Ecosystem Goods and Services in DEVELOPMENT PLANNING

A GOOD PRACTICE GUIDE Ecosystem Goods and Services IN DEVELOPMENT PLANNING

The Convention on Biological Diversity (CBD) is a global agreement that addresses biodiversity. It was established in 1992, and has 193 Parties today, with three main objectives: 1. the conservation of biodiversity; 2. the sustainable use of its components; and 3. fair and equitable sharing of benefits arising out of the utilization of genetic resources.

The Secretariat of the CBD (SCBD) was established to support the goals of the Convention. Its principle functions are to prepare and service meetings of the Conferences of the Parties (COP) and other subsidiary bodies of the Convention, support Parties as appropriate, and coordinate with other relevant international bodies. The SCBD established the Biodiversity for Development Unit in 2008 with the support of the French and German governments. The goal of the Unit is to promote the integration of biodiversity conservation and poverty reduction objectives in both conservation planning (e.g. National Biodiversity Strategies and Action Plans) and development planning (e.g. Poverty Reduction Strategy Papers or Sustainable Development Strategies).

Acknowledgements: This guide was developed with funding support from the German Federal Ministry for Economic Cooperation and Development (BMZ). Institutional support has been provided by the United Nations Environment Programme (UNEP). Guide concept and management by Alberto Vega (SCBD); text by Chucri Sayegh (Consultant); The SCBD wishes to recognize the following individuals for their contributions to this publication: Olivier de Munck (SCBD), Linda Ghanime (SCBD), Thomas Hammond (Commission for Environmental Cooperation),Christopher Hogan (SCBD), Markus Lehmann (SCBD), Balakrishan Pisupati (UNEP), John Scott (SCBD), Yibin Xiang (SCBD).

© Secretariat of the Convention on Biological Diversity. Users may download, reuse, reprint, modify, distribute, and/or copy text, figures and tables from this publication so long as the original source is credited. Reproduction of photographs is subject to the granting of permission from the rights holders.

Citation: Secretariat of the Convention on Biological Diversity. 2010. Ecosystem Goods and Services in Development Planning: A Good Practice Guide. Montreal, 80 + iv pages.

Photo credits (front cover, top to bottom): Flickr.com/Pati Gaitan; Flickr.com/McKay Savage; Flickr.com/Owen Pyrne; Flickr.com/John Holm; Flickr.com/NASA Goddard; Flickr.com/Mckay Savage; Flickr.com/Rene Ehrhardt

ISBN: 92-9225-282-8 foreword Convention onBiological Diversity Ahmed Djoghlaf, Executive Secretary tion activities gohandinhand. agencies, businesses, and non-governmental organisations working to ensure that biodiversity conservation and poverty reduc practicalprovide direction for guides governments, development these that hope differentour of is developmentsectors. It This series of guides aims to compile good practices that support biodiversity conservation and poverty reduction in a number for current andfuture generations. place pro-activein environmentalsectorsopment putting to measures can sustainable contribute that directly development ecosystemstrengtheningincludes also It goodsservices. and partnerships collaborationand between biodiversity devel and - of and valuation the role of assessment the on incentive based measures financial developingby denominatorand common integration the several enhancing of multi-sectoral sectoralinto one developmentplans strategy the a environment as using taining a balanced and sustainable use of ecosystems. This can be done by working with nature. It is for instance achieved by ecosystemsof transforming and concretethem in actions towards securingtherights thepoor of over resources main while limits and benefits the makerscapturing in decision of capacity the involvesstrengthening It making. decision and planning development in services ecosystemand of goods availability and use role, the factoring by achieved be can It task. crucial a F oreword to theseries Building bridges betweenbridgesbiodiversity, Building developmentpovertyreduction and is of all MDG goals, and the fulfillment of this international commitment by 2015. the availability of ecosystem goods and services and is key to the achievement cant reduction in the rate of biodiversity loss. Biodiversity contributes directly to in 2002 by the Convention on Biological Diversity to achieve, by 2010, a signifi and environmental degradation. They integrate the 2010 Biodiversity Target set Nations in 2000 to combat poverty, hunger, disease, illiteracy, gender inequality United the by established were (MDGs) Goals Development Millennium The poverty, because they have few livelihood options to fall backon. in living people severe for most is degradation environmental of impact The directly on biodiversity and local ecosystems for their survival and well-being. depend and areas rural in live poor world’s the of 70% development. able sustain achieve and poverty fight to reduce the in essential biodiversity is of are intimately connected, and require a coordinated response. The protection has been recognized by the international community that these two challenges It time. our of challenges global main the of two are poverty of extreme tion eradica the and diversity biological of use sustainable and conservation The - - - - - Contents 4 4 6 6 6 7 8 10 11 12 14 16 16 18 19 24 25 25 28 30 30 32 33 33 36 38 40 44 47 49 50 50 51 53 55 58 61 61 61 61 63 63 64 66 66 67 68 70 71 75

Sector Plans Sector Plans Spatial Plans Decentralized Architecture Finance Environmental Designing Innovative Framework Expenditure Medium Term Raising Awareness Capacity Developing Indicators Policy Lessons Learned Co-Management Adaptive EGS to Funding Linked 4.3.3.1 Basket Services Ecosystem for 4.3.3.2 Payments 4.2.1 4.2.2 4.2.3 Reform Fiscal 4.3.1 Environmental 4.3.2 4.3.3 5.1.1 5.1.2 5.2.1 5.2.2 Financial Planning — Public Environment and Reviews Management Expenditure 5.3.1 5.3.2 Renewable and Non-renewable Ecosystem Goods and Services Ecosystem and Non-renewable Renewable Solutions Based Ecosystem Solutions and Human-Engineering Sectors Goods and Services and Development Ecosystem of Poverty Goods and Services in the Context Ecosystem of Disasters Goods and Services in the Context Ecosystem Change and Climate Governance Good Environmental Vision Development A Sustainable Initiatives Legal and Constitutions Green Commitments Global Environmental Valuation Goods and Services and Assessment Ecosystem Planning Processes Integrative for Approaches Processes Budgeting Greener for Measures Reduction Strategies Poverty and Development National Greener Capacity and Raising Awareness Developing and Budget Goods and Services in Policy Ecosystem Monitoring Management Lessons Learned and Adaptive Barriers Language Environmental an Overview and Ecosystems: Biodiversity and Ecosystems Biodiversity Human Impacts on Goods and Services Ecosystem and Associated Biodiversity Goods and Services Ecosystem Non-tangible and Tangible 1.6 1.7 Summary Section 1 2.1 2.2 2.3 Summary Section 2 3.1 3.2 3.3 3.4 Summary Section 3 4.1 4.2 4.3 4.4 Summary Section 4 5.1 5.2 5.3 Summary Section 5 Development Goods and Services in Sustainable Ecosystem and Vision Building Governance Sustainability Planning for Goods Ecosystem of Enable Implementation to Measures Plans and Services within Development 1.1 1.2 1.3 1.4 1.5 Jargon the Environmental Demystifying 2 3 4 5 and Contents Overview Guide Good Practice CD Contents 1 Based Resources Appendix I: Web Legislation of Country Appendix II: Examples Bibliography and Selected References

s e sourc ntroduction Re I Good Practic

Good Practice Guide Overview and Contents

The aim of the Good Practice Guide (GPG) is to provide a better understanding about the role of the environment and how development policies and budget processes can effectively internalize environmental priorities and benefits. This product, which is primarily directed at officers from finance and planning ministries, will also be of value to individuals from other sector ministries, government institutions, development and environmental groups. Following an overview of what environmental systems are, the GPG offers a variety of environmentally friendly approaches and mainstreaming measures for sustainable resource management and green income generation. By adding an environmental lens to planning, it introduces systemic approaches, market and non-market based environmental valuation and integration methods complementing existing economic criteria, and introduction methods leading to the development of greener poverty reduction strategies, national development plans and sectoral plans. As environmental considerations contribute directly and indirectly towards securing economic sustainability, while reducing poverty and vulnerability to natural threats, a sound understanding of these dimensions will inevitably help effectively achieve national and global development objectives.

The current Good Practice Guide is designed to be read as much as possible in a non-linear way.

CD Contents

For readers interested in further resources, the CD will provide a presentation and additional material linked to the suggested tools and approaches found in the GPG. The information found in the CD complements the booklet by offering additional examples, tools and approaches to help underpin the positive role played by the environment in planning processes.

Policy experts will benefit through this Good Practice Guide by: Enhancing their understanding about the Strengthening the environmental efficiency and environmental links to sector policies; effectiveness of their strategies through better Factoring environmental benefits within development coordination between line ministries; policies and plans; Providing better planning processes in consultation Developing pro-poor policies based on environmentally with environmental stakeholders; friendly practices; Enhancing current environmental monitoring practices Learning about how environmental benefits can help and experience sharing; alleviate poverty and contribute towards sustainable Introducing environmental assessment and valuation development; approaches built around environmental goods and Engaging in mechanisms to build active dialogues with services; stakeholders around environmental issues; Efficiently integrating environmental objectives to meet donor requirements; Developing environmentally-based strategic thinking.

Financial experts will benefit through this Good Environmental and concerned practitioners will Practice Guide by: benefit through this Good Practice Guide by: Exploring new revenue options available Identifying and participating in budget and planning through environmental services; mechanisms to mainstream ecosystem contributions Identifying recurrent sources of to sector development; environmental revenue; Developing new capacity of environmental Developing knowledge about environmental programme development to harmonize valuation approaches and tools; environmental benefits within other sector plans; Reinforcing budget processes through Building stronger cooperation and joint initiatives better accountability and structure; with other ministries; Introducing mechanisms to identify and avoid Using the guide as a tool for environmental perverse incentives while allocating more attention awareness; to sustainable environmental investments; Strengthening understanding about the role of the Increasing opportunities to access environment through economic arguments and the development assistance through sound introduction of new approaches; and transparent budgeting. Accessing new environmental funding mechanisms.

4 Notes introduction

The use of certain designations have been limited for practicality: Environment Ministry: Can be a substitute, when applicable, for Environmental Departments, Agencies, Ministries of natural resources; Planning Ministry and Finance Ministry: Can be separate agencies or sometimes are combined under the same umbrella. In the current Guide they are shown as two separate entities; Developing countries refers to: Low income countries, small islands developing states and can include mid-income countries; Vulnerable Groups: can include women, older people, children and Indigenous People (when appropriate).

Acronyms

CHM Clearing-House Mechanism CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora EFR Environmental Fiscal Reform EGS Ecosystem Goods and Services FAO Food and Agriculture Organization of the United Nations GBS General Budget Support GHG Greenhouse Gases GPG Good Practice Guide ICCAs Indigenous and Community Conserved Areas LDCs Least Developed Countries MA Millennium Ecosystem Assessment MDGs Millennium Development Goals MEAs . Multilateral Environmental Agreements MTEF Medium Term Expenditure Frameworks NBSAPs National Biodiversity Strategies and Action Plans NSDS National Sustainable Development Strategies PAF Performance Assessment Framework PEEM Public Environmental Expenditure Management PEER Public environmental expenditure reviews PERs Public Expenditure Reviews PES Payments for Ecosystem Services PRSPs Poverty Reduction Strategy Papers REDD/REDD+ Reduced Emissions from Deforestation and Forest Degradation SEA Strategic Environmental Assessment SIDS Small Island Developing States SNA Standard National Accounts SWAps Sectorwide approaches SWG Sector Working Groups TEEB The Economics of Ecosystems and Biodiversity

COP9 “Society must urgently replace its defective economic compass so that it does not jeopardize human well-being and planetary health through the under-valuation and consequent loss of ecosystems and biodiversity.” —Pavan Sukhdev, TEEB Study Leader, CBD COP 9

5 Good Practices 6 food security. Theimportance played by agro-biodiversity isillustrated inbox 1below: biodiversity refers to the type of biodiversity required in the production of food and agriculture. It is one of the main bases of ecosystemsagroinstanceFor local provide. what can on heavily depends countries) developing in (especially areasrural in on biodiversity and ecosystems in different ways and to differentextents. But a significant part of the world’s population living medicinal plants, and the livelihoods of more than 3 billion people depend on marine and coastal biodiversity. We all depend on relies population world of forest from70% live resources, from livelihoods drawtheir beings human billion example,1.3 referto to some systems allowing social linkedto closely are diverse production landscapes, often without a thorough understanding of their role and benefits to development. Ecosystems ible damages. Ecosystems are being intensely degraded, utilized, fragmented and transformed throughout the world into less patterns that affect them. They are found in a state of dynamic equilibrium, to which development activities can cause irrevers Ecosystems contain complex relationships between living organisms (biodiversity) and non-living matter as well as the weather the Greek oîkos whichmeanshouseor‘habitat’. Ecosystem can beunderstood asareference to ourown houseashumans. from comes - ecosystem, Eco word the In needs. human and survival, our for needed benefits complex and vital providing geographical and temporal scales. Natural systems or ecosystems where this interaction takes place represent the main tissue, Human beings are part of this biodiversity and they interact directly with all of its elements. This interaction happens at different and theecological complexes ofwhichthey arepart. sity refers to the variability among living organisms from all sources including terrestrial, marine and other aquatic ecosystems nature. This diversity is the essential contributor to all life forms. Under the Convention on Biological Diversity, diversity of life on Earth is not merely about saving charismatic species or an ethical responsibility that humans have towards and systems provide the conditions and drive the processes that sustain the economy – and our very survival. Maintaining the diversityNature planet. this lifeon of diversityrefer to the toused commonly term the is biodiversity or diversity Biological 1.2 this document and in the attached CD. Their understanding will assist in the reading of the Good Practice Guide (GPG). characterizeconceptsthat environmental in of languagecommon appear regularly the will practitioners. theterms of Some existing jargon barriers and scientific uncertainties. The following section gives a brief overview of some of the environmental important to render the scientific content of any environmental message practical and accessible by demystifying some of the socio-economicapproaches. To effectively link environmental goals to pro-poor sustainableand development objectives,it is ronmental theories and concepts force experts involved in drafting development policiesenvironmental and budgets jargon toappear toofall technical back to on other more experts outsidefamiliar the conservation field. Lack of understanding of many envi understandingnaturalmakers. our systeminherentof uncertainty in with make barriers,coupledMany languagedynamics, decision and community scientific the between communication poor hostage to been often has planning greener to switch roleenvironmentalfull theof systems securecanhelpwell-being socio-economichuman and sustainability. effectivean But, rity.Consequently, generationnew a development of understandingaround sound built policies a thresholds use, the and of insecu hazards and food health pressures, economic naturaldisasters, conflicts, increased as such impacts to leading issue socio-economicsystems affect countries locally globally. and Climate change, for example, increasingly is becoming priority a collapse of environmental systems leading to irreversible consequences. Today’s examples of natural threats to the stability of role of environmental systems and the capacity of resources to replenish. A new form of planning is needed to avoid a sudden sion. Up to now, development has been mostly linked to a vision of rapid economic benefits, a perception that excluded the full Strategies of future development can be effectively drafted taking more proactive consideration of the environmental dimen 1.1 demystifying the Environmental Jargon 1 Box 1:TheRoleof Agro-biodiversity Experience andresearch have shown that agrobiodiversity can: Contribute to sustainable intensification; soil fertility andhealth; Conserve soilandincrease natural Contribute to soundpest anddiseasemanagement; robust andsustainable; Make farming systems more stable, areas, forests andendangered species; Reduce thepressure ofagriculture onfragile and economic returns; Increase productivity, food security Biodiversity andEcosystems: anOverview Environmental Language Barriers coupled socio-ecological systems socio-ecological coupled stability ofspeciesdiversity. Conserve ecosystem structure and sources ofmedicinesandvitamins; Improve humannutrition andprovide Reduce dependencyonexternal inputs; resources andtheenvironment; Help maximize effective useof Reduce orspread risks to individualsandnations; Diversify products andincome opportunities; (Duraiappah (Duraiappah Source: FAO 2004 et al et Biological diver . 2008). For 2008). . ------Good Practices - 7 - the The envi The Source : World Bank 2008/ Worm, Lotze and Myers 2003/ JLG 2007/SCBD 2006 2003/ JLG and Myers Lotze Bank 2008/ Worm, : World Source About 20 to 120 million people live in 120 million people live About 20 to by desertification; affected areas 50%; declined by have species Inland water species have Marine and terrestrial 30%; approximately declined by are 23% of mammals and 25% of conifers with extinction; threatened currently the last over species has deteriorated of bird The status with extinction; threatened with 12% now decades two as categorized 32% of amphibians are with extinction. threatened are nearly are 2 to the atmosphere the atmosphere to 2 mpacts on Biodiversity and Ecosystems Biodiversity Human Impacts on each year and contributing to major loss of biodiversity; to major loss of biodiversity; and contributing each year fishes 90% of all large that concludes global study A new oceans in the past the world’s from disappeared have fishing; result of industrial the devastating half century, Half of the world’s wetlands have have wetlands Half of the world’s century; in the past been lost soil degradation; from suffering are 80% of grasslands deserts; of becoming in the danger 20% of dry lands are emissions of CO atmospheric Current four times the total emissions in 1950; total times the four about 5% per is shrinking at estate forest The tropical of CO adding 3 billion tons decade, Box 3: Biodiversity Loss and Environmental Pressures the seriousness of the situation: indicate A number of statistics ronmental degradation and climate change, aggression from enemies, and declining trade with neighbors whofaced are production consumption, and waste Because peak resource problems. wealth,population, their own environmental now can we — resources outstrips impact which at limit the approaching — impact environmental peak by accompanied swiftly on their peaks. follow to tend declines of societies why understand Diamond 2005 Source: which they thatdepended. of many still appreciate thoseFewer share civilizations a history of sharp rapid and decline. power. and wealth, peak population, reaches its it after or two a decade begin only demise may Indeed, a society’s societies ancient dissimilar otherwise such in collapse of courses similar revealed have discoveries archaeological Recent the Anasazi such in as in thethe the the Maya American Southwest, Yucatán, Cahokia mound builders outside St. Louis, Zimbabwe Great Crescent, Fertile the in Mesopotamia ancient Island, Easter of builders statue the Norse, Greenland the envi of combinations various to succumbed others, many and civilizations, These Cambodia. in Wat Angkor and Africa, in Collapse of Civilization and Environmental Degradation Box 2: Collapse of Civilization and Environmental politicians, our all of least however, people, Few collapse. civilizations many so that is history of facts disturbing the of One on resources environmental the of destruction the been has societies those of collapse the of cause primary a that realize 1.3 for all life forms to adapt, the result of which is a net loss of biodiversity (see box 3) and ecosystem resilience. resilience. 3) and ecosystem (see box loss of biodiversity of which is a net the result adapt, to forms all life for The fragmentation and deterioration of habitat have accelerated the historical rate Theand of ofthehavefragmentation deterioration accelerated loss habitathistorical of bybiodiversity a magnitude of 100 times more than what isattributed tonatural phenomena (UNEP 2007), with this figurepotentially increasing to 1,000 or 10,000 times (MA 2005)over thecoming decades. Biodiversity and its current and potential benefitscontinue being lost to science being unknown most year, every forever disappearing 20,000 living organisms with an estimated alarming rates at chance slim very a only leaving is loss of rate abnormal This higher. even climb will figure this change, climate With n.d.). (IUCN threatening, and intensive development affects all environmental systems. Following the agricultural revolution, the era of the of era the revolution, agricultural the Following systems. environmental all affects development intensive and threatening, industrial the revolution hasconsiderablyaffected equilibrium. global environmental Since the middle part of thetwentieth century this trend has seen a turnextensivedrastic Today, towards and unsustainableexploitation of resources. natural survive. to order in brakes, environmental its time same the at but fuel, environmental its needs accelerator economic of impacthuman combined of activitiesfootprint since theenvironmental than 1950s has theronmental greater been much leading desertification as such degradation, Environmental humanity. of history early the since actions human-made and natural activities. development to future barrier an invisible constitutes forests, and disappearing dried up rivers shrinking lakes, to transform habitats extensively. From a historical dimension this degradation process started with agricultural practices replacing replacing practices agricultural with started process degradation this dimension historical a From extensively. habitats transform societies. Asthe newrisks living cities built,were expandedpressuring habits landsthey agricultural andof the hunter/gatherer their of knowledge limited a from suffered expansion continuous for desire This populations. dependent sustain to capacities 2. box in demonstrated as civilizations, great many of fall the to ago centuries led and practices agricultural intensive in involved globally becoming are impacts environmental today but other, each from isolated geographically were impacts times ancient In Biodiversity loss and the degradation of ecosystems are associated with unsustainable human development activities such as such activities development human unsustainable with associated are ecosystems of degradation the and loss Biodiversity exploitation, industrialagriculture,intensive forest production, as well as other socio-economic needs and ambitions which Good PracticEs 8 Figure 1:Landuseand Agriculture Source: Dugan et al natural resources. the treatment and use of environment and expressed in customs and taboos prescribing revolvelaws around their physicaland environment, culture Ifugao 1998). (Ngidlo, movetohighersphere a spiritworldthe in non-human resources of the system, which and human the between ti exists onships the to rela- of web intricate an observer, apparent casual readily not Although pervasive. is system the of maintenance conti developmentand the in culture of nued role the perspectives, different from viewed be can system the strategy. While (ANR) regeneration natural assisted an or system farming a bilitatitechnique, on reha- conservati watershed a strategy, on forest a as either perspectives, different The culture oftheIfugao people. ment strategy that is deeply ingrained in the internatimanage- forest ideal an as onally The the local dialect meaning forest or woodlot. “ the as ture litera- the in to referred tending been has forests of system unique This forests. life, of tend and grow way they way the refl in ected unique a developed have The inhabitants of Ifugao, in the Philippines, Box 4:Philippines—MuyongSystem increasing revenues from tourism. have immediate positi ve eff ectsonbothbiodiversity and water resource management, while change towards more eco-agricultural cropping systems andsustainable meat producti on could of excess nutrients andpesti cidesandlanddegradati on.Anincrease in protected areas and be implemented carefully inorder to notcause additi onalundesired eff ects,suchasemissions in reducing theneedfor landand,consequently, therate ofbiodiversity loss.Thisopti onshould use. Furtherenhancement ofagricultural producti vity(‘closing theyield gap’) isthe key factor economic growth andbiodiversity by sti mulati ngagricultural producti vityand moreprovisioning ofwater, cientland effi from expanding agricultural producti onis to limitthetrade-off between A central component inpreventi nglossofbiodiversity andecosystem suchas services, muyong muyong muyong muyong system has been recognized recognized been has system . 2003 system can be viewed from from viewed be can system system,” from coined traditi onal knowledge include agricultural and non-wood forest products products forest traditinon-wood and agricultural include knowledge onal are derived from traditi onal knowledge. Other valuable products based on cosmeti and products health cs medicines, plant-based as such products, used widely Many well. as agriculture and industry modern to but lives, This knowledge is valuable not only to those who depend on it in their daily There is today a growing appreciati on of the value of traditi onal knowledge. horti health, general. in management environmental and forestry culture, mainly of a practi cal nature, parti cularly in suchto generatifi elds as agriculture, and on tends to be collecti fi vely owned.sheries, Traditi onal knowledge is traditienvironment, transmitt is knowledge onal generati from ed orally on culturelocaland experienceadapted tothe gainedand centuries over the from communitiDeveloped local world. and the around indigenous es of Traditiinnovati knowledge, refersthe knowledge to onal practiand ons ces rium withnature developing sustainable agricultural practi ces(seebox 4). equilib- in centuries for live to succeeded have people indigenous other communiti es such as the Ifugao in the Philippines. The Ifugao as well as many nity-level decision-making processes. One example is the case of traditi onal interwoven with traditi onal religious beliefs, land-use practi ces and commu- developing an eco-friendly vision and use of nature. This knowledge is ti ghtly human communiti es have managed to live in resultiimpacts from ng unsustainable practi there ces, situatiare where ons nitisubstanti are es and al However, en irreversible. to negati parallel oft ve The socio-economic consequences of suchlossesto many commu-human socio-economic dimensions, are directly shaped and dependent on the the on dependent and shaped directly are dimensions, socio-economic inspirati on and traditi ons, protecti on from natural hazards and many other conditi The water,and of the food availability health, human of on cultural Biodiversity andassociated Ecosystem Goodsandservices 1.4 facing humanity. currently issues global the of many addressing in and development able Traditisignifi make a also can knowledge onal con cant tributi to sustain- on as well ashandicraft s. respect Source: UNEP/GRID-Arendal 2009a with the environment, Good Practices - - 9 Source: (NOAA n.d.) (NOAA Source:

Enhanced Crops livestock aquaculture Carbon sequestration* Water Cycle Water 2: Figure

- Mixed Timber Fiber Water regulation regulation Water (e.g. flood protection) Disease regulation Recreation and ecotourism Recreation supporting services services cultural Degraded Capture fisheries Capture Wild food fuel Wood resources Genetic Biochemicals water Fresh Air quality regulation Climate and local Regional regulation Erosion regulation purification Water regulation Pest Pollination regulation hazard Natural Spiritual and religious values values Spiritual and religious values Aesthetic regulating services regulating provisioning services provisioning Table 1: State of ecosystem services Table Ecosystem Services Provisioning Regulating Cultural Source: Adapted from Ranganathan, Irwin and Repinski 2009 Irwin and Repinski Ranganathan, from Adapted Source: deforestation regions, although previously temperate in forests of regrowth to the due in part globally, been enhanced recently has * Carbon sequestration had been a net source of carbon dioxide emissions. dioxide of carbon source had been a net 1 below. This highlights 1 thebelow. need planningimproved for processes capable of dimensionsinternalizing environmental effec As dynamicsecosystem tively. and benefitsare still being researched, studies are underway to help capture EGS monetary benefits. and non-monetary Goods and services provided by biodiversity have significant economicvalue, even if some of thesegoods and most of the services are not traded by the market. The value of biodiversity-dependent goods and services is difficult to quantify and were identified, and assessed according to four categories: four to according and assessed identified, were Table in shown as pressure of kind some under being as listed are services ecosystem twenty-four of out fifteen MA the Within Diverse ecosystems represent the means to sustainably meet current economic economic current meet sustainably to means the represent ecosystems Diverse and social needs. ecosys our of state deteriorating) cases many in (and changing rapidly the and EGS available on impacts development Human than more of work the involved which 2005, in Report (MA) Assessment Ecosystem Millennium the in captured been have tems 1300 experts and close to 4 ofyears work. In twenty four specificthe “services”MA study, of importanceto human society of accessibility of human communitiesto the neededEGS. It is this level of from groups poor and vulnerable accessibility which can differentiate often EGS. access to and broad with a secure others ecosystem resulting and biodiversity existing on directly relies life of cycle The decom water, of flow (e.g. cycles natural regulate and support that services conditions. atmospheric and etc.) species, of reproduction matter, of position services to humans’ can contribute either daily through their requirements goods repackaged or transformed of form the in or nature with contact direct food, herbal energy, medication, packaged and services (e.g. bottledwater, impact can activities development human about decisions Conversely, etc.). positively on or all negatively of the vital and functions their ecosystems of use. In many cases these decisions will also determine the type and level type and state of ecosystems. type A ofand practical and way to ecosystems. state utilitarianreferring of to human needs is through and ecosystems of the biodiversity contribution the conceptGoods of andEcosystem Services goods (EGS). and Ecosystem Good Practices 10 ecosystems anddepletion of resources withsevere socio-economic costs. are non-visibleweaklyservices accounted for developmentin strategies, acceleratedan is resultthe which of degradation of km 1 every for km 200 use Sea basin drainage Baltic the largestin 30 Forinstance,cities the services. rate arrayaccounting full the of environmental of benefits should non-tangible the and reflect tangible role playedby nature income countries and 13% of middle income countries and only 2% of wealth in industrialized countries (OECD 2009). But accu in low of wealth total accounts estimated26% an It for important countries. developing to particularly Natural is fits. capital bene non-tangible and tangible of share its both on relies activity economic to contribution Ecosystems’ knowledge. and tools economic common using valued poorly are services non-tangible that means complexity of element This capture. to Conversely,methods. scientific and be economic traditional harder can types non-tangible of understanding importance the Tangible provision (e.g. services of food, fresh water, etc.) can be more easily understood, roughly measured and valued with Benefits from ecosystems exist in tangible (mainly provisioning) and non-tangible forms (supporting, regulating and cultural). mean thelossofmany others drawn from thesameecosystem. medicinal plants while providing hunting grounds for local and indigenous communities. Thus, the loss of one benefit will often water,availability of the to increaseerosion,access secure of forestsand risk of floods, the reducecan of impact the reduce sustainable managementFor example, the services. other of the availability on of repercussions series amplified an in result tary and inter-linked and their benefits cannot be separated from each other. A negative impact on one ecosystem service can In making development policy choices, it becomes essential to look holistically at ecosystem services as they are complemen- t 1.5 for mitigating current ecosystem degradation and arenecessary urgent. development challenges (poverty, resource depletion, natural hazards, diseases, etc.) sound environmental policies and actions unaccounted for in planning and decision making. In light of such alarming figures and findings, and taking into consideration of climate change in absence of adaptation measures at 1240 trillion$. Unfortunately, much of these financial benefits remain the costs of adaptation to climate change: a review of the UNFCCC and other recent estimates services as ranging between US$ 2 to 5 trillion (EU 2008). In light of climate change impacts, a 2009 IIED study entitled Biodiversity entitled study a fund to 2008 in EU makers. the decision led guide This to mechanism a as versityrepresent manyimportant monetaryof an nationaleconomies.The part is attracting of valuation EGS more attention estimated 40% of the global economy is directly based on biological products and processes, and the goods provided by biodi An costs. low at society toprovided is biodiversity-derivedto goods access and use sustained The supply,loss. their even or al et (Costanza annually dollars of trillions stakeholderinterests worth of Ecosystemthe groups.maybe on maydepend services .1997), but most of these services are not traded in markets and carry no price tags to alert society to changes in their their in changes to society alert to tags price no carry marketsand in traded not are services these of most but .1997), angible andNon-tangible Ecosystem GoodsandServices (TEEB). One example among many mentioned in the TEEB initiative reports global yearly losses of forest ecosystem 2 of urban area to produce their agricultural, forestry, and fishery products (Ayers forestry,products agricultural, fishery their and produce to area urban of Figure 3:EcosystemServicesand Well-Being Source: UNEP/GRID-Arendal 2005 2 of terrestrial ecosystemsaquatic of and The Economics of EcosystemsEconomics of The and evaluates the net present value et al. et 1996).Unfortunately, Assessing - - - Good Practices

- th 11 Source: (FAO n.d.) (FAO Source: Figure 4: Global Loss of Figure Seafood Species on-renewable Ecosystem Goods and Services Goods Ecosystem on-renewable and N enewable

vital ecosystem functions forever. For instance, Colombia once second in the world with freshwater reserves, has fallen to 24 to fallen has reserves, freshwater with world the in second once Colombia instance, For forever. functions ecosystem vital as a result of overextensive deforestation the past 30years.around Excessive deforestation the Malaysian capital of Kuala combined with dryLumpur, conditions, triggeredstrictrationing water in 1998, and for thefirst time the city had to import water (Butler 2009). A recent study on global fisheries employing more than 50yearsworth of fisherydata, predicted that to is important to decision lens processes 2048 by the be of ocean empty would fish (Hance 2008). Addingan environmental impacts. and irreversible long term avoid Policy planning and decision making rapid favoring growth over sustainability has challenged the capacity of to ecosystems adjust and regenerate the desired goods and related services. Unsustainable activities leading to the depletion of certain goods can also result in andthe collapse alteration of a anof particularits alteration ecosystem, functions, as well as loss of some or all goods and services associated with neighboring systems. Any sustainable measure should some respectlost thehave limitscountries of Many etc.). water, species, living soils, (e.g. constituents its of regeneration and resilience ecosystem natural andproductivity therange ofgoods wide natural and services on they provide acontinuing basis. Theeconomic of potential mangroves stems from three products, mainforest estuarine sources, and namely, fisheries,near-shore and ecotourism. In threat common, of range large a for habitats of maintenance and protection coastal in role pivotal a play mangroves addition, species. ened and endangered A non-renewable resource is a resource that isor concentrated formed at a rate is purposes, practical all for so, and consumption of rate its than slower much very in result can actions Human gas). natural and petroleum coal, (e.g. non-renewable harvested or used are they if resources of quantity and/or quality the in decrease a people that said is it occurs, this When renewed. be can they than faster rate a at are living off their naturalcapital, rather than the interest of the naturalcapital 1999). (Bruce Mitchell none second to they are in of terms its resources, As a of source renewable unique are ecosystems. mangroves instance, For - of appro availability on the dependent greatly are resources Renewable timber). priate sites or areas of land and their availability can vary according to time and renewable most supply, abundant an in present is energy solar Although, seasons. extinct timber)cases or become in certain (e.g.be can depleted water, resources (e.g. animals). plants, Renewable resources are resources that are capable of being replaced by natural natural by of being capable replaced are that resources are resources Renewable ecological cycles or sustainable management practices (e.g.water, solar energy, 1.6 r Flickr.com/McKaySavage Good Practices 12 ated from exploiting anddegrading partofits goods andservices the rest. this sense, nature can be regarded as a living treasure, its wealth more important than just the quick financial benefits gener species, with time-tested genius, can potentially help meet many human sustainable objectives (The Biomimicry Institute). In and findings inspired by nature and living organisms. In terms of biodiversity and its applied potential, the Earth’s 10-30 million made and adapted to various human needs. For instance, biomimicry is an emerging field which dedicates itself to new research By studying and emulating ecosystems and individual species models, (e.g. shapes, processes, etc.) discoveries are also being simply theappropriate protection ofbiodiversity andsoundecosystem management (see Table 3). articulated into green incentives and compensations. Some eco-friendly solutionsare achieved no atvirtually costs requiring and processes planning effectivelyecosystembe within to captured about needs knowledge benefits possible, be to for this Proactive environmental measures can replace (partially or fully) many of the otherwise expensive human-made solutions. But functions have always existed for free and can be used to achieve the desired water filtering objectives (See box 5and box 6). ecosystemfiltering equivalent while investments expensive entail can plants waste-watertreatment building instance, For showing increasing appeal (SeeTable 2). to those offered by human engineered responses, is The capacity of nature to provide alternative options proven theireffectiveness forthousandsof years. itself, nature relies on biological processes that have ecosystems are recognized and supported. To regulate provisioning and regulating functions and services of softer a on focuses category second water, The energy.). (e.g. services ecosystem specific of availability the enhance to cases some in and ecosystems to done damage with deal to built is infrastructure mental environ Human-made waste. of incineration the wastewater,installation filteringthe of systems and of treatment the include Examples activities. ment develop of impacts and pollution the mitigate or eliminate to needed solutions human-made to linked mainly measures first category refersThe responses. to of categoriesbroad two imply could forenvironmentalsustainability Planning issues. to environmental solution best the necessarily or nature’s to functions substitute a always not is technology Human-made 1.7 ysis is needed to ensure that the poor are not left worse off after conversion than before, even when others gain (OECD 2009). may generate economic benefits and jobs but undermine the livelihoods of local communities. A detailed distributional anal local inhabitants would earn more by converting it to agriculture. Conversely, the conversion of a natural forest into alevel plantation and local levels. For example, a forest may provide essential services to a region in terms of watershed protection whereas national theregional, of at perceptions differing trade-offs be often will There ecosystemservices.). non-tangible and goods and naturaltangible provided including by environmental systemsof wide range services (e.g. the must in calculation factor calculation of all the associated costs and benefits. In addition to the opportunity cost of continued sustainable extraction, this at economically profitable levels, a decision to deplete and eventually liquidate the stock completely must be based on a careful In the case of renewable resources, such as fisheries and many types of forests, where there is scope for continued exploitation Source: Emerton of densitycurrents that are caused by thedifference in temperature between wetland andbay water. ments are decomposed; heavy metals are converted from soluble to insoluble forms; and effluents are diluted by means wetland’sthe organisms pathogenic in and pollutants sedi solids; bottom suspended of accumulation the nitrogen and tion and sedimentation processes. Of particular significance is the capacity of wetland plants to remove phosphorus and mineraliza through Bay Murchison Inner entering load pollution the reduces and it, through wastewaterpasses which the quality of the city’s water supply. It physically, chemically and biologically removes pollutants and sediments from the area, to urban residents and industries throughout Kampala. The wetland plays an extremely important role in maintaining which directly border Nakivubo, the benefits associated with water treatment and purification accrue over a much larger insettlements wholive people the almost by out exclusively arecarried resourceactivities utilization wetland Whereas Box 5:Uganda– Water treatmentandpurificationfunctionsofthewetland and more proactive approach, whereby natural Human-Engineering Solutionsand Ecosystem BasedSolutions et al . 1998 - Carbon Sequestration Incineration/Landfills Flood control systems Coastal protection Waste water treatment plant Some Human-madeolutions Table 2:Human-EngineeringVsNatureSolutions Equivalent Ecosystem Management Sustainable Forest Organic waste decomposition Management Sustainable Forest Mangroves Wetlands S olutions - - - - - Good Practices 13 sustain sustain services impacts services Ecosystem Ecosystem ecosystem ecosystem development evelopment Development Figure 5: Interdependence of Biodiversity and Development Figure esponsive Approach esponsive Might be the only Might available option the Can alter functions and services of an ecosystem and might Costly recurring involve costs operational access to Requires technology R Cheaper than solutions mechanical the Maintains integrity ecological of site Ecosystem skills management required

Comparison Between Pro-active and 3: Comparison Between Table Approaches Responsive pproach A Proactive Source: FAO-PESAL n.d. FAO-PESAL Source: ecosystems services (PES) scheme to preserve drinking water quality. When it began, instead of investing US$6-8 billion in billion US$6-8 investing of instead began, it When quality. water drinking preserve to scheme (PES) services ecosystems more was improving watershed land investing in use in that the authorities considered the plant, city’s filtration a water Agricultural Watershed in the participate to opt that Farms billion. US$1.5 only of investment an requiring cost-effective, Program receive technical assistance in designing a strategy for controlling potential sources of pollution on the farm, City covering all with associated costs with New York Participating farmsthe becomeimplementation. eligible for other services. environmental specific for package the compensation of elements United States of America — Catskill Mountains America — Catskill of Box 6: United States for payments a under been have , 1990s the since and city York New to water the of 90% provide Mountains Catskill The

Flickr.com/MacJewell Good Practices 14 thinking Introducing pro-active Overview Concept/Issues Goods andServices Non-tangible Ecosystem Tangible and Ecosystem Biodiversity Services Ecosystem Goodsand Non-renewable Renewable and Services Ecosystem Goodsand Definition/Details opment andpoverty reduction. effectively towards economic devel- ‘the green police’, can contribute pro-active player, andnotsimply The Environment Ministry asa responsive ones. mental approaches rather than built around pro-active environ Development strategies are better tangible andnon-tangible benefits. economic activity relies onboth Ecosystems’ contribution to regulating and cultural services). non-tangible forms (supporting, raw materials, medicines,etc.) and suchasfood,sioning services water, in tangible forms (mainlyprovi- Benefits from ecosystems exist house ashumans. stood asareference to ourown ‘habitat’. Ecosystem can beunder Greek Ecosystem: Eco -comes from the patterns that affect them. living matter as well asthe weather organisms (biodiversity) andnon- complex relationships between living Ecosystems are madeoutofthe planet. Refers to thediversity oflife onthis services. erate thedesired goods and related of ecosystems to adjust andregen - ability have challenged thecapacity favoring rapid growth over sustain Policy planninganddecisionmaking (EGS). of Ecosystem GoodsandServices human needsisthrough theconcept biodiversity andecosystems to referring to thecontribution of A practical andutilitarian way of oîkos whichmeanshouseor Se ction 1 1 ction - S - - ummary Some F for every 1km based onbiological products and processes; commercial fishing began; have been reduced by 90 % in much of the world since year. 20,000 livingorganisms disappearingforever every continue beinglost at analarming rate, estimated at on marineandcoastal biodiversity. forest resources; use 200km opment strategies. Non-tangible services are weakly accounted for in devel between US$2to 5trillion. 1240 trillion; absence ofadaptation measures isestimated atUS$ � � according to four categories: tance to humansociety were identified, andassessed 24 specificecosystem ofimpor goods andservices under somekindofpressure. deserts. degradation; century; X X X X X X X X X X X X X X to avoid degradation or even collapse. tems resilience andregeneration of their constituents Policy measures should respect thelimits ofecosys- agricultural, forestry, products. andfishery X X X X X X X X X X X X X X An estimated 40%oftheglobaleconomy isdirectly Marine species exploited for commercial purposes Inland water specieshave declinedby 50%. Biodiversity itscurrent andpotential benefits The livelihoods of more than 3 people billion depend 70% ofworld population relies onmedicinalplants; Close to 1.3billionhumanbeingsearnalivingfrom The 30largest citiesintheBalticSea drainage basin Yearly lossesofforest ecosystem range services The net present value ofclimate change impactsin 15 outof24ecosystem are services listed asbeing are20 %ofdrylands inthedanger ofbecoming 80 %ofgrasslands are suffering from soil Half of the world’s wetlands have been lost in the past Regulating services; Provisioning services; acts/ R 2 ofterrestrial andaquatic ecosystems ecommendations 2 ofurbanarea to produce their � Cultural services. � Supportingservices; - - Good Practices 15 - ecommendations acts/ R Wastewater treatment plants can entail expensive expensive entail can plants treatment Wastewater filtering ecosystem while equivalent investments can be used and for free existed always functions have filtering water some or all of the desired achieve to needs. effec to be is benefits about ecosystem Knowledge and within planning processes captured tively and incentives measures, green into articulated compensations. Some F ummary - S - - ction 1 and more pro- and more Se softer Planning for environmental sustain environmental Planning for ability could imply two broad broad imply two ability could The first of responses. categories mainly measures to refers category solutions human-made to linked the or mitigate eliminate needed to of develop pollution and impacts ment activities. The second category category The second activities. ment on a focuses natural whereby approach, active func and regulating provisioning tions and services of ecosystems are are tions and services of ecosystems and supported. recognized Details Definition/

Human-Engineering Human-Engineering Ecosystem Solutions and Based Solutions Issues Concept/ Overview Flickr.com/Molly Stevenson Flickr.com/Molly Good Practices 16 forests as arechange use land and use, land manure, of result the are emissions These GHG. global of % 18 to amounts this stock sector generates more greenhouse gas (GHG) emissions than the transport sector in total. Measured in CO live to the FAO, According patterns. climate on impacts its to related is ecosystems to disruptions agricultural of terms in issues pressing most the of biodiversity, one and water to Parallel services. other of collapse the to lead also can function one of degradation the that meaning relatedimpacts, their However,does formsso bundled in comeecosystem as services icantly worse inthecoming decades. (2005) excessive nutrient loading of ecosystems represents one of the major causes of deterioration today and willAssessment Ecosystem growMillennium signif the to According pesticides. and fertilizers of use extensive through bodies water fresh of pollution the as (lakes, well as bodies rivers, preventinglagoons), other by waterwaterclean the and from table reaching of disruption hydrologicalthe systemsbiofuels), or soya beans biodiversity cropsfor (e.g. of destruction cash for the include sions on health and child mortality. The above figures are also to be assessed in terms of other agricultural impacts, which can repercus direct with 2008), (ECOSOC continent the across GDP of 5% to equivalent alone, Africa for year per billion US$14 be safeto sanitation estimated are to waterand access of lack a to due losses economic The watercountries’consumption. estimatedwateris agriculturaltoclean worldhaveit thatthe sectorsome access the while can of no representin 80% up to well-being in different ways. According to the Food and Agriculture Organization of the United Nations (FAO), 1.1 billion people For instance, unsustainable agricultural activities can slow economic development, accelerate climate change and affect human view ofhow development sectors are interlinked andhow they can impactthecondition and availability of EGS. stakeholders can allow a better distribution of resources while maximizing their availability. The examples below offer an over all by shared be to benefits common as integrated towardsEGS perspective an Adopting unsustainable. or damaging being of risk the incur activities what reinforcing,and be can measures incentive and policies what ecosystemservices, and goods from benefit sectors development how of understanding the enhance can approach planning systemic and systematic A ment measures should look at ways of securing ecosystem resilience and EGS availability for today and for future generations. processes of ecosystem change are not linear, the whole system can collapse without warning. Consequently, effective develop (and not against) becomes the main guiding paradigm towards sustainable economic development and poverty reduction. As nature with working of concept The resilience. and flows service their secure to measures place in put and development to environment. the sectorsvariousAccordingly, on of impacts ecosystems what identify governments should arefundamental value. Successful planning outcomes are optimized when they weigh trade-offs based on the inter-dependence, and possible ecosystem services, their availability, their interdependencies and whenever possible their tangible and non-tangible economic requirements (e.g. raw material, water, fertile soils) of these sector activities, which need to be assessed based on the type of the for true is same The disturbances. regional and local their of light in assessed be to need mining) agriculture, fisheries, harvesting, timber (e.g. resources natural on dependent directly activities sectoral of impacts Consequently, the distances. substantial by separated geographically are actions when even plans, development affect negatively can interdependence ecosystemthis Disturbing them. between moving through people and fires) storms, events(e.g. and natural functions other there are always interactions between them through the range of species which compose ecosystems the services they provide, tive impacts resulting in accelerated depletion of EGS and higher production costs. Ecosystems are not isolated entities, rather activities (e.g. building roads, energy generation, etc.). Conversely, these activities when poorly integrated can generate nega development and processes industrial carry to non-tangible Ecosystems and tangible both means resources provideand the 2.1 2 Source: EU2009 that encourage conversion, compensation mechanisms), can suchunbalancedtrade-offs be avoided. Only through appropriate policy responses clear property(e.g. rights, permit systems, removal of any perverse subsidies converting of benefits mangroves larger the the sequestration)to shrimp magnitude than carbon farming. order of an – US$ 10,821/ha for coastal protection against storms, totaling US$ 12,392/ha (even without considering other services like and off-shoreforfisheries nursery providing for 987/ha US$ forest products, non-wood and wood collected for 584/ha approximately were US$ communities, local mangroves, to mostly by Estimatedbenefits provided included. are society is clearly sion an easy one for those making the private gain but the conclusionchanges if the main costs and benefits to integrate rehabilitation costs (US$ 9,318 /ha) when a pond is abandoned not after does 5return years This of exploitation.subsidies. available Theaccount into conversiontaking rate), discount deci (10% year per ha per 1,220 US$ at mated Southern Thailand on conversion of mangroves into commercial shrimp in farms showed netstudy A private economic sense. returns esti- economic makes conversion land whether show can benefits and costs of range full the at Looking Box 7:Thailand—TheConversionChoice:Economics,PrivateInterestandPublic EcosystemSustainable in Goods andServices Development Ecosystem andDevelopment GoodsandServices Sectors 2 equivalent, ------Good Practices 17 . 2009). et al et How can ecosystems contribute to to contribute ecosystems can How of income? forms and new greener the primary ecosystem are What services and a country goods that protect? needs to are activities economic What their beyond ecosystems depleting levels? resilience use of ecosystem the can How in and servicesgoods be optimized of development? terms EGS and Development Box 8: EGS and of terms in asked be to questions Sample development: in ecosystems of role the - levels within the acceptable limit (Trumper limit (Trumper the acceptable within levels 2 Multi-functionality of Ecosystem Services within Development Sectors 6: Figure are considered holistically in decision making in terms of their tangible and non-tangible value to economic sectors and human human and sectors economic to value non-tangible and tangible their of terms in making decision in holistically considered are elements missing the represent perspectives based ecosystem These etc.). reduction, disasters control, disease (e.g. well-being needs. and rights human respecting and sustainability securing forward way effective an for 12% of the emission reduction needed in terms of maintaining CO terms of maintaining needed in 12% of the emission reduction eco- (e.g. opportunities development missed of terms in carefully weighed be should impacts development of importance The social of Examples costs. restoration ecosystem and social possible the including etc.), purposes; developments, economic pharmaceutical for tourism, converted are forests and lands ancestral as populations indigenous of displacement include can impacts the impacts on health as becomes clean polluted or water inaccessible; and services the of emergence competing conflicts between ecosystem where required thus is policy to approach multidimensional A communities). forest farmers, (e.g. users local sity, and protecting land and water resources, to playing a direct role in rain fall fall rain in role direct a playing to resources, water and land protecting and sity, is ecosystems forest of role the level global a At regulation. change climate and becoming increasingly asinteresting they act ascarbon sinks. Thisrole hasconsiderable potential when captured as carbon forest and deforestation Currently 2007). (PEP 2010 in billion $50 about at estimated are incentives EGS related and markets, rates by 50% by deforestation reducing that cause indicate of global emissions. Estimates the largest second are degradation represents which century, this carbon Gt 50 of release the avoid would 2100 until level that at them stabilizing then and 2050 forests releases about 2 billion tons of carbon per year, with most of the losses the of most with year, per carbon of tons billion 2 about releases forests 2005). (Butler Africa and America, South Asia, of forests tropical the in occuring as such sources, other from well as mount to continue forests on pressures But systems forests Conversely, and lumber. paper, use of firewood, the expanding barriers wind protective pollination, soil, fertile of availability the to contribute extend services Forest activities. agricultural and life for needed water the and biodiver maintaining materials, raw providing from global levels, to local from When forest cover is lost, run-off rapidly flows into streams, elevating river levels levels river elevating streams, into flows rapidly run-off lost, is cover forest When and subjecting downstream villages, cities, and agricultural fields to flooding. During the dry season, such areas can downstream of be deforestation prone to long droughts which interrupt river navigation andcan disrupt agricultural primarily is cover forest of loss overall The operations. industrial and production attributedto agricultural activities, and thecontinuous destruction of world increasingly turned into agricultural lands (FAO 2006). FAO estimates that about about that estimates FAO 2006). (FAO lands agricultural into turned increasingly 13 million hectares – an area roughly equivalent to the size of Greece – of are cut forests down andto theother converted world’s land uses every year. Good Practices 18 the eight MillenniumDevelopment Goals(MDGs),andthebenefits brought by ecosystem goods andservices. ecosystem goods and services to poverty reduction is also necessary. Table 4 provides examples of linkages between seven of PovertyAs Reduction National and Development Strategies implemented, and planned are understanding importance the of vulnerable groups. Some issues become a question of basic human rights, for instance securing access to clean other waterand poor andthe to food. benefits based non-income and income both providing to critical are that ecosystemfunctions main considerationinto the taking be must planning development nature,pro-poor playedroleprominentby the Acknowledging and insidestructures ofthehouse. material. Close to one billion people live in bamboo houses (INBAR n.d.) where bamboo provides the material for the outside contribute security, as multiple resourcestofood such water, medicine, energy, building enterprisesrevenue and from small and World Bank 2008). The poor are often highly dependent for their livelihoods on common property where ecosystems can daynaturallocalarea upon dependentcollaboration $2 resources in than (WRI forless livelihoods UNDP, their liveon UNEP indigenous peoples, and another 800 million rely on forests for their livelihoods. Three-quarters of the 2.6 billion people who are whom of third a world, the around people million (Greenfacts Forestsecosystems 2005). 300 benefits local to home are withoutsubstantial Africa, theoff in western waters by fleets largearecaught foreign fish of quantities example,significant For them. to access lost have that people poor particularly is it grown, has services and goods ecosystem for demand As 2.2 sustainability MDG 7 Ensure environmental diseases MDG 6Combat major health MDG 5Improve maternal mortality MDG 4Reduce child women equality andempower MDG 3Promote gender educationprimary MDG 2Achieve universal poverty andhunger MDG 1Eradicate extreme Table 4:LinkagesBetweenEcosystemGoodsandServicesMDGs The following 10constituents and/or determinants of well-being are closely related withecosystems: Box 9: Well-being andEcosystems 6. 5. 4. 3. 2. 1. Ecosystem intheContext GoodsandServices ofPoverty Being ableto have energy to keep warm andto cook; Being ableto have cleanair; and cleandrinkingwater; Being ableto have adequate clean andsafe shelter; Being ableto live inanenvironmentally Being ableto be free from avoidable disease; Being ableto be adequately nourished; health andproductivity ofthe world’s ecosystem. environmentalCurrent trendsin degradation be must reversed order sustain the in to are asimportant andat timesmore cost-effective thanhealth treatments. ated with environmental risk factors— and preventive environmental health measures associ be countries may developing in diseases of burden total the of one-fifth to Up cations duringpregnancy. women’s health and can make women less fit for childbirth and at greater risk of compli adversely affectfuel-wood waterand of loads heavy carrying and pollution air Indoor Ecosystem disruption can impactonhealthina variety of ways: water andfuel-wood, and have unequalaccessto landandothernatural resources. Poor women are especially exposed to indoor air pollution and the burden of collecting by children, especiallygirls,whichcan reduce total time at school. A degraded ecosystem would result in longer time spent collecting water and fuel-wood ecosystems and thediversity ofgoods andecological they provide. services healthy on directly depend often poor the of security food and strategies Livelihood Vector-borne diseasescan betheresult ofdegraded ecosystems age offive. people ayear indeveloping countries, themajorityofwhichare children underthe Water-related diseasessuchasdiarrheaandcholera killanestimated million 10. 9. 8. 7. the achievement ofasustainable income stream. decisions that respect natural resources andenable Being ableto make sustainable management including floods,tropical storms andlandslides; Being ableto cope withextreme natural events cultural andspiritualpractices; elements found inecosystems for traditional Being ableto continue usingnatural Being ableto use traditional medicine; Source: Duraiappah 2004 Source: PEI2008 - - Good Practices 19 - - birth. A study in Uttarachal, India, found miscarriages to be five times the times five be to miscarriages found India, Uttarachal, in study A birth. of loads heavy carrying women to this links and 30%, at average national incidence high a suffer women Nepal, In pregnancy. during fuel and water wood of loads heavy carrying with associated is which prolapse, uterine of about spend world developing the of men contrast, In childbirth. after soon task. do onwomen this daily of that the time one-tenth Silvia Lara Source: emergencies. Undernourished women give birth to underweight babies, babies, underweight to birth give women Undernourished emergencies. decreasing their chance of survival. Because women in South Asia face region the care, health and food accessing in discrimination of levels high births. of low-weight rates highest one world’s of the experiences now Regular access to irrigationwater increases agricultural yields, helping world’s the of three-fourths to incomes higher and food more provide to food in role major a play Women areas. rural in live who hungry and poor women Sudan, In Africa. in particularly areas, those of many in production 48% in production, Burkina-Faso in food up 30% of the labor force make and 80% in Congo. In many parts of the world, women do not have the same land owner ship rights as men do. For example, fewer than 1 in 10 female farmers in India, Nepal, and Thailand own land. And landlessness is on the rise up only 21%women of make where in especially America, Latin Mexico, land reform. approved despite owners, property total and developed both in earnings income men’s of 70-80% only earn Women explained be can difference this of 20% about Only countries. developing characteristics. job and experience, levels, education as variables such by of Women sources. energy regular to access have not do people billion Two collecting day each hours 9 and 2 between spend countries developing all fuels biomass burning from produced pollution, air Indoor fodder. and fuel and women million 2 kill to estimated is dung, or charcoal, wood, as such year. every children More than 500,000 women die every year during pregnancy or child Poverty and Ecosystem Resilience Box 10: Poverty and challenge of face the in thrive to and adapt to capacity the is Resilience […] When the poor successfully (and sustainably) scale up ecosystem based enterprises, their resilience can increase in three dimensions: They can become more economically resilient — better able toface economic risks; they and their communitiescan become more socially resilient — better able to work togetherfor mutual benefit; and the — more resilient biologically more become in can live they ecosystems stable. and productive World Bank 2008 UNEP and UNDP, WRI in collaboration Source: Gender and Poverty Box 11: Seventy percent of thepoor world’s are women. Unlike men, women’s opportunities mobility. and economic options and social fortheir workingcontrol that norms their cultural wayby out restricted of poverty are land, to access unequal their by limited often are opportunities Women’s to discrimination. and their susceptibility and credit, technology while 842 million people go hour 720 girls die Every and of boys hunger, severe of cause common most single the as ranks Drought undernourished. food shortages in developing countries and is the cause in 60% of food - - - ervices in the the in ervices S Ecosystem Goods and and Goods Ecosystem The poor live in places which are are in places which live The poor and are vulnerable more ecologically low- earn their living from to forced resources; natural productivity poor that observed It is commonly areas in rural households especially from income livelihood their derive resources; natural of the intensity that It is apparent the adverse of the poor from suffering is disasters impacts of environmental of the rich. much higher than that Identifying new sources of revenues for revenues of sources new Identifying groups; poor and vulnerable of form an equitable Providing into takes that development of poor the basic rights consideration groups; and other vulnerable cultures/ traditional Preserving knowledge; access and benefit Securing equitable sharing of resources; to means a pro-active Providing and impacts of natural the risks reduce communities; on exposed disasters and of poor the land rights Reinforcing groups. vulnerable

Equitable and pro-poor development could be could development pro-poor and Equitable Thepoor particularlyare vulnerableto shocks arising from environmental change, conflict and natural disasters. They tend to live hillsideson or flood plains and intial unsubstan housing and are therefore most directly 2.3 Change and Climate of Disasters Context ecosystems and related biodiversity. and related ecosystems Pro-active development policies that include ecosystem dimensions and their role in alle viating poverty can lead to multiple benefits such as: Conversely, the poor can be the cause of poten of cause the be can poor the Conversely, tially degrading activities.ecosystem The fact and and the loss of ecosystems poverty is that These intertwined. inextricably are biodiversity can stem from various practices such as the of bush over-hunting or ofcollection firewood existing on impacts negative have which meat, achieved by increasing poverty resilience, taking taking resilience, poverty increasing by achieved linkages their and dimensions EGS account into to the poor and other vulnerable groups (see 10). box This dependence can be briefly summarized in summarized briefly be can dependence This 2003): (UNESCAP points following the of terms Good Practices 20 gerial (suchas improved forest management). policy-based (such as improved risk management), behavioral (such as the sparing use of water in times of drought) or mana- sea defenses), increased as (such technological be can activities Adaptation adapt. to ability limited have which and eries, fish and tourism agriculture, as such sectors,climate-vulnerable on dependent heavily are economies whose States(SIDS), (JLG 2007). Adaptation is important to all countries, particularly least-developed countries (LDCs) and Small Island Developing expected their moderatesor or or which climatic opportunities beneficial response actual tostimuli effects, exploits in harm human or in an adjustment natural systems as adaptation defines pro-active IPCC adaptationand The preventionmeasures. The vulnerability of the poor to such random events carries a double human and economic cost, which can be reduced through in disaster riskreduction anddevelopment planning(Sudmeier-Rieux sions in times of disasters. There are 5 reasons to integrate ecosystem-based management poor populations to meet urgent needs such as shelter, access to clean water, and provi- allowing in role positive a play can ecosystems,which well-managed through achieved can be measures mitigation costly to options alternative find to capacity the context this In ecosystems. in investments from benefit first to the be will poor the general, In disaster prevention, mitigation andadaptation measures (see box13). of a disaster (Sudmeier-Rieux aftermath the in communities and people for assets important are and activities ating and cyclones. In addition, productive ecosystems can support sustainable income-gener ecosystems can mitigate the impact of most natural hazards, such as landslides, hurricanes natural disasters and in dealing with its consequences in two major ways. Well-managed ience. Sound ecosystem management can contribute to effective reduction of the risk of dramaticallysurvivalcouldbe of chances their enhanced by reinforcing ecosystem resil increasing and events extreme such to communities poor of exposure the Reducing 7). weak development strategies, and a poor understanding of ecosystem dynamics (see naturalresources,Figure of linkedmismanagement tonatural disastersbe can of formsMany 2009). (Andersen billion one and million 25 between varies 2050 by degradation environmental and change climate to due move will have to that people of number the that predicts (IOM) Migration Organizationfor International The 2009). (Doyle countries developing in communities poor towards further even impacts disaster skewing risk, of distribution uneven the magnify will change climate that states Reduction Risk Disaster on Report Assessment Global The 2002). White (Yaronand on draw to savings or sell, or consume to assets fewest the have they strikes disaster When calamities. natural by affected Source :UNEP2007andIFRC 2002 mollusks, whileincreasing theprotein intheirdiets. and shrimp crabs, selling from income additional earn now can members Family rehabilitation. mangrove from fited huge losses in lives, property and livelihoods. The Viet Nam Red Cross has estimated that some 7,750 families have bene During the devastating typhoon Wukong in 2000, project areas remained unharmed, while neighboring provinces suffered cost approximately US$1.1million,itsaved US$7.3million/year indyke maintenance. tially devastating 1.5-metre waves into harmless, centimeter-high ripples. Although planting and protecting the mangroves planted, with substantial resulting benefits. These submerged, coastal forests act as buffers against the sea, reducinglocal communities poten to plant and protect mangrove forests in northern Viet Nam. Nearly 120 km defenses while generating local livelihoods. Since 1994, the Viet Nam National Chapter of the Red Cross has worked with ecosystem rehabilitation along much of Viet Nam’s coastline is an example of a cost-effective approach to improvingTropical coastalcyclones have caused considerablea livelihoodof loss resources, in particularly coastal Mangrovecommunities. more storms wreak havoc onthislow-lying country. Viet Nam is one of the most typhoon-lashed nations in Asia. Every year, an average of four sea-borne typhoons and many Box 13:Viet Nam—MangrovePlantingSavesLivesandMoney 5. 4. 3. 2. 1. biodiversity. Natural disasters andtheresponses to themhave anegative impacton At-risk populations dependonecosystems for theirlivelihoods; It costs lessto prevent disasters thanitdoesto fixthedamage they cause; Natural disasters have ahighcost; It can decrease vulnerability to natural disasters; et al. 2006). These ecosystem benefits can become part of et al . 2006): - - poverty: the role of ecosystems in reducing Questions to be asked in terms of Box 12:EGSandPoverty necessary)? policy development (when making processes and vulnerable groups indecision How to involve poorand vulnerable groups? livelihoods ofpoorand protected to secure the What vital EGS needto be development sectors? vulnerable communities and in practice between poorand win solutionsthat can beput What are thepotential win- vulnerable groups? the livelihoods ofpoorand be optimized to better secure How can theaccessto EGS 2 of mangroves have been - - - Good Practices 21 Source : (UNEP/GRID-Arendal 2009b) : (UNEP/GRID-Arendal Source

Linkages and Feedback Loops Among Desertification Global Climate Change And Biodiversity Loss And Biodiversity Among Desertification Global Climate Change 7: Linkages and Feedback Loops Figure Flickr.com/Lisa Cee Flickr.com/Lisa Good Practices 22 and introduce aseriesoftools andapproaches to beadopted at different levels ofpolicyandbudget planning. discuss to be will sections the following overall.of objective decline The provide in remain they ecosystems services the and result, a As practices. management land or policies markets,government economic in recognizedadequately being not are natural services these importantof The roles disaster policies. development, and poverty of reduction terms in benefits and impacts multiple to lead can inter-linkages ecosystem the between dynamics section second this demonstrated through As donors $6billionperyear, oratotal of7%total ODA flows —afigure whichislikely torise (ECOSOC 2008). cost disastersnow to responses humanitarian The risk. at particularly are America, South and Asia in especially economies, emergingLow-income(World and 2008). 1960s Bank the year, since a sevenfoldlosses real a in increase than more is which (see disasters decades last from these have the naturalover losses billion calamities Economic 5). averaged $40 Table about of and intensity number the in the increase with changing is risk disaster of the pattern indicate that observations Scientific temperature W Ecosystem Services V and Individuals’ Communities’, Households’ W Table 6:Vulnerability toChangesinEcosystemServices Table 5:NumberofNaturalDisasters1930-2006 Earthquake Windstorm Infestation ulnerability to changes in ave/surge est IndianOcean Epidemic Extreme Drought Wildfire V F olcano amine Insect Flood T Slide otal

1930-1939 114 38 12 30 14 1 4 3 5 1 2 2 2 1940-1949 Who isvulnerable? households Women (especiallywidows andpregnant women) andmembers offemale-headed Rural communities Poor orindigent Orphans Malnourished individuals Isolated communities (especiallyisolated rural communities) Island communities Fishers andfishing communities (especiallysmall-scale fishers) Elderly andElderly-headed households Disadvantaged communities Disabled ommunities (lackofmalariaimmunity) Chronically ill,sick, HIV/AIDS infected individualsandhouseholdshigh-altitudec Children specifically) (girls andthe young Asset-poor households 177 n/a n/a 52 12 45 49 3 7 4 1 1 3 1950-1959 294 121 n/a n/a n/a 10 21 81 46 1 4 8 2 1960-1969 590 211 156 n/a 12 26 70 37 53 8 6 9 2 1970-1979 967 291 265 125 26 23 54 15 98 59 3 5 3 1980-1989 1,912 558 105 537 197 122 196 62 32 48 40 12 3 1990-1999 Source: Sudmeier-Rieux et al.2006 2,767 741 100 148 800 263 350 151 10 52 11 94 47 Source: Bunce et al.2008 2000-2006 2,860 647 102 126 984 140 190 413 185 16 32 16 9

Good Practices 23 How can ecosystems contribute to reducing the impact of reducing to contribute ecosystems can How disasters? natural of poor resilience increasing to contribute ecosystems can How communities? and why? present ecosystems do degraded risks What and services goods that the main ecosystem are What of poor the vulnerability reducing towards contribute situations? of disaster aftermath during and in the communities Box 16: EGS and Natural Disasters Questions to be asked interms of therole of ecosystems in reducing vulnerability and increasing resilience to natural disasters: Reduced agricultural agricultural Reduced production; and/ shortage Water or groundwater depletion; Flooding; security; Food generation. Income Example of Human Example and Vulnerabilities Impacts Livelihood Flooding (flash); and low Drought flows; Landslides; rainfall; Intense Extreme temperatures; waves. Heat

least able to recover from the effects of disasters (because of their low levels of capital accumulation and weaker access weaker and accumulation capital of of their (because low levels ofdisasters the effects from recover able to least others). among and information, credit to Aguilar n.d. Lorena Source: Box 15: Forms of Hazards of Climate Examples Hazards Related focus on women’s practical focus needson women’s (fuelwood)rather e.g., than drinking safe onwater, their strategic suchinterests, as processes. governance planning and change climate in participation More women than men work in the informal sector and in small enterprises. These sectors are often the hitworst and Without secure access to and control over natural resources (land, water, livestock, trees), women are less likely to be able able be to likely less are women trees), livestock, water, (land, resources natural over control and to access secure Without measures. mitigation in disaster investments to make or willing change climatic with permanent cope to intensive. often labor are to anti-desertification, related including those measures, adaptation change Climate often, these measures Too efforts. conservation to unpaidwater soil labor and contribute to expected often are Women Climate change is likely to exacerbate both natural disasters and conflict over naturalresources at all levels. Men and management. conflict to respect with countries and communities households, their to skills different bring often women oftenchange due more than do, women toto causes Menclimatic both driveis migration. migrate Environmental likely seasonally or a for number ofIn drylandyears. householdsareas, female-headed left behind oftenare the and poorest, their women, these of workloads The income. of sources have or remittances receive not may migrants seasonal of wives result of male out-migration. as a significantly and the elderly increase children than men. assistance about information access to have to less likely are women During emergencies, women and situations worldwide, and and displaced in emergency populations refugee to 80% of up constitute Women 80% of those needing assistance. 70 to up make typically may children Gender and Climate Change Box 14: Gender and Flickr.com/Dyl Walters Flickr.com/Dyl Good Practices 24 and Climate Change Context ofDisasters inthe and Services Ecosystem Goods Context ofPoverty inthe and Services Ecosystem Goods Development Sectors and EconomicServices Ecosystem Goodsand Overview Concept/Issues Definition/Details change, conflict andnatural disasters. to shocks arisingfrom environmental The poorare particularlyvulnerable alleviating poverty. ecosystem dimensions andtheirrole in Pro-active development policiesinclude intertwined. and biodiversity are inextricably Poverty andthe lossofecosystems them. poor peoplethat have lost accessto hasgrown,services itisparticularly As demandfor ecosystem goods and for development. areand services indispensableassets development plansasecosystem goods dependence can negatively affect Disturbing thisecosystem inter might impactotherdependent services. bundled forms andlosingoneofthem them.Ecosystem come services in and through peoplemoving between functions and events (e.g. storms, fires) they provide,services other natural species whichcompose ecosystems the between themthrough therange of rather there are always interactions Ecosystems are notisolated entities, Se ction 2 2 ction - S ummary Some F and othervulnerable groups. income andnon-income basedbenefits to thepoor ecosystem functions that are critical to providing both Pro-poor development planning can lookat main day are dependent uponlocal natural resources. well-being. non-tangible value to economic sectors andhuman in decisionmakingterms oftheirtangible and Ecosystem are services best considered holistically mizing theiravailability. allow abetter distribution of resources, while maxi shared by alleconomic sectors andstakeholders can An integrated lookat EGS ascommon benefits to be estimated at about$50billionin2010. some countries’ water consumption; population have noaccess to clean water; Agriculture Organization 1.1billionofthe world can represent avital extra form oflow cost insurance. aftermath ofadisaster. EGS baseddisaster strategies important assets for peopleandcommunities inthe sustainable income-generating activitiesand are In addition,productive ecosystems cansupport tems can mitigate theimpactofmost natural hazards. dealing withitsconsequences. Well-managed ecosys- tive reduction oftherisk natural disasters andin Sound ecosystem management can contribute to effec the 1960s. is more thanasevenfold increase inreal lossessince disasters have averaged about$40billionayear, which X X X X X X X X X X X X Close to 2billion peoplewholive onlessthan$2a Carbon markets andrelated EGS incentives are Forest extend services from local to globallevels; The agricultural sector can represent upto 80%of According to theUnited Nations Food and In thepast decade, economic lossesfrom natural acts/ R ecommendations - -

Good Practices Flickr.com/ccwg - - 25 business as as business - - - - Good Environmental Governance Good Environmental Building Governance and Vision Governance Building approach geared towards immediate benefits, while discarding consequences of any action that can increase the pressure pressure the increase can that action any of consequences discarding while benefits, immediate towards geared approach How to foster sound environmental governance that will facilitate the implementation of pro-active environmental environmental of pro-active implementation the facilitate will that governance sound environmental foster to How measures? impacting needs without development economic consideration into takes that background a legal establish to How poor? of the and the rights on the livelihoods environment? of the the benefits consideration into takes vision that development build a long-term to How concerning of all stakeholders the views capture to be made available mechanism could policy development What resources? environmental to the use and access values? environmental built around and society a culture develop to How to frameworks and legal platforms multi-stakeholder structures, governance appropriate strategies, develop to How stakeholders? all concerned involve equitably biodiversity between trade-offs and/or win-win outcomes acceptable in the global policy arena negotiate to How to lead to involved reduction? and poverty services, development stakeholders of ecosystem maintenance all conservation, to way transparent a in trade-offs and synergies possible communicate to How decisions? informed that aware being are necessary, trade-offs where mechanisms compensation and incentive introduce to How time? over and increase vary could opportunity costs equity and peace including, social if appropriate, to maintain strategies and approaches instruments identify to How prevention? and crisis management conflict Guiding Questions for Policy Makers : for Policy Guiding Questions The need to factor longer time frames into decision making should be based on therole of ecosystems, their capacityto change, sustain and bothto poverty andtheir linkages monetary and non-monetary environmental benefits. Understanding development should not only be limited to the responsibilities andtechnical capacities of the Environment Many Ministry. government bodies from municipal to national levelscan find direct and indirect benefits when factoring goods ecosystem and services in their plans: on ecosystems and compromise the interests of future generations. This vision is based on standard economic models looking looking models economic standard on based is vision This generations. future of interests the compromise and ecosystems on short- the over development and growth of source main the as etc.) industries, machines, (people, capital human-produced at term. The second is to adopt long-term based objectives with sustainable practices, carefully accounting for the ecosystem policy shifting by achieved best be can It development. socio-economic sustainable of contributions and thresholds resilience thinking towards determining long-term benefits and impacts of sector activities on nature, as opposed to considering the externality. as a mere environment of ecosystem goods and services to higher priorities within planning processes. For instance, weighing the existing trades-offs trades-offs existing the weighing instance, For processes. planning within priorities higher to services and goods ecosystem of exploita mining or timber infrastructures, road purposes, agricultural for (e.g. ecosystem an transforming/exploiting between is a first The pathways. development two following the of one with faced essentially are officers finance and Policy usual to a better understanding of sectoral needs in terms of their their of terms in needs sectoral of understanding better a to dependence goods onand shared services.ecosystems To dimensionscannot be separated environmental this effect their as ministries, other of environ objectives and mainstreaming activities the from Effectively ecosystems. productive and healthy on dependent indirectly or directly remains performance role the raising by achieved be could This thinking. strategic through sustainability reinforces planning into dimensions mental to questions critical the of one is provides, it services the for state original its in it maintaining and etc.) construction, dam tion, addressed. be sources of aid. Poor planning and decision making occur when when occur making decision and planning Poor aid. of sources direct the as such perspective, narrow a from viewed is nature food) energy, minerals, (e.g. goods tradable and commodities responsi the have Ministries Finance and Planning provides. it priorities national on based strategies sector oversee to bility envi When sector. each of role potential the to according and contribute can it theme cross-cutting a as regarded is ronment 3.1 envi weak with strategies sections, previous in described As countries developing leave could considerations ronmental or environ social economic, (whether shocks to vulnerable mental in origin) and increasingly dependent on external 3 Good Practices 26 that can shapethemanagement ofnatural resources andgovernance-related arrangements (OECD 2009): ment political support for environmental policies and help transform the vision into actions. Three main factors are identified vision built around greener development initiates. Transparent and effective governance mechanisms are needed to comple An important step that governments can take to generate support for pro-active environmental policies is adoption of a national September 2003)include: V the at highlighted and agencies UN of work“good relatedthe of togovernance” Principles adequate environmental governance structures, a sound legal background, and development of a green vision for the future. on relies policy ofenvironmental success The planning. within effectively measures environment pro-active mainstream to within policy,and services and budgetingplanning processes. The following sections will cover some of the mainapproaches A variety of approaches/tools are often required to build a case for integrating and accounting the benefits of ecosystem goods country to anotheraccording to many issuessuchasthegeographical contexts, resources andsocialneeds. and Huntley 2005). There are no quick or generic recipes for greening policies and budgets, rather approaches vary from one trade-offs remain necessary before identifying the point of success for balanced and adequate development policies (Petersen when an opportunity for mutual benefits presents itself. Governments have to be ready for mistakes to happen, however and Environmental mainstreaming may increase gradually, with improved understanding of biodiversity issues in a sector, or suddenly, ronmental dimensionsto development policy(Environment Helpdesk-EC DCn.d.)are: possible when economic development is in line with environmental considerations. Some of the main reasons for linking envi by presenting alternative paths towards improved human well-being. Policies for pro-poor and equitable development become Ministry as a pro-active player, and not just the Environment The well-being. human stability for and production of recognizeunits naturalinfrastructuresocio-economic as restrictive measures pollution control of abatement, and simply or protectionof nature biodiversity. its and than is necessary to It more become policies Environmental planning. for needed ‘lens’ management ecosystem and biodiversity missing the provide and development policy to approaches pro-active and new offer can Ministry Environment the context, this In population requirements. and common ecosystem inrelation services to issuessuchas water management, disaster management, food security, Sub-national governments Provincial (e.g. andMunicipal) can determine theirinter-dependence onlocal ecosystems and sustainably managed; interdependence oncommon ecosystems andtheway goods andservices resources needto bedistributed, maintained ecosystem to services helpachieve theirsector’s objectives. This can strengthen understanding aboutthe respective Sector ministries can includeintheirstrategies clearenvironmental opportunities resulting from thesustainable useof to available andequitable services sharingofenvironmental resources; planning withbetter chancesofsustainability and coordination between communitiesand development sectors according The PlanningMinistry can lookat development objectives more holistically. This can offer an integrated approach to economic objectives. This can result inlooking for new opportunities to generate greener income; The FinanceMinistry can lookat theenvironment asasource ofrevenue rather thanexpenditures ora‘green to barrier’ benefits to othersectors; in additionalsupport(political/financial) to environmental programmes, asthese can provide stability, sustainability and enhance itspro-active contribution towards reducing poverty and ecosystem-related natural hazards. This canculminate The Environment Ministry can explore andstress thesocio-economic benefits ofecosystem This can goods andservices. 3. 2. 1. The institutional framing andrules (Role of ministries and government institutions). Indigenous Peoples); The actors involved (private andthepublic,businessconsumers, aswell aspoorlocal communities and The characteristics ofnatural resources (water, minerals, timber, etc.); Accountability; Transparency; Legitimacy and Voice; EGS addresses thechallenges ofclimate change. EGS isofimportance for peaceandsecurityinthecontext ofscarce resources; EGS links withhealthandvulnerability risks; EGS links witheconomic activity; EGS links withpoverty andpoverty reduction; Respect ofhumanrights. Performance; Vision /Direction; Equity /Fairness; green police, can contribute towards economic growth and poverty reduction th World (DuranParks Congress - - Good Practices - - - - 27 objective of the CBD. CBD. the of objective rd . 2008). The need to involve all stakeholders reinforces reinforces stakeholders all involve to need The 2008). . al et equitable sharing equitable of the benefits from the utilization of biological 2008). The socio-economic dimension is also particularly addressed within the actual version version actual the within addressed particularly also is dimension socio-economic The 2008). et al. et in the ofandcontext ecosystem biodiversity issues ranging from impactenvironmental assessment to plant diver broad set of representatives from all major groups to build ownership and commitment; commitment; and ownership to build all major groups from of representatives set broad national biodiversity of the for each of the actions all major groups from stakeholders relevant Identifying and action plans; strategies and multidisciplinary, policy integration to promote so as for policies in other areas responsible Consulting those coherence; to ensure co-operation and horizontal cross-sectoral and local of indigenous involvement and the participation improve mechanisms to appropriate Establishing representatives and civil society communities namely through sector, of the private involvement the to encourage cooperation action and improved Striving for level; the national at of partnerships the development to interface the science/policy to improve order community in of the scientific the contribution Strengthening advice on biodiversity; support research-based Preparing, updating and implementing national biodiversity strategies and action plans with the participation of a and action plans with the participation strategies national biodiversity and implementing updating Preparing, I. II. III. IV. V. VI. Source: SCBD COP 9 Decision IX/8/m SCBD COP Source: and the that economy a have significant impact on, benefitfrom or use biodiversity services.and its ecosystem related include: Activities might Box 17: CBD Conference of the Parties Decision 9/8 — Engaging all Stakeholders of society representatives including andstakeholders indigenous and sectors local communities,Engage andrelevant all adopt changes for their equitable use. This is done by looking at the impacts of economic activities but also at the positive can recognizing how these practices, and traditional through ecosystems to healthy contributing in of communities local role and the economy. to society be beneficial By 2020, ecosystems that provide essential services and services essential provide that ecosystems 2020, “By target: following the through 2010 beyond Plan Strategic CBD the of groups Vulnerable n.d.). (WRI society civil with consultations in expressed concerns to response in resources natural of control activ exploitation resource unsustainable to victim fall grounds, legal shaky on based and fragile, often are rights land whose ities.Poorly planned developmentcan limit the accessto resources andcan transformdrastically ecosystem functions and groups. of poor and vulnerable impacts on the livelihoods in negative services resulting consequently and sector private the and communities by shared and controlled are resources natural how review can country A diversity (Bishop ecotourism to sity to health, contribute livelihoods and services well-being, and are restored to ecosystem equitable access and/or safeguarded and the poor and vulnerable”. communities the needs of women, indigenous and local account into all, taking is ensured for and access of issues addressing begun have Honduras and Uganda of (PRSPs) Papers Strategy Reduction Poverty instance For the quality of legitimized and sustainable results and the equitability of the policy process. CBD COP 9 Decision (9/8) highlights highlights (9/8) Decision 9 COP CBD process. policy the of equitability the and results sustainable and legitimized of quality the 17). box (see (NBSAPs) Plans Action and Strategies Biodiversity National of development the in players all involve to need the 3 the as appears resources natural to sharing benefit and access equitable securing of importance The services. and goods ecosystem broader share to mechanisms new include to expanded gradually has objective this time, With to the decisions by adopted the Recent CBD refer explicitly the overall use of ecosystems and biodiversity. Poor governance can be characterized by unbalanced or narrow application of application narrow or unbalanced by characterized be can governance Poor biodiversity. and ecosystems of use overall the vested and corruption and communities, poor to accountable not are uses ecosystem on decisions whereby powers, governing of the poor. the marginalization reinforce interests good governance should establish the Consequently, necessary policy theinto consideration challengesstructures that take in decisions, in participating face might groups vulnerable and poor which etc.) issues, logistical pressures, political (financial, (Bunce benefits most capture can elite where situations avoid and measures. measures. can influencestakeholders theVarious governance ofservices ecosystem at acountry level, including in players private the global donors, in-country market, political To and actors be other successful,environmental parties withpowerful interests. partic the implies usually resources natural of use and management The players. concerned all by accepted be to have policies determining in role influential an play can these of Some interests. conflicting have often that stakeholders different of ipation The characteristics of natural resources and associated development activities can determine the types of impacts and conse and impacts of types the determine can activities development associated and resources natural of characteristics The implementation adequate preventing in result can governance poor However, adopted. be to measures mitigation the quently control) erosion restoration, ecosystem abatement, pollution (e.g. responsive and initiatives) based EGS (e.g. pro-active both of Good Practices 28 arement as defined and established their respective long-term (~20-year) development objectives. NSDS as master plans for sustainable develop- Following the 1992 Rio Summit countries made a commitment to develop National Sustainable Development Strategies (NSDS) a Sustainable DevelopmentVision 3.2 resources that willleave acountry poorer thanbefore (Palerm et al. ofnatural short-lived to consumption importance avoid particular of is relevantagencies of government management fiscal does not come at the cost of ecosystem degradation. In sectors such as forestry and mining more transparent and accountable growth economic (b) and growth, future to optimally contribute sectors these (a) that ensure to critical is sectors resource negatively be impacted haveor positive with, synergies sectors.Stronger other by, naturalenvironmentalthe in governance active involvement of the Environment Ministry in policy and budget planning. As a cross-cutting theme, the environment can environmental governance. For a positive change to occur, the institutional structure can evolve allowing for a broader and pro- limited compared to conventional sectors (e.g. agriculture, forestry, and fishery). The result can be weakened and fragmented powers oftenits with Environment secondary the Ministry remains of the role that implies ministries among responsibilities of distribution The Cabral 2007). and (Neil limited foris environmentalcapacityaddressing challenges ical and opportunities analyt and technical the the and environmentalinstitutional of structure weak, many still is countries the developing sector significant role to play in environmental management, but this role tends to be less clear than in other areas of their work. In Environmental governance is more complex than governance linked to the usual socio-economic sectors. Governments have a certain elite groups monopolizingtheiraccess. and incentive measures, conflicting needs can arise resulting in competition between different users of the same services with enforcement rights, land adequate of poverty. absence combating waysthe are of play),In can groups vulnerable and poor to empower them. Introducing clearer land rights coupled with appropriate incentive measures (recognizing the positive role dynamics of linking poor communities to their neighboring environment can help governments identifying suitable initiatives the of understanding thorough A ecosystems. on pressure of sources the limiting and them empowering of way a as nities Under certain circumstances, a government can partially(ordelegate fully) the management lands ofpublic to poor commu- Source: Communityforestry Workshop 2009 expand thearea offorest undercommunity rights andmanagement. community-baseddevelopmentforestpromote of the should and Point Governmentmanagement institutions policy 7: communities can realize greater value from their forests, suchaspayments for various environmental services; local which through mechanisms financial foster and goods; public environmental creating in communities of butions Point 4: Governments and the private sector should properly acknowledge, account for and financially reward the contri- and programs. policies alland forest constitutions laws, national into rights these incorporating by objectives, development own their pursue and identify to of forest communities authority the of recognition the forestincluding resources, and land over Point 1: Governments and policy makers should guarantee the human, civil, customary and property rights of local people partners from over 30countries working inforestry anddevelopment, hereby declare that: […] the 200 representatives of diverse stakeholders from communities, governments, civil society and other development Declaration from theCommunity Forestry International Workshop Pokhara —September 18,2009 Box 19: Source: Duraiappah The benefits ofaquaculture go to asmallgroup, whilethe costs are imposedonthelocal poor. source of protein and supplemental income, have been destroyed due to shrimp farming and other forms of aquaculture. common pool resources. For example, in many tropical countries coastal fisheries that formerly provided an inexpensive ecosystem the expropriation to of access lost have to due also poor services The billion. US$9.3 careadditional costs an Similarly, land clearing for forest plantations in Indonesia degraded air quality for 20 million people and increased health obtaining water. of costs higher and sufferswaterhealth and clean reduced to haveaccess not does Caribbean the and America, Latin Asia, Africa, in population urban the of half world, the of most in increased has water clean of supply the while For example, rich. the benefited disproportionately have ecosystemservices of supply the in changes Global Box 18:EcosystemServiceshaveuntilnowbenefitedtherich Learning from Community Forestry: Recognizing Rights and Advancing Democratic Forest Governance Globally et al . 2008 a strategic and participatory process of analysis, debate, capacity strengthening, planning and action and planning debate, capacity strengthening, analysis, of process participatory strategicand a 2006). - Good Practices - 29 - - - 3. The Government shall ensure that, in order to conserve the natural country’s percent sixty of minimum a ecosystem, the of degradation prevent to and resources all time. for cover under forest land shall be maintained total of Bhutan’s 4. Parliament may enact environmental legislationto ensure sustainable use of natural resources and maintain equityintergenerational andreaffirm thesover resources. biological its own over of the State eign rights declare any part of the by country law, to be a 5.Park, National Parliament may, Wildlife Reserve, Nature Reserve, Protected Forest, Biosphere Reserve, Critical meriting protection. and such other categories Watershed and Bass 2009 Dalal-Clayton Source: 1. Every Bhutanese is a trustee of the Kingdom’s natural resources and environment environment and resources natural Kingdom’s the of trustee a is Bhutanese Every 1. duty fundamental the is it and generations future and present the of benefit the for conser environment, natural the of protection the to contribute to citizen every of forms of of ofecological the of all vation and rich Bhutan biodiversity prevention degradation including noise, visual and physical pollution through the adoption and policies. friendly practices and support of environment shall: Government 2. The Royal (a) Protect, conserve and improve the pristine environment and safeguard the of the country; biodiversity degradation; pollution and ecological (b) Prevent justifi promoting while development sustainable balanced ecologically Secure (c) and and social development; able economic environment. and healthy a safe (d) Ensure Environmental Commitments in the Constitution of the Box 22: Environmental Commitments in the Constitution Kingdom of Bhutan Article 5 :Environment

(OECD 1999). To secure lasting political support an NSDS is built in consultation with govern with consultation in built is NSDS an support political lasting secure To 1999). (OECD - - - - (see box 20), which represents an iteration of the original 1997 Philippine Agenda 21. Agenda of the original 1997 Philippine an iteration represents 20), which (see box nitiatives I and Legal Constitutions Green to live well. live to 2008 of Ecuador Government Source: promote its rights. its rights. promote a description Article 74 provides of the rights of people, commu benefit to nationalities and nities, from the environmentnatural riches that allow them and evolutionary processes should and regenerated. be maintained Every person, community, and nationality should enforce the main article the nature, of rights provide to is state the while tains, and nature to protect incentives mental destruction especially due to oil extraction activities, Ecuador has approved a new constitution that is the first in Smith 2009 Source: Article 71 states that the envi ronment, or Pachamama, hasthat and respected be to right the and functions, structure, cycle its After many years of environ “inalienable extend to world the nature.” to rights Box 21: Ecuador Constitution The 2009 Enhanced Philippine Agenda 21, […] is a thematic program covering the following areas: (i) Eradicating Poverty; Poverty; Eradicating (i) areas: following the covering program thematic a is […] 21, Agenda Philippine Enhanced 2009 The (ii) Managing Globalization; (iii) Achieving SocialEquity; (iv) SecuringPeace and Solidarity; (v) MaintainingEcological and Good Governance. Empowe`rment and (vi) Promoting Integrity; 2009 Development Sustainable for Council Philippine Source: Enhanced Philippine Agenda 21 Box 20: Enhanced Philippine - constitu dimensions in their respective include to environmental the step taken such Countries as and have Ecuador Bhutan taken confertions.at the additional national Such level reform initiatives political natural support opportunities to legal and mechanisms. constitutional and legal within vision environmental an entrench further They development. in role its and capital 3.3 policies and other sector objectives. The ecological dimension can be visible within the NSDS of various countries such as the as such countries various of NSDS the within visible be can dimension ecological The objectives. sector other and policies Philippine Agenda 21 Enhanced social and environmental considerations by identifying the main priorities and achievable objectives over the long run. An or other mid- Strategies Reduction Poverty plans NSDS like medium-term development serves for as an framework umbrella directions vision based on the while anchoring long-term the capacities, Plans and management Development National term security, energy security, food eradication, poverty as such objectives include They process. consultative the through received good governance, and sound managementecosystem Within to name NSDSa few. priorities,governments can include the role offor human ecosystems development as a clearly visible objective.Attention EGSto issues at this relatively high level in measures pro-active and greener integrate to support political necessary the provide can planning government strategic of towards sustainable development sustainable towards development country’s their concerning aspirations their together bringing sector, private the and society civil institutions, ment vision. It is a continuous learning process based onexperiences new stresseconomic, andresults achieved. Thesestrategies Good Practices 30 help capture andincludetherole played by ecosystem into goods andservices theplanningprocess. follow will focus on medium-term planning and implementation. To this end, a set of tools and approaches will be explored to which sections The initiatives. concreteplanning into vision translatethis to easier becomes ecosystems, it of management Having covered some of the background elements required for good governance and a long-term vision including a responsible policies. Forum on Forests and the United Nations Permanent Forum on Indigenous Issues both include the goals of developing greener Parallel to MEAs, international forums advance environmental policy work between countries. For instance the United Nations Agreements (seeTable 7for someexamples). environmental Multilateral global 100 aligning efforts. to are Thereclose and countriesEnvironmental neighboring between ecosystemsbiodiversity and managementof dialogue promoting sound measures by the policy for facilitateof adoption the risks of natural disasters and conflicts between neighboring nations while improving economic returns. Consequently, MEAs can MEAs can set the scientific and policy stage for countries to sustainably manage their trans-boundary ecosystems reducing the and local communities andthepoorvulnerable”. restoredor equitableand access to ecosystem forensured is takingservices all, into account indigenous women, of needs the “ The socio-economic dimension is also particularly addressed within the actual version of the CBD Strategic Plan beyond 2010: 23) to helpreduce therate oflossbiodiversity, adopted in2002by theConference oftheParties: developmentmore.human foundedge,and This is dimension targetsacross 2010 including variousDecisions, CBD box(see knowl traditional sharing, benefit and access linkedarereduction, poverty to ecosystem associated services and and goods rights, etc. human Conventionreduction, instance, issues, the For gender Diversity Biological within on environmental topics poverty address to means acomplementary as MEAs in reflected increasingly are latter The ecosystem services. associated Goals as a guide to medium- and long-term country visions. Numerous MEAs reference the issue of conserving biodiversity and Multilateral Environmental Agreements focus primarily on the environment but can include links to the Millennium Development restoration andmore. in programmes dedicated participation biodiversity sequestration,benefits to monetary for conservation, carbon ecosystem non- and monetary offering companies sector private and community donor the from come can incentives many MEAs, these Under measures. based EGS building for mechanisms and opportunities provide can but priorities, development and level, commitments to comply with Multilateral Environmental Agreements (see Table 7) serve not only as guidance for policy national the At Multilateral(MEAs). Agreements in Environmental ratified found commitments as well as priorities national A country’s long-term vision is meant to shape and influence its development objectives. This vision will most likely include the 3.4 By 2020, ecosystems that provide essential services and contribute to health, livelihoods and well-being, are safeguarded and/ Source: SCBD tices, includingtheirrights to benefit sharing. Target 9.2: Protect the rights of indigenous and local communities over their traditional knowledge, innovations and prac Target 9.1Protect traditional knowledge, innovations and practices. Goal 9Maintain socio-cultural diversity ofindigenous andlocal communities. Focal Area: Protect traditional knowledge, innovations and practices people maintained. Target 8.2: Biological resources that support sustainable livelihoods, local food security and health care, especially of poor Target 8.1:Capacityofecosystems to deliver maintained. goods andservices Goal 8.Maintain capacity ofecosystems to deliver andsupport livelihoods. goods andservices Focal Area: Maintain from goods andservices biodiversity to supporthumanwell-being Box 23:CBD2010Targets Global Environmental Commitments - - Good Practices 31 Objective of wetland wise use the sustainable, ensure to Ramsar seeks of international sites wetland of including designation resources conserved, are resources all wetland that ensure and to importance and in the future. now in species of wild the trade control to seeks The Convention with extinction be, threatened or may are, that animals and plants trade. international of as a result gas greenhouse stabilize to is of the treaty The objective prevent would that at a level atmosphere in the concentrations system. with the climate interference anthropogenic dangerous diversity, of biological conservation at the aims The Convention and equitable fair and the use of its components, the sustainable genetic of arising out of the utilization sharing of the benefits and the those resources access to (including appropriate resources over all rights account into taking technologies, of relevant transfer appropriate for provide and to and technologies), those resources funding. and desertification combat to of the UNCCD is The objective experiencing countries in drought of effects the mitigate particularly in Africa, desertification, and/or serious drought international by levels, supported at all action effective through an of framework in the arrangements, and partnership cooperation approach. integrated 159 175 192 192 193 parties otal signatory signatory otal T Examples of MEA of MEA 7: Examples Table

Convention on Wetlands of Wetlands on Convention Importance International Habitat Especially as Waterfowl 1971 (Ramsar Convention), on International Convention Species of in Endangered Trade (CITES), and Flora Wild Fauna 1973 Framework Nations United Change, on Climate Convention 1992 on Biological Convention 1992 Diversity, to Combat Convention 1994 Desertification, Name Flickr.com/McKaySavage Good Practices 32 Overview Concept/Issues Development Vision A Sustainable Commitments Global Environmental and Legal Initiatives Green Constitutions Governance Good Environmental Definition/Details focus ongreen issues. term development objectives that includea (NSDS) can bereinforced by establishing long- A National Sustainable Development Strategy interests andneedsoffuture generations. ronmental visioniskey to protecting the Building political support for anenvi- streaming andhumanrights issues. to address poverty reduction, gender main- reflected inMEAs asa complementary means Thisdimensionisincreasinglyservices. conservation andassociated ecosystem (MEA) generally reference biodiversity Multilateral Environmental Agreements Charter. objectives underthe country’s Constitution/ is enhancedby includinggreen values and A national long-term development vision ministries andgovernment institutions). 3. Theinstitutional framing andrules (Role of communities and Indigenous Peoples); business andconsumers, aswell aspoorlocal 2. Theactors involved (private andthepublic, (water, minerals, timber, etc.); 1. Thecharacteristics ofnatural resources nance-related arrangements: management ofnatural resources andgover Three mainfactors can shapethe ecosystem degradation. development doesnotcome at thecost of to future development, and(b)economic that (a)thesesectors contribute optimally natural resource sectors iscritical to ensure Stronger environmental governance inthe economic sectors. than governance linked to theusualsocio- Environmental governance ismore complex Se ction 3 3 ction S ummary - Some F monopolizing theiraccess. withcertainthe sameservices elite groups competition between different users of conflicting needs canarise resultingin enforcement andincentive measures, In theabsence ofadequate landrights, decision-making. intheirrespectiveand services plansand benefits when factoring ecosystem goods national levels can finddirect andindirect Many government bodiesfrom municipalto poor. interests reinforce themarginalization ofthe communities, and corruption and vested ecosystem usesare notaccountable to poor governing powers, whereby decisionson by unbalancedornarrow application of Poor governance can becharacterized of natural resources. begun addressing issuesofaccessandcontrol of Uganda andHonduras, amongothers, have development measures. mechanisms to helpestablish EGS based can provide financialopportunities and with Multilateral Environmental Agreements At thenational level, commitments to comply Environmental Agreements. dimensions intheirrespective constitutions. have taken thestep to include environmental sector objectives. and pro-active measures inpoliciesandother politicalsary support to integrate greener government planningcan provide theneces- to EGS issuesat ahighlevel ofstrategic tems asaclearlyvisibleobjective. Attention stakeholder can includetherole ofecosys- Within NSDSpriorities, governments and Enhanced PhilippineAgenda 21 the NSDSofvarious countries suchasthe X X X X X X X X Poverty Reduction Strategy Papers (PRSPs) There are closeto 100Multilateral Countries suchasEcuador andBhutan Ecological dimensionsare includedin acts/ R ecommendations Good Practices 33

ce being Source: EU 2008 Source:

range and materiality

orage Qualitative: of various ecosystem and biodiversity benefits provided by the ecosystem instan evaluated, and knowledge gaps e.g. cubic meters of

Quantitative: water purified, tons of carbon stored, share of population affected by loss of food provisioning : e.g. avoided water Monetary purification costs, value of food provision, value of carbon st

review valuation Monetary

Qualitative assessment biodiversity Quantitative

Full range of ecosystem services underpinned by

aluation specified - Non Valuing Ecosystem Services Valuing 8: Figure

Ecological Price < Ecological - -

arket Price Market Ecosystem Goods and Services and V Goods Assessment Ecosystem World fish catch – US$58 billion (provisioning service); – US$58 billion (provisioning catch fish World service); (provisioning to US$1 billion/year – up marine organisms from agents Anti-cancer service); in 2001 (provisioning US$43 billion – roughly Global herbal medicine market service); (regulating – US$2–8 billion/year crops agriculture for as pollinators Honeybees tourism fisheries and for reefs Coral service). (cultural – US$30 billion/year Planning for Sustainability for Planning What main ecosystem services does the country’s economy rely on? rely economy services the country’s does main ecosystem What services? ecosystem depend on policy/strategy the proposed does How ecosystem these affecting drivers and direct the indirect alter policy/strategy the proposed does How services? on the ecosystem in drivers be the impact of the change services? will What of these services? and trends status about the is known What values of economic and societal the to quantify is it be appropriate conditions Under what would economic values? How these estimate to available are methods services? What ecosystem of ecosystem and delivery by a decline in the quality be affected and human well-being development economic to improve services provide opportunities do ecosystem what services and, conversely, affected? be groups stakeholder different would How and human well-being? development services be explored? in ecosystem changes future can How strategy? the development into and opportunities be incorporated service risks ecosystem can How services? ecosystem help sustain policies can What is needed? development capacity What services been mapped? ecosystem important Have services being monitored? and quality of ecosystem the quantity Are Source: OECD 2008 OECD Source: Guiding Questions for Policy Makers : for Policy Guiding Questions within existing policy and budget processes. processes. policy and budget within existing Thus, by taking stock of what is nationallyavail able in terms of EGS, a valuation can contribute to a better understanding of environmental the total value (see Figure 8) There represents. is or costs and unknown future the risk of excluding the about uncertainty the course of and EGS of uses ecosys to attribute will generation future that value ecosystem an to value a attributing However, tems. service provides a starting pointEGS to integrate Taking into consideration emerging EGS knowledge knowledge EGS emerging consideration into Taking and available tools, the valuationexercise can in what of approximation rough a remain cases many qualitative and quantitative assessments as specified in figure 8. as specified in assessments and quantitative qualitative (UNEP 2007): follows as been estimated have of some EGS the annual value instance For The identification and valuation of EGS provide a practical understanding of the socio-economic role of ecosystems and biodi- ecosystems of role socio-economic the of understanding practical a provide EGS of valuation and identification The conducting by achieved generally be can EGS of valuation and Identification needs. development and human of terms in versity 4.1 The environment sector cuts across a broad swath of society andPoverty reduction, the human-inducedeconomy. natural disasters, environmental degradation and economic developmentrequire governments toexplore how planning processes from and assessment would benefit EGS.Governments tangible and non-tangible incorporate effectively to be can improved valuationtechniques capable of highlighting EGS’ full contributions todevelopment. Many traditionalapproaches to cost/ role and The environment. the rarely and more health and education, such as in sectors investments target analyses benefits thus understanding limiting theiroverall by is markets, poorly captured of value the goods ecosystems and to services linked within policies. and integration 4 Good Practices 34 able use of natural resources is critical to sustainable economic development inWe most can summarize low-income the justification countries. to integrate Second, EGSthere into decision-makingare clear through the following four main reasons: First, sustain economic development scenariosbecomes feasible. mostly to policies development green of comparison The choices. development other to relative them weigh to and terms EGSassessment valuation and provide ameans to compare thebenefits linked to ecosystem monetary in services and goods 2009). (EU scrutiny public of power corrective the makersfrom and policy from hidden largely remain losses capitalnatural why reasons main the of one is gap This real. as just is which assets, ecological of tear’ and ‘wear the not but assets capital (SNA) can suffer from major limitations when it comes to measuring natural capital. It recognizes depreciation for human-made EGS assessment and valuation can help bridge environment and economic sciences. For instance, Standard National Accounts and ecosystems withinpolicyandplanningprocesses. of a country’s EGS. In this sense, EGS assessment and valuation can provide the proper justification for integrating biodiversity economic approaches. Following this exercise, it becomes possible to develop pro-active policies based on a better knowledge that externalities environmental of consideration gradual the to lead can result final The development. for potential and condition their exist, services key what identify to possible becomes It sectors. various to contributions Source: Ranganathan decision affects that services other stakeholders rely on. the how and ecosystemservices on decision’s goals the of dependence the both to relate can opportunities and Risks may change in thefuture. tion gathered in earlier steps. Step five can also draw on the results of any scenarios that explore how ecosystem services informathe using involves decision a with associated ecosystem opportunities the and risks Identifying service-related Step 5:Identify Ecosystem Risks andOpportunities Service valued inthemarketplace at all(for instance, regulating services). at least partially captured by the market (such as provisioning and some cultural services) and those that are not currently Economic valuation is the attempt to assign quantitative economic values to ecosystem services, including services that are Step 4:AssesstheNeedfor anEconomic V and opportunitiesassociated withthedecision. two and their trends. The resulting information will be used in the final step to identify the ecosystem service-based risks in step selected ecosystemservices the of condition the of analysis detailed more a conducting involvesstep third The Step 3:AssesstheConditionandT making process, aswell asidentify otherusers that oftheservices may affect orbe affected bythedecision. decision the in include to scales time and (spatial) geographic what inform also will step This impacts. and on depends decision a that ecosystem the services all detail in assess to able be makernot may decision a resources, limited Given the decisioninorder to set priorities for furtherassessment. The secondstep entailsscreening theecosystem identified inservices step one to determine which are most relevantto Step 2:Screen theEcosystem for Services R considering whether ornotthedecisiondependsonhasanimpacteachecosystem service. It systematically involves and affects. on depends decision a that services ecosystem the all identify to is first step The Step 1:Identify the Ecosystem inPlay Services Box 25: World ResourcesInstituteEcosystemServices Approach Source: EU2009 based ongeographical andsocio-economic criteria. Work isstill ongoing andwillbe completed in2010. valuesfar,havecollected1,100 Overso been ecosystemorganized22 are being and These biomes covering 10 services. analysis places the values in their context, thereby facilitating their interpretation and use, notably through benefit transfer.(population density, income level), order in information an build to pool future for assessments. This data and collection conditions socio-economic and different in regions different services for values of picture synthetic a provide to aims It aroundservices theworld, makinguseofexisting databases and valuation literature. reportanalyzes valuesTEEB economic thathavelarge ecosystemThe of estimated a of number been types main the for Box 24:Dataforvaluesofdifferent services et al . 2008 rends oftheR aluation ofServices elevance elevant Ecosystem Services escape traditional traditional - - Good PracticEs 35 Source: WRI 2008 Source: Source: Environment Canada, n.d. Environment Source: Ecosystem services Ecosystem mated) ($ un-esti Nature related acti viti es $12 B $12 es viti acti related Nature Forests $38 B Forests Primary agriculture $35 B $22 B Oceans Minerals & energy $108 B Freedom of informati on of informati Freedom decision making cipatory Parti State of the environment reports environment of the State Land use zoning transfer Technology Subsidies sustainable promote policies to Tax technology services ecosystem for Payments Nati onal budgets Nati policies development onal Nati on adaptati Climate

Economic wealth: Economic What types of decision processes can the processes can What types of decision 8: Table inform? Approach Services Ecosystem Governance sector policies policies sector and plans Economic and Economic ves incenti scal fi nati onal and nati onal sub-nati policies and plans Pharmaceuti cals Pharmaceuti Drinking water Minerals Waste treatment Waste control Erosion

Climate regulati on regulati Climate on cati purifi Water Woods/fi bers Woods/fi Food Fuel

services: Goods: presented below is presented one of the . 2009). As a result, public poli- et al stocks: Air Water Land Living organisms Canada’s Economy Relies on Various Goods & Services Economy Relies on Various Canada’s 9: Figure The approaches below on alrepresent EGSvaluati potenti on n.d.): Valuati (Ecosystem techniques Price method: 1) market goods. markets. commercial and sold in bought or services are that products for ecosystem marketed values economic mates commercially Esti of on producti the to contribute that vity method: services or 2) Producti products ecosystem for values economic mates Esti 3) Hedonic Pricing method: good. prices of some other ect market aff services directly that or environmental for ecosystem values economic mates Esti att ributes. environmental value of local ect the refl ons in housing prices that variati applied to commonly Most method: cost 4) travel of a site value the on. Assumes that recreati for used are that or sites with ecosystems values associated economic mates Esti site. to visit the to travel to pay willing much people are in how ected is refl tute substi and cost, replacement avoided, cost 5) damage methods: cost ng mati replacing of costs services, ecosystem from lost ng resulti esti damages avoided of costs values based on economic mate for Esti method used a on widely based most The services, services. tute service. substi of providing services, or costs ecosystem environmental c environmental or specifi method: on for ecosystem pay any valuati to ngent virtually 6) conti for willingness their values state economic directly mates to people Esti Asks values. use” “passive or non-use, scenario. cal hypotheti choice method: ngent 7) conti s tradeoff service.to make Based on asking people or environmental ecosystem for virtually any values economic mates Esti is to pay—this for willingness ask cs. Does not directly issue. or services or characteristi on or environmental of ecosystem among sets locati another for ribute. completed att as an cost include s that already studies tradeoff from from inferred mates esti t benefi method: ng transfer t 8) Benefi existi transferring by values economic mates Esti There is no one recipe to conduct such an assessment, but the the but assessment, an such conduct to recipe one no is There Services Approach Ecosystem valuing and assessing of view in taken be to measures available services.ecosystem It is suggested by the Resources World steps following the through implemented be can and tute Insti 8). 25 and Table (see box environment, economic development and poverty reducti on. on. reducti poverty and development economic environment, processes policy key in environment the of on integrati Fourth, environmental in advances despite low, remains budgets and on (Drakenberg legislati ng integrati of capable markets new for stage the set can cies price signals. possible into where service values ecosystem indicati ons of environmental degradati on with direct impacts impacts direct with on degradati environmental of ons indicati lack makers policy Third, vity. producti and security health, on cienton on economic the links informati between the suffi Good Practices 36 ment is dependent on resources and the level of responsibilities assigned to the Environment Ministry Policy(agencies development and ordecision departments).making are rarely in the hands of environmental planners, and their influence within govern is recommended inorder to prevent future risks andunsustainable development paths. services can be scarce and the scale usually needed for decision making still too small. In such cases a precautionary approach of benefits and social scientificonecosystem economic as difficult task data remains a This dimensions. economic and social relatechallenges communicating tovalue.Other EGS environmental effectively to to issues without failing concepts EGS link particularly, markets typically reward thereal short-term natural capturing underestimatingnot or of while resources values More forestry,etc.). (agriculture, health, sectors prominent of more priorities and activities the by dominated and mented marketsas ecosystemsfailcapturetorole of the complexity, their and environmentperspectives the on be continuefrag- to tics of environmental management contributes a level of complexity different from conventional sector policies. For instance, andcharacteris trans-generational trans-boundary cross-cutting, The capital. natural the of liquidation from benefit would who those from different a constituency form often capital natural on depending services and ecosystem goods of ficiaries bene makers. perspective,the governance policy from a From benefits these of greatpart a hide to serve which challenges economy are multiple. They the come to in and tangible and non-tangiblesociety to forms,provides and innature financialthat and non-financial26) box forms.(see There are services many and goods ecosystem potential and current of Examples approaches for Integrative PlanningProcesses 4.2 Source: Drakenberg et al.2009 Box 26:EnvironmentalBenefits–CountryExamples Figure 10:Uganda—EnvironmentandNaturalResourcesinRelationtoGDP Source: UNEP/GRID-Arendal 2006 provide avital non-agricultural rural employment for thepoor. Conversely, unsustainable usewilleliminate jobs from thissector. employment inthesector issecondary processing andsubsistence use.Sustainable natural resource useimpliesthat thissector willcontinue to Intheformalservices. figures, onlyUSD405millionis recorded, where subsistence useandinformal markets are not captured. Over 90%ofthe The environment andnatural resources sector isestimated to contribute USD791million to theUganda GDP, excluding benefits like ecosystem to 19% ofGDP, substantially higherthan what is recorded inofficial statistics. In Uganda, theeconomic value offisheries, forestry, wetlands, tourism andwildlife were estimated tobe equivalent capital. were estimated to beminus6.6%ofGDPlargely due to soilerosion, water damage andunderinvestment infixed In Tajikistan, environmental degradation was identified asabinding constraint to economic growth. National savings increased mortality, morbidityanddecreased productivity. In Peru, the cost ofenvironmental degradation was estimated tobeequivalent to3.9%ofGDP, mainly due to fiscal revenues). In Mozambique, publicrevenues stemming from natural resources could beincreased by 165%(equivalent to 15%of nearly halfofrural householdsubsistence andcash income. In LaoPDR,non-timber forest products (food, fodder, buildingmaterial, medicine, etc.) are estimated to comprise - - - Good Practices 37 Economic opportunities Economic Health, natural hazards Health, natural Poverty reduction Poverty Gender, IP, TK IP, Gender, as an essential and complementary socio-economic socio-economic complementary and essential an as 2005 limits et al. et Foley Source: “Trade-off flowers’’ depicting alternative scenarios for ecotourism projects ecotourism for scenarios alternative depicting flowers’’ “Trade-off (a) Unrestrained growth. and economic protection biodiversity aimed at many degrades that and human traffic infrastructure lead to can ecotourism develops (b) Ecotourism itself collapses. services and ecotourism ecosystem income services so that and ecosystem of biodiversity management with good not services are is enhanced, and ecosystem tourism, biodiversity from flows reserves, in nature is protected and biodiversity develops (c) Ecotourism lost. quality and fisheries, undermines water and hotels in roads but the increase The scenario services and development. among ecosystem tradeoffs causing plans and making good management of a a matter is largely which is realized high. of human use is not too the intensity sure Scenarios for ecotourism projects aimed at 12: Figure biodiversity protection and economic growth ------Ecosystem Ecosystem Goods and Services Prism 360 degree plan

Economic objectives assessing spatial andtemporal changesto Time Frame Short Term Objectives Filtered through Longer Time Frame with Green Focus Objectives Filtered through Longer Time Short Term 11: Figure lead to truly integrated planning approaches resulting in a better equity and sustainability. This leads to the elaboration of enhanced national development strate giesorpoverty reduction strategies that pro-activeare and inclusive of EGS dimensions. suchas gender and Indigenous Peoples’ needs, educa tion, natural disasters, health andfood security (see Figure 11). Reconciling short-term economic interests andlong-term development needs can be achieved by linking sustainable ecosystem management and EGS into planning. Assessing the state and capturing the value and role of ecosystem goods and services can strategies, and within poverty reduction strategies. The sound integration of the governmentenvironment planners to acquire allows a ning vision, ecosystems,their and use.availability, Environment as a systemic filter allows plans totarget multiple topics The extent to which these approaches are effec country to another. However, most of these plans do not adequately integrate green and pro-active objec approaches/ of variety access a can Policy makers tives. tools to mainstream EGS into national development and decision-making can be non-linear? There is no one answer. It is therefore important to target various levels of levels various planning to target important It is and therefore decision-making can be non-linear? isThere no one answer. initia green where mechanisms identify to and processes couldtives rely becountries In on introduced. general, policies development turn to approaches planning three plans, decentralized plans, sector actions: concrete into plans. and spatial policy and planning processes. The result can be a lack of clear consensus and consistent measures about adoption of EGS-based EGS-based of adoption about measures consistent and consensus clear of lack a be can result The processes. planning and policy Multilateral other to related plans similar or (NBSAP) Plan Action and Strategy Biodiversity National the instance For approaches. Instead, plans. development broader in integration effective their without implemented are (MEA) Agreement Environmental pollution with dealing measures responsive towards geared mostly are that policies environmental on rely still countries many and benefits, EGS-based consider to how But abatement. and control motor for development? How to include pro-active environmental measures,taking intoconsideration that policy-making, tively adopted and implemented can vary from one The above challenges (and others) can reduce the uptake of the role and importance of ecosystem goods and servicesand within goods ecosystem of importance and role the of uptake the reduce can others) (and challenges above The Good Practices 38 policies (seeFigure 12). sector harmonized on based services ecosystemand atintegrated goods an look through achieved is strategies.This sector greener,at look to approaches should governmentsjoint strategies ecosystems’ and Thus, preservepro-active to resilience. mounting climatic uncertainties and natural threats are examples of challenges to be considered as policy makers adapt their instance, For success. term long of chances their optimize well-being human and security on impact their and systems tion in produc outputs and Sector strategies inputs consistently account which goals. EGS for national other and sector meeting ecosystemsthat services contributesustainablycannon-tangibleto and tangible of value and understanding type on the be sectorinternalizeshould plans their strategies, in their long-termnatureon impact dependence and resources. Focusshould objectives and impact analyses, a strong understating of the objectives and impacts of others sectors is required. In this sense sector’s their into dimensions integrate environmental thoroughly to sector a for order In use. long-term for protection its forest, water or fisheries sectors often pursue competing objectives such as the production and exploitation of a resource and rapid economic returns, can Ecosystem services are often required to meet diverging sector goals. Conflicting sector priorities, coupled with a need4.2.1 to achieve Source: Government ofSouthAfrica availability andfood security. workers use a range of methods to control invasive alien plants. Other EGS benefits will accrue relative to increased water Africa’s South of field nine and Scientists provinces. all in projects 300 over currentlyruns WfW arewomen. 52% these, society. of Of sectors marginalized most the among from annum per people 20,000 approximatelyto training and jobs Since its inception in 1995, the programme has cleared more than one million hectares of invasive alien plants providing tion andenvironment, research foundations andprivate companies. Environmental conserva Affairs and of agriculture, of Agriculture, Industry, and departments Trade Tourism, provincial nership with local communities to whom it provides jobs, and also Government departments including the Departments launched in 1995 and administered through the Department of Water Affairs and Forestry. This programme works in part exponentialan rate. fight The theagainst by spearheaded invasive is plants Working alien for Water (WfW) programme, at growing is problem the and country the of 10% about cover plants these that estimated is invasive. It being as sified transport,recreation currently clas water 198 are and supply.Africa, South estimatedplants introduced to the 9000 Of fisheries, the water agriculture, as hyacinth such affect plants invasive aquatic and uses waterproductive morefrom of amounts enormous divert can IAPs erosion. soil increase and floods and fires of impact the intensify They land. of use productive the natural and systems of functioning Africa’swaterdiversity,security, to ecological biological also the but into countries and then out-compete indigenous species. Invasive alien plants (IAPs) pose a direct threat not only to South introduced are that microbes and animals plants, country’sarebiodiversity. the to species threat Invasivebiggest alien year,Africa’ssingle every the economy South are to and damage of Rands of billions causing are species Invasivealien Box 28:South Africa – Working for Water Programme Source: SCBD2009 certain RILpractices including: operators), thereby reducing timber wastage. Damage to the forest ecosystem can be tremendously reduced by adopting tractorby forestseen extracted the arenot not arefelledtheythattrees in because but (those logs percentage‘lost’ of the toreduce shown been has RIL the environmental benefits, from Apart techniques. harvesting standardover timber ervation of higher levels in biodiversity in selectively logged forests lends a strong case to sustainable forest management used to reduce carbon emissions by up to 40 tons per hectare of forest when compared to conventional logging. The pres Reduced Impact Logging (RIL) can provide both environmental and economic benefits. Studies have found that RIL can be Box 27:ReducedImpactLogging(RIL) Careful planningto prevent excess roads whichgive accessto transient settlers. Using improved technologies to reduce damage to thesoilcaused by logextraction; Establishing stream buffer zones and watershed protection areas; Cutting climbers andlianas well before felling; Directional tree felling to inflict thesmallest impactonthesurrounding forest; Sector Plans obscure the importance of maintaining environmental sustainability. For instance the agriculture, - - - - - Good Practices - - 39 - , the measures set out in set , the measures inter alia inter to generate the optimal sectoral outcomes for sustainable development, development, for sustainable outcomes sectoral the optimal generate to through improved distribution of benefits, more equitable access to vital ecosystem ecosystem to vital access equitable more benefits, of distribution improved through between the sectors and the environment (reduced ecological footprint, sustainable and sustainable footprint, ecological (reduced and the environment sectors the between Understanding the thresholds of ecosystems and their resilience levels; and their resilience of ecosystems the thresholds Understanding goods and services; ecosystem from benefits and optimizing Capturing goods and ecosystem common their use of terms of in strategies sector the different Harmonizing and integrating services; footprint. ecological reduce the to measures mitigation Identifying better ecological balance ecological better productivity; resilience and ecosystem in investing services) by ecosystem use of efficient distribution and spatial inter-sectoral better poverty reduction and risk prevention (production within ecological limits) by investing in ecosystem resilience and ecosystem in investing by limits) ecological within (production and risk prevention reduction poverty productivity; balance socio-cultural better services among the different segments of society, and consumption within ecological limits. ecological within consumption and of society, segments services the different among Assessing the status and trends regarding biological diversity (including the laws, policies, institutions, and policies, institutions, (including the laws, diversity biological regarding and trends Assessing the status initiatives); conservation and biodiversity; to ecosystems linked constraints and problems environmental Identifying of the CBD within specific meet the objective effectively to required and actions policies, strategies, Establishing timeframes; sectors. within development biodiversity to mainstream steps Identifying this Convention relevant to the Contracting Party concerned; Party to the Contracting relevant this Convention into diversity use of biological sustainable and the conservation as possible and as appropriate, as far Integrate, and policies. plans, programmes or cross-sectoral sectoral relevant Develop national strategies, plans or programmes for the conservation and sustainable use of biological diversity or diversity use of biological and sustainable conservation for the plans or programmes strategies, national Develop reflect, which shall plans or programmes strategies, this purpose existing for adapt 1. 2. 3. 4. 1. 2. 3. complex challenge that is at the heart of the Convention. At the country level, effective development and implementation implementation and development effective level, country the At Convention. the of heart the at is that challenge complex NBSAPs While will. political and data, environmental capacities, technical of lack a as such obstacles general in faced has NBSAP an measures, of implementation best identifying and information conservation gathering of terms in documents key are limited. rather been has strategies sector other and policies development national of elaboration the to contribution their P Benefits NBSA of purposes, including: variety a can serve . Their implementation NBSAPs developed have 160 countries over date To develop on directly more focusing framework NBSAP updated an of development the on working currently is SCBD The is a decision-making national into resources biological of use sustainable and conservation of dimensions the Integrating reduction. and poverty ment National Biodiversity Strategies and Action Plans — NBSAPs Box 29: National Biodiversity Strategies and Contracting each that states on Biological andConvention Actionof the Plan for is the the implementation Use tool main Strategy A Biodiversity National Sustainable and Conservation for Measures General on Convention the of 6 Article Diversity. capabilities: and conditions with its particular shall, in accordance Party This implies building sound scenarios and options about howEGScanto contribute the success of It otherstrategies. sector envi for room adequate allow to strategies sector of implementation and preparation of process the in flexibility new requires cooperation its offer can Ministry Environment An approaches. ecosystem-based of consideration gradual a and input ronmental National programmes. green for support sector gaining while adopted be to practices sustainable of terms in sectors other to can Agreements, Environmental Multilateral other of tools similar with along (NBSAP), Plan Action and Strategies Biodiversity plans. sector green guidance in developing strategic provide Conventionalgovernmentstructures thatdictate some dimensions environmental can be handledby ministries with activi etc.). In theabsence of a clear mining,water, fishery, (e.g.resources toforestry, ministries of natural related ties agriculture, canbenefits, ministries quickly priorities.overlook some When of possible, of theirecosystem environmental understanding dimensions. environmental integrate pro-actively them help to sectors other engage regularly should Ministry Environment an benefits: the following will have This approach There is a triple challenge for sustainable planning of sector policies: policies: of sector planning sustainable for is a triple challenge There Good Practices 40 can be better integrated according to their common dependence on ecosystems. ofcommon needs and EGS knowledge, private sector and community objectives stakeholder collaboration to express its views and interests on resourceecosystem use.degradation. In light Spatial planning should provide an opportunity for multi- looking at current needs and the cumulative effects of sector plans on system-wideecosystems. Planners can evaluate the potential impact of land-use decisions by forming landscapes requires a good understanding ofplanning the andlinkages how these amongcan degrade neighboring ecosystem benefits. This is importantning approaches as trans that fail to account for the cumulative impacts of combinedcan sectoradd significant value (Blanco ning is one component of policy development where environmental mainstreamingconcernedcommunities within specific geographical boundaries. Land-use plan mentprojects, their impacts on common natural resources and the livelihoods of developtrade-offs at in makers look providespolicy a planning with Land-use benefits and role of ecosystem goods and services (Petersen and Huntley 2005). spatial dimensions into development decisions, while taking into consideration all Through land-use planning, policy makers are capable of integrating temporal and characteristics are integrated and considered at sub-national and national levels. oping an effective interface between spatial and sectoralis in findingplanning, an approach whereby that can land-use best complement both scales. This means devel icalmismatches between social institutions and natural processes. The challenge ofscale is paramount in ecosystem management. Inevitably, there are geograph The process of greening sector plans relies on the use of4.2.2 SpatialPlans spatial approaches. The issue dancies in environmental planning measures and inefficient consultation processes undertaken independently by each sector.alignpolicy within national development and poverty reduction strategies. They can reduce transaction costs linkedto redun opment partners (Palerm, Ledant and Brinn 2006). They help address conflicting objectives,and Vietnam) increase have active multi-sector SWG structures ownership, involving a wide and range of civil society organizations, private sector entities andmulti-stakeholder devel policy dialogue and coordination. Several countries (e.g. Uganda, Tanzania, Mozambique, Ghana, Nicaragua present to add their expertise to pro-active planning. Sector Working Groups (SWG) are suggested as a mechanismwherean Environment for fosteringMinistry and other groups (environmental NGOs, research institutes, academia, and others) need to be towards enhancing environmental coordination and planning the foundcommon throughuse of multi-stakeholderecosystem resources. platforms These (e.g. platforms sector working are agroups space ment decisionsand sectorwidethat are based on pureapproaches economic goals (Luttrell (SWAps)), and Pantaleo which2008). Opportunities can contribute for strategic dialogue can be EnvironmentMinistry, integrating environmental programmes and units within various sectors can rebalance certain develop ofenvironmental resources can be available. For instance, as environmental programming reaches beyond the functions of an determined according to sector activities. Various policy development mechanisms for understanding thethe usestate andof EGS, managementtheir value and role in development. Based on such an assessment, potential benefits and constraints can be Systemic and trans-disciplinary thinking and cooperation are needed in the development of sector policies and plans to highlight learning by doing Process-oriented approach through Long-term capacity/system development in Sector Increased useoflocal procedures dialogue External partnercoordination and collective accountability Partnership withmutual trust andshared Country-wide holistic view onentire sector SWAp Table 9:ComparisonBetweenSWAp andConventionalProject Approaches et al . 2008). It compensates for rudimentary plan

Blueprint approach Short-term disbursement andsuccessofprojects Parallel implementation arrangements Bilateral negotiations andagreements Recipient accountable to donor Focus onprojects to supportnarrowly defined objectives Conventional project approach ------Source: FAO 1996 best useoflimited resources by: the make to aims planning Land-use planning Benefits Box 30:ExampleofLand-use Learning from experience. changes; Planning to bringabout desired identified needs; choosing thosethat best meet Seeking sustainable options and generations; generation andthoseoffuture between theneedsofpresent and thoseofthecommunity, and between theneedsofindividuals between competing uses, Identifying and resolving conflicts supply them; evaluating theland’s ability to needs andsystematically Assessing present andfuture Source: UNCCD2007 - - -

Good Practices Flickr.com/Pati Gaitan Flickr.com/Pati 41 - - - Recognizing processes,Recognizing theobjectives varying scales ecosystem temporal and thatlag-effects characterize The ecosystem includingapproach should information, scientificconsider andall The- of indige forms ecosystem relevant Ecosystem managers should consider the effects (actual or potential) of their activities on adjacent and other and adjacent on activities their of potential) or (actual effects the consider should managers Ecosystem Recognizing potentialgains from management, there is usually a need to understand and manage the nous and local knowledge, innovations and practices. and practices. innovations knowledge, nous and local disciplines. and scientific of society sectors all relevant should involve approach The ecosystem ecosystem in an economic context. Any such ecosystem-management programme should: a. Reduce those Reduce a. should: programme ecosystem-management such Any context. economic an in ecosystem conser biodiversity promote to incentives Align b. diversity; biological affect adversely that distortions market feasible. extent to the ecosystem in the given and benefits costs use; c. Internalize and sustainable vation a be should services, ecosystem maintain to order functioning, in and structure ecosystem of Conservation approach. of the ecosystem priority target within the limits of their functioning. be managed must Ecosystem scales. temporal and spatial the appropriate at should be undertaken approach The ecosystem the long term. for should be set management ecosystem for is inevitable. the change recognize must Management diversity. use of biological The objectives of management of land, water and living resources are a matter of societal choices of societal a matter are resources living and water of land, of management The objectives level. appropriate the lowest to should be decentralized Management ecosystems. The ecosystem approach should seek the appropriate balance between, and integration of conservation and conservation of integration and between, balance appropriate the seek should approach ecosystem The

Principle 12: Principle 10: 11: Principle http://www.cbd.int/ecosystem/) Diversity; on Biological of the Convention the website from (Extract Principle 5: Principle 6: Principle 7: 8: Principle Principle 9: Principle 3: 4: Principle focused on levels of biological organization which encompass the essential processes, functions and interactions among organ among interactions and functions processes, essential the encompass which ecosystems. of component organization integral biological an of are levels on diversity, focused cultural their with humans, that recognizes It environment. their and isms 2004 Shepherd Source: principles) (Malawi Approach the Ecosystem The 12 principles of Principle 1: Principle 2: Ecosystem Approach Box 31: Ecosystem conser promotes that resources living and water land, of management integrated the for strategy a is approach ecosystem The methodologies scientific appropriate of application the on based is It […] way. equitable an in use sustainable and vation Biological Diversity and has been introduced and promoted by a number of international organizations aseffective way an Spatial plans visualize the interface between ecosystems, their productivity in terms of delivery of EGS, and the demographic- the and EGS, of delivery of terms in productivity their ecosystems, between interface the visualize plans Spatial canneeds be including development the goals geographic Spatial planning,of socio-economic sectors. in its manner, holistic inspired by the ecosystem approach (see box 31). The latter is the primary frameworkfor action under the Convention on Good Practices 42 to thereconstruction ofdamaged physical structures (seebox 33). based approaches. Including these aspects in disaster planning can assist in limiting costs linked to ecosystem restoration and limited, there is presently enough evidence for planners to push for preventive and pro-active measures promoting ecosystem- and human well-being need to be captured in disaster planning strategies. Although our understanding of these systems is still tant in mitigating the impact of natural hazards. The complexity of ecosystem functions and their contribution to natural(2005) produced clear stabilityevidence that ecosystems such as coral reefs, mangroves, wetlands and mountain forests are all impor Ecosystemnatural disasters.of Millennium risksat The looking ecosystemAssessment important when The also is approach ipalities or districts and at the international level it requires trans-boundary management of natural resources or ecosystems. government authorities. At the sub-national level this requires coordination between local governments of neighboring munic between the ecosystemborders, incompatibility involvementpolitical of the thus requiring various and is lenges boundaries ecosystem approach continues gaining interest, many challenges remain. From an administrative perspective one of the chal- takinginto consideration ecosystem the management and contributions needs of stakeholders (see However, 32). box the as time and space across dimensions ecosystem and human link to potential the have plans Spatial ecosystems. managing of Source: Sudmeier-Rieux Karen andNeville Ash2009 coastal andseaareas. activities”. those by causedmay be or have specificallycalls been natural for plan resourceThe and in protection zoning that impacts disaster and from recovery mitigation,response preparedness, effortsof the invest in equally toexpected that “Regions that depend themselves on extractive industry and exploitation of natural and environmental resources are actions of series a includes encourageto itself Plan the sustainable the management and use ecosystems. of demands It ment and reduction. Ecosystem degradation is recognized as one of the major factors that interact to cause disasters, and 24 of 2007) makes repeated mention of the importance of ecosystems and a healthy environment in disaster risk manage Disaster the Management No. backedvia important legislation Law (also document by This Reduction up launched. was Recognizing Indonesia’s vulnerability to hazard events and disasters, the 2006-2009 National Action Plan for Disaster Risk Box 33:Indonesia—Taking stepstointegrateenvironmentalanddisasterriskreductionpolicies Source: Shepherd 2004 forest management, andfor amore fine-grained patch-by-patch approach to conservation, are now underway. sustainable designed jointly Plans for insight. and trust, new respect built communicationand exercises of lines opened and created opportunities for renegotiating each Although sidehadbeen land-use. fearfulof working together, the joint revealedPRAs strength The the help. people’slocaloutside of institutions,decision-making land-managementand skills which required indicating themselves, theyand which solutions, handle problems they possible could felt problemsand identified also They trends. social and landscape key identified and ecosystem, the from drawn subsistence) and cash (both sources livelihood analyzed they voice, a men younger gaveand that women subgroups In techniques. and rules over about 40 years, and took officials on transect walks across both forest and agricultural land, explaining management function to government from their point of view and to analyze problems. They described the evolution of the ecosystem forest-focused exercise in Participatory Rural Appraisal (PRA). Villagers had the chance to explain ecosystem specially-designed structure a in and them, with part, took and area, each in villagers with aweek stayedfor officials Forestry maps. clan of forestry and help ecosystem the park. Four with national kilometers, 2004, squarea areas in of as wereselected managementuse, protectionof and attached each to The zone. Forest the Department entire classified thousands area, highland areas, clans had, in addition to their agricultural lands, a seven-zone classification of forest, with different kinds conversion, it was clear that clan land-use valued ecosystem structure and function more highly than did government. In and production for designated is forest of deal great a where areas, lowland In resolution. urgent required that alies anom revealed immediately maps, classification land ForestDepartment’s the with compared when maps, clan These sion by local people to map both their clan boundaries and the varieties of natural resources and use areas within them. in both lowland and highland forests. Negotiation of jointly agreed, environmentally benign land-use began with the deci by local NGOs and by a Multi-stakeholder Forestry Programme funded by the British government. The programme works management and sustainable livelihoods — from the perspective of the ecosystem approach. They have been supported forest sustainable protection, —environmental interests common their at looking of ways finding been have officials total forested area and are rich in biodiversity. Recently, traditional forest-dwelling communities and government forestry Papua is Indonesia’s last great reserve of untouched forest. Its forests account for approximately 24 percent of Indonesia’s Box 32:Indonesia—PapuaProvince,ParticipatoryRural Appraisal - - - - - Good Practices - - - 43 - Ghana — SEA to incorporate Poverty-Environment Linkages into Ghana’s Poverty Reduction Strategy Processes Strategy Reduction Poverty Ghana’s into Linkages Poverty-Environment incorporate to SEA — Ghana Being mainstreamed into development planning; development into Being mainstreamed Being multi-sectoral; management. in ecosystem Investing 1. 2. 3. and activities. TheSEA also changed the attitudes of officials responsible for planning encouraging budgeting, them and to seek win-win opportunities theenvironment inin policies,integrating plans, andprogrammes. The Poverty 2006–09 team. SEA from the input with direct was drafted Strategy Reduction 2009 UNEP-PEI Source: poor sustainable growth and poverty reduction in Ghana. reduction and poverty growth poor sustainable The SEA commenced in May 2003 and comprised two elements: a top-down assessment, with contributions from 23 processes SEA to exposed were ministries The levels. regional and district the at exploration bottom-up a and ministries; in policy formulation. the environment incorporate to and guided on how emphasis Greater levels. district and sector the at links poverty-environment integrate to revised were guidelines Planning was placed on the use of the SEA to theimprove processes by which policies into budgets, are translated programmes, contributor overall to thepoverty, strategy treated the environment manyonly of theas Moreover, a sectoral matter. policies put in forward therelied onstrategy the use of natural resources inthat heldways the forpotential significant damage. environmental Poverty revised a for effort mainstreaming poverty-environment a of part as SEA an out carry to decided government The risks and The opportunities the SEA aimed withto environmental associated evaluate the strategy’s Reduction Strategy. policies and to identify appropriate measuresto ensure that sound environmental managementwas the basisfor pro- ipality in South Africa. River catchments provided an environmentaleffective entity for assessing synergistic impacts of et al. 2006 Kolhoff Source: 35: Box Although PovertyGhana’s Reduction published Strategy, inFebruary 2002, identified environmental degradation as a development in non-developed lands. It accounted for the balance between supply of environmental goods and servicesandgoods environmental supplyof balance thebetween for accounted non-developedlands.Itin development each of report quo status A people. by services and goods these for demand the and environment natural the by provided managementindicatedrequired actionscatchment needed.where services Important benefitsfromecosystem derived included water supply and regulation, flood anddraught management, nutrientcycling and waste management; these ‘free’ ecosystem services provided a calculated economic benefit of R 1.7 billion annually. Monetisation of ecosystem services made decision react makers much more openly to the need conservationfor measures. South Africa — Strategic Environmental Assessment Africa — Strategic Environmental Box 34: South AnSEAhas been carried out the for planning of open space in UMhlathuze, arapidly developing and urbanising munic of planning and protection of measures for criteria provide to had assessment catchment strategic A development. urban forestry development options. The OECD and other Environmental Assessment organizations arepromoting increasinglythe options.development The Assessment organizations OECD andforestry other Environmental they as plans development of implementation the reinforce help can view This SEAs. within EGA-approach the of introduction effectivelyintegrate ecosystem dimensions based on their benefits to human needs. the SEAHowever, community has to used rarely date the opportunities servicesprovidedby societalinto the conceptbene environment to ecosystem translate fits. Despite seriousefforts to identify good SEA casematerial, only few SEA cases are available with a clearrecognition of 2008). Beukering Van services R. and Pieter (Slootweg ecosystem Strategic Environmental Assessment (SEA) as a holistic and systemic approach favors the pro-active consideration of environ of consideration the pro-active favors approach systemic and as a holistic (SEA) Assessment Environmental Strategic mental issues in planning and decision making. It allows thefor evaluation of impactsenvironmental cumulative Policies, of Plans and Programs. Strategic Environmental Assessment approaches are particularly useful in thecontext of Sector wide water health, energy, transport, (e.g. plan sectoral specific a behind support their align donors whereby (SWAps), approaches supply etc.). SEA seeks to capture positive environmental potentials — envi identifying of environmental factors critical range to wide a plan’s the both of account explicit take must sector forestry the develop to plan a example, For success. long-term different with associated sensitivities and impacts environmental the and provide, forests which services and goods ronmental For decision makers to study and evaluate different spatial plans and Impact Assessment (EIA)Assessment related(SEA), Environmental and and community Environmental mapping,tools strategies are sector development scenarios,space. and time across information Strategicsocio-economic and environmental, scales different at integrate and visualize help can that There are three requirements for disaster risk reduction strategies to be effective (Sudmeier-Rieux 2006): (Sudmeier-Rieux effective be to strategies risk reduction disaster for requirements three are There Good Practices 44 in conserving a variety of transformed and natural environments and wild and domesticated species. They have done this for Areas (ICCAs). Indigenous peoples and local communities, both sedentary and mobile, have for millennia played a critical role approachtems.An gainingthat is recognition Conserved Community involving Indigenous and in of the terms is local people promotingby community-based ecosys of natural services and - maintain viability resource management, help the can which One form of a pro-active EGS based approach is delegation of responsibilities and authority to the lowest levels. It is achieved are more responsive to citizens’ demands and that allow the downsizing and streamlining of central government institutions. community ownership of the program (Sheng 1997). Decentralization can also contribute to good governance structures that of sense a enhancing while budgets, public on pressure reduce would necessary. This if provider credit or co-financier a as acting the government with relevant the communities, from labor) and funds both of terms (in potential contributions for a awareness-raising activities. If the beneficiaries of an environmental (or other sustainable) program can be identified, there is private sector companies. Other benefits may include in an increase in stakeholders’ motivation to take part in monitoring and positive contributions. Decentralized planning can also lead to partnerships between communities, the government and other their of any for communities poor empowering of opportunity direct a offering inequities, such of chances the reduce can inequity, communities depending on their natural environment for survival can become quickly marginalized. Decentralization sustainable ecosystem management and bridge science and local/traditional knowledge. In a context of economic and political be recaptured in policies. This participative procedure is also a measure to scale up successful local practices and techniques of views of the direct beneficiaries of a given ecosystem. Accordingly, knowledge about the state and the role of ecosystems can scientific, local and traditional knowledge. From this perspective, government plans and decisions will highly benefit from the users (e.g. local communities, industries, business sector). Choices and decisions from a central government can benefit from sent for development. The benefits of ecosystems are best identified and assessed in terms of their role and centralimportance government to directrepresent one portion of a broader exercise to fully understand ecosystems and the dimensions they repre there is a need for a vertical coherence between these different dimensions of decision making. While important, the views of a overarching an developmentdevelopment of the national strategyareimportant within components vice-versa. and Hence, mechanism to involve local communities in decision-making and to resolve problems closest to their source. Sub-national plans isa It implementationlevel. the to closer getting of one haveDecentralizationway differentis competencies. usually ments Countries have their particular territorial, administrative and political divisions: National, Provincial, District or municipal govern 4.2.3 mental problems early on rather than intervening once damage occurs and subsequently trying to restore degraded ecosystems.new land use scenarios and income generating opportunities. However, it is generally easier and cheaper to address environ theof can offer functions all ecosystem reforestation,or some (e.g. recuperating possible, artificial forestation,arestill etc.) regeneratedamagedbiodiversitytheir consequently lostecosystemand their mitigationboxWhen (see 36). actions services deteriorated ecosystemshelp rehabilitating or to restoring consider also can governments Finally,benefits available among Source: UNEP2008 ation and“forest enrichment planting tosupport natural regeneration”, arealsoplanned. water catchments areas. Restoration, including re-establishment of forest plantations, the promotion of natural regener tive police force. A strategic management plan is being prepared along with mapping of biodiversity hot spots and critical administra and authority local the with acting forestrangers guards and KenyaService by containedWildlife been has assessing land ownership in the entire forests ecosystems. Further degradation from logging and encroaching settlements action have included establishing effective enforcement and management structure; identifying the legal boundaries; and Task Force supported by UNEP to assess the measures needed to restore forest ecosystems back to health. Areas of initial toreverseact ratethe restoreand loss of ecosystem. Mau productivity the the of Minister Prime The of Kenya a formed planned hydropower schemes. Based on UNEP and partners’ aerial surveys and recommendations, Kenya has decided to quarter of the Mau Complex has been destroyed in the past decade putting at risk livelihoods, businesses and existing and illegalforest as well a resources extraction,”to close hectares or 100,000 over total In assessment. UNEP a according to as settlements ill-planned and irregular illegal, “extensive by impacted been has forest the years recent Over sectors. National Reserve and Lake Nakuru National Park - part of a sector Marathat employsMaasai the a million peopleincluding in the formaldestinations andtourist informal major nourish that rivers feeds Mau the by Tanzania.Waterprovided Lake Victoria, which is shared with Uganda and Tanzania and is part of the River Nile Basin, and Lake Natron, shared with western side the of the Rift on Valley.located is The ecosystemsIt not only providesectors. essential waterhydro-power to riversand and lakes intourism Kenya buttea, also feed country’s the for annually million) $320 over (or shillings largestthe is closed-canopyforestMau The Kenya in billion Kenyan in 20 excessgeneratingworth of services and goods Box 36:Kenya—TheMauComplexBringItOnBack Decentralized Plans - - - - -

Good Practices Flickr.com/Dyl Walters Flickr.com/Dyl - - 45 - - - . 2008 et. al et. show increasingly well-documented positive positive well-documented increasingly show in improvements and outcomes conservation conditions. livelihood G. : Borrini-Feyerabend Source based forest management at the village level level village the at management forest based traditional legitimizes effectively in Tanzania communities giving institutions, and practices a wide array of flexibilityto determine and — most critically to enforce —appropriate the Today, rules and activities. management Tanzanian forests managed at village level forest forest management legislation and policies in the mid to late 1990s. The Forest Act of 2002 calls for forests to be managed at the lowest possible level of government and provides flexible institutionalarrangements Community- Reserves. Forest Land Village for The Duru-Haitemba Village Forest Reserve was initiated in the early 1990s as a then novel effortto decentralizeforest manage over conflict following level, local the to ment of asforest thethe a gazettement centrally- catalytic was experience Its reserve. managed community-based of adoption the spurring in products. Decision-making is carried out by a village management committee under the authority of the Village Council. It is regu use and forest governing and by-laws village case of violations. imposing penalties in imately 60 km south west of the town of Babati,Tanzania— in is managed jointly by Reserve. Forest Land Village a as villages nine major a plays woodland miombo ha 9,020 This inrole the livelihoods of the villages, mainly through the provision of non-timberforest lated through written management plans Tanzania — The Duru-Haitemba Box 37: Tanzania Forest Reserve Village approx Forest—located Duru-Haitemba The avoid overlaps and to enhance vertical coherence between the administrative levels, and horizontal integration between sector sector between integration horizontal and levels, administrative the between coherence vertical enhance to and overlaps avoid is 2000-2003) (between Plan Action and Strategies Biodiversity National Indian the of development the instance, For policies. govern central from support clear a lacked but elaboration its in involved heavily were communities local where example one ment. The as by the rejected various NGOsresults it ofeventually support lacked were work thisundertaken from extensive government. central Thus, the objective isto combine, whenever possible, a bottom-up and top-downa approach in policy dimensions. and human both the spatial consideration into taking development older than government-managed protected areas, yet they are often neglected or notrecognized in official conservation (ICCA n.d.). systems andDecentralization local empowerment Hence,stewardship. for are not a environmental it always guarantee is important nota romantic to viewtake ofcommunity empowerment as the panaceafor poverty alleviationprotec andenvironmental from disconnection total a signify not should decentralization stronger promoting of importance The 2002). Bank (World tion is there a a need clear for definition of role the regional of authorities to planning. and local, central On central the contrary, a variety of purposes, economic as well as cultural, spiritual and aesthetic. There todayare many thousand Indigenous and Community Conserved Areas across the world, including wetlands, and forests, landscapes, catchments, village water lakes, much is areas these of most in use sustainable and conservation of history The areas. marine and stretches coastal and rivers Good Practices

Flickr.com/Serge Melki 46 better integration and harmonization of policies, plans and programs at national levels, while reducing the chances of conflicting ization should be understood as the coherent interaction between the different administrative levels of a country. This allows a ecosystems should not be seen in isolation as they are an integral part of the broader national landscape. Therefore, decentral ecosystems. their andLocal for economy national the in play municipalities and peoples indigenous communities, local that Wedecentralizationthatkeep mind should centralismin to to but recognize not replace localism, fundamental is by the role Source: Brett et al. forestry policy. leasehold approved newly a by up backed and donors of number growing a by also and Government the by financially supported programme national a become has 1989 in project pilot small a as out started What Tenth2002-2007. Plan programmes have been accorded top priority status in the Poverty Reduction Strategy Paper (PRSP) and the Government’s leasehold forestry,progressivelybecomerecognized.of supportive morehas Government policy widely leasehold forestry and been now has Nepal of Hills the in poverty combating in forestry leasehold of concept the of usefulness The present andthenumberoftrees andtree species. ronmentaldegradation ground mostan the sites,at in leasehold including expansion cover, plant species of number the attendance by children; (e) a boost in self-esteem and confidence among women; and(f) a halt to and a recovery from envi substantial reduction in the time required for the collection of forage and firewood and, as a result, a better rate of school a (d) children; of diets the improvement in an and foodsecurity household in enhancement forest; an (c) leasehold the to related sources of avariety from $405 and $270 between of income household annual in rise a (b) self-sufficiency; in forageand animal feed of the availability and goats of number the in increase significant a (a) environment included: the on and poverty rural on Impacts reforestHills. and the poverty reduce both can leases 40-year renewable through transferindependentevaluation 2003 project that the An the in found of degraded with land of forests poor the very to a total of 7,457 ha of degraded forest land had been handed over, while the total expenditures amounted to $12.0 million. At project completion date, 1,773 leasehold forestry groups had been formed, 12,028 households had been included, and regenerate, protect, manage andutilize them. mental balance in the Hills of Nepal by leasing small blocks of public forest land to groups of poor households, who would The Hills Leasehold Forestry and Forage Development Project (HLFFDP) aimed at reducing poverty and restoring environ- Box 38:Nepal–ForestandPovertyLeasingpubliclandPRSP 2004 - - Good Practices - 47 Why should the government be involved in financing environment-related infrastructure? in financing environment-related be involved should the government Why financing be organized? should public environmental How adequate? and effective expenditures environmental Are be evaluated? performance expenditure should the environmental How groups? to poor and vulnerable opportunities and non-monetary monetary provide EGS can How of EGS? the value capture to be reinforced markets can How EGS? term of in expand/explore to opportunities revenue the new are What EGS? with impacts on incentives tax the perverse are What EGS? from and benefit reflect to finances public environmental structure to How stewardship? environmental reward to introduced can be financial incentives What (if feasible)? EGS recover to ecosystems degraded of restoring the costs are What Increasing the level of ownership and success of policies and plans; ownership of level the Increasing stakeholders; involving by needs) to citizens (responsive governance good to Contributing groups; and indigenous of gender Enhancing visibility institutions; government of central and streamlining Downsizing management; to ecosystem experiences linked local/traditional up successful Scaling EGS; of terms of policies in and harmonization Enhancing integration time/space; policies across in sector environment integrating policies by sectoral thinking for Enhancing strategic stakeholders; between conflicts Reducing and benefits; EGS priorities to share forums policy dialogue new Creating strategies; sector based on improved Enhancing donor aid impacts/opportunities policies; efficient to more contributing sectors between integration Enhancing environmental sectors; to and its importance of EGS value the economic Capturing sectors; the different between as a bridge Ministry of the Environment Enhancing the role governance; environmental better through frameworks Enhancing institutional EGS opportunities; scenarios based on potential consideration into and taking Weighing policy dialogue; national issues to of environmental Raising the role to policies; manner in a pro-active contribute to EGS Allowing EGS impacts/benefits; capacity in assessing Enhancing pro-active activities; of development costs socio-economic Reducing EGS; to shared relative and their strategies of sectors the interdependence about Enhancing understanding EGS; to related sources income innovative Identifying Development/poverty communities in vulnerable systematically by involving stakeholders between conflict Reducing strategies; disasters; face natural to populations of vulnerable and capacity resilience Enhancing ecosystem country with and projects various donor funded programmes of and alignment coordination Increasing objectives. environmental Guiding Questions for Financial Planners Green Policy Benefits 4.3 Processes Budgeting Greener for measures of greener National Development and Poverty Reduction Strategies. However, many other many tools and approaches will also be However, Reductionof Poverty greener National Strategies. and Development necessary this to planningForreinforce instance, inintegration. terms of empowering people, aligning and adjusting sector and can valua securing EGS and lookthe at initiatives budget governments necessary greener strategies resources, financial in the part below. introduced are These measures. tion and incentive The above three planning dimensions covered (sectoral, spatial and decentralised) provide a solid basis for the development afor solid provide the basis development spatial and decentralised) (sectoral, planning The three dimensions above covered through participatory processes, as in Bolivia. However, the skills and methods to undertake decentralized participatory plan- participatory decentralized undertake to methods and skills the However, Bolivia. in as processes, participatory through passed be to need plans such Often inadequate. are plans implement to finances the and weak, or lacking frequently are ning 2001). (OECD Tanzania as in Ghana and levels, and national regional at and approval harmonization for upwards objectives in terms of ecosystem management. In many countries, there are strategic planning frameworks at and provincial planning frameworks strategic countries, are In there management. many objectives interms of ecosystem district levels. Under decentralization, districts and municipalitiesare frequentlymore assuming devolved responsibility for sustainable development and are to required andprepare implement theirand development plansstrategies – increasingly Good Practices 48 nisms (seebox 39). mecha aid in environment the of integration the towardsefforts promoted recently Council Union European the instance For cooperation. opment effective integrationof environment within devel- are an increasing number of initiatives to help more There analysis). assessment, policies, (e.g. issues while highlighting the importancedonors, ofand environmental countries partner between ability account mutual and alignment, harmonization, ownership, increasing towards steps main the of one represents 2005) March (Paris Effectiveness 2009). The Paris Declaration on Strengthening Aid (UNEP-PEI envi visible highly not which is in focus ronmental dialogue policy for platform a However, PRSPs. of remains GBS implementation the support to modalities delivery aid main the of one as interest gaining are (GBS) Support Budget General as such Mechanisms community. donor the recipient partnershipsbetweenand countries tions of effort in funding and to help build stronger duplica avoid to taken are Measures countries. partner with work their harmonizing and dinating coor in donors help to evolved have policies Aid profitable investments andthosewiththemost pro-poor benefits will require apolitical decision (OECD 2009). most may,the There between outcomes. pro-poor balance however,proper support a will poorestAchieving trade-offs. be yield high rates of return. Targeting such investments in particularly poor areas or at activities ofparticular importance tothe many cases, modest but strategically selected public investments which greatly increase the productivity of natural resources In services. and ecosystemgoods of benefits and value economic or financial the of understanding poor a of consequence the than rather strategicchoice thought well a of result the be should funds environmental reduce or limit to decision Any how these can becaptured. Someexamples ofpossiblesources for furtherfinancialbenefits are: exist, and income green of sourceswhere assess can Ministry Finance a and Environment Ministry an abatementmeasures, and charges for pollution. Thus, in addition to conventional investments in environmental infrastructure, pollution control and should be able to factor the wide range of financial opportunities linked to biodiversity and ecosystems and not just the taxes benefitsnon-financial and infinancial both forms.The government assessment of environmental expenditures and revenues force the capacity of the Environment Ministry to develop integrated and strategic budgets showing ecosystems as a source of rein to necessary also is It resources. environmental increasing of terms in considered be to steps many of one represents that mechanisms newfinancial capture positive the of role ecosystemA services. budget the review of development process elaboration environmentalbe budget reinforcedprocess of The can importance promote integratingthe by to contributions environment is treated as a secondary priority in budget allocation may be explained according to one or more of the following: well articulated in budget processes. This is reflected in limited/irregular budget allocations to the environmental field. That the cognizantcanbe role the policies playedministries.of While environment, the by understandingthis necessarily not often is in sectorequitably reference tives. compete other funding to able to for be to needs effect,an this EnvironmentMinistry To Environmental initiatives require sound governance, policies and, the financial resources to help effectively meet national objec 4. 3. 2. 1. Option of reallocating negative subsidies to green investments. Non-use value ofEGS; Non-market value ofEGS; EGS revenue opportunitiesfrom international sources; EGS sources ofrevenue generated at thenational level; Source: Sheng1997 environment (particularlyonhuman-madeenvironmental infrastructures). Many developing countries are faced withseriousfinancialdifficulties,which constrain theirability tospendonthe making itdifficult tojustify these programs on conventional economic criteria; The costs andbenefits ofenvironmental protection/investment programs oftendefy quantification and monetization, There hasbeennoclearclassification of environmental expenditures; Environmental prioritiesand goals have notbeenclearlydefined inmany countries; - - - - - Source: CounciloftheEU2009 support: Areaof work 4—With aview to integrating environment in budget integration and recommends specific actions in each area: TheCouncil endorses sixareas workof for improving environment Development Cooperation Box 39:EU—IntegratingEnvironmentin environmental fiscal reform. Strengthening local capacities to undertake SEAs, PERsand issues inPublicExpenditure Reviews (PERs); general budget supportandtheinclusionofenvironmental Promoting environmental fiscal reform asa component of monitoring systems, andperformance reviews; in budget support,includingthrough environmental indicators, Identifying key entry points for addressing environmental issues mainstreaming inbudget support; Increasing theuseofSEAs to improve environmental Including environmental integration inbudget supportdialogue; - - Good Practices - 49 added financial advantages in the context of sustainability and Poverty Poverty and sustainability of context the in advantages financial added e 2008 et al. et Natural resource pricing measures, such as taxes for forests and fisheries exploitation, are relevant for most for most relevant are exploitation, and fisheries forests for such as taxes pricing measures, resource Natural countries. be low-income to – which also tend countries resource-rich countries producing but particularly energy countries, most to applicable are and taxes subsidies of product Reforms high. often are fuel subsidies where be but must countries most to applicable are and water, on energy such as user charges measures, recovery Cost the poor. protect to carefully implemented industrial where countries middle-income rapidly industrializing for relevant particularly are charges Pollution strong. relatively capacity is but administrative pollution is a serious problem Source: Cottrell Cottrell Source: Revenues are used to initiate a long-term shift towards sustainable fishing by improving management practices and covering covering and practices management improving by fishing sustainable towards shift long-term a initiate to used are Revenues the by covered easily are costs These surveillance. and control monitoring, and research fisheries e.g. costs, management levy – in 2005, the equivalent of US$ 2.46 million collected,were of which one approximately fifth of was paidinto the budget. general Prospects for future EFR in Uganda include carbon storage, ecotourism, biodiversity optionvalues (pharmaceuticals quality charges. water and products, forest non-timber industry), of solid waste and the cost of solid waste management; and to protect water resources against all forms of pollution. all forms against resources water protect and to management; of solid waste and the cost of solid waste 2008 GTZ Source: Box 42: Uganda — Sustainable Fisheries User Levy In Morocco public expenditure on the environment represents investments of 4.3 billion Dirhams (US$ 0.6 billion ) or In thecontrast, 0.007%cost of ofenvironmental degradation GDP. has been and estimated at the cost3.7% of of GDP, economic of behavior the in change a induce to Morocco for opportunity an represented EFR GDP. of 1.8% at remediation - envi suburban and urban the improve to investments; environmental for revenues raise and income generate to agents; volume the reduce to energies; renewable promote and quality air preserve to environments; natural protect to ronment; Source: OECD 2005 OECD Source: Fiscal Reforms Box 41: Morocco — Benefits of Environmental Examples of Environmental Fiscal Reforms Box 40: Examples of Environmental a means of freeing additional resources which can be redirected to urgent poverty needsa poverty or thesemeans toredirecting of to subsidies of urgent which canresources additionalfreeing redirected be economic specific the on often depend will and challenging quite be can subsidies removing But practices. sector sustainable 2005) (OECD approaches parallel of forms balanced of introduction the as well as country given a of situation geographic and perspective, the mech- andinformation an From administrative taxation. environmental increased for meant to compensate anisms needed to initiate environmental fiscalreform are also meant to increase rigor inenvironmental finance practices. EFR helps in making all public investments in the environment visible. There are often investments withinvarious effec the sectors where available, is what identify to means a provide can assessment An budget. the in explicit clearly not are which becomes EFR situation, latter the In incentives. environmental perverse the are what and are, investments environmental tive environmental services, can protect natural resources from degradation that would impact on the poor, while generating fiscal fiscal generating while poor, the on impact would that degradation from resources natural protect can services, environmental use resource that can natural be from (OECD 2009). spent revenues on The pro-poor ofinvestments introduction these new resources. natural of to halt the erosion and revenue environmental recurrent generate to is an opportunity measures fiscal 4.3.1 Environmental Fiscal Reform Reform Fiscal 4.3.1 Environmental As exploitation. and/or use resources natural to linked measures policy of set a represents (EFR) Reform Fiscal Environmental per the definition Economic for of taxationCooperation theDevelopment Organization range refers and a(OECD), to of EFR developing many For 2005). (OECD goals environmental furthering while revenues fiscal raise can which measures pricing and provid can EFR role, key a plays nature where countries resource pricingReduction Natural Strategies. measures,andforest for such fisheries exploitation astaxes for and payment The measures belowpresented should helpthe of EGSfacilitate integration in budget planning. Theycan alsocontributeto aid mechanisms. dialogue within and debate the environmental strengthening Good Practices 50 investments inecosystem that services, thesector willuseandmanage. Someexamples are: severalbetweendistributed developmentsectors. sectorsinstance, environmentalForbe targeting can sector’s the funding other benefit thethey way and to services ecosystem tied closely be can resources financial of allocation the where bilities community creative means of funding, adapted to national needs. The concept of basket funding opens the door for suchdonor the to possisuggest to country developing a for possible is It development. socio-economic means for a as and condition a ronment objectives between sectors. Innovative budget mechanisms can link environmental performance to other sectors as The introduction of targeted and innovative budget mechanisms can aid the definition and sharing of responsibilities for envi 4.3.3.1 Basket Funding Linked to EGS will provide two examples of innovative financial mechanisms that can capture the importanceSupport of ofecosystem the Achievement goods and services. Of The Convention’s Three Objectives Infor 2008the thePeriod 9 2008-2015 (COP 9 Decision IX/11).The part below virtual international trading platform; (iii)a cap-and trade regime forbiodiversity; or(iv) combinations ofthese. (ii)a fund; (i) prototype a further investigation: merit would that mechanisms institutional potential of number a identified globe and the resulting insights into the practical applicability of such payment systems. A further meeting in September 2006 the around implemented being alreadyare that projects pilot paymentsforecosystem(PES) various the services of analysis sored“High-levela Brainstorming Workshop Creationthe on Pro-Poor of Markets for Ecosystem Services,” undertook and an spon UNEP Ecosystem Millennium Assessment, the Following level. international the at particular in mechanisms, financial innovativeof thegenerate development IUCN may for and interestingopportunities undertaken recentUNEP initiative A by spending policiesinternationally. bein bothto exploredand opportunities remain revenue innovative national level, but the at policies spending revenue and internationalnational levelat in the policies or development cooperation systems. demonstrable There been has progress in spending and inrevenue innovations generallyto policies refer New newproducts. attractive internationally and nationally range of future environmental, economic and social gains arising from biodiversity, there are ample opportunities to develop instruments that can be used to attract public and private investments in biodiversity activities and projects. Given the broad new products, new policies and programmes, new approaches and new processes. New products are new marketable funding of take may the form mechanism innovativefinancial An it. adopt who transformedthose by further maybe and problems, to old new answer ora new problems to answer unique offerand an effective, should creative It things. doing wayof tional the incorporation of new elements, a new combination of existing elements or a significant change or departure from the tradi mechanism can be defined as a new way of mobilizing and channeling financial resources. This could be, for example, through innovativeAn financial make plans mechanisms. referenceinnovative action biodiversity financial strategies to and national National reports and plans offer a wide range of options for resource mobilization at the national and international levels. Many 4.3.2 at achieving development targets suchasjobcreation. resources to fund pro-poor initiatives, including programmes aimed investmentpoor (YaronWhiteand 2002).Itcangeneratehelp also pro- for revenue of source a provide can corruption reduced of and by empowering the poor. Natural resource taxation in a context means to address social inequalities by re-establishing more equity represent also cana associated It ecosystem 2007). (IUCN services and biodiversity of reduction the and pollution air contamination, thatthreatenpoor, the livelihoodsof and health the wateras such to environmentalproblems addressing by directly reduction poverty contribute to designed is that EFR of type a is EFR Pro-poor acceptability versus environmental effectiveness (GTZ 2008). social and political and efficiency economic of aspects combining the economy. However, policy makers are facing a real challenge in of efficiency the increase can EFR design, careful with that, far so approaches for environmental management. The evidence suggests regulatory and legal strengthening for measure a represents EFR monocultures dueto their lower genetic diversity (IISD2005); might triggeroutbreaks ofdiseaseandinsectinfestation, whereby crops can nolonger beproduced inlarge-scale of itsproducts andreducing theimpactsofitsactivitieson ecosystem Thisisimportant services. asclimate change The agricultural sector can begeared towards promoting sustainable forms ofagriculture basedondiversification Designing Innovative Environmental Finance Architecture th Conference of the Parties of the Convention on Biological Diversity adopted the Strategy for Resource Mobilization In - - - - Flickr.com/Molly Stevenson Good Practices 51 Brazil — Mercury Contamination in the Amazon in the Mercury Contamination Box 43: Brazil — source the find to seeking researchers Canadian and Brazilian startling a to came Amazon the in contamination mercury of conclusion: agricultural practicesrather thangold mining were most to blame. Supported Internationalby Canada’s is team research the (IDRC), Centre Research Development long-term and short- find to communities with working now problem. environmental and health serious the to solutions researchers the samples, sediment and soils checking After came to the conclusion that the mercury was occurring naturally in the soil and was being released into the river system — and eventually the food chain — by slash-and- burn farming. Analysis of riverbed sediments, sampled in half-centimeter increments, showed that the mostrecent layers contained 1.5 to 3 times more mercury than layers ago. 40 years deposited 2003 IDRC Source: - - - arket-cap approach Market-cap (non-financial) schemes Certificate way of generating revenue is achieved by looking at EGS based rewards. Governments can introduce incentive incentive can introduce Governments by is EGSrevenue lookingat achieved rewards. based of generating way The extractive industry can receive funding funding receive can industry The extractive environmental of best the introduction based on help would These and practices. technologies its consumption and reduce quality water maintain local and on biodiversity impacts while avoiding populations; fund health can and of environment The sectors on the ecosystem the focus increasing programmes have studies In general, and health approach. functioning/healthy that ecosystems demonstrated in disease control. factor important an represent A well-defined environmental service (e.g., specific changes in peak- or dry-season stream flow at the outlet of a at the outlet flow stream or dry-season service (e.g., in peak- specific changes environmental A well-defined conserved); of forest this service (e.g., for hectares proxy or a suitable watershed) of this service or proxy; one buyer least At one seller; least At and seller/provider(s); buyer(s) between transactions Voluntary for same) actually being supplied. services (or proxies environmental contracted on conditional are that Payments Building positive approach to nature conservation; to nature approach Building positive self-sustainable; are policies that to develop the potential Having the poor; to of income sources new Providing areas); protected (outside initiatives environmental to of income sources new Providing etc.). food, land-rights, (reinforced can be other than monetary that benefits Providing Private payments Private Public payments innovative 1. 2. 3. 4. 5.

Ultimately, PESrepresentsUltimately, a market-based approachto ecosystems and the services There they arerender. 4 types of PES commonly used: schemes reward/compensation There are many interpretations of PES, some of which are morerestricted than others are. Amongexisting definitions, one PES scheme: for a as the basis five points 2005) identifies (Wunder cited is commonly that PES based incentives: based incentives: PES NGOs or the private sector. This is visibleNGOs orthrough the the sector. development private of andpayments services forcompensations ecosystem through carbon biodiversity markets, offsets and other mechanisms market thatcan reach billion several Payments dollars. services by are mechanismsallowingfailures ecosystem the for for that financial market can for compensate ofcapture EGS benefits. PES based incentives and compensationprovide frameworks the means complementingof command-and-control policies. limited success They incan alsowhich measures, - terms of on comple environmental their demonstrated own have ment certain traditional measuresfor used decision making Examples such aseffectiveness. stemmingcost from of benefits the whole planning and budgeting process. process. the whole planning and budgeting Services Ecosystem for 4.3.3.2 Payments An Ecosystem sources. funding international and national on based opportunities, income green for door the opening mechanisms, services of global importance are becoming increasingly toattractive national andinternational fromplayers governments, to a set of combined environment and development activ and development environment of combined a set to ities. Thiscontributes to sustainable development where stra the constitute viewpoints environment and economic tegic aspects of planning. This form of budget allocation focusing on the input of the environment can contribute to the servicesprotection of ecosystem critical to the sustainability and success of all thedevelopment sectors. This kind of funding could basket be financiala to and EGS biodiversity innovative instrument mainstream ascross-cutting a issue within Through an integrative approach tying the roleenvironment to other sectors, ofresource allocation can the be optimized. It can alsoreinforce the pro-active consider ation of ecosystem services by linking financial resources Flickr.com/Molly Stevenson Flickr.com/Molly Good Practices 52 a vital role andsubstantial economic returns inthemedium-andlong-term). made between intensive development projects (with playour well-being. in aspect becomesThis essential when decision-makers, with working where trade-offs often needto be effectivean conveying of way non-environmental to concrete experts ecosystems of the value of they the examples role and provide schemes PES financial references, primarily Using services. these offering parties or party rewardsthe and for ities, A sound PES framework can create a number of benefits (see Figure 13), including the regular financing for conservation activ Source: WWF2006 to thepoorinajust andequitable way. Thisimpliesthat: Second, Equitable/Pro-Poor PES schemes aim to make payments benefits, such as: benefits to the poor. This can include both direct and indirect First, Equitable/Pro-Poor PES schemes aim to bring substantial two ways. Equitable/Pro-Poor PES differs from regular PES mechanisms in Box 44:Equitable/Pro-PoorPESvs.regular Figure 13:BenefitsofPaymentsforEcosystemServicesMax/Min PES mechanism. communities, directly participate in,andbenefit from, the Women andmarginalized groups, includingindigenous into natural resource management practices; Local values, knowledge, andpractices are incorporated poor; Resources are appliedto theprioritiesandneedsof cultural, and environmental conditions. Indirect benefits derived from stable social, as decreased vulnerability to climate change; Indirect benefits from landscape restoration, such empowerment and landtenure; Indirect benefits suchas community level, suchashospitals, schools,androads; Direct benefits that accrue at a community fishers orloggers, andhouseholds; Direct financialbenefits toindividual farmers, populations downstream Costs to users land Beneﬁts to { { use for pasture Deforestation and Conservation high economic returns in the short-term) and sustainable initiatives (with Maximumpayment paymentMinimum Source: RhettA.Butler2008 could become the saviors of Ngoyla-Mintom forest. conservationists, not traders, Carbon concessions. credits would break-even with revenue from logging REDD $1.21, of point price a at that suggests model trade for more than $90 per ton. Even so, the current currently credits ETS European and $3 than higher presently are credits Further, REDD agriculture. for figures used, especially if the land was later converted Mintom would likely be considerably higher than the emissions from the logging or deforestation of Ngoyla- These calculations err on the side of caution. Carbon opment from timberharvesting. opportunity costs of forgoing the jobs and local devel the up make than more to likely seems difference over 30 years at a 5% discount rate). The $38 million fees(NPV concession in million $26 the excess of in well rate), discount 5% a using years 30 over value would generate credits worth $64 million (net present per hectare from logging, at $3 per ton of CO2, REDD dioxide carbon of tons 160 of emissions Assuming cover, amounting to a forecast annual loss of 8,300 ha. is applied to the 830,000 ha of Ngoyla-Mintom forest figure REDD,this generatedfrom revenue potential of 1% of its forest cover each year. For calculating the average an lost Cameroon 2005 and 2000 Between Box 45:Cameroon—REDDgoyla-Mintom Source : StefanoPagiola Gunars and Platais 2005 costOpportunity payment) (minimum Value beneﬁts of (maximum payment) payment for Conservation with Payment - - Good Practices - - - 53 expenditure framework and the government government the and framework expenditure commitments toto stick the financial ceil Africa In South sector. the to allocated ings been have and actual allocations Armenia, This years. in recent requested than higher re-allocation some that fact the to points also within sector environment the to resources of place. taking been has framework MTEF the 2009 OECD Source: South Africa and Armenia Africa and Box 46: South — MTEF […] the long-term nature of some envi ronmental (particularly infrastructureinvestment) policies clearly benefit from the stability created by the medium-term - Medium Term Expenditure Framework Expenditure Framework Medium Term Greater budget predictability allowing institutions to plan with institutions allowing predictability budget Greater programmes; multi-year for certainty more better through management planning and strategic Improved them; to achieve programmes costed preparing multi-year, and priority-setting procedures; credible monitoring to put in place indicators and performance target-setting of system A better to beneficial is particularly in budgeting perspective financial planning: the medium-term accurate and more Improved nature; in long-term often are actions, which environmental agencies as environmental programmes well-costed to prepare tools and financial economic good demand for Greater 2009). (UNEP-PEI resources use of available a convincing demonstrate need to can be built using the input of various stakeholders, including for instance the views provided by village or municipal authorities authorities municipal or village by provided views the instance for including stakeholders, various of input the using built be can process multi-stakeholder a on possible as much as based budget the of Elaboration governments. decentralized of case the in processes budgeting Inclusive heard. be to players environmental for opportunities and discussions, dynamic for space a offers priorities, respective their identify to society civil and sector private the agencies, environmental from stakeholders all inviting ways. It is a good in an plans practice many constitute opportunity to and to buildenvironmental and for ownership support term environmental time frame requirements. Environment Ministries can benefit from this coherent form of budgeting linked linked budgeting of form coherent this from benefit can Ministries Environment requirements. frame time environmental term by sector minimizingprojectionsto stated andpoliciesavailable targets multi-year gap the and between financial resources. can identify and of accessstable sources programmes funding without beingenvironmental severely With the help of MTEF, cuts. budget by impacted It process. accountability and democratization budget the strengthen can MTEF perspective transparency and equity an From implementing aIn country’s general, PRSP. environmental investments (e.g. in environmental infrastructures, ecosystem before achievingyears all several and of biodiversity expectedconservation require financial the initiatives) and restoration, Term falling a Medium under budget a of development the in participation Ministry’s Environment An benefits. non-financial long- to medium- with harmonized be to allocations budget allowing by planning strategic its assist can Framework Expenditure method that allows financial officers to identify the capacity of the country country the of capacity the identify to officers financial allows that method Some strategies. sector the of each to resources necessary the dedicate to include: MTEF benefits discipline management budget issuesThis of isparticularly when and form multi-year dealing important environmental with which the Cabinet and central agencies establish credible contracts for allo for contracts credible establish agencies central and Cabinet the which overall an ensuring while priorities strategic their to resources public cating aims first the objectives: main two entails process MTEF The discipline. fiscal strategic to resources allocating at aims second the targets, fiscal setting at experts financial and policy offers MTEF An targets. these within priorities available regularly adjust and changes budget foresee to lens additional an resources according to projected expenses and revenues. It is a rigorous have no secure land tenure. land no secure have 4.3.3 can governments practices, budget sound introducing of context the Within benefit from the useTerm of ExpenditureMedium Frameworks (MTEF). within process formulation budget and planning a establish help can MTEF how biodiversity and environmental systems can effectively alleviate poverty. New poverty-environment initiatives have been have initiatives poverty-environment New poverty. alleviate effectively can systems environmental and biodiversity how put in place by donor agencies, foundations andeven the sectorto private helpthereverse trends of degra environmental dation and fight poverty. With the threat of climate change, there is a global mobilization to help protect existing forests by providing monetary incentives (See box 45)to developingcountries, throughlike initiatives the Reduced Emissions from andForest Degradation Deforestation (REDD and REDD-Plus) and other emission reduction and trading mechanisms. REDD has the topotential provide benefits to a localnumber and indigenousconditionsof communities. wouldHowever, need to be met these for toco-benefits to beForfromPeoples benefitachieved. Indigenous instance, REDD are unlikely where they Biodiversity (TEEB) Biodiversity report as one of its main (EUobservations 2010). of In countries,can PESdeveloping the context provide sources of extra income for communitiesand/or non-financial rural rewards and indigenous peoplesinvolved in sustainable servicesThe capacity to helpof becomes poverty more obvious even ecosystem alleviate stewardship. innature the context (MDGs). Goals such as the Millennium Development global objectives of achieving national Various and international bodies active in the environment anddevelopment field have joinedtogether identifyto PES schemes were originally developed without the express intent of taking a pro-poor approach (see box 44). Inclusion of social objectivesto the originalconservation goals has been attracting attention the of playersvarious inthe development field. The nexus between healthy ecosystems and poverty alleviation was highlighted in TheEconomics ofEcosystems and Good Practices 54 plans (seeTable 10). strategically of sectoral budgetfactoring ecosystem within opportunity contributions another also is It istratebudgets. their A MTEF can be seen as an instrument to alter the providing anentry for environmental mainstreaming. sectors, across and between resourceallocation improving in assist can and strategicdialogue a forumof becomes MTEF as achieved is This sectors. other into targets ecosystemservices long-term to medium- of integration stronger the facilitates philosophy to development of programme based planning. In terms of factoring biodiversity and ecosystem dimensions, MTEF budgeting a focused project away moving from of effectivemeasure represent Environment an Ministry,can an For MTEF a programmes stand ahigherchanceofbeingfundedthrough theregular budget processes (OECD 2009). conducted by the OECD show that where environmental programmes are well-designed and justified in economic terms, such of a country’s efforts to increase accountability and budget discipline of its ministries. Studies of various developing countries signal positive a donors environmental to allocations suggests programmes. appropriate It tofund likelylead moreareto mainstream EGS benefits within national policies. Processes that favor dialogue built on environment as a cross-cutting theme VI. V. Allocations IV. Expenditure Framework III. Sectoral Programs II. Macroeconomic Framework I. STA Table 10:MTEF STAGES GE Political Approval Preparation ofSectoral Budgets Definition of Sector Resource Development ofStrategic Development of Development of

CHARACTERISTICS Presentation ofbudget estimates to cabinet andparliament forapproval. Medium-term sectoral programs basedonbudget ceilings. Setting medium-term sector budget ceilings. Consensus-building onstrategic resource allocation. Analysis ofinter- andintra-sectoral trade-offs; Program cost estimation. Review anddevelopment ofprograms andsub-programs; Agreement onsector objectives, outputs,andactivities; term. Macroeconomic modelthat projects revenues andexpenditure inmedium- status quo and to have sectors being able to effectively and efficiently admin - Flickr.com/McKaySavage Good Practices - - - - 55 green eduction Strategies evelopment and Poverty R and Poverty Development National Greener Contributing to poverty reduction, EFR for pro-poor investments; investments; pro-poor for reduction, EFR to poverty Contributing the poor; empowering and by equity, a certain re-establishing by the social balance Leveling finance practices; a discipline in environmental introducing for of revenue a source Providing management; environmental for approaches and regulatory legal Strengthening economy; of the efficiency the Increasing in planning; effectiveness consider environmental to efforts Increasing revenue; environmental recurrent Generating goods and services; ecosystem on impacts of subsidies potential identify to Enhancing capacity predictability; budget greater through programmes for multi-year certainty to plan with more institutions Allowing priority-setting better through planning and management strategic Improving them; achieve to programmes costed multi-year, and preparing indicators and performance target-setting of system a better Introducing procedures; monitoring put in place credible to - in budgeting perspective based on a medium-term accuracy financial planning Improving nature; in often long-term are actions, which environmental to particularly beneficial well-costed to prepare tools and financial economic good demand for greater to Responding use of resources; a sound demonstrate need to agencies as environmental programmes services; ecosystem for payments mechanisms through incentive innovative Introducing to each sector; EGS inputs and benefits based on allocations of budget Enhancing distribution goods and ecosystem funding opportunities based on new Identifying development; to sector services and their contribution EGS; role of to according sectors and other ministries environmental between Enhancing dialogue/cooperation to aid delivery; their links and facilitating issues up-front Bringing environmental budget. the national funding through of increased as a result sector on the environment pressure Reducing Green Budgeting Benefits

better understanding of theirrole and benefits to development and poverty alleviation. The main purpose being to develop EGS concepts friendlypro-active in and plans)by integrating spatial and decentralized planning (sector, approaches impact on shared EGS. The objective isto balance the equitable and sustainable use ofEGS between beneficiaries without can plans Greener benefits. maximize to ways identifying also while resilience, ecosystem reducing or depletion their causing This is done by integrating the importance of goods ecosystem and services within acountry’s legal frameworks and long- term vision. By including EGS objectives withinpoli Nationalgreener for Sustainablebackground sound a set Developmentcan countries Strategies,governance, implementingenvironmental Multilateralreinforcing and Agreements Environmental various explored thus has Guide Practice Good The strategies. medium-term through implementation effective their and cies approaches and tools as means to mainstream EGS within both the policy and financial planning processes.At the essence of these mainstreaming initiatives there is a need to assess thestate and value of goodsecosystem and services building a stress the importance of EGS to development. There is an increasing understanding that the the is Goals There Millennium importance of stress an Development EGS to development. understanding increasing will not be met unless the sustainable use of servicesecosystem is made an integral part of the development strategies of developing countries. in Investment enhancing and andprotecting ecosystems, andpreventing adapting to climate change, develop sustainable and ecosystems, perspective, policy a From development. sustainable of achievement the to essential is The Good Practice Guide has introduced a number ofstepsto turn towards a form pro-active of planning builtaround EGS. A national development strategy or a Poverty Reduction Strategy Paper (PRSP) are common overarching means for articulating articulating for means overarching common are (PRSP) Paper Strategy Reduction Poverty a or strategy development national A mechanisms and space a offer can They programmes. and plans policies, mid-term operative into vision long-term country’s a - dimen environmental of mainstreaming effective the However, debated. and explored further be to issues environmental (PRSPs) for Papers Strategy Reduction Poverty 50 to close of review (2004) Bank World A limited. still is strategies these within sions payments (e.g. initiatives of number increasing An weak. generally been has PRSPs within focus environmental the that noted (2008) and Biodiversity studies andetc.) such Ecosystems asEconomics of The services, carbon sequestration, watershed for of the MDGs. manner within the context be dealt with in an integrated must in general, ment and use their of terms in all sectors of interdependence the at looking this means perspective sector a From processes. ment 4.4 Some of these budget-related initiatives have been discussed in the sections above and other budget monitoring and manage and monitoring budget other and above sections the in discussed been have initiatives budget-related these of Some measures. implementation with dealing Guide Practice Good this of 5 Section within introduced be also will practices ment Notwithstanding all of the above benefits, introducing an MTEF in a country where the institutional structures and capacities are capacities and structures institutional the where country a in MTEF an introducing benefits, above the of all Notwithstanding to budgets tying of terms In reforms. budget to required. substitute a not complement be a is MTEF A challenging. also quite be can will fragile still mechanisms complementary other plans, sectors’ within priorities green integrating and services ecosystem Flickr.com/McKaySavage Good PracticEs 56 these “greener” planswould respond to thetriplechallenge ofsustainable development andpoverty reducti on: perspectienvironmental the From 14). scienti following and ve fi scenarios, and assessments andinter-disciplinary ndings fi c grated development strategies, capable of capturing the linkages between economic and environmental dimensions (see Figure horizontalvertifor both and mechanism a become integrati cal inte-and equitable to lead can This developmentplans. of on ownershipof sense a consequentlyand to engage usersall responsiblein ecosystem management. Ecosystem policies based involvestakeholdersmaketo controlaccess EGS all thatsure communiti and local including building means for a also is It es. lowest-level provides a way of capturing local experiences in resources use and management. Decentralizati on provides a step implementi plans, decentralized of terms the In presented. at were policies assessment strategicenvironmentalng the and direct and neighboring ecosystems across ti me and space. A set of EGS inclusive approaches such as the ecosystem approach planning as a way of looking at the use of ecosystem resources, taking into considerati on the cumulati ve impacts ofobjectiEGS sectors strategicallyspati aligning by on on and to focus was plans point sector entry of second The sectors. between ves al environmentalstakeholders) acti engage(and to Ministry Environment an allowing elaboratedby be preparati the in vely on Figure14: EcosystemGoodsandServices toEnhancePlanningEffectiveness 3. 2. 1. To achieve afair andequitable sharingofenvironmental benefi tswithinsociety through the following steps: biodiversity andecosystem through services thefollowing steps: To balancetheimpactsandinvestments ofthevarious development sectors on To balanceenvironmental needswithdevelopment needsthrough thefollowing steps: consequences through riskreducti on strategies andpost disaster miti gati on. Protecti ngsociety, andspecifi callythemost vulnerable, against natural disaster andits use ofecosystem amongthediff services erent segments ofthesociety; Assuring afair distributi onof costs andbenefi tsarisingoutofthemaintenance and Assuring suffi cient access to basic ecosystem services for all as a fundamental human right for a dignifi ed livelihood; in ecosystem resilience andproducti vity by reducing theecological foot-print. Achieving awell tunedinter-sectoral distributi onof costs andburdens for investments development sectors inorder to generate thebest possibleoverall socio-economic outcomes from resource use; Securing anopti malallocati onofthe available ecosystem andtheir services, collecti vemanagement, amongthe Maintaining theconsumpti onofecosystem andothernatural services resources withinecological limits. Increasing theuse-effi ciencyof scarce natural resources or ecosystem services; Reducing thehumanecological footprint; Green sector Plans EGs EGs decentralized spati al Plans Plans EGs strategies. equitable development with sustainable and enhanced andaligned planning approaches is limits) theintegrati onof dimensions (benefi tsand By includingEGS Good Practices - - 57

initiatives, are additional conditions for success. It is also necessary to select implementation mechanisms that permit flexibility flexibility permit that mechanisms implementation select to necessary also is It success. for conditions additional are initiatives, and both This for vertical policycanhorizontal be adjustments when within framed necessary. form an ofadaptive - manage section. in the next of these dimensions will follow An overview results. successful capture to ment while preserving ecosystem resilience and suggesting alternative or sustainable uses. or sustainable alternative and suggesting resilience ecosystem while preserving These processes. financial and planning greening towards points entry essential represent measures discussed above the of All However, necessary. when adjusted and simultaneously initiated be can and complementary all are measures mainstreaming devel the instance, For implementation. of means adequate require measures these ground, the on results successful reach to sharing knowledge and monitoring of implementation the as well as awareness-building, and capacity- based EGS of opment consider strategic budgeting rather than project based budgeting, and to link its budget to other sector objectives. Environmental Environmental objectives. sector other to budget its link to and budgeting, based project than rather budgeting strategic consider Fiscalare a Reforms means income environmental to whilegenerate reducing perverse subsidies. The financial section also covered innovative financial mechanisms where EGS contributes to balanced budget distribution, takinginto consideration sectors individual to EGS of contribution and role the consideration into taking by achieved is This dimensions. environmental and allocatingsteward funds inconsideration inputsofecosystem todevelopment. Innovative ecosystem approacheswere also introduced for sound encouraging at aimed initiatives international and national of advantage taking by income generating generation income greener of source market-based a as presented was services ecosystem for payments of concept The ship. For greener policies and plans to be successful, the availability of resources and effective distribution of EGS based budgets is budgets based EGS of distribution effective and resources of availability the successful, be to plans and policies greener For Through procedures. budgeting rigorous and strategic reinforce to steps of series a presented has section financial The critical. to ministry environment for the to means identify possibleopportunities become Framework Expenditure the Medium Term Flickr.com/Rocco Lucia Flickr.com/Rocco Good Practices 58 Overview Concept/Issues Valuation AssessmentServices and Ecosystem Goodsand Processes Integrative Planning Approaches for Sector Plans Definition/Details following: and planningprocesses by allowing the biodiversity andecosystems withinpolicy instruments to factor and integrate EGS assessment andvaluation are crucial budget processes. integrate EGS withinexisting policyand providesservices astarting point to The abilityto attribute a value to ecosystem sectors (agriculture, forestry, health,etc.). activities andprioritiesof more prominent to befragmented anddominated by the perspectives ontheenvironment continue of ecosystems andtheircomplexity, as markets fail to capture therole conventional sector policies. For instance, a level ofcomplexity different from environmental management contributes trans-generational characteristics of The cross-cutting, and trans-boundary segments of the society. access to vital ecosystem services for all the 3. better distribution of benefits and sufficient ecological limits; development andpoverty reduction within best overall outcome for sustainable ecosystem to services generate the 2. better inter-sectoral distribution of development sectors andtheenvironment; 1. better ecological balancebetween the planning ofsector policies: There isatriplechallenge for sustainable sector goals. meet multiple andsometimes diverging Ecosystem are services often required to Enhancing planningprocesses. Raising awareness; Building argumentation; Providing justification; Se ction 4 4 ction S ummary Some F opportunities. Step 5:Identify ecosystem risks service and services; Step 4:Assesstheneedfor aneconomic valuation of ecosystem services; Step 3:Assessthecondition andtrends ofthe relevant Step 2:Screen theecosystem for services relevance; Step 1:Identify theecosystem inplay; services Ecosystem Approach: Services still have aneconomic value of$7trillionper year. per year ofeconomic benefits. X X (SEAs) andEnvironmental ImpactAssessments (EIA). of approach withinStrategic Environmental Assessments Implement theconcept ofecosystem asanangle services other MEAs. Plans (NBSAP) aswell asotherplanningmechanismsof processes are National Biodiversity Strategies andAction Guidance strategies to beused for green interactivity. approaches can benefit from better integration and In integrating the concept of EGS thethree planning concrete actions: planning approaches to turndevelopment policiesinto could beintroduced. Ingeneral, countries rely onthree identify mechanismswhere ecosystem basedinitiatives It isimportant to target various levels ofplanningto change. ecological footprint andadaptation measures to climate 4. Identifying mitigation measures to reducethe goods and services; strategies interms oftheiruse common ecosystem 3. Harmonizingandintegrating thedifferent sector goods and services; 2. Capturing andoptimizing benefits from ecosystem resilience levels; 1. Understanding thethresholds ofecosystems andtheir benefits: dimensions. Thisapproach willhave thefollowing sectors to helpthempro-actively integrate environmental Environment Ministry shouldregularly engage other multi-stakeholder platforms. Whenpossible,an Opportunities for strategic dialogueare found through X X Wetlands, ofwhichhalfhave beendestroyed globally, Global ecosystem provide services upto $70trillion Spatial plans. Decentralized plans; Sector plans; acts/ R ecommendations planning Good Practices 59 ecommendations acts/ R Reforms of product subsidies and taxes are applicable applicable are and taxes subsidies of product Reforms on such as user charges measures, recovery Cost rapidly for relevant particularly are charges Pollution Measures removing perverse incentives; perverse removing Measures for such as taxes pricing measures, resource Natural X X X X X EFR examples: Key sectors need to effectively integrate environmental environmental integrate effectively need to sectors Key and sets budgets adequate dedicating dimensions by common dependence on their capture of activities that be needs to Ministry an Environment Conversely, EGS. to in reference funding equitably for compete able to in budget engaging actively by ministries other sector development and revenue and offering preparations alternatives. One approach that is increasingly gaining recognition recognition gaining is increasingly that One approach and people is Indigenous of local its involvement for (ICCAs) Community Conserved Areas resource natural community-based Promoting the viability and services help maintain can management of ecosystems. undertake to the skills and methods However, can be lacking or planning participatory decentralized plans inadequate. to implement and finances weak, need a planning and implementation Decentralized as environment, and institutional legal political, proper to be successful. building efforts, capacity as strong well Spatial planning, in its holistic manner, can be inspired can be inspired planning, manner, Spatial its holistic in is the primary The latter approach. the ecosystem by on Biological Convention action under the for framework a by and promoted been introduced and has Diversity effective an as organizations number of international human to It links of managing ecosystems. way taking space and time dimensions across ecosystem and needs management ecosystem consideration into stakeholders. of contributions needs and sector integrate can approach The ecosystem at when looking planning and is also important spatial adaptation. change and climate disasters of natural risks of ecosystems planning and management coherent For services institutional multiple and ecosystem borders administrative needed across are arrangements and communities between instance For and levels. countries between level), municipalities (sub-national of regional and in the context level) (trans-boundary (supra-national). organisations X X X X X to most countries, but particularly energy producing producing but particularly energy countries, most to high; often are fuel subsidies where countries but countries most to applicable are and water, energy the poor; protect to carefully be implemented must industrial where countries middle-income industrializing capacity but administrative pollution is a serious problem strong. is relatively forests and fisheries exploitation, are relevant for most for most relevant are exploitation, and fisheries forests be low-income to – which tend countries resource-rich countries; Some F ummary S ction 4 Se Environmental Fiscal Reform (EFR) refers to to refers (EFR) Reform Fiscal Environmental and pricing measures of taxation a range while revenues fiscal raise which can goals. furthering environmental generate to an opportunity EFR offers and revenue environmental recurrent resources. of natural halt the erosion to of contributing EFR is a way Pro-poor by addressing directly reduction poverty the threaten that problems environmental of the poor. health and livelihoods While policies can be generally cognizant cognizant be generally While policies can this the environment, by played of the role well-articulated not necessarily is attention processes. in budget The benefits of ecosystems are best best are of ecosystems The benefits terms of their and assessed in identified users. direct to and importance role and ecosystems manage to In order is there services effectively ecosystem role of the a clear definition a need for authorities and central regional of local, among coherence vertical enhance to and horizontal levels administrative policies. sector between integration The process of greening sector plans relies plans relies sector of greening The process The approaches. on the use of spatial in ecosystem is paramount issue of scale will be a there Inevitably, management. social between mismatch geographical processes. The natural and institutions can that is in finding an approach challenge both scales. complement best an planning should provide Spatial multi-stakeholder opportunity for and its views express to collaboration negotiate use and to on resource interests for arrangements institutional proper implementation. Details Definition/ Environmental Fiscal Fiscal Environmental Reform Measures for Greener Greener for Measures Processes Budgeting Decentralized Plans Decentralized Spatial Plans Spatial Issues Concept/ Overview Good Practices 60 Overview Concept/Issues Architecture Environmental Finance Designing Innovative Expenditure Framework Medium Term Reduction Strategies Development andPoverty Greener National Definition/Details approach to ecosystems. (PES) schemesare basedonamarket-based sectors. Payments for ecosystem services and theirbenefits to alldevelopment that are closelytied to ecosystem services possibility ofallocating financial resources The concept ofbasket fundingcreates the and to reinforce sustainability. sources ofenvironmentally basedrevenues Exploring available options to generate new ceilings allocated to theirgreen sector. commitments to stick to thefinancial policies benefit from stable government these targets. Inthisway, environmental resources to strategic prioritieswithin targets andthesecond aimsat allocating objectives: the first aims at setting fiscal The MTEFprocess entails two main within ecological limits. for poverty alleviation anddevelopment measures can leadto improved outcomes opportunities. Together, theabove mixof considerations andinnovative revenue mechanisms for effective environmental The latter are also to belinked to budget sector, spatial anddecentralization plans. improved harmonization andintegration of of development planningprovides for Mainstreaming EGS withinalllevels integration between administrative levels. between sector policiesandvertical mechanism for bothhorizontal integration Ecosystem basedpoliciescan bea Se ction 4 4 ction S ummary Some F Examples ofbenefits related to PES: US$30 billionayear. emission reductions from REDD+ could reach up to It ispredicted that financialflows for greenhouse gas create financial value for the carbon stored in forests. Degradation (REDD)isaPES initiative designed to Reducing Emissionsfrom Deforestation and Forest substitute to budget reforms. be quite challenging. AnMTEFisacomplement nota institutional structures and capacities are still fragile can However, introducing anMTEFinacountry where the term ecosystem targets services into othersector’s. facilitates thestronger integration ofmedium- to long- terms ofbiodiversity andecosystem dimensions,MTEF the development ofprogramme basedplanning.In to move away from project focused budgeting and favour can beaneffective means foran Environment Ministry entry point for environmental mainstreaming. AnMTEF allocation between andacross sectors, andprovide an strategic dialoguethat can assist inimproving resource By introducing anMTEF, theMinistry ofFinanceopensa 3. To achieve fair andequitable sharingofenvironmental 2. To balance theimpactsandinvestments ofvarious 1. To balance environmental needswithdevelopment reduction: triple challenge sustainable development andpoverty scenarios, these“greener” planswould respond to the scientific findingsand inter-disciplinary assessments and From theenvironmental perspective and following rights, food, etc.). Providing non-monetary benefits (reinforced land- initiatives (outsideof protected areas); Providing new sources ofincome to environmental Providing new sources ofincome to thepoor; sustaining; Having thepotential to develop policiesthat are self- Building apositive approach to nature conservation; benefits within society. services; development sectors inbiodiversity andecosystem needs; acts/ R ecommendations Good Practices - - - 61 - - - ecosystem services for human well-being. This includes the need to build scientists’ capacity to provide scientific information in a manner that can be used not only by environmental decision but makers also by makers. decision development and economic 2009b IPBES Source: Box 47: Capacity Building Between Science and Policy […] numerous institutions and processes are helping to build capacity to use science effectively in decision-making at all levels. Significantremain gaps, inhowever, terms of the capacity to produce relevant knowl edge effectively, to formulate or reflectcritically on policy choices, policyknowledge into actionto andtocoordi translate need a also is There […] processes. these nate to build the capacity of scientists in devel in effectively more engage to countries oping and biodiversity on dialogues science-policy - - Developing Capacity Developing Raising Awareness evelopment Plans and Services Development within Capacity building for government institutions can also focus on the introduc the on focus also can institutions government for building Capacity services. ecosystem of use sustainable the promote that incentives of tion These rewards can come in the form of both financial and non-financial mental investments and their economic benefits. The end result becomes becomes result end The benefits. economic their and investments mental a and chronic programmes ofunder-funding investments. environmental of staff of capacity-building and training targeted for need the signals This to order In finance. environmental to related issues on finance of ministries involved be should staff these staff, finance of ministry the of capacity build programmes designingfor environmental of guidelines preparation in the 2009). (OECD the outset from and programmes, is an example of an identified capacity development gap development capacity identified an of example an is programmes, and (see box 47). This need has been highlighted in the work conducted by the Intergovernmental Platform on Biodiversity andEcosystem Services 2009a). (IPBES Capacity development measures incan staff involve ministries of finance as they often have insufficient understanding of the nature of environ Mainstreaming the concept of ecosystem goods and services in policies knowledge their communicate to scientists of capacity the on depend will practically. and effectively biodiversity servicesand ecosystem concerning This perspective is neededto complement traditional economic based metrics in decision making. Translating scientific knowledge plans into within socio- included and makers decision by used be to benefits, economic Awareness and capacity building are two complementary activities. The successful development and implementation of poli implementation and development successful The activities. complementary two are building capacity and Awareness available objectives, sector (e.g. issues non-technical and technical on depend can EGS of role the highlighting budgets and cies financialresources, human skills, political will). In the context of EGS, capacity development can varyfrom one country- insti to specific to adapted be should and biodiversity, and ecosystems of state the and needs of types the to according another tutional circumstances. motivate stakeholders to maintain or to turn towards greener initiatives without fear of losing economic advantages or access access or advantages economic losing of fear without initiatives greener towards turn to or maintain to stakeholders motivate rights. But it is desirable for governments to build awareness that highlights realistictargets.key A message to becommu nicated is are indispensiblethat ecosystems to human well-being and economic development (in tangible and non-tangible as EGS is an field,emerging gapsstill in terms there are certain arguments of and knowledge, thusHowever, forms). slowing within policies. concept of the integration the effective 5.1.2 Messages can target all sectors focusing primarily on damaging development activities (e.g. mining, forestry, etc.). Awareness Awareness etc.). forestry, mining, (e.g. activities development damaging on primarily focusing sectors all target can Messages encourages It poor. the and groups vulnerable empowering for means a and governance environmental building of part forms can be effective of strategies their in rights. ecological EGS awareness planningunderstanding their and involvement greater by disseminating messagesfocusing onEGS benefits andrewarding responsible managementpractices. Awareness should 5.1.1 goodsThe process and of integrating ecosystem services within development policiesrelies dissemination on of knowledge concerning the role played by ecosystems for human development. Presently, there is a growing body of research on the benefits and biodiversity forof ecosystems human well-being. This knowledgecan be helpful when to attentionthe brought of decision makers. In order to make informed decisions and integrate such topics into policy and legislation at all levels,awareness of EGS issues is necessary, and should target government and stakeholders within and outside the environment community. 5.1 raising and capacity Building goals. Awareness Raising Capacity and developing environmental implement effectively to capacity of lack a by hampered be can choices Policy management and ecosystem services aboutare awareness critical tobiodiversity, an Ministry Environment and all develop Goods andenvironment/ Services(EGS)around and knowledge skills Ecosystem reinforce can These initiatives sectors. ment into factored and visible become can dimensions these that so mechanisms reduction environment/poverty and development process. planning and budgeting 5 Goods Ecosystem of Enable Implementation to measures Good Practices 62 Assessment, Environmental Impact Assessment, and mainstreaming EGS within development planning. The Paris Declaration adoption of the Ecosystem Approach and complementary strategies and tactics such as EGS inclusive Strategic Environmental the assessment and valuation of ecosystem services. Capacity building can also involve reinforcing the ability of institutions in in needed be will measures building capacity further such, As activities. environmental stewardship responsible with nities means (e.g. green certification, payments for ecosystemservices, fiscal incentives, etc.), targeting the private sector and commu capacity-BUILDING FOR mainstreaming biodiversity and ecosystem for services sustainable development andpoverty reduction (UNEP/CBD/COP/10/4) Source: Annex IIofCBD-WGRI 3Recommendation 3/3:Integration ofbiodiversity into poverty eradication and development /DRAFT provisional framework on e) d) c) b) a) Expected outcomes ofcapacity building: T ment of ecosystem services as a fundamental contribution to poverty reduction and development in developing countries. mainstreaming in developing countries. That will enable conditionson environmental capacity-building forthrough levels., biodiversitysubnational and national regional, at conservationprocesses reduction poverty and the sustainable manage T sustainable developmentandpovertyreduction Box 49:Capacitybuildingonmainstreamingbiodiversityandecosystemservicesfor Source: PRESA 2009 the diverse actors, institutions, toolsandpolicyissues. landscape’, Services ‘Paymentsincluding Environmentalfor the understand helped workshop The design. contract and ecosystem of valuation action, gaps and services knowledgebetween the ecosystem the bridging approach, on services fromKenya, Uganda, Tanzania, informationEurope.USAand included Guinea, Africa, Sessions Malawi,Indonesia, South came who participants, 64 the for workshop the facilitated Institute Research Use Land Macaulay the and ICRAF from tion on ecosystem service tradeoff assessments and the impacts of various financial and regulatory instruments. Trainers Organized by Pro-poor Rewards for Environmental Services in Africa, the workshop sought to share background informa- Centralregionof Kenya environmentaland Mount the groupsprojectsKenyainitiated in community by East eco-region. cies and researchers working on rewards for environmental services initiatives. The training included visits to the Sasumua on Ecosystem Services Research for semi-Arid Africa. It aimed at strengthening the capacity of African implementing agen The Pro-Poor Rewards for Environmental Services in Africa (PRESA) project conducted a capacity building workshop in 2009 Box 48:Kenya– Workshop: BuildingEcosystemServicesResearchCapacity forSemi-Arid Africa arget groups: he overall purpose overall he

Scientists and researchers from different disciplines. Practitioners from relevant public, private andbusinesssector, local communitiesandindigenous organizations; Policy-makers from various government sectors anddepartments;

A more effective environmental finance management system based on national and external finance sources and sources finance andexternal national on based system management finance environmental effective more A A more holistic and systemic recognition on the fundamental interrelations and interdependences between biodi between interdependences and interrelations fundamental the on recognition systemic and holistic more A A more integrative and adaptive environmental planning approach incorporating strategic measures for environ for measures strategic incorporating approach planning environmental adaptive and integrative more A transfer, technological andscientific cooperation anditsimplementation strategy. tions for sustainable management of biodiversity in practice in accordance with the programme of work on technology Convention onBiological Diversity; in accordance with the Strategy for Resource Mobilization and the programme of work on incentive measures of the investments in biodiversity and ecosystem services through public, market and actionplans; the mainstreaming guides and provisions of the Convention on Biological Diversity for national biodiversity strategies policies, programmes and strategies at the regional, national, and decentralized subnational level, in accordance with mental sustainability into sectoral, spatial, and broader multi and cross‑sectoral development and poverty reduction whole landandseascape; as described within and in accordance with the programme of work on protected areas - from protected areas to the ecosystemresource and on decisions in ‑ fully participate to communities local and indigenous of emphasis special with and groups all empower and enable environment offers for development andpoverty reduction; the that limits ecological and benefits of range full the on and well-being, human and versity,services ecosystem A moreeffectiveA transfer,adaptation generation of solu and at and environmentalinnovations aiming technologies A more effective environmental governance approach including the support to governance structures that help to help that structures governance to support the including approach governance effective environmental more A is to integrate biodiversity and ecosystem services considerations into broader development and and development broader into considerations ecosystemservices and integratebiodiversity to is services usage and expanding effectiveexpanding and usageequivalently – governance services practices ‑ based, and community-based mechanisms ------Good Practices 63 Area of forest under sustainable management: certification; management: under sustainable of forest Area and degradation management: under sustainable of forest Area deforestation; management; under sustainable ecosystems of agricultural Area limits; biological safe in stocks of fish Proportion of species in trade; Status and medicine. food for Biodiversity Index; Marine Trophic quality; Water Fragmentation; Forest regulation; and flow fragmentation River of communities; Health and well-being of biodiversity; status Nutritional and medicine. food for Biodiversity Source: BIP 2008 Source: Box 51: Samples of Indicators from the initiative — Building the Partnership to Deliver the Global 2010 Indicators: use Sustainable and services goods and ecosystem integrity Ecosystem Policy Indicators Indicators Policy Adjusting policies, plans and programmes based on improved understanding of ecosystem goods and services; of ecosystem understanding based on improved policies, plans and programmes Adjusting sectors; to socio-economic benefits demonstrating EGS initiatives to successful allocations budget optimum Identifying allocate plans and when necessary to of development progress assess the environmental to donor agencies Allowing efficiently. further funds more 14% of the targets of the second PRSP of Tanzania are related to environment and resources. natural 2008 UNEP-PEI Source: environmental indicators for the Performance Performance the for indicators environmental Assessment Framework […] The inclusion of these indicators has helped elevate the environment to a higher level and has also focused government attention on its own performance. environmental In Tanzania, where donors provide direct $USD 600 support budget of approximately ensure to imperative was it year, per million sustainability environmental an had aid that component. The Government of Tanzania, developed donors, some of support the with Tanzania — Environment — Environment Box 50: Tanzania Assessment Dimensions in Performance Framework climate change and ecosystem resilience. and ecosystem change climate whereby donors can turn towards socio-economic and environmental indicators to assess the overall success and progress of a of progress and success overall the assess to indicators environmental and socio-economic towards turn can donors whereby - increas been has cooperation aid in dimensions green of importance The strategy. reduction development/poverty country’s ingly visible on the agendas of donor agencies and countries are encouraged to dedicate activeefforts to theenvironment. are used the to of evaluate progress reduction development/poverty strategies (PAF) Assessment Frameworks Performance services ecosystem in change of rate and trends condition, the policy-makers to communicate help can Indicators 50). box (see and their contributionto development. They are also important in thecontext of natural disaster managementto monitor 5.2.1 Some developing countries have successfully integrated the role played by environmental systems and biodiversity within policies role goods the could development reflect andby conditionlinking Indicators ofthem ecosystem to green indicators. environmental clear include to PRSPs generation second and strategies their adjusted have many respect this In services.and indicators performance to linked is Support Budget General instance, For Ghana). Madagascar, Mozambique, (e.g. objectives to to be limited in terms of sustained monitoring capacities.Regular monitoringcan contribute to understandingEGS related such as: benefits role in a country’s development, human well-being and poverty reduction. and poverty human well-being development, in a country’s role 5.2 and Budget Goods and Services in Policy Ecosystem onitoring m Monitoring and evaluating the environmental performance/impacts of development plans,can guide policy and budgeting practices. It best and resources pooling and financial initiatives valorizing successful also in documenting,help choices. It can policies. re-adjusting for means a is and knowledge EGS building and data environmental acquiring for mechanism a provides The lack of resources and capacities has often leddeveloping countries to be selective about their monitoring schemes and Above examples provide a general idea of some of the change, initiatives neededclimate in termsto of EGS basedrelated capacity building. Capacity plans/strategies national within objectives EGS of harmonization on focus also can initiatives building biodiversity, desertification, wetlands (and other Multi-lateral Environmental Agreements).Improved harmonization can to contribute better mainstreaming of MEA plans within development policies. Capacity building caninitiatives involve also their identify and services ecosystem assess to capacity experts’ improve to networks, and datasets tools, of development the identifies this gap and calls upon donors and partners to “develop and deepen common procedures for projects and develop projectsdevelop and for procedures common and deepen “develop to and partners calls gap upon and donors this identifies and apply common approaches Assessment Environmental for Strategic at the sector and national level. It also implies that levels. regional and sub-national national, the support at development capacity co-ordinated provide to join forces donors Good Practices

Flickr.com/Rocco Lucia 64 uation mechanisms. of green expenditures. The introduction of public environmental expenditures practices relies on sound monitoring and eval- environmentalof Theyfinances. offer means to consolidate and systematically assessthe effectiveness, andequity efficiency impact the monitoring fororganizingand measures are PEER) and reviews(PEEM and ronmentalmanagement expenditure An increase in environmental budget allocations can be best justified through valid statistics and comparative data. Public envi 5.2.2 FinancialPlanning— PublicEnvironment ExpenditureManagement andReviews ability ofmonitoring data. avail the on directly depends which allocations, budget environmental adequate reinforcing for necessary is EGS of terms However,achieved.results the information and spent in based being evidence building existingnotwithstandingchallenges, is what of terms in measure to challenging remains issue cross-cutting a as environment ecosystems.The of uses state and the up to follow weakness main the of one as identified frameworks have been monitoring poor dataand Inadequate data. mental arena. This is due to the complexity of indicators, which span over a multitude of disciplines, and the lack of statistical success of environmental policyefficiency canbeThe challenging. problem ofmonitoring isparticularlyacute inthe environ the assessing purposes, planning budget and policy support to information contribute can indicators ecosystem Although data andindicators isneededto buildknowledge interms ofalltypesEGS services. Assembling stages. early its in still is dimensions) cultural and supporting (regulating, services non-tangible indicatorson of Footprint for further information on ecosystems. It is possible to find indicators on provisioning services, but the development zations to help develop ecosystem based indicators. Other active initiatives are the WWF Living Planet Index and the Ecological development of indicators. The Biodiversity Indicators Partnership is trying to enhance the cooperationguide and accelerate to between programme work a concernedplace in organi put has forexample CBD The organizations. conservation national multilateralenvironmental of inter work or agreements the indicators take under canbased EGS place of development The opment sectors. They represent ameansofmeasuringtheuses,benefits andimpactsof various sectors. necessary (Layke 2009). Governments can look at what type of ecosystem services indicators can be relevant to existing devel flows Ultimately,are and stocks both service). on information ecosystema the deliver to of capacity (the ecosystem service their policies. Indicators can target the flow of an ecosystem (the benefits service people actually receive), or the stock of an as one of the main challenges to be addressed in helping governments integrate ecosystem goods and services dimensions in Millennium Ecosystems The of ecosystem needs. lack and objectives sectorment the identified Assessment indicators based ecosystembridgeand socio-economicshould dimensions Indicators services. cansubsequently be linked to various develop indicators consideration, into To takeetc. EGS effectively species, endangered of state the areas, protected of percentage the pollution, air quality, water as such issues monitor to used commonly indicators environmental of variety a is There ------Good Practices - - - 65 Source: Markandya, Hamilton and Sanchez 2006 and Sanchez Hamilton Markandya, Source: documents, and as such any current defini ad hoc Public space and urban environmental management; and urban environmental Public space treatment; Wastewater management; waste Hazardous disposal; Municipal solid waste gases and greenhouse of emissions of Mitigation substances; ozone-depleting expenditures. protection Other environmental 2008 et al. et Reviewing environmental budgeting mechanisms to introduce clear outputs and targets; clear outputs and to introduce mechanisms budgeting environmental Reviewing expenditures; government total to comparison in expenditures in environmental and trends the levels Identifying expenditures; environmental trace to capacity Improving categories; by clear and their classification expenditures of environmental breakdown a detailed Preparing allowing with calculations expenditures of environmental Enhancing analysis and countries; sectors with other comparisons for PEERs; build coherent needed to data of environmental Enhancing access and availability gaps; expenditure environmental determine to Enhancing capacity sources. income environmental new potential determine to Enhancing capacity Control of outdoor air pollution; outdoor of Control hygiene; and sanitation, supply, Water disasters; to natural of vulnerability Reduction pollution; of indoor air Control of soil degradation; Control management; resources and water Watershed reforestation; of deforestation; Control and national landscape, of biodiversity, Protection areas; protected Source: Cottrell Cottrell Source: Tanzania — Outcomes-based Planning and Public Environmental Expenditure Review — Outcomes-based Planning and Public Environmental Box 53: Tanzania in point turning critical a be to proved […] Review Expenditure Environmental Public 2004 government’s Tanzanian the […] under-pricing significant the revenue, to contribute to resources environmental of potential considerable the highlighting Tanzania. in collection services, revenue low and very of environmental Examples for Defining and Classifying Environmental Expenditure Classifying Environmental for Defining and Box 52: Examples Coupled to PEERs is the introduction of Public Environmental Expenditure Management (PEEM) practices. Developing countries countries Developing practices. (PEEM) Management Expenditure Environmental Public of introduction the is PEERs to Coupled provided in 2006 OECD The expenditures. environmental their manage effectively and efficiently to skills these introduce can set toof PEEM.related good practices Thesecanvaryto according the needs andset-up the institutionalof given country, a 54). box (see be skipped or adapted to some of the measures allowing However, experience with PEERs is However, still limited. PEERs usuallyhave been tion of PEERsrather must AuPhilbebroad (Swason, and 2003). Lundethors The use of these reviews isat an early and stage 2007). and Cabral agencies (Bird environmental core the beyond expenditures down track to difficult it remains present at In summary, conducting a PEER would respond to a set of administrative and performance assessment needs (Markandya et conducting a assessment needs andrespondto PEERwould (Markandya performance a set of administrative In summary, by: expenditures environmental to al 2006) related An environment ministry introducing PEER can use related financial figures for benchmarking performance in relation to other other to relation in performance benchmarking for figures financial related use can PEER introducing ministry environment An information Ministries, Finance and Planning from experts For countries. other from ministries environment to and ministries obtained through these budget management and assessment practiceswould build an understanding of where additional box (see infrastructures and initiatives environmental in investments of impact the reveal and necessary be might funds green broader identifying and transparency promoting by framework institutional the support can measures these Furthermore, 53). performance. enhance environmental to reforms sectoral effectiveness ofenvironmental expenditures percategory ofinvestment. PEERsare a mechanism todetermine the institu tional layout of the environmental sector accordingto the distribution To ofbe funding. successful, a public environmental in data additionto in the timeof necessary the and environmental would availability require investment review expenditure budget lines and toenvironmental build to countries coherent develop financial an PEERs resources. can improved motivate spending and investments. of environmental understanding Public Expenditure Environmental (PEERs)Reviews provide tools for analyzing in detail the sources, destinations,effec and resources.can They planning offer andtiveness of finance environmental ministryunderstanding officers of an the type and Good Practices 66 and stakeholders. TheStrategic PlanoftheClearing-HouseMechanismidentifies three major goals: Convention through the promotion and facilitation of technical and scientific cooperation among Parties, other Governments been established further to poverty strategies. One example is the Clearing-House Mechanism (CHM) of the Convention on Biological Diversity which has and development national integration into gradual benefits environmental of the to contribute data can new collecting and ground the from stories success Identifying knowledge. EGS of development and use the accelerate can mechanism house interestswith linkedactivities and to natural resources and conservation. For abiodiversityinstance, and ecosystem clearing stakeholders) other (and agencies government between information of exchange the facilitate can platforms sharing edge services knowledge base’ needs to be constantly updated and consolidated. The development of expert networks and knowl- the design and implementation of sustainable development strategies at all levels (national, regional, global), this ‘ecosystem strategiesarereinforced information analysis.continuous monitoring, and on flow based To generate decisions for informed Development stakeholders. different the between learned lessons sharing while knowledge, new build to and trust force Adaptive Management encouraging mechanisms on relies cooperation information and to exchange. These needed are rein- 5.3.1 its role, allowing abetter integration andenhancement ofplanning process andimplementation measures whennecessary. flexible and open to adjustments. Capturing and sharing lessons learned will reinforce knowledge about the environment and lessons from the field feed into planning processes. Implementation, like the policy and budget planning process, should remain of linear planning measures. On the contrary, implementation constitutes a set of actions within an iterative process whereby Implementation, ispart of the policyandbudget development process, butdoes not constitute a last step within a sequence 5.3 Source: Xu, Wang andSun2000 geology/geography, andclimate/meteorology, etc. nature reserve, forest ecosystem, animal, plant, crop germplasm resource, traditional Chinese medicine, water resource, forestry,of categories information thematic the in distributed mainly China, in developed been have databases versity which covers living organisms, as well as related natural background and human activities. It is estimated that 152 biodi and information data and accurate sufficient demands utilization sustainable and conservation biodiversity on making decision The information. biodiversity in therefore is rich and world, the of ‘megadiverse’countries the of one is China Box 55:China—BiodiversityClearingHouseMechanism Principle 5 Principle 4 Principle 3 Principle 2 Principle 1 Checklist 1 Box 54:BestPracticesinPublicEnvironmentalExpenditureManagement A fullyoperational mechanism withparticipation ofall Partiesand an expanded network ofpartners. The promotion and facilitation of information exchange among Parties,other Governments and stakeholders; The promotion and facilitation of technical andscientific cooperation; Lessons Learned Lessons LearnedandAdaptive Management

finance. Leverage additional from available funds; environmental effect Maximize outcomes; of environmental Clear identification framework; programming Well-defined instruments; environmental policy consistency withother Additionality and Effectiveness of Environmental Performance inT Article 18. erms 3 of the Convention (see box 55). Its mission is to contribute to the implementation of the Checklist 2 Principle 5 Principle 4 Principle 3 Principle 2 Principle 1

Performance inT Management. from expenditure procurement separated revenues andpublic Collection of transparency; Accountability and discipline; High standards offiscal efficiency; Avoid constraints to revenues; Fiscal integrity of Practice of Budgetary Good erms Principle 5 Principle 4 Principle 3 Principle 2 Principle 1 Checklist 3

and related risks. of financialproducts Effective management stakeholders; relations with external Fair andunbiased management; Sound project cycle management; Professional executive Sound governance; Efficiency of Management Performance inT Source: OECD 2006 erms - Good Practices - 67

. 2008). Strengthening the betweenintegration science and et et al —Innu Elder Simon Michel on everything...this is the best science I can give you.” give you.” I can science is the best on everything...this “For us, it is always good policy to leave alone what we do not leave alone us, it is always good policy to “For what is there and what keeps us here. I know that everything that us here. I know depends what is there and what keeps understand. Not only us humans depend on forests, but all life depends but all life forests, Not only us humans depend on understand. on them. We let things be, and let the forests grow naturally. This is our naturally. grow the forests things be, and let let on them. We approach. All your science will not save you if you continue to take away take to you if you continue will not save approach. All your science Adaptive Co-Management Adaptive

co-management to focus on establishing multi-level governance that creates the institutional, economic and political structures structures political and economic institutional, the creates that governance multi-level establishing on focus to co-management to build resilience in social-ecological (Duraiappah systems broader the of some of aware also be to need we humans as However, planning. development better to contribute can policy ecosystems. of behind the transformation lie that limits and uncertainties tional management ofandfocuses ecosystems on the adaptive capacity of social-ecological tosystems deal withecological changes, uncertainty and surprise. This approach combines the dynamic learning characteristic of adaptive management with the of characteristic management.linkage collaborative Adaptive co-management uses processes of monitoring,inter foratfeedback dealing multiplescales to with Knowledge buildsocial knowledge. and respondingtopreting, and ecosystem that networks social requires and society in organizations and individuals among dispersed be can dynamics system ecological buildsgovernance adaptive on Adaptive of information. sources on dispersed to draw for actors inorder span multiple levels The different EGS approaches Theand different initiatives (policy and budget planning presented approaches/tools) in this document can - cross-organiza and to multi-level refers latter The co-management. or adaptive management adaptive through be optimized 5.3.2 Flickr.com/Dick Rochester Flickr.com/Dick Good Practices 68 Overview Concept/Issues Policy Indicators Based Monitoring Policy andBudget EGS Developing Capacity Raising Awareness Raising Awareness Developing Capacity and Definition/Details results achieved. terms ofwhat isbeingspent andthe remains challengingto measure in environment asacross-cutting issue weakness indeveloping countries. The have beenidentified asoneofthe data andpoormonitoring frameworks dimensions intheirpolicies.Inadequate integrate ecosystem goods andservices to be addressed in helping governments indicators as one of the main challenges identified thelackof ecosystem based The Millennium Ecosystems Assessment re-adjusting policies. initiatives andasameans for the performance ofenvironmental monitoring activities to evaluate Adaptive management relies on of environmental mainstreaming. environmental programmes andalack being achronic under-funding of economic benefits. Theend result environmental investments andtheir often lacksufficient understanding of ministries offinanceandplanning Staff insector ministries and state ofecosystems andbiodiversity. technologies, etc.), thecontext and types ofneeds(resources, knowledge, country to anotheraccording to the of measures that can vary from one development involves abroad set In thecontext ofEGS, capacity played by ecosystems. of knowledge concerning therole policies relies onagood dissemination withindevelopmentgoods andservices The process ofintegrating ecosystem environmental goals. to effectively implement identified be hampered by alackofcapacity The successofpolicychoicescan Se ction 5 5 ction S ummary Some F ecosystems. components inbuildingunderstanding about EGS basedindicators isoneofthenecessary The perspective ofmonitoring anddeveloping accessible for free. are constantly beingdeveloped andmost are best practices andbiodiversity mainstreaming CBD aswell asotherinstitutions focusingon EGS withinpolicies.New literatureservices from the which can slow theintegration ofecosystem still gaps in terms ofarguments andknowledge, However asEGS isanemerging fieldthere are development planning. assessment, andmainstreaming EGS within environmental assessment, environmental impact and tactics suchas EGS inclusive strategic approach andcomplementary strategies ability ofinstitutions inadoption ofthe ecosystem Capacity buildingcan alsoinvolve reinforcing the outset oftheprocess. involve theministry offinance staff from the environmental programmes can andshould The preparation ofguidelines for designing build awareness that highlights realistic targets. access rights. Itisdesirable for governments to without fear oflosingeconomic advantages or maintain orto turntowards greener initiatives EGS awareness shouldmotivate stakeholders to processes. Developing Capacityandawareness are on-going contribution to development. rate ofchange inecosystem andtheir services to policy-makers thecondition, trends and environmental indicators can helpcommunicate poverty reduction strategies. PAF including be usedto evaluate theprogress ofdevelopment/ Performance Assessment Frameworks (PAF) can development objectives. of environmental indicators that are linked to Policies can beassessedthrough theintroduction resources. Tanzania are related to environment andnatural X X 14% ofthetargets ofthesecond PRSP of acts/ R ecommendations Good Practices 69 ecommendations acts/ R Public Environmental Expenditure Reviews provide provide Reviews Expenditure Environmental Public destinations and the sources analyzing for a tool motivate PEERs can resources. of environmental environmental coherent develop to countries build an improved to lines and budget spending. of environmental understanding Public introduce can countries Developing Management Expenditure Environmental effectively and efficiently to as skills practices, expenditures. their environmental manage learned and sharing lessons capturing Continually about the environment knowledge will reinforce of integration better hence achieving and its role, measures. implementation and planning process expert networks of the development Promoting the facilitate can sharing platforms and knowledge government between information of exchange with interests (and other stakeholders) agencies and resources natural to and activities linked conservation. related biodiversity help share to One tool is the Clearing-House Mechanism information Diversity. on Biological (CHM) of the Convention of monitoring, possible, use processes Whenever to ecosystem responding and interpreting, and policies to adjust multiple scales at feedback build knowledge. Some F ummary S ction 5 Se An increase in environmental budget budget environmental in An increase through justified can be best allocations data. comparative and statistics valid expenditure Public environmental (PEEM and and reviews management organizing for measures PEER) are the impact of and monitoring finances. environmental Implementation is part of the policy Implementation but process, development and budget step as the last should not be regarded within a linear sequence of measures. improved are strategies Development monitoring, based on continuous To and analysis. flow information for decisions informed generate of the design and implementation at strategies development sustainable regional, global), the (national, all levels services base on ecosystem knowledge consolidated. be constantly needs to and initiatives approaches EGS adaptive through optimized are or adaptive management co-management. Details Definition/

Financial Planning - Financial Planning - Public Environment Expenditure and Management Reviews Lessons Learned and Management Adaptive Lessons Learned Adaptive Co-Management Issues Concept/ Overview Flickr.com/Tanaka Juuyoh Flickr.com/Tanaka Appendix I: Web Based Resources

Select weblinks on Ecosystem Goods and Services: Ecosystem Goods and Services Valuation: Poverty Environment Partnership: Environmental Valuation Reference Inventory: http://www.povertyenvironment.net/ http://www.evri.ca Poverty Environment Initiative: InVEST: http://www.unpei.org/ http://invest.ecoinformatics.org/ Food and Agriculture Organization - Pro-poor World Commission on Protected Areas Economic Rewards for Environmental Services in Africa: Valuation of Protected Areas Task Force http://www.fao.org/es/esa/PESAL/PESmaterials7.html http://www.iucn.org/about/union/commissions/ wcpa/wcpa_what/wcpa_capacity/wcpa_economic/ International Institute for Environment and Development: http://www.watershedmarkets.org/casestudies.html Case Studies on the Web: Katoomba Group: Conservation International Ecosystem Services Map: http://www.katoombagroup.org/ http://www.consvalmap.org/

The Natural Capital Project: Nature Valuation & Financing Case Base: http://www.naturalcapitalproject.org/home04.html http://www.eyes4earth.org/casebase

International Institute for Environment and Development: International Institute for Environment and Development: http://www.environmental-mainstreaming.org/ http://www.watershedmarkets.org/casestudies.html

International Development Research Centre Finance Initiatives: — Environmental Economics: UNEP - Finance Initiative: www.idrc.ca http://www.unepfi.org/ Center for International Forestry Research http://www.cifor.cgiar.org/pes/_ref/home/index.htm

Ecosystem Goods and Services Capacity Building: Economy and Environment Program for Southeast Asia (EEPSEA) www.eepsea.org

South Asian Network for Development and Environmental Economics (SANDEE) www.sandeeonline.org

Latin American and Caribbean Environmental Economics Program (LACEEP) www.laceep.org

Center for Environmental Economics and Policy in Africa (CEEPA) www.ceepa.co.za s e sourc e r

70 Appendix II: Examples of Country Legislation

Algeria National Spatial Planning and sustainable development law

Law for the protection of mountain zones in the context of sustainable development. Adopted 23, June 2004

Various new laws and regulations (some still being developed) phytosanitary, marine, environment, mountains, green spaces, spatial planning (2001), renewable energy (2004), protected areas.

Proposed new law on ABS; law on collection, circulation and utilization of biological resources and associated knowledge as a precursor to regulations on ABS

New law proposed for an exhaustive protection of national flora (549 taxons)

In 2009 Algeria passed a law expanding the list of species whose conservation is of national interest

2003 Law for the protection of the environment in the context of sustainable development – purpose is to better integrate biodiversity concerns into strategies and action plans of economic activities

Bhutan Adoption of EIA Act 2001 and Biodiversity Act 2003.

The Constitution requires the Government to ensure that a minimum of 60% of Bhutan’s total land area is maintained under forest cover for all time.

The National Environment Strategy called the “Middle Path” addresses possible impacts from key proposed development activities (hydropower, industrial and agricultural development).

Cambodia A new Fishery Law was adopted in 2006 which requires fishery management based on the ecosystem approach and gives emphasis to conservation of fish habitats. 8 fish sanctuaries have been established at national level. Community Fisheries (268 sites) have been established to facilitate conservation of habitats and sustainable use of fishery resources.

A number of laws have been adopted in recent years, such as PA Law, Biosafety Law, Water Resources Management Law and the Law on Crop Seed Management and Rights of Plant Breeders.

Organizational Law on sub-national administration adopted in 2008 gives more responsibility for sub-national councils to oversee local development and natural resource management.

A new Fishery Law adopted in 2006 requires fishery management based on the ecosystem approach and gives emphasis to conservation of fish habitats. 8 fish sanctuaries have been established at national level. Community Fisheries (268 sites) have been established to facilitate conservation of habitats and sustainable use of fishery resources.

Spain Law 42/2007 provides for the creation of a Spanish Inventory of Traditional Knowledge related to Natural Patrimony and the conservation and sustainable use of the biodiversity and geological diversity.

In 2009, a Royal Decree to develop the Spanish Catalog of invasive alien species, which include those species that pose a serious threat to native biodiversity was issued

A new policy framework adopted as part of Law 42/2007 on Natural Heritage and Biodiversity adapts existing state legislation on nature conservation and biodiversity to the spirit of the Convention. Law 42/2007 came into force in December 15, 2009. Law 42/2007 will incorporate new instruments such as a Strategic Plan of the State Natural Heritage and Biodiversity to guide biodiversity priorities.

The Environmental Impact Assessment and Strategic Environmental Assessment now join Law 26/2007 as basic tools of sectoral integration for environmental responsibility.

In 2008 the Environmental Assessment Law was approved, which aims to regulate, clarify and harmonize the provisions on environmental impact assessment.

Morocco Put in place a Secretary of State for Environment with a Biodiversity “cell” and a National Biodiversity Committee r e

Elaborated various pieces of legislation including protection of the environment from pollutants, valuation of the sourc environment, protected areas, and environmental impact assessment. e s

71 Lebanon Ratification of Law on the Protection of Environment, Law of Hunting, draft law regulating Access and Benefit Sharing, draft framework law for protected areas, draft EIA and SEA decrees, draft biosafety decree.

Increase in number of protected areas/ but need proper management and monitoring

Development of major strategies and plans: National Strategy for Forest Fires National Master Plan for land Management National Action Plan for Protected Areas (NAPPA) National Action Plan for combating degradation and desertification National Reforestation Plan (NRP) National Biosafety Framework Progress toward community-based nature conservation system

Integration of environmental concepts, biodiversity conservation and sustainability into the gathering, processing and marketing of globally significant Medicinal and Aromatic Plants (MAPs) in Lebanon; into the law of hunting through the incorporation of sustainable hunting approach; into different levels of education and schools curriculum, EIA, SEA, agrobiodiversity, agriculture policy and major sectors of development. Biodiversity considerations have been indirectly linked to Climate Change impact, combating desertification, Ramsar sites and World Heritage sites.

Law for the Protection of the Environment 2002 includes principle of biodiversity protection.

EIA and SEA decrees – all major development and infrastructure projects since 2002 require EIA; major plans require SEA.

“National Reforestation Plan” prepared by the Ministry of Environment in 2001 / refers specifically to the CBD. Only allows use of indigenous forest species, no alien species. Prohibits land preparation techniques that may cause harm to or loss of biodiversity

“National Strategy for Forest Fires” 2009 officially endorsed by council of ministers; involves various departments.

Hunting Law 2004 integrates sustainable hunting; refers explicitly to biodiversity convention; defines hunting season; special bans for certain species; establishes breeding centers; prohibition of nest snatching, taking, destroying, selling, etc.

MoU between ESCWA (regional UN commission) and CBD signed in 2007 to promote mainstreaming of biodiversity topics into sustainable development and socio-economic projects.

Draft framework law for protected areas, draft EIA and SEA decrees, draft biosafety decree.

Sri Lanka The Fauna and Flora Protection Ordinance No. 2 of 1937 and subsequent amendments including Act of 2009. The Department of Wildlife Conservation is primarily responsible for the implementation of this law (FFPO), which recognises six categories of wildlife reserves. This Act, besides protecting animal and plant life within the national reserves, has provision to protect certain categories of animals and plants wherever they are found and states the penalties for violation of the law. For most faunal groups there is a negative listing so that most species under the vertebrate groups are protected. The Act also lists penalties for violation of the law. However, enforcement of this Act remains weak with respect to protection of listed species. In contrast, the Act requires a permit for export of any wild plant or animal or their parts, and this is enforced by the Customs Department at ports of exit from the country

The Marine Pollution Prevention Act No.59 of 1981 and amended by the Marine Pollution Prevention Act No.35 of 2008 became effective as of January 1, 2009. The MPPA of 1981 enabled the establishment of the Marine Pollution Prevention Authority (MPPA) and provided for the prevention, reduction and control of pollution in Sri Lankan waters, and gave effect to international s conventions for the prevention of pollution of the sea to which Sri Lanka is a signatory. The 2009 revision of this e Act has strengthened the MPPA and renamed it as the Marine Environment Protection Agency.

Philippines In January 2008 the Supreme Court designated 84 branches of first-level courts and 31 branches of second-level courts as special Environmental Courts or “green courts” to handle cases involving violations of environmental

sourc laws. Previously, A number of executive or administrative orders were issued to establish task forces that were e mandated to look into environmental crimes. r

72 Djibouti Biodiversity protection forms an integral part of Law on the Orientation of Economic and Social Development for period of 2001-2010, the Poverty Reduction Strategy (2003), the national initiative for social development (INDS) and the MDGs Environmental Framework Law (2001) includes procedure for EIA and regulations regarding transport of dangerous products. The law also now includes provisions on creation of terrestrial and marine protected areas and the protection of biodiversity (2004).

Japan As part of Japan’s Biodiversity Basic Law local governments are encouraged to develop local biodiversity strategies. To support local public authorities in this task the Japanese Ministry of the Environment has developed guidelines on the development of local biodiversity strategic action plans. These guidelines contain information on why local biodiversity strategies are important, provides an overview on the development, implementation and monitoring of local biodiversity strategies and provides guidance on how to ensure participation in the development of the strategy and references pieces of relevant legislation and case studies.

Madagascar Decree n°2003-439 puts in place environmental department (“cellules”) in each of the government’s ministries.

Poland A new act on ecological farming was introduced in 2004 that regulates, among other things, the conditions for farming production and food processing with the use of ecological methods, and specifies the system of control and certification, along with requirements for ecological product circulation and marking.

The original Polish NBSAP, covering all the sectors of the national economy, was developed between 1996 and 1998, and adopted in 2003. However, due to changes that occurred mainly as a result of Poland’s accession to the European Union, and alignment of national environmental policies with those of the EU, Poland adopted an updated version of the NBSAP in 2007. This amended document comprises an Action Plan for the 2007- 2013 period and stresses the conservation of biological diversity in respect of Poland’s social and economic development needs as its primary objective. It also refers to the 2010 Biodiversity Target and Millennium Development Goals.

National Strategy for Conservation and Sustainable Use of Biological Diversity and Action Plan (2007-2013)

Polish Act on Nature Conservation (2004)

Framework Convention for the Protection and Sustainable Development of the Carpathians. The second COP of the Carpathian Convention adopted a Protocol on Conservation and Sustainable Use of Biological and Landscape Diversity.

Act on Sharing Information on the Environment and its Protection, Involvement of Society in Nature Conservation and on Environmental Impact Assessments (2008).

In November 2008, amendments to the Act on Nature Conservation and other legislation were adopted to better address issues related to alien species. In spite of the fact that a legal framework for alien species has been significantly improved, progress has not been satisfactory in terms of the development of operational documents.

Significant progress has been made in enhancing the role of environmental impact assessments as an important instrument to limit negative pressures on protected areas in planned economic undertakings related to the environment. (Appendices, p. 25). Recognizing the need to increase the efficiency of the EIA system, especially in regard to biological diversity protection issues, and to align EIA requirements with those of the EU, Poland adopted the Act on Sharing Information on Environment and its Protection, Involvement of Society in Nature Conservation, and on Environmental Impact Assessment, in 2008. Through this Act, a new efficient system for supervising EIA procedures was created, comprised of a General Directorate for Environmental Protection and regional directorates for environmental protection responsible for environmental impact issues and the protection of Natura 2000 network. The duties of the newly appointed bodies are to foster cooperation with local governments, environmental organizations, other nature and environment protection bodies, the European Commission and foreign institutions and organizations, as relates to environmental assessments, investment

procedures and nature protection. Moreover, the Act’s provisions significantly strengthened the role of public r

consultations in EIA procedures. This modified EIA procedure also introduced the requirement for repeated e assessments in undertakings that could considerably impact the environment (e.g. linear infrastructure sourc investments). e s

73 European Directive 2004/35/EC of the European Parliament and of the Council of 21 April 2004 on environmental Community liability with regard to the prevention and remedying of environmental damage establishes a framework for environmental liability based on the ‘polluter pays’ principle, with a view to preventing and remedying environmental damage. The European Commission monitors progress on the transposition of the Directive. 19 EU Member States have notified complete transposition of the Directive.

Rural Development Article 39 (1)-(4) of Regulation (EC) No 1698/2005, and Article 27 of Regulation (EC) No 1974/2006 offer the possibility to promote agri-environment measures that support the rearing of ‘farm animals of local breeds indigenous to the area and in danger of being lost to farming’, and the preservation of ‘plant genetic resources naturally adapted to the local and regional conditions and under threat of genetic erosion’. Article 28 of Regulation 1974/2006 also supports the conservation of genetic resources in operations not covered by the above-mentioned measures by supporting the preservation of endangered animal and plant genetic resources.

Uganda The Constitution of Uganda recognizes and makes special provisions for the environment and natural resources. The Constitution has a number of Articles which are relevant to the CBD, for example, Article 237(2)(b) mandates Parliament to make laws which authorize the central government or local governments, to hold in trust for the people, and protect natural lakes, rivers, wetlands, forest reserves, game reserves, and national parks, and to reserve land for ecological and tourist purposes for the common good of all citizens.

United Republic Biodiversity issues have been mainstreamed into the National Strategy for Growth and Poverty Reduction of Tanzania (NSGRP)

The Seeds and Plant Varieties Act has measures to regulate the genetic quality of seeds and plants in Kenya by detailing provisions on seed testing, transactions in seeds, prevention of cross-pollination and on plant breeder Kenya rights.

Finland As part of Finland’s Land Use and Building Act, adopted in 2000 and since revised, it is possible to designate National Urban Parks as a means of protecting and maintaining the beauty of the cultural or natural landscape, biodiversity or related values in townscapes.

United Kingdom A reform of the Common Agricultural Policy in 2003 reduced the environmental impact of agriculture by removing incentives to intensify production.

Hungary Agri-environmental measures will be included under the New Hungary Rural Development Plan, which will be implemented in 2009. The plan will help to find a suitable balance between compulsory conservational requirements and the possibility of voluntary measures; farmers will be eligible for subsidies for biodiversity- supportive measures on about 914,000 ha.

Norway The Management of Wild Marine Resources Act went into force in 2009. The purpose of this Act is to secure a sustainable and socio-economically profitable management of wild marine resources and associated genetic materials and to contribute to securing employment and settlement in coastal communities. (p. 52, chapter II)

Chile 2007 Amended Law on General Principles of the Environment 2007 Law on National System of Certification of Agricultural Organic Products establishes the conditions for the commercialization of organic products and their equivalents 2008 Law on Native Forest Restoration

Tunisia New Law on Marine Protected Areas (2009) (p. 10) s e sourc e r

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