

Two international forest experts, with more than 45 years combined experience, have joined the World Resources Institute’s (WRI) People and Ecosystems Program. Dr. Nigel Sizer, who worked at WRI earlier in his career, returns to lead the Global Forest Initiative, overseeing efforts to increase the ability of governments, businesses and civil society to protect intact forest landscapes, sustainably manage working forests, and restore deforested lands. Robert Winterbottom, who also previously spent time at WRI, is now directing the Ecosystem Services Initiative, managing activities to reduce the degradation of ecosystems, and to invest in ecosystem services to secure economic growth and enhance people’s well being.

“We are thrilled to bring Nigel and Bob back to WRI— two extremely qualified experts with hands-on experience,” said Craig Hanson, director of WRI’s People and Ecosystem Program. “I look forward to working with them, as WRI expands its impact through our global forest and ecosystem services initiatives.”

Sizer comes to WRI from Rare, an international conservation organization, where he served as vice president for Asia. While at Rare, he expanded operations into China, and conceived and developed Community Carbon, a grassroots effort to link impoverished communities in Indonesia to global carbon markets. In 2008, he served as lead advisor on climate change and energy issues in Asia to former President Bill Clinton and the Clinton Global Initiative. Sizer has also worked with UNEP in Nairobi, and established The Nature Conservancy’s Asia-Pacific Forest Program.

“I am delighted to be back at WRI, which has built an extraordinary reputation over the years,” said Sizer. “I really look forward to working with new colleagues and helping expand both our influence and impact in the world.”

Winterbottom comes to WRI with more than 25 years of experience on environment and sustainable development issues in dozens of countries in Africa, Latin America and Asia. In Bangladesh, he worked to scale up the collaborative management of wetlands and protected forests by building capacity at the grassroots level and among responsible government agencies. In eastern Senegal, he increased rural incomes by expanding community-based enterprises, together with improved land use planning and natural resource management. Winterbottom also supported efforts by Niger to strengthen property rights and policies to promote widespread adoption of sustainable agricultural practices and “regreening” of rural landscapes. Most recently, he led a team of experts in assessing needs and opportunities in Vietnam for climate change adaptation and restoration of ecosystem services in targeted watersheds.

“For many years, WRI has been at the forefront of helping governments and businesses understand the value of ecosystem services,” said Winterbottom. “I’m excited to be back at WRI to advance this groundbreaking work.”

PRESS RELEASE: 75% of World’s Coral Reefs Currently Under Threat, New Analysis Finds

Michael Oko — Wed, 23 Feb 2011 21:55:53 -0500

“Reefs at Risk Revisited” report presents comprehensive analysis of threats to coral reefs

A new comprehensive analysis finds that 75 percent of the world’s coral reefs are currently threatened by local and global pressures. For the first time, the analysis includes threats from climate change, including warming seas and rising ocean acidification. The report shows that local pressures— such as overfishing, coastal development, and pollution— pose the most immediate and direct risks, threatening more than 60 percent of coral reefs today.

“Reefs at Risk Revisited,” the most detailed assessment of threats to coral reefs ever undertaken, is being released by the World Resources Institute with the Nature Conservancy, the WorldFish Center, the International Coral Reef Action Network, Global Coral Reef Monitoring Network, and the UNEP-World Conservation Monitoring Center, along with a network of more than 25 organizations. Launch activities are taking place in Washington, D.C., London, Malaysia, Indonesia, the Caribbean, Australia, and other locations around the world.

“This report serves as a wake-up call for policy-makers, business leaders, ocean managers, and others about the urgent need for greater protection for coral reefs,” said Dr. Jane Lubchenco, under secretary of commerce for oceans and atmosphere and NOAA administrator. “As the report makes clear, local and global threats, including climate change, are already having significant impacts on coral reefs, putting the future of these beautiful and valuable ecosystems at risk.”

Local pressures – especially overfishing and destructive fishing – are causing many reefs to be degraded. Global pressures are leading to coral bleaching from rising sea temperatures and increasing ocean acidification from carbon dioxide pollution. According to the new analysis, if left unchecked, more than 90 percent of reefs will be threatened by 2030 and nearly all reefs will be at risk by 2050.

“Coral reefs are valuable resources for millions of people worldwide. Despite the dire situation for many reefs, there is reason for hope,” said Lauretta Burke, senior associate at WRI and a lead author of the report. “Reefs are resilient, and by reducing the local pressures we can buy time as we find global solutions to preserve reefs for future generations.”

The report includes multiple recommendations to better protect and manage reefs, including through marine protected areas. The analysis shows that more than one-quarter of reefs are already encompassed in a range of parks and reserves, more than any other marine habitat. However, only six percent of reefs are in protected areas that are effectively managed.

“Well managed marine protected areas are one of the best tools to safeguard reefs,” said Mark Spalding, senior marine scientist at the Nature Conservancy and a lead author of the report. “At their core, reefs are about people as well as nature: ensuring stable food supplies, promoting recovery from coral bleaching, and acting as a magnet for tourist dollars. We need apply the knowledge we have to shore up existing protected areas, as well as to designate new sites where threats are highest, such as the populous hearts of the Caribbean, Southeast Asia, East Africa and the Middle East.”

Reefs offer multiple benefits to people and the economy – providing food, sustaining livelihoods, supporting tourism, protecting coasts, and even helping to prevent disease. According the report, more than 275 million people live in the direct vicinity (30 km/18 miles) of coral reefs. In more than 100 countries and territories, coral reefs protect 150,000 km (over 93,000 miles) of shorelines, helping defend coastal communities and infrastructure against storms and erosion.

For the first time, the report identifies the 27 nations most socially and economically vulnerable to coral reef degradation and loss. Among these, the nine most vulnerable countries are: Haiti, Grenada, Philippines, Comoros, Vanuatu, Tanzania, Kiribati, Fiji, and Indonesia.

“The people at greatest risk are those who depend heavily on threatened reefs, and who have limited capacity to adapt to the loss of the valuable resources and services reefs provide,” said Allison Perry, project scientist at the WorldFish Center and a lead author. “For highly vulnerable nations – including many island nations – there is a pressing need for development efforts to reduce dependence on reefs and build adaptive capacity, in addition to protecting reefs from threats.”

The report is an update of “Reefs at Risk,” released by WRI in 1998, which served as an important resource for policymakers to understand and address the threats of reefs. The new report uses the latest data and satellite information to map coral reefs— including a reef map with a resolution 64 times higher than the original report.

“Through new technology and improved data, this study provides valuable tools and information for decision makers from national leaders to local marine managers,” said Katie Reytar, research associate at WRI and a lead author. “In order to maximize the benefits of these tools, we need policymakers to commit to greater action to address the growing threats to coral reefs.”

Find out more at: www.wri.org/reefs

# # # #

The World Resources Institute (WRI) is a global environmental think tank that goes beyond research to put ideas into action. We work with governments, companies, and civil society to build solutions to urgent environmental challenges. (www.wri.org)

The Nature Conservancy(TNC) is a leading conservation organization working around the world to protect ecologically important lands and waters for nature and people. The Conservancy and its more than one million members have protected more than 480,000 sq km of land and engage in more than100 marine conservation projects. The Conservancy is actively working on coral reef conservation in 24 countries, including the Caribbean and the Coral Triangle. (www.nature.org)

WorldFish Center is an international, nonprofit, nongovernmental organization dedicated to reducing poverty and hunger by improving fisheries and aquaculture. Working in partnership with a wide range of agencies and research institutions, WorldFish carries out research to improve small-scale fisheries and aquaculture. Its work on coral reefs includes ReefBase, the global information system on coral reefs. (www.worldfishcenter.org)

International Coral Reef Action Network (ICRAN) is a global network of coral reef science and conservation organizations working together and with local stakeholders to improve the management of coral reef ecosystems. ICRAN facilitates the exchange and replication of good practices in coral reef management throughout the world’s major coral reef regions. (www.icran.org)

United Nations Environment Programme-World Conservation Monitoring Centre (UNEP-WCMC) is an internationally recognized center for the synthesis, analysis, and dissemination of global biodiversity knowledge. UNEP-WCMC provides authoritative, strategic, and timely information on critical marine and coastal habitats for conventions, countries, organizations, and companies to use in the development and implementation of their policies and decisions. (www.unep-wcmc.org)

Global Coral Reef Monitoring Network (GCRMN) is an operational unit of the International Coral Reef Initiative (ICRI) charged with coordinating research and monitoring of coral reefs. The network, with many partners, reports on ecological and socioeconomic monitoring and produces Status of Coral Reefs of the World reports covering more than 80 countries and states. (www.gcrmn.org)

Q&A: World Bank Plan to Value Ecosystems

Janet Ranganathan — Mon, 01 Nov 2010 11:58:28 -0400

Last week at the UN Convention on Biodiversity, the World Bank launched a new program that aims to put a value on a country’s ecosystems in the same way a country measures its national income and product accounts, or GNP and GDP.

Note: This post was updated on November 4, 2010 to provide additional information.

In this Q&A, WRI’s Janet Ranganathan and John Talberth discuss why countries need to start measuring the value of nature and the benefits and challenges of setting up these so-called national ecosystem service accounts.

What are ecosystem services?

Ecosystem services are the benefits that nature provides to people. Food, freshwater, timber and cotton for clothes are some of the most familiar and visible services. But there are other types of unseen services that we often take for granted, for example the ability of forests to sequester carbon and mitigate climate change and the way in which wetlands filter and purify water.

What are national ecosystem service accounts and why are they needed?

More Information

Conventional measurements of national economic performance, such as Gross Domestic Product and Standard National Accounts, do a poor job of tracking stocks and flows of ecosystems and their services. A country can cut down its forests, drain its wetlands and pollute its water sources and none of this shows up in the national accounting system. There is therefore little incentive for better management of precious natural resources.

By giving these assets a value and including them in the national accounts, the hope is that what gets measured will get managed. Current macroeconomic decisions largely fail to account for natural assets, leading to decisions that degrade ecosystems.

Properly accounting for natural capital stocks and ecosystem service flows is one of the lynchpins of sustainable development. All economic activity depends on the quantity and quality of underlying capital. Capital takes four basic forms: built, social, human, and natural. By maintaining our capital stocks in good condition we insure that future generations will be at least as well off as we are today. Ecosystem service accounts help advance this goal with respect to natural capital.

These new accounts will also raise awareness about the value of a country’s natural assets and increase public support for decisions that are better for people and nature.

What is the connection between ecosystem services and economic development?

Economic development and ecosystem services are intertwined. We can’t really deal with one without dealing with the other. Unfortunately, the current mindset of society is to put economic development and nature in separate boxes, overseen by separate government agencies and separate academic disciplines. We think that protecting the environment is an impediment to development. We view it as a cost. Thinking about the environment in terms of ecosystem services can transform that mindset and help us see and value the environment as a series of assets or benefits that development in fact depends upon. By including ecosystems as assets alongside capital, labor and other commonly measured units in national accounts, governments will hopefully spur economic growth while sustaining or even growing natural assets.

A country can cut down its forests, drain its wetlands and pollute its water sources and none of this shows up in the national accounting system. There is therefore little incentive for better management of precious natural resources.

What are some of the challenges of creating national ecosystem service accounts?

Architects of green accounts must grapple with three measurement challenges: how to define standardized units, how to measure physical quantities and how to assign values. None of these tasks are easy. Unlike conventional accounts that track the value of goods sold (such as houses, cars, and food) many ecosystem services are not traded so the unit of measurement is not always obvious. Consider the ecosystem service of pollination. Should economists assume it is already captured in agriculture products sold or should they use a proxy, such as the number of pollinators or pollinations?

If the accounts are to be integrated into existing national income accounts, then double counting must be avoided. The chosen measurement units must also be quantifiable at the national level.

Fortunately, economists have at their disposal a wide range of peer reviewed methods for doing so. While the field of ecosystem service valuation is quite new and still evolving, it nevertheless has progressed to the point where it can be demonstrated at a larger scale as indicated by the UNEP recent report on The Economics of Ecosystems and Biodiversity. The pros and cons of various valuation approaches will need to be carefully weighed to avoid under or over valuing services and risking the credibility of the entire effort.

Will this solve the ecosystem degradation problem?

National ecosystem accounts are a good start. But putting a value on ecosystem services at the national level will not guarantee changes in the way ecosystems are managed in the myriad of sub-national decisions that determine their fate. For example, creating aquacultures versus conserving mangroves; building levies and dams versus sustaining wetlands; creating palm oil plantations in place of tropical rainforest. This will require stronger governance systems, policies that protect ecosystems, reforming subsidy programs, eliminating perverse incentives and the use of other incentives to sustain rather than degrade ecosystems.

A recent WRI report, Banking on Nature’s Assets guides policymakers on how to determine priority ecosystem services and then select the most effective policies for sustaining them depending on a country’s capacity and existing laws and policies.

Are any countries already doing this?

A number of efforts are underway to create national indicators of ecosystem health. The UK is conducting a National Ecosystem Assessment of the country’s natural environment in terms of the benefits it provides to society. The results of this could be integrated into national accounts. Emerging initiatives at the global, regional, and national scale are road testing ways to incorporate valuation of natural, built, human, and social capital into measures of national well being and economic sustainability that can be reported side by side with traditional measures such as GDP. Most of these initiatives address natural capital and ecosystem service flows. For example, the U.S. Genuine Progress Indicator includes costs of depleting old growth forests, wetlands, and farmlands in its sustainable economic welfare calculations. The European Commission, United Nations and others are exploring ways to define complementary indicators for GDP that address sustainable development.

What should the World Bank do in its own operations to take into account ecosystems?

In addition to helping countries account for the value of natural assets, the World Bank itself is well positioned to systematically integrate ecosystem risks and opportunities into its own operations. Banking on Nature’s Assets identifies entry points for mainstreaming ecosystem services into the World Bank’s core operations. These range from country assistance strategies and environmental analysis to sector work and development policy loans. The report also presents a range of tools and policy options that the Bank can use to help country partners sustain their precious capital. It concludes with recommendations for scaling up the use of an ecosystem service approach in the World Bank and other MDB’s operations. Eventually, valuation of ecosystem services should become a routine practice in formal benefit-cost analysis of all MDB policies, program, and projects.

Q&A: The Economics of Coral Reefs

Lauretta Burke — Tue, 01 Jun 2010 11:22:07 -0400

WRI’s Lauretta Burke discusses her work on measuring the economic value of coral reefs in the Dominican Republic and other Caribbean countries.

Coral reefs are essential to fisheries, tourism, and protecting beaches from erosion. WRI’s coral reefs team recently released Coastal Capital: Dominican Republic, its fourth country-level economic valuation of coral reefs in the Caribbean.

What are the main discoveries of the recently-released economic valuation of coral reefs in the Dominican Republic?

This report looks at the economic and recreational value of the Dominican Republic’s coralline beaches, reef and mangrove fisheries, and ecotourism industry. We basically set out to quantify what the country stands to lose – in fishing, shoreline erosion, and tourism – if it does not take efforts to preserve its reefs.

For example, the Dominican Republic depends on its beaches to attract tourists, but it’s the reefs that keep the shoreline from eroding. Without reefs, you start to lose your beaches, and this can have a huge impact on tourism. Our analysis finds that for each meter of beach a resort loses, the average per-person hotel room rate drops by about $1.50 per night. So if beaches continue to erode at the current rate, the Dominican tourism industry stands to lose $52-100 million in revenue over the next decade.

It’s a similar story for fishing. The report estimates that the income from reef- or mangrove-dependent fisheries has decreased by 60 percent in the past decade – from USD $41 million to $17 million – because of pollution and overfishing. This trend endangers the livelihoods of many Dominican fishermen, and the country’s economy as a whole.

This is the fourth country-level economic valuation of reefs in the Caribbean. How do the countries differ?

We started our economic valuation work with pilot projects in Tobago and St. Lucia. Then we did Belize, the Dominican Republic, and we are currently working in Jamaica. At first, our intention was to work out a methodology that could be used everywhere. That was a good ambition, but in reality every country differs, the data differ, and the nature of tourism differs in each country, so it’s hard to make generalizations at a national level.

In the countries we have evaluated, there have been varying levels of awareness about reefs. In Tobago, people used to be allowed to walk right onto Buccoo Reef wearing rubber booties. That’s now changed, but the country still has trouble managing waste outflows around the reef. In Belize, there is a much larger diving community and more resorts that depend on the reefs to draw tourists. There are a lot of people and NGOs who are interested and engaged.

In the Dominican Republic and now in Jamaica, people are not as focused on eco-tourism and diving. Their reefs are pretty degraded already. But they do capitalize on beautiful beaches, which means that their reefs are very important.

Why is it in a country’s best interest to protect its reefs?

Shoreline protection by reefs is an important and valuable service in all the countries in which we have worked. Reef- or beach-related tourism is also of very high value in all five countries. In addition, there are the people whose livelihoods depend on the reefs and fisheries, and who have very few alternatives.

Reefs help project the shoreline from erosion and help maintain the beach. In many areas where you have beach erosion, there is a degrading reef as well. Countries are starting to invest a lot of money in beach replenishment, and they are going to have to do that over and over again if they don’t fix the underlying problem. Beach replenishment and engineering solutions are both very expensive. If you can prevent the reef from degrading in the first place, that’s the best solution.

The hotel and the eco-tourism industries definitely have a business case for protecting these ecosystems as well. Maintaining good water quality protects the reefs, but it is also important for swimmers, and important for the beach itself. It’s a whole package, and sometimes that realization can take a while to take hold.

What has the team learned from doing these valuations?

We have learned that you cannot just talk in general, abstract terms about risks and values. So, in the Dominican Republic, we looked at case studies of a few specific mega-tourism locations, and showed what the impact of coral reef damage will cost businesses there. It was no longer abstract, and resort owners showed up to our recent event and were definitely interested.

Reef valuation is not easy. It’s hard to get the data that you need to develop reliable values. And there are many assumptions you need to make in order to develop estimates. But I think the numbers we are developing are indicative of the reefs’ larger value, and can raise awareness about the important role that reefs play. The numbers help get people’s attention so you can have a more specific conversation about solutions and policies.

What can countries do to protect their reefs?

The countries in which we have worked typically have coastal regulations, but they are not always enforced. In the areas designated as “no-take,” enforcement of rules is very important, and benefits both the reefs and the adjacent fisheries. But in some marine protected areas [MPAs], the staff does not even have boats to go out and check the reefs.

In the Dominican Republic, the government could manage coastal development in a more farsighted way. The government could start honoring the EIA [Environmental Impact Assessment] process and enforcing restrictions on mangrove removal. They could also take a stronger stance when resorts want to flatten and remove sand dunes, since this exacerbates erosion.

What impact will the recent Gulf Coast oil spill have on reefs?

I’d say we don’t know yet. It is a dynamic situation and until the well head is capped, we won’t know how much oil is in the basin. Floating tar balls are unlikely to have much effect on reefs. Dispersed oil and dispersants themselves are a larger threat. I think the Deepwater Horizon incident really highlights the need to enforce environmental regulations and not just accept assurances from companies with large economic interests in an activity.

For more information, visit our Economic Valuation of Coral Reefs page.

Coastal Capital: Economic Valuation of Coastal Ecosystems in the Caribbean

Katie Reytar — Mon, 17 May 2010 12:22:56 -0400

New! Working Paper: Influence of Coastal Economic Valuations in the Caribbean: Enabling Conditions and Lessons Learned

The Coastal Capital series was launched in 2005 and aims to provide decision-makers in the Caribbean with information and tools that link the health of coastal ecosystems with the attainment of economic and social goals. WRI and its local partners have conducted economic valuation studies of coral reefs and mangroves at national and subnational levels in five countries: Trinidad and Tobago, St. Lucia, Belize, the Dominican Republic and Jamaica. We are using the results to identify and build support for policies that help to ensure healthy coastal ecosystems and sustainable economies.

Building on these studies, WRI is now working with a broad partnership to develop a standardized framework for coastal ecosystem valuation in the Caribbean. This framework will be a guide to conducting coastal valuations using best practices, yielding comparable and credible valuation results that should be more likely to influence policy-making and improve the conservation and management of coastal ecosystems.

Economic Valuations by Country

Click to learn more about our methodology and tools for implementation.

Coastal Capital: Economic Valuation of Coral Reefs in the Dominican Republic

Maggie Barron — Wed, 28 Apr 2010 10:33:20 -0400

Executive Summary

Coastal and marine ecosystems provide many valuable services to the people and economy of the Dominican Republic. At first glance, these benefits can be difficult to see. Reefs and mangroves help to build beaches and slow erosion, draw local and international tourists to the coast, and provide habitat for valuable recreational commercial fish. Unfortunately, these services are often overlooked in key development and policy decisions. As a result, coastal ecosystems are threatened by unsustainable coastal development, pollution, overfishing, and other local and global pressures.

One of the key barriers to better decision-making is lack of information and understanding of the scope and value of benefits provided by these ecosystems. Little work has been done on this topic in the Dominican Republic, and data gaps make it difficult to assess the economic impact of ecosystem services provided by coral reefs at the national level.

The studies presented here look at a small sample of the benefits that coastal ecosystems provide to the Dominican Republic. These ecosystems (a) protect white sand beaches in vital tourism areas; (b) provide habitat for commercial fisheries; (c) provide the engine for potential tourism growth in a small marine protected area; and (d) generate local tourism dollars in the southwestern part of the country. The studies highlight the contribution of coastal ecosystems to the economy and the need for greater investment in protecting coastal and marine ecosystems, including better management of marine fisheries, protection of existing reserves, and enforcement of coastal development guidelines.

1. Coralline beaches

The first two studies in this paper look at the importance of coralline beaches in the Dominican Republic. The first study makes the case for the economic importance of beaches by assessing the losses that could ensue from continuing beach erosion. The second study argues that coral reefs play an important role in reducing wave energy and thus protecting coastal beaches from erosion. Together, these studies make the case for investing in protection of beaches in the Dominican Republic, including renewed efforts to protect coral reefs.

Potential economic impacts of beach erosion. This study assesses potential losses to the hotel industry alone if beach erosion continues at the current pace. We use a hedonic price technique to estimate the relationship between the price of a hotel room and the width of the beach (perpendicular to the shoreline) in front of the resort. Our results suggest that current rates of beach erosion would result in revenue losses to the resorts of $52–$100 million over the next 10 years.

Modeling the potential impacts of coral reef decline on beach erosion. In their natural state, beaches are in a dynamic equilibrium between the sources that supply their sand and the forces that erode it. Corals and other organisms that inhabit coral reefs supply sand to adjacent beaches and control the rates of beach erosion by reducing the energy of incoming waves. The Dominican Republic has suffered from increased rates of beach erosion in recent years. This study uses an Excel-based model to examine the role of coral reefs in reducing wave energy and to estimate the potential increase in beach erosion that could result from further degradation of the reefs. We find that 10 years after the disappearance of live corals, erosion rates could increase by more than 100 percent on eastern beaches and by more than 65 percent in the south.

Slowing the pace of beach erosion in the Dominican Republic will require protecting the ecosystems that help to protect the coastline, including coral reefs, mangroves, and sand dunes. Regulations for coastal development should be strengthened and enforced, including limiting construction in sensitive areas. The protection of coral reefs will require curbing overfishing, reducing pollution (both from the hotel industry and from agricultural runoff), and reducing deforestation.

2. Marine fisheries

Marine fisheries in the Dominican Republic support an estimated 9,000 fishermen. It is a small-scale industry, with 99 percent of landings sold domestically. In this study, we identify the major commercial species in the Dominican Republic that depend on mangroves or coral reefs at some point in their life cycle, and examine the changes in landings and associated revenues for these groups over the past few decades. Using FAO landing data for three periods (1982–86, 1992–96, and 2002–06), we find that landings for many key commercial species—including spiny lobster, king mackerel, southern red snapper, and yellowtail snapper—grew significantly between the first two periods and then dropped sharply in the third, with recent landings for most species falling well below levels during the 1980s. This pattern typically suggests that fish populations have been overexploited, and unless steps are taken to protect remaining stocks, fisheries will continue to decline. For local fishermen, gross income from reef-dependent fisheries has decreased by nearly 60 percent over the past decade.

These results demonstrate that the protection of coral reefs and mangroves is vital to the welfare of the fishing communities that depend on these resources for their livelihoods. It is essential for the Dominican Republic to improve its capacity to enforce regulations protecting mangroves and fisheries (Silva 2003). Existing regulations include Decree 303 of 1987, which bans activities that destroy mangroves, and Law 307 of 2004, which regulates fishing and aquaculture.

3. The potential for dive tourism in La Caleta National Marine Park

La Caleta National Marine Park is located 15 miles from Santo Domingo and just two miles from the airport. Due to its healthy reefs and multiple shipwrecks, the park has become a popular SCUBA diving site for people living in the city. The area around the park is also important for fishing, traditionally providing a source of food and income for people living in the town of La Caleta and its vicinity. In recent years, the park has suffered from overfishing, threatening the livelihoods of local fishermen. In response, the fishermen have begun exploring the potential for the tourism industry, and are working to establish an aquatic center to offer recreational activities in the park. This study assesses the willingness to pay (WTP) of dive tourists for a dive trip in the park. We find that the revenue maximizing fee would be $53 per two-dive trip for local visitors and $59 per two-dive trip for international visitors. Assuming a gradual increase in visitation, we estimate that fishermen could earn 90 percent of their current income over the short term through dive tourism alone.

Additional income from snorkeling, kayaking, and other business opportunities associated with the reserve should enable fishermen to earn more from tourism than from fishing over the coming years.

4. Economic benefits of the Jaragua-Bahoruco-Enriquillo Biosphere Reserve

The three national parks that make up the UNESCO Biosphere Reserve in the Dominican Republic provide habitat for many rare and threatened plant and animal species. In Parque Jaragua, the beach at Bahía de las Águilas is considered one of the most beautiful and best preserved beaches in the country. Each year, the reserve receives over 24,000 visitors, mostly Dominican citizens. Visitors travel to the reserve by land from all over the country, stopping at different locations along the way to purchase gasoline and food. These travel expenses provide important economic benefits to the small communities on the way to the reserve. Visitors spend approximately $523,000 during stopovers between their cities of origin and the reserve, and $511,000 in lodging (hotel rooms and food) each year. Visitors pay an additional $136,000 in park fees, which help cover the management activities of the reserve.

Areas in and around the reserve in the southwest, however, are currently being considered for mining and mass-tourism developments that could have significant impacts on the ecologically fragile areas in the reserve (ACRD 2004). If this area follows the established tourism-development model, which focuses on attracting foreign visitors, it is likely that its value as a center for recreation and enjoyment for Dominicans will be diminished, impacting the economic benefits for towns in the surrounding areas as well as the ecological value of the park itself. Maintaining the region’s low-intensity, ecologically friendly tourism model and discouraging large-scale, intensive tourism and mining in and around the reserve would be a benefit to the Dominican people and the nation’s biodiversity.

Conclusion

These studies provide insight into the value of some of the key ecosystem services provided by coastal ecosystems in the Dominican Republic. We examined the value of coralline beaches, reef- and mangrove-dependent fisheries, and ecotourism. This is a critical first step in a country where ecosystem services are typically given very little consideration in decision-making, both in the public and the private sector. Some of the main findings include:

Current rates of beach erosion could result in revenue losses of $52–$100 million over the next 10 years to the hotel industry alone.
If corals continue to die off, beach erosion—and thus tourism revenue loss—will be exacerbated. Ten years after the disappearance of live corals, erosion rates could increase by more than 100 percent on eastern beaches and by more than 65 percent in the south.
Countrywide, gross income from reef-dependent fisheries has decreased by nearly 60 percent over the past decade—from over $41 million to under $17 million—almost certainly as a result of overfishing.
Overfishing is also threatening fish populations in La Caleta Marine Park. However, tourists in the park are willing to pay about $60 for a two-dive trip. At this price, fishermen in the park could earn nearly as much in the short term if they become dive tourism operators, and more in the longer term as tourist activities expand—solving the overfishing problem and benefiting fishermen at the same time.
Dominican tourists spend over $1 million yearly in roadside communities while traveling to the biosphere reserve in the southwest.

Protecting coastal ecosystems will provide the longest-term, most cost-effective solution to problems of beach erosion, while also sustaining fisheries, improving biodiversity, and enhancing other ecosystem services. It is in the long-term economic interest of the Dominican Republic to:

Strengthen and enforce coastal development regulations, including those protecting mangroves.
Enforce fisheries regulations and reduce overfishing pressure.
Curb pollution—both from the hotel industry and from agricultural runoff—and deforestation.
Protect and restore sand dunes and their native vegetation.
Increase public awareness about marine and coastal ecosystems, the benefits they provide to society, and threats to their existence.

Promoting Development, Protecting Environment

Janet Ranganathan — Wed, 17 Feb 2010 09:47:54 -0500

The World Bank and other Multilateral Development Banks (MDBs) are revising their environmental strategies for development planning. As they do so, they can and should integrate nature’s ecosystem services into their planning and decisions, says a new WRI report.

Janet Ranganathan, Vice President of Science and Research at the World Resources Institute and lead author of Banking on Natures Assets explains how economic development and a healthy environment can co-exist.

Q: What are ecosystem services?

Ecosystem services are the benefits that nature provides to people. Food, freshwater, timber and cotton for clothes are some of the most familiar services. But there are other types of services that we often take for granted, for example the ability of forests to sequester carbon and mitigate climate change and the way in which wetlands filter and purify water.

The current mindset of society is to put economic development and nature in separate boxes, separate government agencies and separate academic disciplines.

We all depend on ecosystem services for our well-being, and nature’s health increasingly depends on humanity. Every development or investment decision made around the world both depends on and has an impact on nature somewhere, or somehow. Over the past century, our relationship with nature has been increasingly destructive — degrading two thirds of ecosystem services worldwide. Our report, Banking on Nature’s Assets, explains that it doesn’t have to be that way.

Q: How can focusing on ecosystem services strengthen development?

Development and ecosystem services are intertwined. We can’t really deal with one without dealing with the other. However, the current mindset of society is to put economic development and nature in separate boxes, separate government agencies and separate academic disciplines. We think that protecting the environment is an impediment to development. We think it’s a cost. But when we consider the environment in terms of ecosystem services, that mindset can change. We can instead see and value the environment as a series of assets or benefits that development in fact depends upon.

By treating ecosystems as assets that generate benefits, development agencies can help developing countries grow economically while sustaining the environment and the livelihoods of those people who depend on ecosystems.

Q: How do development agencies currently treat ecosystem services?

Traditionally, development agencies and development planners focus on single ecosystem services, particularly those that can be marketed, such as freshwater, timber, crops and fish. They overlook ecosystem services that regulate important natural processes such as climate, disease, erosion, water flows, and pollination, as well as protection from natural hazards.

Shrimp Farms in Thailand.
Photo credit: flickr/Ben Harris-Roxa

For example, in the 1980’s the World Bank saw aquaculture as a great opportunity for economic development in Latin American and Southeast Asia. With the Bank’s support, Thailand’s government cleared the mangroves surrounding fishing communities and replaced them with shrimp aquaculture farms. By 2007, Thailand was exporting seven times more frozen shrimp than 20 years before. While it was a very beneficial strategy for a select group of shrimp farmers, no one considered the less obvious services previously provided by the mangroves—coastal protection during high tides, storms and hurricanes, and spawning grounds for fish that supported the livelihoods of local communities. As a result, the development of aquaculture farms left local communities vulnerable to increased storm damage, depleted offshore fisheries, water pollution and mosquito infestations.

Q: Don’t MDBs already consider ecosystems services through safeguards?

In the past, cost benefit analysis and safeguards such as impact assessment have not usually incorporated the full range of ecosystem services and how changes to ecosystem services in turn affect those people dependent on those services. The shrimp aquaculture example also illustrates how a development strategy can inadvertently create distributional effects when important ecosystem services are overlooked. The shrimp farm benefits primarily accrued to the few shrimp farmers and to those in export markets such as the U.S. and Europe who enjoyed “cheap” shrimp. In contrast, poor coastal communities who depended on the former mangroves for spawning grounds and for storm protection lost out. By systematically looking at the full range of ecosystem services that their strategies depend upon and impact, development planners can minimize and better manage ecosystem services trade-offs and increase the chances of development outcomes that are both sustainable and equitable.

Comparing the Economic and Social Value of Mangroves and Shrimp Farms

Q: How can Banking on Nature’s Assets help MDB’s?

Banking on Nature’s Assets identifies entry points for mainstreaming ecosystem services into MDB’s core operations. These range from country assistance strategies and environmental analysis to sector work and development policy loans. The report also presents a range of tools and policy options that MDBs can use to help country partners sustain their precious capital. It concludes with recommendations for scaling up the use of an ecosystem service approach in MDB’s core operations.

Q: What tools can development planners use to make trade-offs among multiple ecosystem services?

These tools and policies are becoming available. For example, a comprehensive list of ecosystem services is the most basic tool in moving from an approach that focuses on a single service to one that focuses on the trade-offs among multiple services. The Millennium Ecosystem Assessment used a list and a refined version is available on WRI’s website. Other tools provide frameworks to prioritize services for attention and to assess the condition and trends of those selected for attention. Mapping and valuing ecosystem services are also important tools. WRI has worked with Uganda to produce maps that overlay geo-referenced information on population and household expenses with spatial data on ecosystem services. It can now flag areas to introduce strategies that benefit both wetlands and the people depending on the services these wetlands provide. Uganda has used valuation in helping make decisions. For example, a study of the Nakivubo wetland showed that conversion of wetlands was driving up the costs of providing fresh water to 2 million residents in Kampala, Uganda. As a result, decision makers decided not to drain it for housing and industry but to make it part of the city’s greenbelt.

Q: What about policies that sustain ecosystem services?

Banking on Nature’s Assets explains how to determine the most critical ecosystem services in a particular location and then select the most effective policies for sustaining them depending on a country’s capacity and existing laws and policies. MDBs are already playing an important role in introducing some policies such as payments of ecosystems services. In the future, they can help countries develop policies that transform the ways in which landowners manage their land. Instead of income only from a single service like providing timber, for example, policies can encourage landowners to earn income from ecotourism, producing Forest Stewardship Council-certified timber, sequestering carbon to protect the climate, or maintaining a wetland’s filtration and flood prevention capacity.