the economic benefits of gi gi workshop 31 oct 07

The Economic Benefits of GIGI Workshop 31 Oct 07

The Two Parts to my Presentation:

# Brief explanation of what the Natural Economy NW Programme is and our progress to date,

# Summary of the findings emerging from the draft Ecotec report on the Economic Benefits of Investing in GI, commissioned by NENW.

What is Natural Economy Northwest?• A three-year partnership programme that

maximises the benefit from existing and new investment in the region’s natural environment - delivering RES Action 113.

• A multi-agency/cross-sectoral partnership resourced by Natural England, the Northwest Regional Development Agency and the SITA Trust.

• The Shared Vision – “A prosperous economic future with a thriving natural environment”.

RES Action 113

Develop the economic

benefits of the region’s natural

economy through better

alignment of environmental activities and

economic gain ……. and

develop a strategy for Green Infrastructure

and Transport Corridors

NENW Programme

• Business Plan sets out several programmes of activity ranging from promotional and influencing activity, training work, engaging with selected demonstration projects to commissioning reports and providing technical support.

• Two key strands of activity are the Natural Tourism Programme and the GI Programme-my focus from here on in.

NENW ORGANISATIONAL STUFF!

• Programme managed by Natural England using funds comprising the clever matching of a SITA Landfill programme with primarily NWDA funding ( with some from NE), which pays for the small staff team, on costs, plus limited budget for pump priming, technical support, monitoring and communications.

• Formal governance is via a small Board representing the key partners.

• Wider NENW Steering Group includes the key stakeholders- NWDA, NWRA, GONW, EnvAg, Forestry Comm., Community Forests and other NGOs, UU, Tourist Boards, Natural England…….

• NENW GI Steering Group includes the above, and has two key roles a) to direct the GI Strand of the NENW prog and b) to enable increasing coordination between the agencies on GI in the Region.

• The NENW Natural Tourism Steering Group provides a similar function for the NENW Natural Tourism Strand.

• The NENW Staff are all seconded to the Programme.

What is Green Infrastructure?

The region’s life support system; a network of natural environment

components and green & blue spaces that lies within and between the

Northwest’s cities, towns and villages, and which provides multiple social,

economic and environmental benefits.

NENW GI ProgrammeNB - NENW Formal start 15 Jan 2007• Ecotec Policy and Economic Benefits Reviews, & City

Greens study, • Grey Infrastructure & Transport Corridors Review• Lancs GI Strategy• Work with the other 4 SRPs on Strategic Approach to

GI (+ support via Reg GIU)• Strategic Funding Review• Advice for Natural Economy Projects re maximising

econ benefits • Regional GI Synergy/Inter–agency Coordination• Selection of 6+ demonstration projects

Parallel activity on Natural Tourism

The Ecotec Report –The Economic Benefits of GI

• Currently being finalised• Been through many iterations,

including extenal review by reps of the NWDA,NWRA, GONW & NENW steering Group

• Based on a thorough literature review

• Identifies 9 categories of economic benefit

• Seeks to make the link to the NWDA’s Tasking Framework & the 2 types of SAV –ie what they have to deliver.

• For each category, encapsulates the benefits, sets out a model or diagram, and then summarises the evidence in a table, citing the references

• Also summarises the context + links to key policies: eg RES, RSS, Sub-regional Econ Strategies, Sustainable Communities (DCLG), Ecosystem Services (DEFRA), Climate Change and the Sub-National Review

NB Economic development budgets tend to be bigger than environmental ones!!

The Economic Benefits of GI

• Flood alleviation and water management• Enhancing quality of place • Improved health and well being • Increased land and property prices • Creating a setting for inward investment• New opportunities for renewable energy production • Improving the tourism, recreation and leisure offer• New employment in land management and biodiversity.• Climate change alleviation

Supporting services The services that are necessary for the production of all other ecosystem services including soil formation, photosynthesis, primary production, nutrient cycling and water cycling.

Ecosystem services and economic benefits

Flood alleviation& water

management

Climate change

alleviation

Land management

& biodiversity

Tourism recreation

& leisureRenewable energy

production

Creating &

setting for inward

investment

Land & property

prices

Improved

health & well beingQuality of place

Provisioning services The products obtained from ecosystems, including food, fibre, fuel, genetic resources, biochemicals, natural medicines, pharmaceuticals, ornamental resources and fresh water;



management

Climate change

alleviation

Land management

& biodiversity

Tourism recreation


production

Creating &

setting for inward

investment

Land & property

prices

Improved


Regulating services The benefits obtained from the regulation of ecosystem processes, including air quality regulation, climate regulation, water regulation, erosion regulation, water purification, disease regulation, pest regulation, pollination, natural hazard regulation;



management

Climate change

alleviation

Land management

& biodiversity

Tourism recreation


production

Creating &

setting for inward

investment

Land & property

prices

Improved


Cultural services The non-material benefits people obtain from ecosystems through spiritual enrichment, cognitive development, reflection, recreation and aesthetic experiences – thereby taking account of landscape values;



management

Climate change

alleviation

Land management

& biodiversity

Tourism recreation


production

Creating &

setting for inward

investment

Land & property

prices

Improved


Flood alleviation and water management

Investment in GreenInfrastructure

Increase in Land andHouse Prices

Reduction in InsurancePremiums

Improvement in thequality of environment

within urban andsemi-urban locations

Reduction in flood riskfor highly populated

areas

Encouragement ofinward investment

Increase in economicactivity, jobs and growth

BENEFIT VALUE

Lower clean up costs forlocal and central

government

Lower costs toEnvironment Agency of

SUDS vs. Hardengineering solutions

Increased canopy cover, increased greenspace and 'soft surfacing' and sustainableurban drainage schemes (SUDS) reduce and control run off, improve absorption rates &provide storage capacity, resulting in less dramatic flood events for urban areas, thereby reducing the costs resulting from increasingly regular 'catastrophic' events.

Quality of Place

Investment inGreen

Infrastructure

Improved quality oflife for residents

Improvedattractiveness of

place forinvestment

Reduction in poorhealth

Increased house andland prices

BENEFIT VALUE

Increasedinvolvement of

local communitiesin ownership and

management

Reducedmaintenance coststhrough community

ownership andmanagement of green

space

New employmentopportunities fromInward Investment

Enhanced GI provides for an improved sense of quality of place, providing opportunities forrecreation,empowerment through community ownership, and visual amenity, improving the attractiveness of a neighbourhood with effects upon property prices, investment, employment opportunities, and social capital.

Improved Health and Well Being

Investment inGreen

Infrastructure

Reduction inobesity levels

Increase in local airquality - reduced

ozone, CO2

Reduction of illnessassociated with

poor air quality e.g.Asthma

Reduction in costs tothe NHS and waiting

lists

Increase in economicactivity and job

productivity

BENEFIT VALUE

Reduction in stressrelated illness

New opportunitiesfor formal and

informal recreation

Reduction inCoronary Heart

Disease andrelated illnesses

Increased Green Infrastructure provides multiple health & consequent economic benefits, through improved air quality, reduced stress levels, increased opportunities for informal &normal physical activity and recreation, all contributing to the reduction of limiting long term illness, and cost to the health services, reducing days lost to industry through illness& improving productivity.

Land and property prices

Investment inGreen

Infrastructure

Higher demand forneighbourhoods withgood access to green

space

Improved naturalenvironments within

urban and urbanfringe locations

Increase in HousePrices

Uplift in land values

BENEFIT VALUE

Improvement to thepublic realm and

urban designNew employment

opportunities

Developing green space and undertaking env. improvements in key locations has significantbenefits for housing and land prices. Proximity to high quality & accessible GI directly impactspositively upon house prices. Greener cities increase visitors and spend on city centre retailand leisure, improving rental values & increasing employment opportunities.

Creating a setting for inward investment

The creation and development of green space and landscaping can encourage and attracthigh value industry and workers. This can provide many benefits to urban areas in terms of improvements in quality of life and an improved green environment can increase opportunities for adding GVA to local economies.

Investment inGreen

Infrastructure

Improved quality of lifeand environment,

encouraging propertydevelopers and investors.

Revitalisation of DUN landon permanent andtemporary basis

Increased Land/Property Prices

Growth in theoccupancy of vacantunits within MarketTowns/Key Service

Centres

Increase in economicactivity

BENEFIT VALUE

Green Business Parksattracting knowledgeeconomy businesses

Renewable energy production

Investment inGreen

Infrastructure

New use for DUNland for sustainable

woodlands

Increase in thenumber of peopleaccessing green

space andrecreation

opportunities inwoodlands

Growth in localaccess to wood,biofuel, charcoal

markets

Reduction in CO2Levels

Increase inproduction ofbiofuels and

biomass

BENEFIT VALUE

New employmentopportunities in

renewable energysector

Opportunities foragricultural sector

diversification

Increased GI provides substantial opportunities to generate and encourage the development of renewable sources of energy. Rural areas and the agricultural industry undergoing structural change are provided with diversification opportunities to supply local markets for biofuels and biomass, which in turn has mitigation effects for climate change through cleaner energy generation and reduced fossil fuel use.

Tourism, recreation and leisure

Investment inGreen

Infrastructure

Increased numbers ofpeople accessing new

woodlands andgreenspace for new

recreationopportunities

“Green Cities” - moreattractive to investors

and visitors

Safeguarding andcreating jobs for thoseemployed in Tourism

sector

Increased economicoutput through Natural

Tourism

BENEFIT VALUE

New urban employmentfrom new visitor

economyGrowth in Natural

Tourism

GI plays a strong role in the generation of new recreation & leisure opportunities and also stimulates economic activity within agriculture, forestry, and public services. The potential to create green spaces within built up areas reconnects urban communities with the land. Greening city centres attracts new visitors, in turn supporting urban retail and tourism sectors.

Land management and biodiversity

Investment inGreen

Infrastructure

Growth in ruraldiversification

opportunities for theLand Based Sector

Improved managementof the countryside

through StewardshipSchemes

Safeguarding andcreating jobs for thoseemployed in the Land-

based sector

Increased economicoutput through Natural

Tourism and NicheMarkets

BENEFIT VALUE

Increased economicgrowth through local

procurement foragricultural sector

GI plays a strong role in supporting direct and indirect employment in agriculture, forestry, land management and conservation industries. The potential to create green spaces within built up areas reconnects urban communities with the land and improves opportunities for local food marketing.

Climate change alleviation

Investment inGreen

Infrastructure

BENEFIT VALUE

Providing Adaption- microclimate control- water management

Enabling Mitigation- carbon sink

- carbon sequestration- O2 production

Improved Local AirQuality

Reduced CarbonEmissions

Local EnergySolutions

Reduced costs toindustry andhouseholds

Delivering ClimateChange Levy Targets

GI provides natural air conditioning for urban areas (adaptation), reducing the need for power consumption for heating and cooling, alongside its contribution towards greenhouse gas absorption (mitigation) and longer term benefits in terms of managing the impacts of climate change.

Commercial development set within GI

Pond balances storm flow

Whole landscape scale benefits of GI

Sustainable drainage system

Motorway

River

Housing

Country park on reclaimed industrial site provides:

• Healthy leisure and exercise• Urban wildlife• Employment

Cycle route on disused railway line

Trees and green spaces in town ameliorate effects of climate change

GI in flood plain helps to manage risk of downstream urban flooding

Upland grazing and moorland drainage scheme slows and reduces run-off

Woodland provides setting for tourism, biofuels and education

Visitor centre In restored mill

Riverside walk

Allotments

Sports pitchesCity Farm run by community

Riding for the Disabled centre on reclaimed brownfield land

Woodland improves air quality and reduces particulates from motorway

GI adds value to adjacent properties

Biomass operation run by social enterprise supplies fuel to power station

Outstanding Issues

• Quantification and the contribution GI makes to GVA - how to compare the contribution investing in differing “bundles” of GI will make to closing the N/S GVA Gap as against other demands on economic development budgets?

• Free riding - how to get all the benefiting agencies, & other beneficiaries (eg the private sector), to invest to secure “their” benefits?

• Who pays to ensure the ongoing underlying ecosystem services - without which…………??

The Economic Benefits of Investing in GI

Tourism, recreation & leisure sectors

enhanced through new green sector opportunities

Renewable energy market development

and new divsrsification opportunities for

landowners & farmers

Creating a setting for inward investment through greening

industrial zones and city centres

Increasing land & property values

Improved health & well-being, reduced

stress, more exercise, healthier environments

Enhanced quality of place & associated

cohesion and equity

Flood alleviation & improved water

management

Climate change mitigation and

adaptation

New land management & bio diversity

opportunities; direct & indirect employment

Green Infrastructure

interventions & investments

ECOTEC (2007)

[email protected]

the economic benefits of gi gi workshop 31 oct 07

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