The Value of Ecosystem Services An Overview

Malyne NEANG Director of ECOLAND Research Centre,

Royal University of Agriculture

nmalyne@gmail.com

Training Workshop 1: Ecosystem Services Valuation Imperial Hotel, Phnom Penh. Cambodia

Outline

• Introduction

• What are the ecosystem services and environmental services?

• ES in Cambodia

• ES in Tonle Sap

• Definition of Payment for Ecosystem Services (PES)

• Characteristics of PES program

• Example: conservation agreement

• SCOPE of PES

• ES concluding remarks

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Introduction What are Ecosystem Services?

Ecosystem Services are the conditions and processes through which natural ecosystems, and the species that make them up, sustain and fulfil human life — Daily (1997).

Ecosystem Services are the benefits human populations derive, directly or indirectly, from ecosystem functions — Costanza et al.(1997).

Ecosystem Services are the benefits people obtain from ecosystems — MA 2005.

Ecosystem Services are components of nature, directly enjoyed, consumed, or used to yield human well-being — Boyd and Banzhaf(2007).

Ecosystem Services are the aspects of ecosystems utilised (actively or passively) to produce human well-being— Fisher et al.(2009).

Ecosystem Services are the direct and indirect contributions of ecosystems to human well-being—TEEB Foundations (2010).

(source: Braat et de Groot, 2012, p.5)

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What are the Ecosystem Services (ES) ?

Life on earth

Millennium Ecosystem Assessment (2003) 4

• Carbon sequestration and storage

• Biodiversity protection

• Watershed protection

• Others services: Landscape beauty…

What are the Environmental Services (ES)? FOA (2007)

Externalities:

NR use and production link to ecosystem (natural resources). Negative externalities : pollution, Forest and NR degradation

Positive externalities: Forest and water conservation, soil erosion control, bird conservation… => Environmental services

• The subset of ecosystem services characterized by externalities are referred to as “environmental services” • The term “ecosystem services” is sometimes used interchangeably with the term “environmental services”.

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The MA conceptual framework on the ecosystem services and human well-being linkages

Ecosystem Services and Human Well-Being

SUPPORTING SERVICES Services necessary for

the production of all

other ecoystem services

Soil formation

Nutrient cycle

Primary production

Provisioning

Services

Products obtained from

ecosystems

Food

Fresh water

Fuelwood

Fibre

Biochemicals

Genetic resources

Regulating Services

Benefits obtained from

regulation of ecosystem

processes

Climate regulation

Disease regulation

Water regulation

Water purification

Cultural Services

Nonmaterials benefits

obtained from ecosystems

Spiritual and religious

Recreation and ecotourism

Aesthetic

Inspirational

Educational

Sense of place

Cultural heritage

Security

Ability to live in an

environmental clean and safe

shelter

Ability to reduce vulnerability

to ecological shocks and stress

Basic Material for

a Good Life

Ability to access resources to

earn income and gain a livelihood

Health

Ability to be adequately nourished

Ability to be free from avoidable

disease

Ability to have adequate and clean

drinking water

Ability to have clean air

Ability to have energy to keep warm

and cool

Good Social Relations

Opportunity to express aesthetic

and recrational values associated

with ecosystems

Opportunity to express cultural

and spiritual values associated with

ecosystems

Opportunity to observe, study,

and learn about ecosystems

FREEDOMS

AND CHOICE

Ecosystem Services Determinants and Constituents of Well-being

- Fish, Crops, - Timber, Wood Fuel - Non Timber Forest Products…

ES in Cambodia? Provisioning services

85% of the country’s population was dependent on fuelwood (CBD

National Focal Point Cambodia 2009).

85-90% of the primary source of income is based on local ES (crops, capture fisheries, wild food, forest

timber and biomass (SEI, 2010).

SUPPORTING SERVICES Services necessary for

the production of all

other ecoystem services

Soil formation

Nutrient cycle

Primary production

Provisioning

Services

Products obtained from

ecosystems

Food

Fresh water

Fuelwood

Fibre

Biochemicals

Genetic resources

Regulating Services

Benefits obtained from

regulation of ecosystem

processes

Climate regulation

Disease regulation

Water regulation

Water purification

Cultural Services

Nonmaterials benefits

obtained from ecosystems

Spiritual and religious

Recreation and ecotourism

Aesthetic

Inspirational

Educational

Sense of place

Cultural heritage

Security

Ability to live in an

environmental clean and safe

shelter

Ability to reduce vulnerability

to ecological shocks and stress

Basic Material for

a Good Life

Ability to access resources to

earn income and gain a livelihood

Health

Ability to be adequately nourished

Ability to be free from avoidable

disease

Ability to have adequate and clean

drinking water

Ability to have clean air

Ability to have energy to keep warm

and cool

Good Social Relations

Opportunity to express aesthetic

and recrational values associated

with ecosystems

Opportunity to express cultural

and spiritual values associated with

ecosystems

Opportunity to observe, study,

and learn about ecosystems

FREEDOMS

AND CHOICE

Ecosystem Services Determinants and Constituents of Well-being

Soil fertility (Tonle Sap Lake, Forests) -Carbon sequestration by forests - Coastal protection (mangroves)

-Water regulation (Tonle Sap) -Habitat…

ES in Cambodia? Regulating services

Example of regulation service (Biomass carbon) in Cambodia

Source: Kapos, V., Ravilious, C., Leng, C., Bertzky, M., Osti, M., Clements, T., Dickson, B. (2010) Carbon, biodiversity and ecosystem services: Exploring co-benefits. Cambodia. UNEP-WCMC, Cambridge, UK.

SUPPORTING SERVICES Services necessary for

the production of all

other ecoystem services

Soil formation

Nutrient cycle

Primary production

Provisioning

Services

Products obtained from

ecosystems

Food

Fresh water

Fuelwood

Fibre

Biochemicals

Genetic resources

Regulating Services

Benefits obtained from

regulation of ecosystem

processes

Climate regulation

Disease regulation

Water regulation

Water purification

Cultural Services

Nonmaterials benefits

obtained from ecosystems

Spiritual and religious

Recreation and ecotourism

Aesthetic

Inspirational

Educational

Sense of place

Cultural heritage

Security

Ability to live in an

environmental clean and safe

shelter

Ability to reduce vulnerability

to ecological shocks and stress

Basic Material for

a Good Life

Ability to access resources to

earn income and gain a livelihood

Health

Ability to be adequately nourished

Ability to be free from avoidable

disease

Ability to have adequate and clean

drinking water

Ability to have clean air

Ability to have energy to keep warm

and cool

Good Social Relations

Opportunity to express aesthetic

and recrational values associated

with ecosystems

Opportunity to express cultural

and spiritual values associated with

ecosystems

Opportunity to observe, study,

and learn about ecosystems

FREEDOMS

AND CHOICE

Ecosystem Services Determinants and Constituents of Well-being

- Ecotourism (Protected Areas) -Cultural heritage (Floatting villages)

-Sense of place (Bon Om Tok…)

-Lonn (2012): ecotourism provide 10% of income (Chambok Community-based Ecotourism)

-Clements (2008): ecotourism expenses are about 60$/tourist to visit and 80% of these

expenses are earned by villagers.

ES in Cambodia? Cultural services

ES in Tonle Sap? Provisioning services

SUPPORTING SERVICES Services necessary for

the production of all

other ecoystem services

Soil formation

Nutrient cycle

Primary production

Provisioning

Services

Products obtained from

ecosystems

Food

Fresh water

Fuelwood

Fibre

Biochemicals

Genetic resources

Regulating Services

Benefits obtained from

regulation of ecosystem

processes

Climate regulation

Disease regulation

Water regulation

Water purification

Cultural Services

Nonmaterials benefits

obtained from ecosystems

Spiritual and religious

Recreation and ecotourism

Aesthetic

Inspirational

Educational

Sense of place

Cultural heritage

Security

Ability to live in an

environmental clean and safe

shelter

Ability to reduce vulnerability

to ecological shocks and stress

Basic Material for

a Good Life

Ability to access resources to

earn income and gain a livelihood

Health

Ability to be adequately nourished

Ability to be free from avoidable

disease

Ability to have adequate and clean

drinking water

Ability to have clean air

Ability to have energy to keep warm

and cool

Good Social Relations

Opportunity to express aesthetic

and recrational values associated

with ecosystems

Opportunity to express cultural

and spiritual values associated with

ecosystems

Opportunity to observe, study,

and learn about ecosystems

FREEDOMS

AND CHOICE

Ecosystem Services Determinants and Constituents of Well-being

• With an annual catch estimated to be between 289,000 and 431,000 t, the lake is fourth most productive captive fishery in the world, providing some 70% of the protein intake for the entire Cambodian population (van Zalinge et al., 2000). • The Tonle Sap’s palette of biological resources has been a source of fuel, dietary variety, as well as supplemental market income for the rural population. • Floodplain for agriculture: 1/3 of GDP

ES in Tonle Sap? Regulating services

SUPPORTING SERVICES Services necessary for

the production of all

other ecoystem services

Soil formation

Nutrient cycle

Primary production

Provisioning

Services

Products obtained from

ecosystems

Food

Fresh water

Fuelwood

Fibre

Biochemicals

Genetic resources

Regulating Services

Benefits obtained from

regulation of ecosystem

processes

Climate regulation

Disease regulation

Water regulation

Water purification

Cultural Services

Nonmaterials benefits

obtained from ecosystems

Spiritual and religious

Recreation and ecotourism

Aesthetic

Inspirational

Educational

Sense of place

Cultural heritage

Security

Ability to live in an

environmental clean and safe

shelter

Ability to reduce vulnerability

to ecological shocks and stress

Basic Material for

a Good Life

Ability to access resources to

earn income and gain a livelihood

Health

Ability to be adequately nourished

Ability to be free from avoidable

disease

Ability to have adequate and clean

drinking water

Ability to have clean air

Ability to have energy to keep warm

and cool

Good Social Relations

Opportunity to express aesthetic

and recrational values associated

with ecosystems

Opportunity to express cultural

and spiritual values associated with

ecosystems

Opportunity to observe, study,

and learn about ecosystems

FREEDOMS

AND CHOICE

Ecosystem Services Determinants and Constituents of Well-being •Habitat: The lake provides habitats for more than a hundred such water bird species, 89 of which are abundant and 14 of which are considered to be of international significance. • Nursery: a large variety of fish migrate in large numbers from throughout the lower Mekong system to spawn during high season, returning with the receding waters to the open lake and river system beyond. • Water regulation and soil fertility for rice production •Transport by inland waterway

SUPPORTING SERVICES Services necessary for

the production of all

other ecoystem services

Soil formation

Nutrient cycle

Primary production

Provisioning

Services

Products obtained from

ecosystems

Food

Fresh water

Fuelwood

Fibre

Biochemicals

Genetic resources

Regulating Services

Benefits obtained from

regulation of ecosystem

processes

Climate regulation

Disease regulation

Water regulation

Water purification

Cultural Services

Nonmaterials benefits

obtained from ecosystems

Spiritual and religious

Recreation and ecotourism

Aesthetic

Inspirational

Educational

Sense of place

Cultural heritage

Security

Ability to live in an

environmental clean and safe

shelter

Ability to reduce vulnerability

to ecological shocks and stress

Basic Material for

a Good Life

Ability to access resources to

earn income and gain a livelihood

Health

Ability to be adequately nourished

Ability to be free from avoidable

disease

Ability to have adequate and clean

drinking water

Ability to have clean air

Ability to have energy to keep warm

and cool

Good Social Relations

Opportunity to express aesthetic

and recrational values associated

with ecosystems

Opportunity to express cultural

and spiritual values associated with

ecosystems

Opportunity to observe, study,

and learn about ecosystems

FREEDOMS

AND CHOICE

Ecosystem Services Determinants and Constituents of Well-being

• Importance of the TSL and River for Cambodian culture • Ecotourism activities (birds, floating villages, TS River trip…)

ES in Tonle Sap? Cultural services

Definition of Payment for Ecosystem Services (PES) PES is an market-based instrument designed to provide incentives to land

users, on behalf of service beneficiaries, for agricultural land, coastal or marine management practices, for improved service provision, so a specific user or society will benefit more broadly.

PES is a market-based mechanism

Wunder (2005): defined PES

(1) voluntary transaction where

(2) a well-defined ES (or corresponding land use) is

(3) being ‘bought’ by a (minimum one) ES buyer

(4) from a (minimum one) ES provider

(5) if and only if ES provision is secured (conditionality)

Characteristics of PES program

PES could be design in different type which could be apply in - Social - Economics - or Political context

• ES users •Government •NGOs •International Agency

Who are acting on behalf of ES users

Who are the buyers ?

Who are the sellers? -Private and Individual landholder: -Government or Public land -Community

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Example: conservation agreement

SCOPE of PES PES is not the solution for all environmental problems

- Ecosystem managers don’t have authority to manage the ecosystem because the land belong to nobody or to the state.

•Give the property rights is, sometime, not enough to apply PES

- IF lack of awareness on land-use practices which provide/enhance ES

Because make benefits to the others is unlikely to be a much weight against definite benefits to oneself Because ES is public goods

•Give training or awareness to the people is unlikely suffice to apply PES

PES as part of a policy mix for conservation and development

It is difficult to identify scope the PES,

ES user and ES provider => Payment go to Ecosystem Manager

ES Concluding Remarks

• Ecosystem provides the Ecosystem Services which contribute to Human Well-Being

• Economics Growth also wants to give Human Well-Being

• There is the Trade-Off in economics growth between:

Provisioning Services vs. Others Services

So what should we do to avoid or find the best balance for this trade-off?

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Arias, M. E., T. A. Cochrane, et al. (2012). "Quantifying changes in flooding and habitats in the Tonle Sap Lake (Cambodia) caused by water infrastructure development and climate change in the Mekong Basin." Journal of Environmental Management 112: 53-66. De Young, C. Charles, A., Hjort,A. 2008. Human dimensions of the ecosystem approach to fisheries: an overview of context, concepts, tools and methods, FAO Fisheries Technical Pepr No 489. Department for Environment, Food and Rural Affairs, UK, 2007. An introductory guide to valuing ecosystem services. KIM, N. (2013). Strategic Management for the Tonle Sap Biosphere Reserve Conservation & Protection, UNWTO. Lamberts, D. (2006). "The Tonle Sap Lake as a productive ecosystem." International Journal of Water Resources Development 22(3): 481-495. Matsui, S., M. Keskinen, et al. (2006). Tonle Sap, Experience and Lessons Learn Brief. Phnom Penh, World lakes. Nunes P.A.L.D., Ding,H., Markandy.2008. The economic valuation of marine ecosystems – lessons from the Millenium Ecosystem Assessment. Presented at conference on economic valuation of coastal and marine ecosystems, Bodrum, 22-25 October 2008. SEI (2010) Persson, L., Arvidson, A., Lannerstad, M., Lindskog, H., Morrissey, T., Nilsson, L., Noel, S., Senyagwa, J. Impacts of pollution on ecosystem services for the Millennium Development Goals. SEI Project Report, Stockholm Environment Institute, Sweden. Sokha, P. (2009) Pesticide Risk Reduction in Cambodia: An assessment of findings from research on pesticide use, baseline survey in Battambang and Prey Veng. R. U. o. Agriculture. Phnom Penh.

Main References

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Steffan-Dewenter, I., M. Kessler, et al. (2007) “Tradeoffs between income, biodiversity, and ecosystem functioning during tropical rainforest conversion and agroforestry intensification.” Proceedings of the National Academy of Sciences of the United States of America 104(12): 4973- 4978. UNEP-WCMC. 2011. Marine and coastal ecosystem services: valuation methods and their practical application. United Nations Statistics Division and FAO. 2004. Integrated Environmental and Economic Accounting for Fisheries. White Paper Handbook. Wikipedia World Bank. 2008. Valuation of Marine Ecosystem Services: Gap Analysis. Environment Department. Washington, DC: World Bank. World Bank. 2008. Environment Matters. World Bank and FAO. 2009. The Sunken Billions. The Economic Justification for Fisheries Reform. Agricultural and Rural Development Department. The World Bank. Washington. DC. WRI (2007) Nature’s benefits in Kenya, an Atlas of ecosystems and human well-being. World Resources Institute, Ministry of Environment and Natural Resources of Kenya, Central Bureau of statistics and Ministry of planning and National Development in Kenya, and the International Livestock Research Institute. Washington DC and Nairobi, World Resources Institute.

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Thank you for your attention

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