NE1036 Final Report

Suggested citation: Quick, T., Reed, M., Smyth, M., Birnie, R., Bain, C., Rowcroft, P and White, A (2013) Developing place-based approaches for Payments for Ecosystem Services, URS London. FINAL REPORT 2 Limitations URS Infrastructure & Environment UK Limited (“URS”) has prepared this Report for the sole use of Natural England and Defra (“Client”) in accordance with the Agreement under which our services were performed [Project number: NE0136] No other warranty, expressed or implied, is made as to the professional advice included in this Report or any other services provided by URS. This Report is confidential and may not be disclosed by the Client nor relied upon by any other party without the prior and express written agreement of URS. The conclusions and recommendations contained in this Report are based upon information provided by others and upon the assumption that all relevant information has been provided by those parties from whom it has been requested and that such information is accurate. Information obtained by URS has not been independently verified by URS, unless otherwise stated in the Report. The methodology adopted and the sources of information used by URS in providing its services are outlined in this Report. The work described in this Report was undertaken between [October 2012] and [April 2013] and is based on the conditions encountered and the information available during the said period of time. The scope of this Report and the services are accordingly factually limited by these circumstances. Where assessments of works or costs identified in this Report are made, such assessments are based upon the information available at the time and where appropriate are subject to further investigations or information which may become available. URS disclaim any undertaking or obligation to advise any person of any change in any matter affecting the Report, which may come or be brought to URS’ attention after the date of the Report. Certain statements made in the Report that are not historical facts may constitute estimates, projections or other forward-looking statements and even though they are based on reasonable assumptions as of the date of the Report, such forward-looking statements by their nature involve risks and uncertainties that could cause actual results to differ materially from the results predicted. URS specifically does not guarantee or warrant any estimate or projections contained in this Report. FINAL REPORT 3 TABLE OF CONTENTS GLOSSARY ......................................................................................... 7 1. EXECUTIVE SUMMARY ............................................................ 11 2. BACKGROUND .......................................................................... 17 3. ECOSYSTEM SERVICE SCOPING ........................................... 24 4. WATER QUALITY ...................................................................... 35 5. CLIMATE REGULATION: CARBON STORAGE AND SEQUESTRATION .......................................................... 45 6. FLOOD RISK.............................................................................. 54 7. BIODIVERSITY .......................................................................... 61 8. RECREATION ............................................................................ 73 9. PLACE-BASED PES .................................................................. 81 10. CONCLUSIONS AND RECOMMENDATIONS ...................... 115 TABLE OF FIGURES FIGURE 1: THE SOUTH PENNINES NATIONAL CHARACTER AREA (NCA) AND ECOSYSTEM SERVICES PILOT AREA (ESP) – AREA WITHIN ORANGE BOUNDARY ............................................. 19 FIGURE 2: BIOLOGICAL ELEMENTS WHICH FAIL THE GOOD ECOLOGICAL STATUS/GOOD ECOLOGICAL POTENTIAL OF THE WFD.. ........................................................................................ 38 FIGURE 3: SUPPORTING ELEMENTS WHICH FAIL THE GOOD ECOLOGICAL STATUS/GOOD ECOLOGICAL POTENTIAL OF THE WFD... ....................................................................................... 39 FIGURE 4: CONDITION OF THE SSSIS WITHIN THE SOUTH PENNINES ESP AREA ..................................................................... 63 FIGURE 5: BAP HABITAT MAP OF MARSDEN MOOR ................... 64 FIGURE 6: CARBON BUDGET IN PEAK DISTRICT NATIONAL PARK………… .................................................................................. 87 FIGURE 7: DIFFERENT TYPES OF MULTI-SERVICE PES (ADAPTED FROM DEFRA PES BEST PRACTICE GUIDE) ............. 90 FIGURE 8: PES BUYER DECISION TREE ....................................... 99 FINAL REPORT 4 TABLE OF TABLES TABLE 1: THE FIVE FOCAL CATCHMENTS OF THE SOUTH PENNIES ECOSYSTEM SERVICES PILOT ..................................... 20 TABLE 2: ECOSYSTEM SERVICES SCOPING TABLE ................... 28 TABLE 3: WATER QUALITY BENEFICIARY ANALYSIS .................. 41 TABLE 4: IMPACT OF PEAT CONDITION ON GREENHOUSE GAS EMISSIONS ....................................................................................... 46 TABLE 5: FLOOD RISK REGULATION BENEFICIARY ANALYSIS . 57 TABLE 6: AREA AND PERCENTAGE OF PRIORITY HABITATS IN THE SOUTHERN PENNINES ESP AREA. ....................................... 62 TABLE 7: BIODIVERSITY BENEFICIARY ANALYSIS ...................... 67 TABLE 8: RECREATION BENEFICIARY ANALYSIS ....................... 78 TABLE 9: LAND MANAGEMENT CHANGES TO OPTIMISE PLACE- BASED ECOSYSTEM SERVICES IN THE UPLANDS OF THE SOUTH PENNINES ESP AREA ........................................................ 82 TABLE 10: HOW LAND MANAGEMENT OPTIONS AFFECT ECOSYSTEM SERVICE PROVISION (PROVISIONAL: EVIDENCE STILL UNDER REVIEW) ................................................................... 85 TABLE 11: SCALE AT WHICH ECOSYSTEM SERVICES CAN BE INFLUENCED .................................................................................... 96 TABLE 12: MONITORING AND VERIFICATION REQUIREMENTS OF DIFFERENT ECOSYSTEM SERVICES .................................... 106 TABLE 13: COSTS OF LAND MANAGEMENT CHANGES IN THE SOUTH PENNINES ESP AREA ...................................................... 107 TABLE 14: ESTIMATION OF LEVEL OF PAYMENTS FOR DIFFERENT ECOSYSTEM SERVICES .......................................... 108 TABLE 15: ALTERNATIVE PES STRUCTURES FOR THE SOUTH PENNINES ESP AREA ................................................................... 111 FINAL REPORT 5 TABLE OF BOXES BOX 1: WATER QUALITY SUMMARY.............................................. 35 BOX 2: CARBON STORAGE AND SEQUESTRATION SUMMARY . 45 BOX 3: FLOOD RISK SUMMARY ..................................................... 54 BOX 4: BIODIVERSITY SUMMARY .................................................. 61 BOX 5: RECREATION SUMMARY ................................................... 73 BOX 6: CO-ORDINATING STAKEHOLDERS AND ENCOURAGING COLLABORATION ............................................................................ 94 BOX 7: ADDITIONALITY AND PES ................................................ 100 BOX 8: AGRI-ENVIRONMENT SCHEMES AND PRIVATELY FINANCED PES SCHEMES ........................................................... 100 BOX 9: LAND INTERESTS STRUCTURE IN THE SOUTH PENNINES ESP AREA ................................................................... 102 FINAL REPORT 6 GLOSSARY Abbreviation Definition Notes and links ANC Acid Neutralising Capacity BAP Biodiversity Action Plan Current term is “priority” habitats and species as defined by S41 of NERC Act BAU Business As Usual http://www.ceh.ac.uk/ CEH Centre for Ecology and Hydrology’s CFMP Calder Catchment Flood http://a0768b4a8a31e106d8b0- Management Plan 50dc802554eb38a24458b98ff72d550b.r19.cf3.rackcdn. com/gene0110brlh-e-e.pdf Methane Naturally occurring methane is mainly produced by the CH4 process of methanogenesis. This multistep process is used by microorganisms as an energy source. The net + - reaction is: CO2 + 8 H + 8 e → CH4 + 2 H2O The final step in the process is catalysed by the enzyme methyl- coenzyme M reductase. Methanogenesis is a form of anaerobic respiration. Carbon dioxide CO2 Corporate Social Responsibility CSR DECC Department of Energy & https://www.gov.uk/government/organisations/departme Climate Change nt-of-energy-climate-change Defra Department for Environment, www.Defra.gov.uk/ Food and Rural Affairs DOC Dissolved Organic Carbon ELS Entry Level Stewardship ES Environmental Stewardship FEP Farm Environment Plan GEP Good Ecological Potential GES Good Ecological Status GEST Greenhouse Gas Site Types GHG Greenhouse Gas HLS Higher Level Stewardship FINAL REPORT 7 Abbreviation Definition Notes and links IPCC The Intergovernmental Panel The leading international body for the assessment of on Climate Change climate change. It was established by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO) in 1988 to provide the world with a clear scientific view on the current state of knowledge in climate change and its potential environmental and socio-economic impacts. http://www.ipcc.ch/ LNPs Local Nature Partnerships In its Natural Environment White Paper, Government recognised that partnership working was key to delivering its ambitions for the natural environment at a local level and set out its vision for Local Nature Partnerships http://www.Defra.gov.uk/environment/natural/whitepape r/local-nature-partnerships/ MoorLIFE In 2010, the European Union MoorLIFE is one of the biggest moorland conservation LIFE+ programme awarded the programmes in Europe - protecting Active Blanket

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