NATIONAL MARINE ECOSYSTEM SERVICE VALUATION KIRIBATI MARINE ECOSYSTEM SERVICE VALUATION The living resources of the Pacific Ocean are part of the region’s rich natural capital. Marine and coastal ecosystems provide benefits for all people in and beyond the region. These benefits are called ecosystem services and include a broad range of values linking the environment with development and human well-being. Yet, the natural capital of the ocean often remains invisible. Truly recognizing the value of such resources can help to highlight their importance and prevent their unnecessary loss. The MACBIO project provides technical support to the governments of Fiji, Kiribati, Solomon Islands, Tonga and Vanuatu in identifying and highlighting the values of marine and coastal resources and their ecosystem services. Once values are more visible, governments and stakeholders can plan and manage resources more sustainably, and maintain economic and social benefits of marine and coastal biodiversity in the medium and long term. The MACBIO Project has undertaken economic assessments of Kiribati’s marine and coastal ecosystem services, and supports the integration of results into national policies and development planning. For a copy of all report and communication material please visit www.macbio.pacific.info. MARINE ECOSYSTEM MARINE SPATIAL PLANNING EFFECTIVE MANAGEMENT SERVICE VALUATION NATIONAL MARINE ECOSYSTEM SERVICE VALUATION KIRIBATI PRINCIPAL AUTHOR: Iete Rouatu1 CONTRIBUTING AUTHORS: Guillaume Leport2, Nicolas Pascal3, Hans Wendt4, Riibeta Abeta5 EDITORS: Luke Brander6, Leanne Fernandes4, Jacob Salcone4, Andrew Seidl7 AUTHOR AFFILIATIONS 1 Independent consultant, Betio (Takoronga), Tarawa, Kiribati 4 MACBIO project, IUCN Oceania Regional Office, Fiji 2 Centre de Recherches Insulaires et Observatoire de l’Environnement, 5 MACBIO project, GIZ-MACBIO Office, Fiji Scientific Research Unit , Centre National de la Recherche 6 Brander Environmental Economics, Hong Kong Scientifique (CNRS) – Ecole Pratique des Hautes Etudes (EPHE), Papetoai, Moorea, French Polynesia 7 Colorado State University – Department of Agricultural and Resource Economics, Fort Collins, Colorado, USA 3 Blue Finance, Washington DC, USA; Emua, Vanuatu © 2015 MACBIO © MACBIO 2015 All MACBIO Project partners including the Secretariat of the Pacific Regional Environment Programme (SPREP), the International Union for Conservation of Nature (IUCN) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) are the inherent copyright owners of this publication. Reproduction of this publication for educational or other non-commercial uses is authorized without prior written permission from the copyright holder(s) provided the source is fully acknowledged. Reproduction of this publication for resale or other commercial purposes is prohibited without prior written permission of the copyright holder(s).The designation of geographical entities in this publication, and the presentation of the material do not imply the expression of any opinion whatsoever on the part of SPREP, IUCN, GIZ or the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) concerning the legal status of any country, territory, or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. This document has been produced with funds provided by the International Climate Initiative (IKI). BMUB supports this initiative on the basis of a decision adopted by the German Bundestag. The views expressed herein should not be taken, in any way, to reflect the official opinion of the Federal Government of Germany. The views expressed in this publication do not necessarily reflect those of SPREP/IUCN/GIZ/BMUB. MACBIO holds the copyright of all photographs, unless otherwise indicated. Recommended citation: Rouatu I, Leport G, Pascal N, Wendt H, Abeta R, Brander L, Fernandes L, Seidl A, Salcone J (2017) National marine ecosystem service valuation: Kiribati. MACBIO (GIZ/IUCN/SPREP): Suva, Fiji. 83 pp. KIRIBATI CONTENTS ACROnYMS IX EXECuTIVE Summary 1 1 InTROduction 5 2 COntext 9 3 COnceptuAL framework 23 4 LiteratuRE review 27 5 METHOdS 29 6 RESults 31 7 dISCuSSIOn 69 8 RecommendationS 70 9 Caveats And conSIderationS 71 10 REFEREnCES 73 11 ACKnOWLEdGEMEnTS 75 12 APPEndIX I Glossary 77 13 APPEndIX II StakeholdER conSultationS, attendEE lists 79 14 APPEndIX III TunA catch BY nationAL waters: 1997–2013 83 CONTENTS cont. FIGuRES And tables FIGURE 1 Map of Kiribati 8 FIGURE 2 The Gilbert, Phoenix and Line Islands Groups 8 FIGURE 3 Phoenix Islands Protected Area Boundary Map. 15 FIGURE 4 Kiribati policy context 17 FIGURE 5 Tuna catch by national waters, 1997–2013 42 FIGURE 6 Value of tuna catch by national waters, 1997–2013. 43 FIGURE 7 Sunbathing tourists on the beach of Fanning Island 47 FIGURE 8 damage to a causeway in South Tarawa in March 2015 58 FIGURE 9 PIPA seamounts and seabed in three dimensions 62 FIGURE 10 Teeming marine life at Manra Island, PIPA 63 FIGURE 11 natural saltwater ponds on Christmas Island 65 TABLE 1 Annual economic value of marine and coastal ecosystem services in Kiribati (2013) 3 TABLE 2 Kiribati exports 2005–2012 10 TABLE 3 nominal GdP in Kiribati by sector, 2008–2013 12 TABLE 4 Real GdP, 2008–2013 (A$ ‘000) 13 TABLE 5 Activity status of the Kiribati population, 1985–2010s 32 TABLE 6 Finfish consumption on five islands 33 TABLE 7 Subsistence catch, quantity, weight, and value 35 TABLE 8 Subsistence value of marine products 36 TABLE 9 Imports of canned fish, 2010 38 TABLE 10 Local foods purchased or exchanged for cash 39 TABLE 11 Household-level analysis of local produce (including fish) exchanged for cash 40 TABLE 12 Cement imports, 2006–2013 44 TABLE 13 Scenario 1 — assessing the value of aggregate using 1:2:3 mix 45 TABLE 14 Scenario 2 — assessing the value of aggregate based on the 1:4:3 mix 46 TABLE 15 International arrivals by status and mode of travel, 1980—2011 48 TABLE 16 Breakdown of respondents to tourism survey by key groups 50 TABLE 17 Tourist arrivals by purpose of visit 50 TABLE 18 Analysis of tourist expenditure by port of arrival, 2013 51 TABLE 19 Expenditure estimated by purpose of visit and by country of residence 52 TABLE 20 Calculating the coastal protection index based on scores for physical factors of the coastline 56 TABLE 21 Coastal protection index for the islands of Tarawa, Abaiang and Kiritimati 57 TABLE 22 Carbon storage in coastal ecosystems 59 TABLE 23 Area covered by vegetation/plants in Kiribati 60 ACRONYMS ACIAR Australian Centre for International Agricultural KNSO Kiribati National Statistics Office Research KPA Key Policy Area AusAID Australian Agency for International Development MACBIO Marine and Coastal Biodiversity Management in BMUB German Federal Ministry for the Environment, Pacific Island Countries Nature Conservation and Nuclear Safety MELAD Ministry of Environment, Lands and Agricultural CBD Convention on Biological Diversity Development CBFM Community-based fisheries management MPA Marine protected area CPPL Central Pacific Producers Limited NBSAP National Biodiversity Strategy Action Plan DSM Deep-sea mineral NGO Non-government organisation EEZ Exclusive economic zone NOAA National Oceanic and Atmospheric Administration EU European Union PACRAFI Pacific Catastrophe Risk Assessment and Financing Initiative FAO United Nations Food and Agricultural Organization PIFS Pacific Island Forum Secretariat FFA Pacific Islands Forum Fisheries Agency PIPA Phoenix Islands Protected Area FOB Free-on-board PNG Papua New Guinea FSPK Foundation of the Peoples of the South Pacific – Kiribati Ramsar Convention on Wetlands of International Importance GBR Great Barrier Reef SCC Social cost of carbon GDP Gross Domestic Product SOE State-owned enterprises GEF Global Environment Facility SOPAC Pacific Islands Applied Geoscience Commission (now GeoScience Division), SPC GIS Geographic Information Systems SPC Secretariat of the Pacific Community GIZ German Agency for International Cooperation SPREP Secretariat of the Pacific Regional Environment HIES Household Income and Expenditure Survey Programme IUCN International Union for Conservation of Nature SRMU Strategic Risk Management Unit, Office of the President KAO Kiribati and Otoshiro TEEB The Economics of Ecosystems and Biodiversity KCM Kiribati Copra Mill UNDP United Nations Development Program KCS Kiribati Copra Society UNESCO United Nations Educational, Scientific and Cultural KFL Kiribati Fish Ltd Organization KIEP Kiribati Integrated Environment Policy WTP Willingness-to-pay KMEL Kiritimati Marine Export Ltd NATIONAL MARINE ECOSYSTEM SERVICE VALUATION KIRIBATI ix EXECUTIVE summary This study aimed to determine an economic value1 of seven marine and coastal ecosystem services in Kiribati. It is part of the MACBIO (Marine and Coastal Biodiversity Management in Pacific Island Countries) project, which aims to improve the management of marine and coastal biodiversity in Pacific Island countries. Marine and coastal ecosystems provide important benefits for society and contribute to the livelihoods, food security and safety of millions of people around the world. These benefits (called ecosystem services) are often not visible in national accounts or in business operations; their value is usually only perceived when they are lost. Assigning monetary values to ecosystem services makes the ecosystem service benefits more visible and contributes to improving their wise use and management. The seven ecosystem services addressed in this report