African Regional Expert African Regional Expert

Workshop Workshop

on on

Sustainable Use of Sustainable Use of

BiodiversityBiodiversity Nairobi, 12 to 15 December 2006

Secretariat of the Convention on Biological DiversityFAO, ICRAF, Bioversity International, IFAP

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Background

SU one of the 3 components of biodiversity, most significant

3 years of discussions leading to Addis Ababa May 2003, reported to SBSTTA.

Decision VII/12 adopted in COP 7 in Kuala Lumpur, 2004, invites SCBD to organize technical workshops to:

Apply AA to agriculture Consider ecosystem services assessment,

financial costs and benefits associated with biodiversity

Attention to domestic species, breeds and varieties.

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Objectives of regional workshops

Understand application of the Addis Ababa Principles of Sustainable Use

Understanding ecosystem services, including tools and methods to assess them

Understanding financial costs and benefits and tools to assess them

Assess applicability of Addis Ababa Principles of Sustainable Use to Agricultural Biodiversity

Focus on regional realities (African)

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Background documents

Agenda and annotations

Articles about status of agriculture in Africa

Report on Buenos Aires workshop, September

2005

Background document includes:

Obstacles to implementation of AB PoW in 3rd

National Reports

Overview of activities undertaken by selected African

parties as to SU of AB

Application of 2010 biodiversity target to AB

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Proposed outputs Guidelines for sustainable use of

agricultural biodiversity based on the AA Principles

Basis for monitoring related to 2010 biodiversity target and indicators: any way to measure?

Contribution to AB PoW for SBSTTA 13 (FAO)

Workshop report

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Buenos Aires workshop results All 14 principles apply to AB – how could the AB PoW

fully incorporate AA? It may be appropriate to develop a specific set of

principles for AB: economic dimension highlighted, ecosystem services included in national accounts

Links between sustainable use, conservation and viability of rural lifestyles

Internalization of management costs include subsidies on sustainable practices, technical support, ownership rights, labeling and certification

Role of invasive species (principle 8?) Suggestion to create applied research agencies,

environmental information system

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Buenos Aires workshop results Consider effects of expansion of agricultural frontier Consider including urban and peri-urban agricultural

biodiversity components Include issues related to commercialization, including

call for improved market access for sustainable products

SBSTTA could include guidance on GEF and other donors to consider AB

Internalize costs and benefits globally, at a level that makes it possible to implement AB programmes for conservation and SU.

Apply all financial mechanisms that are used for conservation (such as debt-for-nature, debt relief, grants) to agricultural biodiversity, in particular to foster and maintain traditional agricultural systems, removing perverse incentives.

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Key terms & concepts

Agricultural biodiversity …

Includes all components of biological diversity of relevance to food and agriculture – the variety and variability of plants, animals and micro-organisms at genetic, species and ecosystem level which are necessary to sustain key funcions in the agroecosystem, its structures and processes.

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Key terms & concepts

Sustainable use …

The use of components of biological diversity that does not lead to long-term decline of biological diversity while maintaining the potential to meet the needs and aspirations of present and future generations

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Key terms & concepts

Ecosystem services …

Provisioning - food, water, fiber and fuel

Regulating - climate, water quality, disease

Cultural - spiritual, aesthetic, recreation

Supporting - primary production, soil formation

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Key terms & concepts

Ecosystem Approach

Biodiversity is considered with economic and social factors

Management is integrated

Social process

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Addis Ababa Principles

Principle 1: Get the legal framework right

Congruent policies, laws and Institutions at all levels of government - with links between them

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Addis Ababa Principles

Principle 2. Responsibility with accountability Empowerment and stewardship

Access rights

Government oversight Monitoring Authority

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Principle 3. Avoid perverse incentives

Market distortions

Habitat degradation

Inequity

Addis Ababa Principles

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Addis Ababa Principles

Principle 4. Use adaptive management Change is natural and sustainable use can be positive! cyclic, learning-oriented approach to the management of complex

environmental systems that are characterized by high levels of uncertainty about system processes

Traditional knowledge Monitoring and evaluation: resources, laws, institutions, markets

(forces and distortions)

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Principle 5. Minimize adverse impacts on the ecosystem services

Management goals and practices

Understand role of managed resource

Monitor impact of use

Addis Ababa Principles

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Principle 6. Invest in appropriate research

Applied - to answer management questions

Interdisciplinary

Government vs private

Addis Ababa Principles

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Addis Ababa Principles

Principle 7. Get the scale (time and space) of use right

Jurisdictional

Ecological

Socio-Economic

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Principle 8. Seek international cooperation where necessary

Shared resources

Management needs

Optional approaches to cooperation

Addis Ababa Principles

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Principle 9: Use an interdisciplinary and participatory approach wherever possible

Governance

Resource managers

Local stakeholders

Others

Addis Ababa Principles

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Item 4 – Addis Ababa Principles

Principle 10: Know the current and potential value of the resource

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Principle 11: Minimize waste and adverse environmental impacts

Incidental take

Multiple products

Item 4 – Addis Ababa Principles

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Principle 12: Ensure equitable distribution of benefits meet local needs

Who shares? Role of local and indigenous communities

Balancing risks with benefits

Incentives

Item 4 – Addis Ababa Principles

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Principle 13: Management costs should be covered by income (integral costing)

Direct costs and opportunity costs

Benefit flows

Economic incentives

Item 4 – Addis Ababa Principles

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Principle 14: Educate people about sustainable use

Capacity enhancement

Communications

Public awareness

Item 4 – Addis Ababa Principles

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Aligning the principles for action

Policy RelatedNo Principle1 Provide a legal/policy

framework 2 Delegate responsibility

and accountability3 Remove perverse

incentives7 Link jurisdictional

authority to scale of use8 Where needed,

promote international cooperation

13 Internalize management costs

Support/Service Related

No Principle6 Promote/support

interdisciplinary research10 Economic valuation14 Provide education on

sustainable use

Management RelatedNo Principle4 Use adaptive

management5 Minimize impact on the

ecosystem 9 Take an interdisciplinary

approach11 Minimize waste 12 Distribute benefits

equitably

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Ecosystem services assessment

Global status of ecosystem services

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Ecosystem services assessment

Ecosystem values and valuation

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Methods for valuation 1) Market Price MethodEcosystem products or

services are bought and sold in commercial markets (danger of market failures and externalities)

2) Productivity MethodProducts or services that contribute to the production of commercially marketed goods

3) Hedonic Pricing MethodEcosystem or environmental services that directly affect market prices of some other good. Most commonly applied to variations in housing prices that reflect the value of local environmental attributes.

4) Travel Cost MethodEcosystems or sites that are used for recreation. Value of a site is reflected in how much people are willing to pay to travel to visit the site.

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Still more economic theories... 5)

Damage Cost Avoided, Replacement and Substitute Cost MethodsCosts of avoided damages resulting from lost ecosystem services, costs of replacing ecosystem services, or costs of providing substitute services. 

6) Contingent Valuation MethodEstimates non-use, or “passive use” values. Asks people to directly state their willingness to pay for specific environmental services, based on a hypothetical scenario.

7) Contingent Choice MethodTradeoffs among sets of ecosystem or environmental services or characteristics. Does not directly ask for willingness to pay—this is inferred from tradeoffs that include cost as an attribute.

8) Benefit Transfer MethodTransferring existing benefit estimates from studies already completed for another location or issue.

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Resources on ecosystem services valuation

Universities of Maryland and Rhode Island:www.ecosystemvaluation.org

IUCN guidelines for protected area managers on the economic values of protected areas:

www.biodiversityeconomics.org/valuation

Ramsar guide for policy makers and planners on the economic valuation wetlands:www.ramsar.org/lib_valuation_e.htm

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Ecosystem services assessment

Benefits flows from selected countries

Source: MEA

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Financial Analysis

Individual or firm

Profit or income

Financial revenue

Financial revenue

Financial cost

Financial cost

Net change in mon. revenue

Financial costs & benefits

Viewpoint

Objective

Benefit

Measurement

Cost

Measurement

Value

Economic Analysis

Society as a whole

Welfare

Any welfare increases

Willingness to pay

Any welfare decreases

Opportunity cost

Net change in welfare

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Financial costs & benefits

Disparity between private and social costs and benefits of biodiversity conservation and sustainable use is an important reason for biodiversity decline.

Perspective Basis for Calculation

Private Benefits of C/SU less Costs of C/SU < Benefits of Dev less Costs of Dev

Society Benefits of C/SU less Costs of C/SU > Benefits of Dev less Costs of Dev

Individual land users often fail to capture the social benefits of biodiversity conservation and sustainable use.

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Financial costs & benefits: Responses

• Demonstrate value in accordance with TEV: identify all benefits, undertake valuation

• Use economic tools (incentives, penalties):• Incentives, subsidies• Penalties• User fees (entry, payments for environmental

services)• Increase market volume and value for

biodiversity goods and services

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Thank you!

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