The Global Assessment Report on Biodiversity and Ecosystem Services 6

THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES 6

875 CHAPTER 6. OPTIONS FOR DECISION MAKERS

Chapter 6. OPTIONS FOR DECISION6 MAKERS

876 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

IPBES GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES CHAPTER 6. OPTIONS FOR DECISION MAKERS Copyright © 2019, Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) DOI: https://doi.org/10.5281/zenodo.3832107 Part of ISBN: 978-3-947851-20-1

COORDINATING LEAD AUTHORS: S. Kotiaho (Finland), William F. Laurance (Australia), Elodie Jona Razzaque (United Kingdom of Great Britain and Le Gal (United States of America), Jin Leshan (China), Northern Ireland), Ingrid Visseren-Hamakers (Netherlands/ Nengye Liu (Australia), Emanuele Lobina (United Kingdom United States of America) of Great Britain and Northern Ireland), Derk Loorbach (Netherlands), Martine Maron (Australia), Peter May (Brazil), LEAD AUTHORS: Timon McPhearson (United States of America), Marieke Ambika Prasad Gautam (Nepal), Leah Gerber (United States Meesters (Netherlands), E. Migoni Alejandre (Netherlands), of America), Mine Islar (Turkey, Sweden), Md Saiful Karim Daniel Miller (United States of America), Angus Morrison- (Bangladesh, Australia), Eszter Kelemen (Hungary), Saunders (Australia), Lila Nath Sharma (Norway), Barbara Jinlong Liu (China), Gabriel Lui (Brazil),Pamela McElwee Norman (Australia), Ingeborg Palm Helland (Norway), (United States of America), Abrar Mohammed (Ethiopia), Fabien Quétier (France), Jake Rice (Canada), Irene Ring Eric Mungatana (Kenya), Roldan Muradian (Netherlands), (Germany), Denis Ruysschaert (Belgium/France), Andrea Graciela M. Rusch (Argentina), Esther Turnhout Schapper (United Kingdom of Great Britain and Northern (Netherlands), Meryl Williams (Australia) Ireland), Ronald Steenblik (OECD), William J. Sutherland (United Kingdom of Great Britain and Northern Ireland), FELLOWS: Jacqueline Tao (Singapore), James Watson (Australia), Ivis Chan (Belize), Alvaro Fernandez-Llamazares (Spain/ Dara Zaleski (United States of America) Finland), Michelle Lim (Malaysia/ISSC) CHAPTER SCIENTISTS: CONTRIBUTING AUTHORS: Joachim Spangenberg (Germany), Dara Zaleski (United Saleem Ali (Australia), Susan Baker (Australia), Andrew States of America) Balmford (United Kingdom of Great Britain and Northern Ireland), David N. Barton (Norway), Rupert Baumgartner REVIEW EDITORS: (Australia), Timothy Baynes (Australia), Abigail Bennett Julia Carabias (Mexico), Jan Plesník (Czech Republic) (United States of America), Brent Bleys (Belgium), P.M. van Bodegom (Netherlands), Sara Brogaard (Sweden), Mireille THIS CHAPTER SHOULD BE CITED AS: Chiroleu Assouline (France), Jennifer Clapp (Canada), Neil Razzaque J, Visseren-Hamakers IJ, McElwee P, Rusch GM, Craik (Canada), Maylis Desrousseaux (France), Rui Ferrero Kelemen E, Turnhout E, Williams M, Gautam AP, dos Santos (Portugal), Doris Fuchs (Germany), Toby Fernandez-Llamazares A, Chan I, Gerber L, Islar M, Gardner (United Kingdom of Great Britain and Northern Karim S, Lim M, Liu J, Lui G, Mohammed A, Mungatana E, Ireland), Alexandros Gasparatos (Japan), Ariane Goetz Muradian R. (2019) Chapter 6.Options for Decision Makers. (Germany), Jeroen B. Guinée (Netherlands), David Hall In: Global assessment report of the Intergovernmental (United Kingdom of Great Britain and Northern Ireland), Science-Policy Platform on Biodiversity and Ecosystem Duncan Halley (Norway), Michael Howard (Germany), Services. Brondízio, E. S., Settele, J., Díaz, S., Ngo, H. T. Caroline Howe (United Kingdom of Great Britain and (eds). IPBES secretariat, Bonn, Germany. Northern Ireland), Cynthia Isenhour (United States of 154 pages DOI: 10.5281/zenodo.3832107 America), Tim Jackson (United Kingdom of Great Britain and Northern Ireland), Katia Karousakis (OECD), John Knox PHOTO CREDIT: (United States of America), Berit Köhler (Norway), Janne P. 875-876: Joan de la Malla

The designations employed and the presentation of material on the maps used in the present report do not imply the expression of any opinion whatsoever on the part of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. These maps have been prepared for the sole purpose of facilitating the assessment of the broad biogeographical areas represented therein.

877 CHAPTER 6. OPTIONS FOR DECISION MAKERS Table of Contents

EXECUTIVE SUMMARY ...... 880

6.1 INTRODUCTION...... 889

6.2 TOWARDS TRANSFORMATIVE GOVERNANCE ...... 890 6.2.1 Integrative governance: ensuring policy coherence and effectiveness ...... 891 6.2.2 Informed governance: based on legitimate and credible knowledge...... 892 6.2.3 Adaptive governance to enable learning ...... 893 6.2.4 Inclusive governance: ensuring equity and participation ...... 894 6.2.4.1 Value Systems ...... 895 6.2.4.2 Rights-based approaches...... 895 6.2.4.3 Gender ...... 895 6.2.4.4 IPLCs and ILK...... 896

6.3 TRANSFORMATIVE CHANGE IN AND ACROSS ISSUES, GOALS AND SECTORS. . 898 6.3.1 Introduction ...... 898 6.3.2 Integrated Approaches for Sustainable Landscapes ...... 898 6.3.2.1 Feeding the world without consuming the planet...... 903 6.3.2.2 Sustainably managing multifunctional forests...... 909 6.3.2.3 Protecting nature within and outside of protected areas...... 912 6.3.2.4 Expanding ecosystem restoration projects and policies ...... 917 6.3.2.5 Improving financing for conservation and sustainable development ...... 918 6.3.3 Integrated Approaches for Sustainable Marine and Coastal Governance. . . . . 919 6.3.3.1 Global Marine and Coastal...... 922 6.3.3.1.1 Implementing global marine environment agreements for shipping ...... 922 6.3.3.1.2 Mainstreaming climate change adaptation and mitigation into marine and coastal governance regimes...... 922 6.3.3.1.3 Mobilising conservation funding for the oceans...... 923 6.3.3.2 International waters: High Seas (ABNJ) and regional waters...... 924 6.3.3.2.1 Improving shared governance...... 924 6.3.3.2.2 Mainstreaming nature and its contributions to people...... 926 6.3.3.2.3 Pathways to protect nature in the High Seas ...... 926 6.3.3.3 Coastal Waters...... 927 6.3.3.3.1 Promoting integrated management ...... 927 6.3.3.3.2 Mainstreaming nature conservation in sectoral management, with an emphasis on fisheries ��928 6.3.3.3.3 Scaling up from sub-national project pilots ...... 930 6.3.3.3.4 Building ecological functionality into coastal infrastructure ...... 930 6.3.3.3.5 Engaging NGOs, industry and scientists as stakeholders to achieve common ecological and social good outcomes...... 930 6.3.4 Integrated Approaches for Sustainable Freshwater ...... 931 6.3.4.1 Improving water quality ...... 931 6.3.4.2 Managing water scarcity ...... 935 6.3.4.3 Engaging stakeholders...... 936 6.3.4.4 Use of economic instruments...... 937 6.3.4.5 Improving investment and financing ...... 937 6.3.4.6 Promoting Integrated Water Resource Management ...... 938 6.3.4.7 Encouraging transboundary water management ...... 939 6.3.5 Integrated Approaches for Sustainable Cities...... 939 6.3.5.1 Urban planning for sustainability ...... 941 6.3.5.2 Nature-based solutions and green infrastructure...... 942 6.3.5.3 Reducing the impacts of cities ...... 943 6.3.5.4 Enhancing access to urban services for good quality of life ...... 944 6.3.6 Integrated Approaches for Sustainable Energy and Infrastructure...... 945 6.3.6.1 Development of sustainable biofuels strategies...... 947 6.3.6.2 Encouraging comprehensive environmental impact assessment (EIA) ...... 948

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6.3.6.3 Ensuring compensation and innovative financing for environmental and social impacts...... 949 6.3.6.4 Ensuring access to energy for all by promoting community-led initiatives...... 950 6.3.6.5 Promoting inclusive governance in planning and implementation of energy and infrastructure projects ...... 950 6.3.6.6 Promoting sustainable infrastructure...... 951

6.4 TRANSFORMATIONS TOWARDS SUSTAINABLE ECONOMIES ...... 952 6.4.1 Reforming environmentally harmful subsidy and tax policies ...... 954 6.4.2 Addressing Over- and Under-consumption ...... 956 6.4.3 Reducing unsustainable production ...... 958 6.4.4 Reforming trade regimes to address disparities and distortions ...... 960 6.4.5 New models for a sustainable economy...... 961 6.4.6 Conclusions...... 963

REFERENCES ...... 964

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CHAPTER 6 OPTIONS FOR DECISION MAKERS

EXECUTIVE SUMMARY 3 Empowering all actors can promote sustainability and ensure inclusiveness and equity . 1 The Sustainable Development Goals and the Current policies and actions for nature, nature’s 2050 Vision for Biodiversity cannot be achieved contributions to people (NCP) and good quality of life (GQL) without transformative change, the conditions for often privilege elite actors and their value systems, which which can be put in place now (well established) {6 .2; hampers their legitimacy and effectiveness (well established). chapters 2, 3, 5}. In the short term (before 2030), all Empowerment strategies can be implemented by decision makers can contribute to the sustainability governments and civil society groups, and include education transformation, including through the rapid and improved and information instruments, but also redistribution of power deployment of existing policy instruments and new initiatives and rights so that all can assume responsibility and control that more effectively enlist individual and collective action for over their lives and futures (well established). Existing transformative change, and the reform and removal of approaches such as co-management and community- harmful existing policies and subsidies (well established). based natural resource management can be effective in Additional measures are necessary to enable transformative ensuring the equal distribution of the costs and benefits of change in the long term (up to 2050) to address the indirect conservation and reconciling different interests and values, drivers that are the root causes of nature deterioration (well provided that they recognize and address trade-offs and established), including changes in social, economic and uneven power relations (well established). Inclusiveness and technological structures within and across nations {6.2, equity will imply recognizing the inevitability of hard choices, 6.3, 6.4}. costs and common responsibilities (well established) {6.2; 6.3; 6.4}. 2 Transformative change needs innovative approaches to governance . Such transformative governance can incorporate different existing 4 Effective decision making for transformative approaches, such as integrative, inclusive, informed change uses a mix of instruments and tools, and and adaptive governance . While these governance bridges across different sectors, levels and scales approaches have been extensively practiced and (established but incomplete). Since no single instrument studied separately, their combined contribution or tool is sufficient (well established), policy mixes need to to enabling transformative change has not yet been be carefully tailored to – together – effectively address all thoroughly explored (established but incomplete) direct and indirect drivers of nature deterioration (Table 6 1). . {6 .2} . Integrative approaches, such as mainstreaming Sectoral policies and measures can be effective in particular across government sectors, are focused on the contexts, but often fail to account for indirect, distant and relationships between sectors and policies and help to cumulative impacts, which can have adverse effects, ensure policy coherence and effectiveness (well including exacerbating inequalities (well established). established). Inclusive approaches help to reflect a plurality Cross-sectoral approaches, including landscape of values and ensure equity (established but incomplete), approaches, integrated watershed and coastal zone including through equitable sharing of benefits arising from management, marine spatial planning, bioregional scale their use and rights-based approaches (established but planning for energy and new urban planning paradigms, incomplete). Informed governance entails novel strategies offer opportunities to reconcile multiple interests, values and for knowledge production and co-production that are forms of resource use, provided that these cross-sectoral inclusive of diverse values and knowledge systems approaches recognize trade-offs and uneven power (established but incomplete). Adaptive approaches, relations between stakeholders (established but incomplete) including learning from experience, monitoring and {6.3; 6.4}. feedback loops, contribute to preparing for and managing the inevitable uncertainties and complexities associated 5 Since the effectiveness of alternative actions and with social and environmental changes (established but policies depends on the decision context, there are no incomplete) {6.2}. generic recipes for success (established but

880 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

incomplete). All decision makers can contribute to {6 .2 .4 .4} . Governance, including customary institutions enhancing the effectiveness of instruments in specific and management systems, and co-management contexts over time through informed and adaptive regimes involving Indigenous Peoples and Local governance approaches. The comprehensive review of the Communities, can be an effective way to safeguard application of policy instruments presented in this chapter nature and its contributions to people, incorporating indicates that the implementation of many existing locally attuned management systems and indigenous instruments (e.g. protected areas) can be further enhanced, and local knowledge . The positive contributions of while on the other hand the effectiveness and application of Indigenous Peoples and Local Communities to sustainability other instruments (e.g. information campaigns for can be facilitated through national recognition for land consumers or agricultural certification schemes) requires tenure, access and resource rights in accordance with more research. Since the effectiveness of many instruments national legislation{6.3.2.3}, the application of free, prior and for the conservation of nature and its contributions in informed consent {6.3.6}, increasing participation in different contexts is currently unknown, more research and resource management decision-making (including through appropriate monitoring is needed {6.3; 6.4}. capacity development and financial support) {6.2.4.4, 6.3.4}, and improved collaboration, fair and equitable sharing of 6 Decision makers have a range of options and benefits arising from the use, and co-management tools for improving the sustainability of economic and arrangements with Indigenous Peoples and Local financial systems (well established) {6 .4} . Achieving a Communities (well established) {6.2.4, 6.3.2.3}. sustainable economy involves making fundamental reforms to economic and financial systems and 8 Multi-functional landscapes consisting of mixed tackling poverty and inequality as vital parts of land systems that include intensive and extensive sustainability (well established) {6.4}. Governments could forms of land use are critical for food security and reform subsidies and taxes to support nature and its rural livelihoods, generate a diversity of nature’s contributions to people, removing perverse incentives, and contributions to people, and can harbour considerable instead promoting diverse instruments such as payments biodiversity (well-established) {6 .3 2}. . At the same time, linked to social and environmental metrics, as appropriate these landscapes are the space where the largest conflicts (established but incomplete) {6.4.1}. Trade agreements and with nature take place (well established). Policy mixes derivatives markets could be reformed to promote equity harmonized across sectors, levels of governance and and prevent deterioration of nature, although there are jurisdictions can account for ecological and social uncertainties associated with implementation (established differences across and beyond the landscape, build on but incomplete) {6.4.4}. To address overconsumption, existing forms of knowledge and governance and address voluntary measures can be more effective when combined trade-offs between tangible and non-tangible benefits in a with additional incentives and regulation, including transparent and equitable manner (established but promotion of circular economies and sustainable production incomplete). Options for the private sector – especially local models (well established) {6.4.2; 6.4.3}. Although market- land managers – include diversified land uses and crops, based policy instruments such as payments for ecosystem including agroforestry practices, crop rotations, maintenance services, voluntary certification and biodiversity offsetting of semi-natural habitats, soil conservation practices and have increased in use, their effectiveness is mixed, and they habitat restoration activities (well established). Options that are often contested; thus, they should be designed and require the engagement of all actors related to the applied carefully to avoid perverse effects in context landscape (e.g., regional governments, producers, (established but incomplete) {6.3.2.2; 6.3.2.5; 6.3.6.3}. neighboring urban inhabitants, protected area authorities) Alternative models and measures of economic welfare (such include context-sensitive combinations of participatory as inclusive wealth accounting, natural capital accounting approaches to resolve trade-offs and conflicts among and degrowth models) are increasingly considered as objectives, certification schemes for landscape products, possible approaches to balancing economic growth and direct payments such agri-environmental schemes and PES, conservation of nature and its contributions and recognizing research on ecological intensification practices, technical trade-offs, value pluralism and long-term goals (established outreach and information campaigns (established but but incomplete) {6.4.5}. incomplete) {6.3.2}.

7 Recognizing the knowledge, innovations and 9 Feeding the world in a sustainable manner, practices, institutions and values of Indigenous especially in the context of climate change and Peoples and Local Communities and their inclusion population growth, entails food systems that ensure and participation in environmental governance often adaptive capacity, minimize environmental impacts, enhances their quality of life, as well as nature eliminate hunger, and contribute to human health and conservation, restoration and sustainable use, which animal welfare (established but incomplete) {6 .3 .2 .1} . is relevant to broader society (well established) Ensuring the adaptive capacity of food production

881 CHAPTER 6. OPTIONS FOR DECISION MAKERS

incorporates measures that conserve the diversity of genes, 11 Expanding and effectively managing the current varieties, cultivars, breeds, landraces and species. Essentially, network of protected areas, including terrestrial, this refers to further improvement and harmonization of freshwater and marine areas, is important for present global mechanisms of genetic material transfers (e.g., safeguarding biodiversity (well established), the Nagoya Protocol, the International Treaty on Plant Genetic particularly in the context of climate change . Resources for Food and Agriculture and the International Conservation outcomes also depend on adaptive Convention for the Protection of New Varieties of Plants) (well governance, strong societal engagement, effective established). Options for the private sector – especially food and equitable benefit-sharing mechanisms, sustained producers – include expanding and enhancing sustainable funding, and monitoring and enforcement of rules intensification, engaging in ecological intensification and (well established) {6 .3 .2 .3} . Protected areas support sustainable use of multi-functional landscapes, increasing nature, deliver NCP and contribute to good quality life (well focus on climate-resilient agriculture, and improving food established). National Governments play a central role in distribution (established but incomplete). Options for supporting primary research and effective conservation and governments at the international and national levels include sustainable use of multi-functional landscape and seascape. regulating commodity chains, managing large-scale land The latter include planning ecologically representative acquisitions, and expanding food market transparency and networks of interconnected protected areas to cover key price stability. Options that address and engage other actors biodiversity areas and managing trade-offs between societal in food systems (including the public sector, civil society and objectives that represent diverse worldviews and multiple consumers, grassroot movements) include participatory values of nature (established but incomplete). Governance on-farm research, promotion of low-impact and healthy diversity, tailored to the local conditions, includes co- diets and localization of food systems. Such options could management schemes, local empowerment, and formal help reduce food waste, overconsumption, and demand for recognition of IPLCs rights over their territories (well animal products from unsustainable production, which could established). Large-scale, proactive landscape planning, have synergistic benefits for human health (established but including transboundary conservation planning, helps incomplete) {6.3.2.1}. prioritize land uses that balance nature, NCP and GQL (well established). Implementation beyond protected areas 10 Sustainable forest management can be better includes combating wildlife and timber trafficking through achieved through promoting multifunctional, multi- effective enforcement and ensuring the legality and use, multi-stakeholder and improving community- sustainability of trade in wildlife. Such actions include based approaches to forest governance and prioritizing wildlife trafficking in criminal justice systems, management (well established) {6 .3 .2 .2} . National and using community-based social marketing to reduce demand subnational governments can further promote and and implementing strong measures to combat corruption at strengthen community-based management and all levels (established but incomplete) {6.3.2.3}. governance, including customary institutions and management systems, and co-management regimes 12 Managing coastal and near-shore ocean involving Indigenous Peoples and Local Communities with management for sustainable and resilient futures, in due recognition of their knowledge and rights who manage the face of economic pressures and climate change, almost one third of the forests in the Global South; and entails applying policy mixes, including integrated improve the conservation and sustainable use of (old- coastal planning and restoration, designation and growth) forests through a combination of measures and expansion of Marine Protected Areas, control of practices, including protected and other conservation areas; plastic and other pollution, and reform of fishery sustainable management and reduced impact logging, subsidy strategies (established but incomplete) forest certification, PES and reducing emissions from {6 .3 .3 .3} . Marine protected areas (MPAs) have demonstrated deforestation and forest degradation (REDD+); supporting success in both biodiversity conservation and improved local reforestation and forest restoration; transparent monitoring; quality of life when managed effectively. MPAs can be further and addressing illegal logging (established but incomplete). expanded through larger or more interconnected protected International agencies can technically and financially support areas or new protected areas in currently under-represented governments and other stakeholders in achieving the above, regions and key biodiversity areas (established but including through effective implementation of multilateral incomplete) {6.3.3.3.1}. The fishing industry, a major source environmental agreements (MEAs) and other relevant of aquatic biodiversity losses, can be supported by positive international agreements (well established). Decision makers incentives and the reform and removal of harmful existing at all levels can also improve forest governance by policies and subsidies to change current practices and recognizing different value systems while formulating forest remove derelict gear that threatens nature (well established) policies and making management decisions and adopting {6.3.3.3.2}. Improved surveillance and investment in scientific informed and adaptive decision-making practices research are critical due to major pressures on coasts (established but incomplete) {6.2.4.1; 6.3.2.2; 6.3.2.3}. (including development, land reclamation and water

882 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

pollution), implementing marine conservation outside monitoring of data remains crucial to governments and protected areas, such as integrated coastal planning, is private actors for water abstraction and management due to important for biodiversity conservation and sustainable use the interconnected nature of surface and groundwater (well (established but incomplete) {6.3.3.3}. Other measures to established) {6.3.4.1}. With regard to watershed payment for expand multi-sectoral cooperation on coastal management ecosystem services programmes, their effectiveness and include corporate social responsibility measures, standards efficiency can be enhanced by acknowledging multiple for building and construction and eco-labelling (well values in their design, implementation and evaluation and established) {6.3.3.3.2, 6.3.3.3.5}. Additional tools could setting up impact evaluation systems (established but include economic instruments for financing conservation incomplete) {6.3.4.4}. National regulatory frameworks, policy both non-market and market based, including for example guidance, institutional arrangements, and water quality payment for ecosystem services, biodiversity offset schemes, standards can set benchmarks for better performance and blue-carbon sequestration, cap-and-trade programs, green attract investment to improve water resources and conditions bonds and trust funds and new legal instruments {6.3.3.1.3}. (well established) {6.3.4.5, 6.3.4.6}.

13 Governance for the oceans and high seas is 15 Nature-based solutions can be cost-effective for currently marked by policy fragmentation leading to meeting the Sustainable Development Goals in cities, nature deterioration (established but incomplete) which are crucial for global sustainability (established {6 .3 .3 .1} . To sustain biodiversity and fisheries in the high seas, but incomplete) {6 .3 .5} . Integrated urban planning can existing sectoral regulatory agencies such as shipping play a significant role in reducing the environmental impacts authorities and Regional Fisheries Management Organizations of cities and the transformation to sustainability (well can increase the pace of mainstreaming nature into their established) {6.3.5.1, 6.3.5.3}. Nature-based approaches policies (well-established) {6.3.3.2}. Based on the experience include safeguarding or retrofitting of green and blue of regional fisheries management organisations, a strong infrastructure such as green spaces, water, and vegetation science foundation for informed governance is essential for and tree cover into existing urban areas and in new effective protection, although costly in terms of human settlements. They can contribute to flood protection, resources and technology (well established) {6.3.3.2.2}. temperature regulation, urban food production, recreation, Cost-effectiveness can be achieved through sharing and cleaning of air and water, treating wastewater and the integrating information systems across agencies and sectors provision of energy, locally sourced food and the health (e.g., shipping, fishing, mining, and port agencies) and benefits of interacting with nature. They can also enhance through collaboration between industry, governments and urban biodiversity, and they can provide cost effective non-governmental organizations (well established) {6.3.3.1.1}. solutions for local climate change adaptation and promoting New legal instruments such as the proposed international low carbon cities (well established) {6.3.5.2}. Nature-based legally binding instrument under the United Nations solutions and integrated planning also enable improved Convention on the Law of the Sea (UNCLOS) on the access to social services, such as sanitation and housing conservation and sustainable use of marine biodiversity of (well established) {6.3.5.4}. areas beyond national jurisdiction could accelerate national action to provide nature protection, particularly when 16 Recognizing pluralistic values and diverse interests combined with strengthened regional cooperation are key to mitigating the impacts, and enabling the (established but incomplete) {6.3.3.3.1, 6.3.3.1.1}. sustainable management of energy, mining and infrastructure (established but incomplete) {6 .3 .6} . At 14 Inclusive water governance can promote all levels of governance, it is crucial to integrate sustainability informed decisions, facilitate stronger interaction criteria and internalize the impacts of bioenergy projects on between communities and conservation activities, and nature (established but incomplete) {6.3.6.1}. Promoting foster equity among water users (well established) innovative financing and ensuring compensation for {6 .3 .4} . Creating a space for stakeholder engagement and environmental and social impacts of energy, mining and transparency in water conservation and transboundary water infrastructure projects are important measures in the management can help to minimize environmental, economic sustainable energy transition and responsible mining and social conflicts as well as risks (well established) (established but incomplete) {6.3.6.2, 6.3.6.3, 6.3.4.6}. {6.3.4.3, 6.3.4.7}. Integrated freshwater management Community-based management and respect for the rights of depends, inter alia, on recognizing the functional Indigenous Peoples and Local Communities to land and water interdependencies between and among rural landscape has emerged as a way to ensure access to clean, reliable and management and urban demands, incorporating a regional affordable energy (well established) {6.3.6.4, 6.3.6.5}. Incentive view of the water cycle, understanding of conflicting interests programs and policies can also aim at reducing consumption, for water uses, and assessing the opportunities for improving energy efficiency, and supporting community-based cooperation among users (established but incomplete) management and decentralized sustainable energy production {6.3.4.1, 6.3.4.2, 6.3.4.6}. In the short term, collection and {6.3.6.1,6.3.6.3, 6.3.6.4,6.3.6.5}.

883 CHAPTER 6. OPTIONS FOR DECISION MAKERS

884 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Table 6 1 Main options for decision makers: Instruments that can be included in smart policy mixes.

Decision maker Instruments that can be included in smart policy mixes within or across issues {Tables 6 3,. 6 4,. 6 .5, 6 .6, 6 .7, 6 .8}

Landscape approaches Food Forest Conservation Marine Water Cities Energy Sustainable economies

Intergovernmental Support and facilitate Support and facilitate Improve reducing emissions Facilitate expansion and Implement global marine Address fragmentation of Promote sustainable urban Develop standards for Promote sustainable organizations the development of expansion and enhancement from deforestation and improved management, environmental agreements freshwater treaties planning sustainable renewable production and transformative landscape of sustainable intensification, forest degradation (REDD+) functionality and connectivity for shipping energy projects consumption; circular governance networks ecological intensification and payment for ecosystem of (transboundary) protected Promote integrated water Promote nature-based economy models together that develop policy and sustainable use of multi- services (PES) policies areas Promote comprehensive resource management solutions and green Promote biodiversity mixes for sustainable use of functional landscapes protection of biodiversity and and transboundary water infrastructure inclusive environmental Reform trade system and multi-functional landscapes Address illegal logging and Address illegal wildlife trade ecosystem services of the management impact assessments World Trade Organization Develop and harmonize trade in illegal timber High Seas Promote increasing access agreements on genetic Facilitate enhanced Strengthen rights- based to urban services Promote reform of subsidies resources for agriculture Facilitate enhanced forest implementation of and Mobilize conservation approaches & freshwater monitoring coordination between funding standards Promote reform of models of multilateral environmental economic growth agreements Promote mainstreaming of biodiversity into other sectors Enable more financial support for conservation

Governments (national, Support, facilitate and Encourage dietary transitions Improve the conservation of Expand and improve Mainstream biodiversity Promote interlinkage among Implement sustainable Develop sustainable Address over and under subnational, local) engage in transformative and alternate consumption (old-growth) forests management, functionality conservation and promote water-energy-food systems urban planning, including bioenergy strategies consumption through taxes landscape governance and connectivity of ecosystem services bioregional planning, on consumption, product networks Support and facilitate Enable expansion and (transboundary) protected Develop integrated rights- biodiversity-friendly urban Strengthen and enforce labeling, discouraging expansion and enhancement improvement of community- areas Support shared and based and participatory development, increasing biodiversity inclusive overbuying, promotion of of sustainable intensification; based forest management integrated ocean governance approach to water green spaces, and creating environmental impact sharing economy ecological intensification and co-management Recognize management by management space for urban agriculture assessment laws and and sustainable use of multi- IPLCs and Other Effective Promote stronger guidelines Sustainable public functional landscapes Improve REDD+ and area-based Conservation implementation of fisheries Encourage stakeholder Implement nature-based procurement payment for ecosystem Measures conservation measures engagement solutions and green Strengthen biodiversity Facilitate localization of food services policies infrastructure compensation policies Reduce unsustainable systems and reduction of Strengthen enforcement and Strengthen integrated Develop water-efficient for development and production through taxes on food waste Support reduced impact implementation of law and management of coastal agricultural practices Reduce the impacts of cities infrastructure loss resource consumption and logging waters multilateral environmental Promote and facilitate by encouraging articulated degradation; promotion of Facilitate improvement agreements (MEA) and density; discouraging car circular economy models; certification standards Promote improvement nature-based solutions and implementation of address corruption use and promoting public capping of resource Enable conservation of certification Restrict groundwater transportation; developing consumption; applying life Enforce free, prior and abstraction energy efficient building cycle assessment genetic resources for informed consent (FPIC) and agriculture Support reforestation and codes; and encouraging forest restoration recognize IPLC rights alternative business models Reform derivative and futures markets Manage large-scale land Enhance approaches to acquisitions Address illegal logging and Enhance access to urban trade in illegal timber invasive alien species (IAS) services, including through Reform subsidies by management sustainable urban water assessing impacts of all Enhance forest monitoring management, integrated subsidies policies and Develop participatory long-term removal of all approaches to restoration sustainable solid waste management, incentive environmentally-unsound and link restoration to subsidies revitalizing indigenous and programs and participatory local knowledge planning Application of alternative measures of economic Raise level of financial welfare and Natural Capital support for conservation Accounting; move towards Mainstream biodiversity into steady state economics other sectors paradigm and degrowth agenda

Non-Governmental Engage in transformative Encourage dietary transitions Engage in improvement of Engage in expansion and Develop conservation Organize awareness raising Engage in sustainable urban Participate in community led Develop initiatives to Organizations landscape governance and food waste reduction REDD+ and PES improved management, programs to raise awareness activities planning initiatives discourage overbuying; networks functionality and connectivity on local ecosystems, species engage in development of Engage in expansion and Engage in promoting and of (transboundary) protected values and knowledge Engage in nature-based Promote the reduction of the Engage in developing product labeling enhancement of sustainable improving certification areas solutions impacts of cities and monitoring bioenergy intensification Engage stakeholders standards and schemes Promote circular economy Engage in addressing illegal Support management by Engage in developing and Engage in enhancing access Engage in ecological logging IPLCs and Other Effective Contribute to global monitoring water quality and to urban services Promote initiatives for intensification and area-based Conservation assessments and participate abstraction related standards transformation to sustainable sustainable use of multi- Measures in the global standard setting economy functional landscapes Engage in addressing illegal Engage in developing Improve certification wildlife trade and monitoring fishery standards certification schemes

885 CHAPTER 6. OPTIONS FOR DECISION MAKERS

Table 6 1 Main options for decision makers: Instruments that can be included in smart policy mixes.

Decision maker Instruments that can be included in smart policy mixes within or across issues {Tables 6 3,. 6 4,. 6 5,. 6 6,. 6 .7, 6 .8}

Landscape approaches Food Forest Conservation Marine Water Cities Energy Sustainable economies

886 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Decision maker Instruments that can be included in smart policy mixes within or across issues {Tables 6 3,. 6 4,. 6 .5, 6 .6, 6 .7, 6 .8}

Landscape approaches Food Forest Conservation Marine Water Cities Energy Sustainable economies

Citizens, community Engage in transformative Change to sustainable Engage in community-based Engage in conservation Engage in policy decision Participate in ecosystem Engage in sustainable urban Actively engage in Engage in reduced groups, farmers landscape governance consumption (diet, reducing forest management and co- efforts making, remedial actions, restoration activities planning community led activities consumption movements networks waste) management and educational programs and change towards Engage in collaborative Engage in development and sustainable consumption; Engage in localized food Change to sustainable Engage in awareness initiatives maintenance of nature- local reuse or fix-up systems consumption campaigns to influence based solutions and green initiatives consumer behaviour and infrastructure Engage in expansion and consumption Support companies with enhancement of sustainable Change to sustainable sustainable production intensification; consumption (reduced models waste, increased public ecological intensification transport) and sustainable use of multifunctional landscapes Engage in initiatives to access to urban services Engage in conservation of genetic resources for agriculture

Indigenous People and Engage in transformative Engage in conservation Engage in community-based Engage in management Engage in coastal Support co-management Engage in advocacy Participate in formulating Engage in discussions over Local Communities landscape governance of genetic resources for forest management and co- management and MPA regime for collaborative networks for sustainable sustainable bioenergy values in a sustainable networks agriculture management Engage in addressing illegal water management cities strategies economy and good life wildlife trade; sustainable Collaborate in integrated Engage in forest monitoring wildlife management management of marine Engage, where appropriate, Engage in the implementation resources with payment for ecosystem of Free, Prior and Informed Engage in restoration and services or other local Consent revitalization of indigenous water ecosystem services and local knowledge provisioning schemes

Donor agencies Support transformative Support reduction of food Support community-based Support expansion and Support funding sources Establish standards and Support sustainable urban Promote innovative financing Support initiatives to landscape governance waste; localized food forest management and co- improved management, in the High Sea that ensure guidelines that improve planning for sustainable infrastructure transform to sustainable networks systems; sustainable management; improvement functionality and connectivity conservation water quality and integrate economy intensification; ecological of REDD+ and PES of (transboundary) PAs; social and environmental Support initiatives to Establish sustainable intensification policies; improvement and management by IPLCs and Ensure funding promotes considerations enhance access to urban bioenergy guidelines Fund projects on use of implementation certification; Other Effective area-based sustainable fishing practices services alternative welfare measures initiatives addressing illegal Conservation Measures; Promote innovative and logging; enhanced forest addressing illegal wildlife longer term financing monitoring trade through market based Raise level of financial mechanisms support for conservation

Science and educational Engage in transformative Engage in expansion and Support reduced impact Analyze social and economic Promote mainstreaming Promote awareness raising Support sustainable urban Promote awareness raising Support circular economy; organizations landscape governance enhancement of sustainable logging impacts of restoration climate change adaptation activities planning, development of activities further include BES in life networks intensification and ecological and mitigation into marine nature-based solutions cycle assessment intensification Support improvement of Analyze conservation and coastal governance and green infrastructure, certification impacts of Official regimes reduction of the impact of Research on environmental Engage in transformation Development Assistance impacts of futures and Engage in enhancing forest cities and enhancing access food storage and delivery to urban services derivatives systems monitoring Support reform of models of Facilitate conservation and economic growth sustainable use of genetic resources for agriculture

Corporate actors Engage in transformative Contribute to expansion and Implement reduced impact Engage in addressing illegal Engage in CSR activities, Engage in setting water Engage in sustainable urban Engage in setting sustainable Implement sustainable landscape governance enhancement of sustainable logging wildlife trade certification and best quality and abstraction planning bioenergy strategies sourcing practices; design networks intensification practices in fisheries and related standards for sustainability; engage Engage in improvement Engage in restoration aquaculture production Develop energy efficient Promote sustainable in development of product Contribute to ecological and expansion of forest methods Engage in water restoration buildings infrastructure practices labeling; apply life cycle intensification certification Raise level of financial schemes support for conservation Engage in alternative Strengthen biodiversity assessment; contribute to Mobilize conservation circular economy Transform food storage and Address illegal logging and funding for the oceans Promote sustainable business models compensation policies delivery systems trade in illegal timber investment in water projects Engage in partnerships and Promote innovative financing Engage in corporate social Take account of ecological responsibility Improve certification functionality into coastal Invest in clean and other initiatives to enhance for sustainable infrastructure standards infrastructure environmentally sound access to urban services Engage in reform of models technology Engage in conservation of economic growth of genetic resources for agriculture

887 CHAPTER 6. OPTIONS FOR DECISION MAKERS

Decision maker Instruments that can be included in smart policy mixes within or across issues {Tables 6 3,. 6 4,. 6 5,. 6 6,. 6 .7, 6 .8}

Landscape approaches Food Forest Conservation Marine Water Cities Energy Sustainable economies

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6.1 INTRODUCTION SBSTTA/21/2, 15 September 2017). In fact, the adoption of the SDG shows that the international community has committed itself to such transformative change: “We are In recent decades, the extent and scope of societal determined to take the bold and transformative steps which responses to environmental problems, including biodiversity are urgently needed to shift the world on to a sustainable decline, have been extensive and diverse. The outcomes, and resilient path” (UNGA, 2015). however, have been mixed across sectors and levels of governance, with limited success in reverting global trends Transformative change can be defined as a fundamental, and in addressing the root causes of degradation. Lessons system-wide reorganization across technological, economic and opportunities also abound, amid new challenges and social factors, including paradigms, goals and values and scenarios. This chapter discusses opportunities and (IPBES, 2018a; IPCC, 2018). Such fundamental, structural challenges for all decision makers to advance their efforts change is called for, since current structures often inhibit in meeting, synergistically, internationally agreed goals sustainable development, and actually represent the for sustainable development, biodiversity conservation, indirect drivers of biodiversity loss (Díaz et al., 2015) (See and climate change mitigation and adaptation. In doing Section 6.2. below). Transformative change is thus meant so, the chapter builds on the analysis in the previous to simultaneously and progressively address these indirect chapters, which have identified direct and indirect drivers drivers. The character and trajectories of this transformation of change, evaluated progress or lack of progress in will be different in different contexts, with challenges achieving the Aichi Biodiversity Targets, the Sustainable and needs differing, among others, in developing and Development Goals (SDGs), and several environmental developed countries. conventions, and assessed plausible scenarios and possible pathways. Previous chapters of the present assessment Transformative change is facilitated by innovative show that, despite progress on various goals and targets governance approaches that incorporate existing and improvements in environmental indicators in many approaches such as integrative, inclusive, informed and regions, species diversity, ecosystems functions and the adaptive governance. While such approaches have contributions they provide to society continue to decline, been extensively practiced and studied separately, it is further reinforcing both environmental and societal problems. increasingly recognized that together they can contribute to transformative change (see section 6.2). The concept of While progress can be made to achieve the Aichi governance refers to the formal and informal (and public and Biodiversity Targets, the CBD 2050 Vision and the SDGs private) rules, rule-making systems, and actor-networks at using current policies, practices and technologies, and all levels of human society (from local to global) that are set within current national and international governance up to steer societies towards positive outcomes and away structures, these are not enough to address current and from harmful ones (adapted from Biermann et al., 2010). projected trends. It has become widely recognized that transformative change is needed to fully realize these In response to the interconnected challenges of ambitions (CBD/SBSTTA/21/5, 12 October 2017; CBD/ sustainable development, biodiversity conservation,

Table 6 2 List of decision makers.

Decision maker

1 Global and regional (inter)governmental organizations (UN, MEA secretariats etc .)

2 National, sub-national and local governments

3 Private sector

4 Civil society, including: • Citizens (households, consumers), community groups, farmers • NGOs (e g. ,. environmental, human development, consumer, trade unions)

5 Indigenous Peoples and Local Communities (IPLCs)

6 Donor agencies (public and private)

7 Science and educational organizations

889 CHAPTER 6. OPTIONS FOR DECISION MAKERS

and climate change identified in previous chapters, this chapter organizes its analysis on the options for decision 6.2 TOWARDS makers around sustainability pathways in five domains: TRANSFORMATIVE terrestrial landscapes (6.3.2), marine, coastal and fisheries (6.3.3); freshwater (6.3.4); cities (6.3.5); and energy GOVERNANCE and infrastructure (6.3.6). Finally, the chapter discusses approaches and conditions that enable transformation As introduced in 6.1, transformative change can be defined towards sustainable economies (6.4). Each of these major as societal change in terms of technological, economic issues is considered in terms of short- and long-term and social structures. It includes both personal and social options, and against possible obstacles for decision makers transformation (Otsuki, 2015), and includes shifts in values to enable transformative change. The chapter distinguishes and beliefs, and patterns of social behaviour (Chaffin et different decision makers (see Table 6 .2). al., 2016).

Our analysis of options implemented so far shows that, Transformative change has emerged in the policy discourse already in the short-term (before 2030), all decision makers and is increasingly seen as both necessary and inevitable can contribute to the transformation towards sustainability for biodiversity-related issues and sustainable development by applying existing policy instruments, which need to more broadly. The Convention on Biodiversity (CBD), be enhanced and used together strategically in order to European Environment Agency (EEA, 2015), OECD (OECD, become transformative – in other words – not only address 2015), World Bank (Evans & Davies, 2014), UN (UNEP, direct drivers, but especially indirect drivers. The existing 2012), UNESCO (ISSC/UNESCO, 2013), European Union, instruments discussed in sections 6.3 and 6.4 can thus national governments and the German Advisory Council be further enhanced based on the lessons learned from on Global Change (WBGU, 2011), for example, have over earlier experiences with implementation. In the long-term the past years launched reports and policy programs in (today-2050), transformative change will entail additional support of sustainability transformations or transitions. This measures and governance approaches to change attention is based upon the increasing understanding of technological, economic, and social structures within and the persistency of the complex sustainability challenges across nations. we face: in spite of high ambitions, policy commitments, large-scale investments in innovation and voluntary actions, Below, the chapter first discusses transformative change our economies are still developing along unsustainable and transformative governance (section 6.2), after which pathways pushing ecological boundaries (Rockstrom et al., the options for decision makers on the main issues are 2009; Future Earth, 2014). To escape this path-dependency discussed (section 6.3). Section 6.4 highlights more it is increasingly clear that structural, systemic change generic options for a sustainable economy. The options in is necessary, and continuing along current trajectories sections 6.3 and 6.4 are based on a systematic literature increases the likelihood of disruptions, shocks and review of existing and emerging governance instruments undesired systemic change. and approaches. The review especially highlights lessons relevant to transformative governance, including cross- This process of nonlinear systemic change in complex sectoral approaches and synergies and trade-offs between societal systems has become the object of research different societal goals, the impact of telecoupling of distant especially since the late 1990s under the headers of drivers, and lessons learned from incorporating diverse ‘transformation’ (Feola, 2015; Olsson et al., 2014; Folke et values, rights-based approaches and equity concerns al., 2010; Moore et al., 2014) and ‘transition’ (Geels, 2002; in decision making and policy implementation (see Grin et al., 2010; Markard et al., 2012; Rotmans et al., section 6.2). 2001; van den Bergh et al., 2011; Turnheim et al., 2015). While having different disciplinary origins (Hölscher et al., Due to the scope of the chapter’s coverage and the extent 2018), both terms are increasingly used in a similar way of the literature review supporting it, the chapter includes a referring to a particular type of change, namely nonlinear Supplementary Material document. A significant amount of and systemic shifts from one dynamic equilibrium to another the literature evidence supporting statements made in the (Patterson et al., 2016). A range of different scientific chapter are presented there, thus we encourage the reader disciplines has studied underlying patterns and mechanisms to consult Supplementary Material when cross-references of such transformation. Prominent fields of research include are made in the main chapter. resilience, sustainability transition, innovation studies and social innovation research. While these debates have often remained rather a-political, a more critical perspective is emerging (see e.g. Blythe et al., 2018; Chaffin et al., 2016; Lawhon & Murphy, 2012; Meadowcroft, 2009; Scoones et al., 2015) that incorporates politics, power, legitimacy

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and equity issues, recognizing that transformations Transformative governance is: 1) integrative, since the include the making of “hard choices” by decision makers change is related to and influenced by changes elsewhere (Meadowcroft, 2009). (at other scales, locations, on other issues) (see e.g., Chaffin et al., 2016; Karki, 2017; Reyers et al., 2018; Wagner Governing transformative change, or transformative & Wilhelmer, 2017); 2) informed, based on different and governance, can be defined as “an approach to credible knowledge systems (Blythe et al., 2018; Chaffin environmental governance that has the capacity to respond et al., 2016; Couvet & Prevot, 2015); 3) adaptive, based to, manage, and trigger regime shifts in coupled socio- on learning, experimentation, reflexivity, monitoring and ecological systems at multiple scales” (Chaffin et al., 2016). feedback (Colloff et al., 2017; Chaffin et al., 2016; Laakso Transformative governance is deliberate (Chaffin et al., et al., 2017; Meadowcroft, 2009; Otsuki, 2015; Rijke et al., 2016), and inherently political (Blythe et al., 2018), since the 2013; Wagner & Wilhelmer, 2017); and finally 4) inclusive desired direction of the transformation is negotiated and since transformative change per definition includes different contested, and power relations will change because of the types of actors, interests and values, and needs to address transformation (Chaffin et al., 2016). Current vested interests issues of social justice (Chaffin et al., 2016; Otsuki, 2015; (including in certain technologies) are thus expected to Blythe et al., 2018; Li & Kampmann, 2017; Meadowcroft, inhibit, challenge, slow down or downsize transformative 2009; Thomalla et al., 2018; Wolfram, 2016). Below we change, among others through “lock-ins” (see e.g., Blythe elaborate on each of these four approaches to governance et al., 2018; Chaffin et al., 2016; Meadowcroft, 2009). (not presented in order of importance). The debate on the related term “transition management” (Rotmans & Loorbach, 2010) points to the importance of (facilitating) emergent and co-evolutionary changes in 6.2.1 Integrative governance: cultures, structures and practices that challenge incumbent ensuring policy coherence and ‘regimes’ (Frantzeskaki et al., 2017). This in itself requires effectiveness forms of governance that complement more institutionalized, consensus-based and incremental policies by facilitating Since the middle of the 20th century, hundreds of transformative actor-networks, back-casting processes, multilateral environmental agreements, governmental strategic experimentation and reflexive learning. policies and (public-) private initiatives have been developed, many of which are focused on, or relevant Transformative governance often needs a ‘policy’ or for, biodiversity. Moreover, different economic and policy ‘governance’ mix aimed at navigating transformations sectors (including biodiversity conservation, climate (Kivimaa & Kern, 2016; Loorbach, 2014; Berkes et al., change, agriculture, and mining) are often governed in 2008). In such a mix, instruments that facilitate the build-up silos at all levels of governance. This raises questions per of alternatives, the gradual change of institutional structures level of governance and across levels of governance on and the managed phase-out of undesirable elements synergies and trade-offs between different societal goals need to be combined, dynamically based on a systemic (see e.g., Mauerhofer & Essl, 2018). This is especially understanding of the present transition dynamics (Loorbach important for transformative change – the SDG cannot all et al., 2017). How this is operationalized depends on the be achieved simultaneously if they are not approached in type of organization and level of operation and the types an integrative manner – as recognized by the UN, which of (transformative) capacities, instruments and methods have stated that the goals and their targets are “integrated available (Wolfram, 2017; Fischer & Newig, 2016; Patterson in indivisible” (UNGA, 2015). et al., 2016). Through co-creative multi-actor processes (Avelino & Wittmayer, 2015; Brown et al., 2013) of seeking This fragmentation and complexity of the governance joint understandings of collective transition contexts and for sustainable development are well recognized among formulating shared desired future directions, different actors scholars (see e.g., Alter & Meunier, 2009; Bogdanor, 2005; can align long-term agendas and more strategically use and Rayner et al., 2010; Tamanaha, 2008; Young, 1996), and implement short-term actions to guide and direct emerging policy makers are actively trying to enhance synergies transitions towards sustainable futures. and address trade-offs. The CBD, for example, promotes mainstreaming of biodiversity concerns into sectors Transformative change thus needs innovative approaches impacting biodiversity, such as agriculture, forestry, fisheries, to governance. Such transformative governance can and tourism (UNEP/CBD/COP/13/24). incorporate different existing approaches, which we group into four domains, namely integrative, inclusive, informed Integrative governance defined and the theories and and adaptive governance. While these approaches have practices focused on the relationships between governance been extensively practiced and studied separately, their instruments or systems (Visseren-Hamakers, 2015; 2018), combined contribution to enabling transformative change addresses these challenges of incoherence in sustainability has not yet been thoroughly explored.

891 CHAPTER 6. OPTIONS FOR DECISION MAKERS

governance. The literature suggests various options for 2009), regime complexes (Abbott, 2012; Raustiala & Victor, integrative governance, including: 2004), and governance of complex systems (Young, 2017) (see Visseren-Hamakers, 2015, 2018). See Box 6 .1 for an Integrated management (Born & Sonzogni, 1995), example of Integrative Governance. landscape governance and approaches (Buizer et al., 2015; Görg, 2007; Sayer et al., 2013), the nexus approach (Benson et al., 2015; Rasul & Sharma, 2016), 6.2.2 Informed governance: multilevel governance (Hooghe & Marks, 2003; Marks based on legitimate and credible et al., 1996), and telecoupling (Liu et al., 2013), which knowledge bring together (or highlight the relationships between) different sectors, policies or levels of governance in Traditionally, biodiversity governance has relied on natural trying to enhance coherence; science tools including red lists, monitoring and indicator frameworks, and models and scenarios to characterize, assess (Environmental) policy integration (Jordan & Lenschow, and project ecological values such as productivity, species 2010; Persson & Runhaar, 2018) and mainstreaming diversity, or threatenedness. In addition, multidisciplinary tools (Karlsson-Vinkhuyzen et al., 2017; Kok and de containing knowledge and information about ecosystems, Coninck, 2007), which aim to strengthen attention for social systems, and economics, such as cost-benefit analysis, environmental issues in other sectors; sustainability indicators, or integrated assessments are widely used and considered valuable for their ability to offer an Interaction management (Oberthür, 2016), integrated perspective (Ness et al., 2007). Increasingly, these metagovernance, and orchestration (Abbott & Snidal, information tools and systems focus on the measurement, 2010; Kooiman & Jentoft, 2009), which aim to improve modeling and assessment of natural capital and ecosystem the relationships between (groups of) governance services (Turnhout et al., 2013; McElwee, 2017). instruments; and These information tools and systems have several challenges Smart regulation and policy mixes (Gunningham and and limitations. These include technical challenges such as Grabosky, 1998; Mees et al., 2014), which combine standardization, data quality and availability, and interoperability different instruments to be more effective together. and commensurability of data (Bohringer & Jochem, 2007; Kumar Singh et al., 2009). More important is that they Additional concepts used to discuss and study integrative are mostly not fit for purpose to inform transformative governance include interorganizational relations (see e.g., governance. One reason is that they often focus exclusively Schmidt & Kochan, 1977), legal pluralism (Griffiths 1986; on environmental dimensions and are insufficiently inclusive Merry, 1988), polycentric governance (Ostrom, 2010), of diverse values (Turnhout et al., 2013; 2018; Gupta et regime complexity and fragmentation (Biermann et al., al., 2012; Elgert, 2010). For example, biodiversity and 2009; Fischer-Lescano & Teubner, 2003), coordination ecosystem services models and assessments often use (Peters, 1998), coherence (Jones, 2002), institutional causal and mechanistic frameworks, such as the DPSIR interplay or interaction (Oberthür and Gehring, 2006), (Drivers, Pressures, States, Impacts, Responses) approach, governance architectures and systems (Biermann et al., which are limited in their ability to account for both complex

Box 6 1 Example of Integrative Governance – CCAMLR.

The Commission on the Conservation of Antarctic Marine Living data from the fisheries and fishery surveys, and the CCAMLR Resources (CCAMLR) manages the currently active fisheries Scheme of International Scientific Observation (https://www. in the Antarctic Treaty System area (Patagonian toothfish ccamlr.org/en/science/ccamlr-scheme-international-scientific- (Dissostichus eleginoides), Antarctic toothfish (Dissostichus observation) to monitor CCAMLR fisheries and to forecast mawsoni), mackerel icefish (Champsocephalus gunnari) fishery closures. Members implement compliance systems and Antarctic krill (Euphausia superba)). The commission that include vessel licensing, satellite monitoring of vessel exemplifies integrative governance since it uses a precautionary movements and transshipments, together with measures ecosystem-based approach that considers not just the to specifically address the threat of illegal, unregulated and commercial fish species but also the wider ecosystem, and unreported (IUU) fishing. The CCAMLR conservation measures because its management objectives balance conservation goals are generally seen to be efficiently implemented and represent with the rational use of living resources, while safeguarding a leading example of an agreement between over 50 States ecological relationships. It does so by using clear decision rules that has been effective in conserving the living resources of a to agree on catch limits in each fishery. It also relies on detailed significant part of the world’s ocean.

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causal pathways and societal factors such as institutions helpful in identifying different interests and facilitated and values affecting them (Svarstadt et al., 2008; Breslow, communication between stakeholders and governments (De 2015). Equally, the usefulness of indicator and monitoring Bruin et al., 2017; Tress & Tress, 2003; Whyte et al., 2014). systems is hindered by their technical and specialized nature Similarly, participatory – or citizen science – approaches and by the way in which they prioritize specific values over involving stakeholders in the selection and monitoring of others (Turnhout, 2009; Merry, 2011). indicators cannot just contribute to the availability of relevant data, but also to engagement with nature and enhanced Transformative governance calls for expanding existing decision-making (Fraser et al., 2006; Danielsen et al., 2014). information systems and tools to include indicators and An interesting example has come from the availability of parameters to assess the integrative, informed, adaptive real-time satellite data, which are used by initiatives like and inclusive nature of governance processes, policies and Global Forest Watch to support national and sub-national interventions as well as their intended and unintended effects governments, civil society and the private sector to engage on Nature, NCP and GQL. An interesting initiative in this in forest monitoring and conservation (FAO, 2015; GFW, respect is Conservation Evidence, which aims to improve 2017; Nepstad et al., 2014; Assunção et al., 2015). conservation practice by collating, reviewing, assessing and summarizing all available evidence on the effectiveness However, the application of these inclusive and participatory of conservation interventions (Sutherland et al., 2004, approaches so far is limited (Brandt et al., 2013), and their 2014, 2017). It is conceived to be a free, open-access and ability to produce positive outcomes for problem solving and authoritative resource designed to support informed decisions stakeholder empowerment depends on the presence of an about how to maintain and restore global biodiversity, thereby enabling institutional context (Armitage et al., 2011) which is combatting the phenomenon of evidence complacency, where able to effectively address unequal power relations between evidence is not used in conservation decision-making (Dicks et stake- and knowledge-holders (Nadasdy, 2003; Dilling & al., 2014; Cook et al., 2017; Sutherland & Wordley, 2017). Lemos, 2011).

Informing transformative governance also requires reconsideration of the relationship between knowledge 6.2.3 Adaptive governance: to and decision-making. Scientific expertise is not in all enable learning cases required for effective and legitimate action, and the relationship between knowledge and decision-making is Transformative change is in essence adaptive – it represents not straightforward or self-evident (Dessai et al., 2009; a learning process that needs regular opportunities for Kolinjivadi et al., 2017; Wesselink et al., 2013. Dilling and reflection on to what extent and how progress is being Lemos, 2011, Sutherland et al., 2004; Matzek et al., 2014; made, the main bottlenecks, and the best ways forward. Pullin et al., 2014). This means that existing information Adaptive governance is a result of continuously learning systems and tools will need to be adapted to produce about and adjusting responses to uncertainty, social knowledge that is inclusive of multiple values and forms of conflicts and complexity in socio-ecological systems (Chaffin scientific and non-scientific knowledge, including indigenous et al., 2014; Dietz et al., 2003; Walker et al., 2004; Folke et and local knowledge (ILK), and that is credible, legitimate al., 2005; Folke, 2006; Karpouzoglou et al., 2016). and salient for all relevant stake- and knowledge-holders (Cash et al., 2003; Robertson & Hull, 2001; Mauser et al., Adaptive governance includes policy processes that highlight 2013; Sterling et al., 2017). uncertainties, developing and evaluating different hypotheses around a set of outcomes and structuring actions to evaluate A crucial element in the production of legitimate and credible these ideas (Berkes et al., 2003; Paul-Wost, 2009). Adaptive information is the facilitation of dialogue and learning governance also focuses on enhancing the resilience of (Lemos & Moorehouse, 2005; Breslow, 2015; Kok et al., socio-ecological systems by increasing their capacity to 2017; Peterson et al., 2003; Turnhout et al., 2007; Voinov adapt, and by recognizing the importance of learning in & Bousquet, 2010). Literature on transdisciplinarity and coping with change and uncertainty (Evans, 2012). Studies coproduction offers a variety of tools and methods that on adaptive governance advocate for an experimental can be used by governments, NGOs but also in bottom- approach to governing such as creating institutions that can up processes, to organize processes of participatory experiment with different solutions and make adjustments in knowledge production that are able to bridge practical, the process (Holling, 2004). scientific and technical knowledge, as well as ILK (Tengö et al., 2014, 2017; Clark et al., 2016). Experiences with There are various challenges stated in the literature that participatory modeling and scenario planning have shown can be seen as problematic in engaging with an adaptive amongst others that participants were better able to governance paradigm. According to Gunderson (1999) grapple with complexity and uncertainty and that scenarios these are inflexible social systems, ecological systems developed on the basis of input from stakeholders were that lack resilience, and technological incapacity to design

893 CHAPTER 6. OPTIONS FOR DECISION MAKERS

experimental and innovative approaches. Also, the question decisions that are taken. Reform of decision-making of scale is essential in adaptive governance mechanisms. processes is also necessary to enhance accountability and The scale for adaptive governance responses needs to be legitimacy (Keohane, 2003; Bernstein, 2005; Biermann & adapted to the social and ecological nature of the problem Gupta, 2011; Evans, 2012). with sufficient response flexibility within and between political boundaries (Cosens, 2010, 2013; Huitema et al., Participatory mechanisms that introduce dialogue and 2009; Termeer et al., 2010). negotiation can be used to discover varying and potentially competing values and knowledge systems and identify Adaptive management, through monitoring and feedback, options for more equitable decisions and implementation is widely recognized as a management approach to ensure of these decisions, and enable learning (see e.g. Innes effective conservation (Walters, 1986). Several studies and Booher, 1999). However, power asymmetries can confirm the benefits of adaptive management and “learning also affect the manners in which values and knowledge through doing” (Kenward et al., 2011; CBD, 2004; Bern systems are represented in such participatory platforms. Convention, 2007), and adaptive management has been Policymaking processes have often inadequately addressed applied in the ecosystem approach in order to deal with minority groups or the interests and values of people who the complex and dynamic nature of ecosystems and the are actually or potentially affected, directly or indirectly. absence of complete knowledge or understanding of their Procedural equity deals with power asymmetries that affect functioning (CBD, 2017). According to Lebel et al. (2006), whose voice is heard and who has a say in access and adaptability is determined by two factors: (1) the absolute control of nature (McDermott et al., 2013). and relative forms of social, human, natural, manufactured, and financial capital, and (2) the system of institutions and Deliberative processes are widely recognized by practitioners governance. In order to enable a capacity to adapt, it is as useful in many contexts, including urban planning, crucial to build trust and shared understanding between healthcare and water governance (Andersson & Ostrom, diverse stakeholders to motivate co-learning and adaptation. 2008; Neef, 2009; Parkins & Mitchell, 2005). Deliberative Accordingly, deliberation and polycentric governance are approaches are based on the assumption that competing offered as tools for enabling adaptive governance. interests and values can only be discovered, constructed and reflected in a dialogue with others (Rhodes, 1997; Dietz et al. (2003) propose a general list of criteria necessary Dryzek, 2000; Kenter, 2016). Examples of deliberative for adaptive governance: inclusive dialogue between resource institutions are citizen juries, consensus conferences and users (analytic deliberation); complex, redundant, layered focus groups (Pelletier et al., 1999; Smith, 2003; Lienhoop, institutions (nesting); mixed institutional types (e.g., market- 2015). Deliberative approaches are mostly applied at the and state-based); and institutional designs that facilitate local level but can also be used at other levels of governance experimentation, learning, and preparation for change. See Deliberative valuation can also capture the interests of future Box 6 .2 for an example of adaptive governance. generations (Soma & Vatn, 2010; Stagl, 2006; Sagoff, 1998).

Deliberation is considered to be an integrating and bridging 6.2.4 Inclusive governance: approach to valuation (Pascual et al., 2017). Howarth and ensuring equity and participation Wilson (2006) also describe the ways in which deliberative monetary valuation could contribute to social fairness. Inclusive governance refers to governance approaches However, after deliberation it will nevertheless be essential through stakeholder engagement, including Indigenous that results be articulated in a metric that is comparable Peoples and Local Communities, in decision-making with conventional ecosystem service valuation techniques processes. It is argued that inclusive governance improves such as the contingent valuation method (Wilson & the quality of decisions and secures legitimacy for the Howarth, 2002).

Box 6 2 Example of Adaptive Governance – Urban green spaces and urban agriculture:

Uses of vacant lots in urban areas are increasingly recognized USA, such as in Cleveland, which join public and private as important sites for enhancing provisioning of nature’s organizations to purchase or reclaim parcels and then contributions, such as water provisioning or climate manage them adaptively for multiple objectives. Such regulation, and can also be used for food provisioning strategies include plans to increase connectivity between lots through urban agriculture. Adaptive governance principles and incorporate community involvement in lot management have been realized in several “land bank” systems in the (Green et al., 2016).

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Inclusive governance to enhance transformative change integrate the substantive right to a healthy environment, thus needs to consider the importance of including diverse life, water, food, standard of living, and health (Knox, 2013, value systems, rights-holders, genders and IPLCs. These 2017; Draft Framework Principles on Human Rights and are discussed in more detail below (see Box . 6 .3 for an the Environment, 2018). Regional and national laws and example of inclusive governance). policies also integrate procedural rights to information and participation in decision-making (Aarhus Convention, 1998; 6.2.4.1 Value Systems Escazú Agreement, 2018; Knox, 2013, 2017).

Decisions – made at the individual or institutional level In addition, strong land and sea rights, including ownership and at different scales – are necessarily embedded in a and use rights, can promote local empowerment, reduce given value system, historically rooted in the socio-cultural tensions between the authorities and resource users, and context and power relations; yet, such value systems can be successfully integrated in community management may not be explicitly reflected upon (Barton et al., 2018; of forests, use of non-timber forest products, communal Berbés-Blázquez et al., 2016). Depending on whether a grazing lands and subsistence fisheries (Oxfam et al., 2016; unidimensional or a more diverse (value pluralism) lens is FAO, 2012; Ring et al., 2018; Acosta et al., 2018; Stringer applied by the decision maker, policy objectives, as well et al., 2018). Granting land and sea rights to IPLCs is also as policy instruments will be determined differently through a critical means for connecting IPLCs with environmental formal and informal institutions (Pascual et al., 2017; protection policies, including economic instruments such also see Chapter 1). Legal, economic and socio-cultural as carbon offsets, REDD+, PES and micro-credits (Gray et instruments currently regulating the use of nature and its al., 2008; de Koning et al., 2011; van Dam, 2011; McElwee, contributions usually fail to address plural and multiple 2012; Larson et al., 2013; Duchelle et al., 2014; Sunderlin et values of nature, instead they focus on unidimensional al., 2014). As for customary rights, examples confirm that if values (Chan et al., 2016; Kolinjivadi et al., 2017; Tallis et al., competing interests between state and customary systems 2014; Spangenberg & Settele, 2016) (See Supplementary are adequately balanced, policy measures incorporating Materials 6.1.1 for a discussion on market-based customary rights are likely to protect traditional values instruments). Additionally, they often have unintended and ILK, respect local power structures and institutions 1 consequences, such as motivational crowding9F (Rode et al., of IPLCs, and contribute to biodiversity conservation 2015; Vatn, 2010; Vatn et al., 2014), trade-offs and conflicts (Acosta et al., 2018; Willemen et al., 2018). Animal rights (Kovács et al., 2015; Turkelboom et al., 2018, Whittaker are an example of non-anthropocentric development that et al., 2018), or impacts on justice and power relations recognizes intrinsic values of animals and the (ecological) (Berbés-Blázquez et al., 2016; Pascual & Howe, 2018; interdependence of humans and animals (Birnie et al., 2009; Sikor, 2014). Being transparent about underlying value Kymlicka & Donaldson, 2011). Rights of Nature refers to the systems and accommodating plural values and knowledge entitlement of nature with rights as a collective subject of forms in decision-making widens collaboration and creates interest, acknowledging its intrinsic values (Rühs & Jones, more inclusive institutional arrangements (Ainscough et al., 2016; Gordon, 2017; Kotzé & Calzadilla, 2017; Rogers & 2018; O’Neill & Spash, 2000). However, decision making in Maloney, 2017). Policy options for the recognition of such this context might be technically challenging (Dendoncker rights often imply the articulation of a co-management et al., 2018; Phelps et al., 2017; Primmer et al., 2018), regime (e.g., Whanganui River, New Zealand; Strack, 2017), because value articulation needs to be equitable; conflicts and have been codified in national constitutions (e.g., often emerge between stakeholders holding different Ecuador; Kauffman & Martin, 2017), national legislation values; and plural and incommensurable values are difficult (e.g., Bolivian Law of Mother Earth; Pacheco, 2014) and in to operationalize in decision making (e.g., include in local policies (e.g., United States; Sheehan, 2015). Also see accounting), among others. Supplementary Materials section 6.1.2.

6.2.4.2 Rights-based approaches 6.2.4.3 Gender

Rights-based approaches, at the substantive and Gender literacy, women’s empowerment, financial support, procedural level, are multifaceted, and crucial to various gender responsive approaches and integrating gender aspects of governance including inclusive (e.g., participation into nature conservation solutions are crucial to reinforce rights) and informed (e.g., information rights) governance. links between gender and biodiversity, achieve biodiversity In order to promote GQL, national laws and policies objectives, and SDG 5 (gender equality) (CBD SBI/2/2 Add.3 (2018); IUCN, 2017). Lack of gender sensitive 1. Motivational crowding means that the intended motivational impact of an incentive interacts and often changes the internal / intrinsic funding mechanisms and structural inequality hinder gender motivations of actors. Crowding-in means that an external incentive mainstreaming at the national and local level (Sweetman, strenghtens intrinsic motivations, while crowding-out means that the 2015; UNEP, 2016). While gender rights acknowledge the incentive decreases intrinsic motivations to protect biodiversity (Rode et al., 2015; Vatn et al., 2014). interdependence between gender, biodiversity conservation

895 CHAPTER 6. OPTIONS FOR DECISION MAKERS

and sustainable use of resources (CBD Gender Plan of has been shown to improve dialogue and advance the Action, 2008; Aichi Target 14, 17 and 20), poverty, religious legitimacy of decisions and the recognition of the value and cultural practices (e.g., when gender disparities are and rights of IPLCs (Schroeder, 2010; Redpath et al., entrenched in cultural and religious beliefs), and unequal 2013; Brugnach et al., 2014; Wallbott, 2014, Brodt, 1999; social, economic and institutional structures are some of Young & Lipton, 2006; Berkes, 2009; Davies et al., 2013; the key obstacles women encounter (CBD/IUCN, 2008; Robinson et al., 2014; Stevens et al., 2014; Gavin et al., FAO, 2013; UNEP, 2016). The fundamental role women play 2015; Alexander et al., 2016; Berdej & Armitage, 2016, in, among others, agriculture, forestry, fisheries, tourism, Ostrom, 1990; Gibson et al., 2005; Hayes, 2006, 2010; water management, wildlife management, and nature Chhatre & Agrawal, 2008, 2009; Waylen et al., 2010; Porter- conservation and management underpin the need for Bolland et al., 2012; Reyes-García et al., 2012; Gavin et effective participation in decision-making (Jenkins, 2017; al., 2015; Martin et al., 2016). However, long-term capacity Howard, 2015). To mainstream gender considerations, development, empowerment and continued funding governments can take actions in policy (e.g., mainstream support are critical conditions to ensure IPLCs involvement gender into NBSAPs), organizational (e.g., giving women in biodiversity conservation, including specifically women, collective and individual voice, gender equality training youth and non-Indigenous communities (Brooks et al., and awareness-raising among decision makers, and 2009; Ricketts et al., 2010; Eallin, 2015; Escott et al., 2015; gender responsive budgets), delivery (e.g., participatory Reid et al., 2016; Reo et al., 2017). mechanisms, capacity development and empowerment to enable effective participation), and constituency (e.g., There are many tools available to set up such inclusive and ensure consistency with relevant conventions) spheres (CBD participatory mechanisms (Green et al., 2015; Pert et al., Decision XII/7 (2014). 2015; Brondizio & Le Tourneau, 2016; Schreckenberg et al., 2016; Fernández-Llamazares & Cabeza, 2017; Zafra-Calvo 6.2.4.4 IPLCs and ILK et al., 2017), including IPLC-led codes of ethical conduct in conservation (e.g., Akwe: Kon Guidelines and The Inclusive governance requires robust participatory Tkarihwaié:ri Code of Ethical Conduct; CBD, 2004, 2011), mechanisms supporting the inclusion of IPLCs in policies the Free, Prior and Informed Consent principle (Cariño, and planning decision affecting them and the environment 2005; Doyle, 2015; Herrmann & Martin, 2016; MacInnes at large (Bray et al., 2008, 2012; Ojha et al., 2009; Kerekes et al., 2017; UNDRIP, 2007), and tools for dialogue such & Williamson, 2010; Kothari et al., 2012, 2013; Mooney & as the Whakatane Mechanism (Freudenthal et al., 2012; Tan, 2012; Buntaine et al., 2015). As discussed in chapter Sayer et al., 2017), as well as legal approaches that draw 2, IPLCs hold territorial rights and/or manage a substantial inspiration from ILK and customary institutions (Archer, proportion of the world’s conserved nature, freshwater 2013; Hutchinson, 2014; Akchurin, 2015; Humphreys, systems, and coastal zones, providing contributions to 2015; Strack, 2017; also see rights-based approaches society at large (Maffi, 2005; Gorenflo et al., 2012; Renwick above). In this vein, the laws promoting the Rights of Nature et al., 2017; Garnett et al., 2018). There is well-established (e.g., Bolivia, Ecuador, India, New Zealand) have been, evidence that IPLCs can develop complex, sophisticated, in most cases, heavily influenced by IPLC philosophies innovative and robust institutional arrangements and placing nature at the center of all life (Akchurin, 2015; Díaz management systems for successfully governing the et al., 2015; Borràs, 2016; Archer, 2013; Hutchinson, management of watersheds, coastal fisheries, forests and 2014; Strack, 2017; Kothari & Bajpai, 2017). Moreover, grasslands and a variety of biodiversity-rich landscapes securing connection to place and granting land- and sea around the world (Ostrom, 1990; Berkes, 1999; Agrawal, tenure rights to IPLCs are also a critical means to ensure 2001; Colding & Folke, 2001; Lu, 2001; Toledo, 2001; IPLC participation in environmental governance and key Gadgil et al., 2003; Bodin & Crona, 2008; Pacheco, 2008; enabling factors to IPLCs’ well-being (Gray et al., 2008; Waylen et al., 2010; Basurto et al., 2013; Stevens et al., de Koning et al., 2011; van Dam, 2011; McElwee, 2012; 2014; Fernández-Llamazares et al., 2016) to govern their Larson et al., 2013; Sunderlin et al., 2014; Sterling et al., land- and seascapes in ways that align with biodiversity 2017). Finally, global policy arenas such as IPBES and the conservation (ICC, 2008, 2010; Stevens et al., 2014; Ens CBD can facilitate knowledge co-production for enhanced et al., 2015, 2016; Trauernicht et al., 2015; Blackman et al., environmental governance (Turnhout et al., 2012; Tengö et 2017; Schleicher et al., 2017; Vierros, 2017). al., 2014, 2017; FPP & CBD, 2016). Figure 6 .1 outlines several public policies that can facilitate IPLC inclusion The inclusion of IPLCs in governance can be enhanced in transformative governance. Also see Supplementary through processes of knowledge coproduction at local, Materials section 6.1.3 for background material on national and global scales (Brondizio & Le Tourneau, 2015; IPLCs and ILK, and Box 6 .3 for an example of inclusive Sterling et al., 2017; Wehi & Lord, 2017, Turnhout et al., governance. 2012; Tengö et al., 2014, 2017; FPP & CBD, 2016; see also 6.2.2 and Chapter 1). Such enhanced participation

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Box 6 3 Example of Inclusive Governance – The Arctic Council.

The interconnected and complex challenges faced by the Bloom, 1999; Axworthy et al., 2012; Nilsson & Meek, Arctic have been argued to be better addressed through 2016). Inclusiveness is an important principle for the AC transformative governance, including stronger transboundary and is best reflected by the unique formal status accorded cooperation and globally-coordinated policy responses to Arctic Indigenous Peoples as Permanent Participants, (Aksenov et al., 2014; Chapin et al., 2015; Sommerkorn & sitting at the table alongside State representatives (Bloom, Nilsson, 2015; Nilsson & Koivurova, 2016; Armitage et al., 1999; Young, 2005). The AC has advanced the inclusion 2017; Edwards & Evans, 2017; van Pelt et al., 2017; Burgass of Indigenous knowledge and expertise in AC assessment et al., 2018). As one of the fastest changing regions on reports by placing Indigenous representatives in the steering Earth (ACIA, 2004; Wassmann et al., 2011; Cowtan & Way, committees of the different constituencies, task forces and 2014), the Arctic is facing vast social-ecological challenges working groups of AC (Kankaanpää & Young,2012) and has that have required all levels of governance –particularly the catalyzed Indigenous Peoples’ participation in international Arctic Council– to constantly adjust their modes of operation, policymaking more generally (Koivurova & Heinamäki, 2006). ensuring a governance system that is transformative, The AC has however also been criticized for continuing to flexible across issues and sectors, and adaptable over time rely on fixed governance fundaments (e.g., soft law nature, (Axworthy et al., 2012; Young, 2012; Chapin et al., 2015; ad-hoc funding; Koivurova, 2009) and for failing to offer the Ford et al., 2015). The Arctic Council (AC), established in kinds of firm institutional, financial and regulatory frameworks 1996, is an intergovernmental forum promoting cooperation, that are considered necessary (Berkman & Young, 2006; coordination and interaction among the Arctic States, Arctic Greenpeace, 2014; Hussey et al., 2016; Edwards & Indigenous communities and other Arctic inhabitants on Evans, 2017; Harris et al., 2018). (See for more details common Arctic issues, with an overall focus on encouraging Supplementary Materials section 6.1.4). transformative change towards sustainability (Young, 2012;

ICCAs, Sacred Natural Free, Prior and Informed Sites, OECMs, Land/sea Consent, Corporate Social tenure security programs, Responsibility, Ecotourism, development of biocultural Social Safeguards, PEs, Align Improve indicators, ILK revitalization Carbon Offsets, etc. economic instruments mechanisms to programs, etc. to local contexts include ILK

Consider Recognize multiple customary values institutions

Integrate IPLCs in transformative governance

Facilitate Adaptive Diversify Capacity conservation & Access approaches to NCPs

Strengthen Expand access to participation in Certiﬁcation, Fairtrade, culturally-appropriate Co-management land/sea use Adaptation Funds, services approaches, Whakatane Microcredtis, Capacity planning Mechanism, Sustainable development programs, Wildlife Management, Intercultural health and Social and Environmental education programs, etc. Impact Assessment, etc.

Figure 6 1 Suite of policy opportunities and actions to better integrate Indigenous Peoples and Local Communities in transformative governance for sustainability. Design adapted from Strassburg et al. (2017) .

897 CHAPTER 6. OPTIONS FOR DECISION MAKERS

practicing integrated water resource management and 6.3 TRANSFORMATIVE landscape planning across scales, integrated coastal CHANGE IN AND ACROSS management, and bioregional scales for energy etc. In addition, policy mixes play a crucial role to address ISSUES, GOALS AND externalities and incorporate diverse values. SECTORS Second, data gathering, monitoring and reporting enable decision makers to understand the function and inter- 6.3.1 Introduction related dynamics of nature, its contributions, and quality of life. Different types of assessment and analytical tools As discussed in the above, the SDG are integrated and (e.g., cost benefit analysis, life cycle analysis, environmental indivisible. Therefore, action on one SDG may (positively impact assessment, strategic impact assessment, and or negatively) affect progress on other SDG, and the participatory assessment) synthesize different types of implementation of different targets under an SDG are knowledge, including indigenous and local knowledge. In mutually dependent. Moreover, biodiversity is at the core of addition, telecoupled information flows have the potential to many of these complex interdependencies. To the global contribute to monitoring, surveillance and control. Examples North and South, the comprehensive implementation of these options are zero-deforestation pledges, certification of the goals offers major and different challenges to schemes for key commodities or biofuel, and the use of achieve sustainability in the environmental, social, and satellite surveillance of at-sea fishing operations. economic spheres. Third, collaborative efforts such as partnerships and other Furthermore, as previous chapters have discussed, climate multi-stakeholder approaches among state, market and change is exacerbating and reinforcing other drivers of civil society actors can contribute towards achieving biodiversity loss and environmental degradation, such sustainability on all major issues discussed here. In addition, as habitat loss and degradation, agricultural expansion, the development of robust, evidence-based, participatory unsustainable utilization, invasive alien species and pollution and inclusive decision-making processes optimizes the (particularly in marine and freshwater ecosystems; see participation of IPLCs and marginalized social groups Chapter 2.1). Various manifestations of climate change such (e.g., urban slum dwellers) in environmental governance. as drought, extreme weather fluctuations, flooding, extreme Enhanced participation and leadership of IPLCs in heat and cold, storms, conditions for accidental fire, ocean environmental processes can advance the recognition water warming and acidification, and rising sea levels, are of the social, spiritual and customary values of IPLCs in hindering our ability to meet the Aichi Biodiversity Targets environmental management decisions and influence the and the SDG. outcome, thereby enhancing their legitimacy.

In this context, the aim of this section is to review both Fourth, it is acknowledged that the effectiveness of policy short-term (today-2030) and long-term (today-2050) options instruments is context specific, and the implementation of available to different decision makers (Table 6 .2) to achieve different policy options needs to be adaptive. Moreover, the the SDG on major biodiversity-related issues and policy effectiveness of various policy instruments is not yet well domains, including terrestrial landscapes (6.3.2); marine, understood and further research on the effectiveness of coastal and fisheries (6.3.3); freshwater (6.3.4); cities (6.3.5); different policy options, separately and in combination, is and energy, mining and infrastructure (6.3.6). The overview necessary to achieve transformative change. table in each section summarizes the options that policy makers can include in policy mixes to together address the indirect drivers. The tables include the short- and long-term 6.3.2 Integrated Approaches for options, the main problems expected in their implementation, Sustainable Landscapes the main decision maker(s) involved, the main levels of governance involved (from the global to the local), and Landscapes are the geographical space where socio- the main targeted indirect driver(s). Some of the common ecological systems are shaped and develop. They are the threads emerging from the synthesis below are the following: most important source of food, water, materials and bioenergy, and provide space and quality for human habitation. First, integrated approaches within an SDG (various targets Hence, landscapes are also the space where multiple land within one SDG) or among SDG (e.g., the water-food- uses and values converge. Historically, landscapes have been energy-infrastructure nexus) offer opportunities to foster governed by policies and decisions from different sectors and policy coherence, minimize unforeseen externalities and governance levels, i.e. agriculture, rural development, water, reduce potential conflict or tensions between different forestry, infrastructure, energy and urban planning, acting objectives or policies. Promising interventions include often independently without taking due consideration of the

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interdependencies and trade-offs among different societal governance): “…a combination of policy instruments that objectives that often arise in landscapes. (evolves to) influence the quantity and quality of biodiversity conservation and ecosystem service provision in public and The lack of articulation of these multiple objectives has private sectors” (Ring & Schröter-Schlaack, 2011). These been the cause of the large environmental, health and mixes can include policy instruments beyond the landscape, biodiversity loss challenges today, including the conversion for instance to regulate the distance drivers of change (i.e., and fragmentation of species habitats, one of, and in telecouplings) (see section Regulating commodity chains, some regions the main driver of global biodiversity loss below), including the effect of distant consumption patterns (Barnosky et al., 2011; Ceballos et al., 2015; Pimm et al., (see section on Encouraging dietary transitions and alternate 2014, Chapter 3 section 3.2.1), the levels of mechanization consumption, below). and resource inputs leading to landscape and biological homogenization (Newbold et al., 2015; Pepper et al., A policy mix approach is motivated because even in 2017), the lack of adequate attention for the protection of simple settings, no single policy instrument is superior genetic resources of crops, trees, their wild relatives, and across all evaluation criteria (including effectiveness, livestock (Collette et al., 2015), the skewed representation of cost-minimization, equity) (Vatn, 2010), and cannot biodiversity in protected areas (Butchard et al., 2012, 2015), possibly address all policy goals and targets. In contrast, and the loss of the capacity of soils, cropland and forested well-integrated and implemented policy mixes can help areas to maintain ecosystem services (Vitousek et al., counteract these and other deficiencies, such as economic 1997; Schiefer et al., 2016, Fornara et al., 2008), including externalities occurring with market power, unobservable natural pest control and pollination. These challenges are behaviour and imperfect information; and address multiple associated with depletion, eutrophication and pollution of jurisdictions and policy linkages across jurisdictions (Barton water, health problems related to undernourishment and et al., 2013). Successful policy mixes acknowledge the simplified diets (United Nations, 2015), increased costs and socio-ecological context (Andersson et al., 2015), address risks in food and forestry production due to the introduction conservation and sustainable use challenges, and recognize of invasive alien species (IAS), and the contribution of their cross-sectoral and multi-scale nature (Verburg et landscapes to greenhouse gas (GHG) emissions (FAO & al., 2013). If well planned, policy mixes can also address ITPS, 2015, Supplementary Materials 6.2.1). different objectives across the landscape, such as through a ‘policy scape’ perspective. A ‘policy scape’, understood One unresolved question is how to shape landscapes as the spatial configuration of a policy mix (Barton et al., that fulfil current and future needs of food and materials 2013; Ezzine-de Blas et al., 2016), recognizes the spatial production, without the negative impacts on nature and variation of ecological and biodiversity features, suitability for society listed above. “Land-sparing” and “land-sharing” sustainable food and materials production, and trade-offs represent two extreme models about how landscapes can between sustainable production and conservation (Schröder be shaped and refer to the degree of compatibility between et al., 2014; 2017). different land use intensities, the conservation of biodiversity and generation of ecosystem services within a landscape Transformative landscape governance networks can further (Balmford et al., 2005; Fischer et al., 2008; Phalan et al., develop policy mixes that integrate across sectors, land 2011, 2016, see also Supplementary Materials 6.2.1). This uses, actors and levels of governance (Carrasco et al., simplified dichotomy (“land sparing” vs. “land sharing”) limits 2014), addressing important trade-offs among NCP in a future possibilities (Chapter 5 section 5.3.2.1). There is transparent and equitable way. Options in the short and increasing consensus in that visions of sustainable land-use longer-term incorporate decision makers and stakeholders systems will lie in between these contrasting models, by from within and outside the landscape while addressing considering the specific social, economic, ecological and power dynamics (Ishihara et al., 2017; Berbés-Blázquez et technological context (Fischer et al., 2008; Tscharntke et al., 2016). These networks are thus multi-actor (including al., 2012; Chapter 5 section 5.3.2.1). A landscape-focused different types of actors), multi-level (including multiple participatory approach to policy design and implementation levels of governance, from the global to the local) (Verburg is an option to better address dilemmas about land use et al., 2013), and multi-sector (including representatives allocation and intensity of use. from different sectors, including the entire value chain, from producer to end user) (Lim et al., 2017). Decision makers This section analyses the evidence on the effectiveness and stakeholders in these networks need to recognize of policy options that could be used by different different values and be cognizant of power dynamics in the decision makers to promote the transition to sustainable networks in order to enable transformative change. Any type landscapes. To contribute to transformative change, of decision maker could initiate such networks. options for sustainable agriculture and forest management and conservation would need to be approached with The options discussed in the remainder of this section, and policy mixes (as discussed in 6.2.1 above on integrative summarized in Table 6 .3, can be potential elements of

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these policy mixes for integrated landscape approaches. section 6.3.4. However, it is only when these options are They mainly include existing instruments aimed to support strategically combined in integrated landscape approaches sustainable agriculture, sustainable forest management and that transformative change towards sustainability can take biodiversity conservation, and thus represent options that place. Such approaches can be started in the short term but can be implemented in the short term. Water governance, need to be continuously enhanced through transformative although an integral part of landscapes, is discussed in governance in the longer term.

Table 6 3 Options for integrated approaches for sustainable landscapes.

Short-term Long-term Key obstacles, risks, spill-over, Major decision Main Main options options (in unintended consequences, maker(s) level(s) of targeted (incremental the context of trade-offs (see Table 6 .2) governance indirect and transformative driver(s) transformative) change)

Sustainable landscapes

Harmonized, synergetic, cross-sectoral, Sectoral policy formulation; limited Governments; All Economic; multi-level and spatially targeted resources and technical capacity; limited Science and institution; policy mixes, developed through resolution of trade-offs; lack of policies educational governance transformative landscape governance inclusive of the entire market that address organizations; networks leakage and telecoupling private sector; civil society, IPLCs

Feeding the world without consuming the planet

Expanding and enhancing sustainable Limited public investment in innovation FAO, OIE, National and Technological; intensification in agriculture (including and outreach activities; limited research governments; sub-national economic crops and livestock) and innovation in production embracing science and sustainability principles; economic and educational social inequalities organizations; civil society; donors

Encouraging ecological intensification Lack of cross-sectoral policy integration; Governments; National; Institutions; and sustainable use of multi-functional potential high risk of conflict with science and sub-national governance; landscapes conservation; limited spatial/territorial educational and local economic planning; limited capacity to resolve organizations; trade-offs; lack of understanding about private sector; civil production benefits from improved society; donors biodiverse/multiple-value use of land; limited landholder buy-in; pressure to further intensify ('productivist' agricultural paradigm)

Improving certification schemes and Limited demand for certified products; Civil society; Global; Cultural; organic agriculture lack of landscape level coverage; private sector; regional; institutions; risk for leakage; voluntary; tends to governments national economic; prioritize brokers and industries; less governance; participation of poor farmers; requires technological market integration; standards unclear for consumers

Regulating Small-farmer exclusion due to high Civil society; Global; Institutions; commodity chains transaction costs of certification and private sector regional; governance; lack of domestic markets; limited national cultural; expansion of certified area; risk of limited economic acknowledgement of local customary rights; lack of effective external control; promotion of segregated landscapes; overlooks root causes of land-use expansion; voluntary standards

Conserving genetic resources for Lack of integration of local genetic Global and All Institutions; agriculture resources networks and global regional (inter-) governance; processes; lack of integration of genetic governmental technological resources in biodiversity conservation; organizations; risk of increasing social and economic private sector; inequalities; lack of recognition of IPLCs IPLCs; science and intellectual property rights; limited and educational trait control and seed quality standards organizations

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Managing Risk of leakage effects; social and Intergovernmental All Economic; Large-Scale Land economic marginalization of local farmers; organizations, institutions, Acquisitions increased tenure insecurity in surrounding private sector; governance (LSLA) lands farmers

Encouraging dietary transitions Lack of consumer awareness of National, All Economic; environmental, health and animal welfare subnational and cultural implications of food types; lack of local governments; effectiveness of information campaigns; private sector; voluntary labeling of products; limited citizens; NGOs, market shares of certified products, science and labeling often emphasizing documentation education not performance; low price of organizations unsustainable food

Reducing food Transformations in Failures in food distribution and storage Private sector; National; Institutions; waste food storage and systems; limited consumer education; citizens subnational; governance; delivery wasteful marketing practices; limited (consumers); local cultural recycling of food waste; wasteful supply national and chains and business models subnational governments; donors; science and education organizations

Improving food Disconnect between production, National and National and Economic; distribution and consumption and waste management; subnational subnational institutions; localizing food poor integration in urban planning; limited governments; governance; systems connection between producers and private sector; technological consumers citizens (consumers)

Expanding Opposition to government role in Intergovernmental National Governance; food market stabilizing food prices and food security; organizations; economic; transparency and limited social targeting to support poor National institutions price stability populations governments; private sector

Sustainably managing multi-functional forests

Expanding and improving community- Bureaucratic (and political) apathy; Governments; civil National; Institutions; based forest management and co- institutional resistance from forest society; IPLCs sub-national governance; management bureaucracies and local demographic

Improving policies relating to PES and Informational and other asymmetries Global institutions All Governance; REDD+ among stakeholders; complexities in (UN, MEAs); institutions; benefit sharing; unclear or contested governments; economic; tenure; unfavorable institutional and policy donor agencies; technological settings; over-prioritization of market civil society incentives; limited range of ecosystem services compensated for; international disagreement; trade-offs and conflicts between carbon and other benefits (including biodiversity conservation); stakeholders not always involved in policy design

Supporting Reduced Impact Logging Insufficient technical and financial Governments; National; Technological; (RIL) capacity, especially in forest-rich tropical science & sub-national economic countries educational and local organizations, private sector

Promoting and improving forest Limited technical and financial capacity Governments; All Economic; certification for forest management; low demand for science & institutions; certified products; lack of information educational governance; among consumers organizations; cultural; private sector; technological NGOs; donors

Controlling illegal logging Weak local governance, poor level of Intergovernmental All Governance; compliance; difficulties with monitoring organizations; institutions; and traceability; insufficient reward for governments; economic legal forest harvests in global timber private sector, market; difficulties with monitoring and donors; civil traceability society

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Monitoring and regulating forest use Insufficient technical and financial International All Governance; capacities; poor understanding of organizations economic, the needs and benefits; weak local (e .g . FAO); technological governance; poor level of compliance; governments; difficulties with monitoring and traceability educational systems organizations; IPLCs

Protecting nature

Improving Inadequate resources and weak International All Governance; management of governance; increased human pressures; organizations institutions; protected areas climate change; limited enforcement, (e .g . IUCN); technological (PAs) limited monitoring; lack of robust governments; ecological data to assess effectiveness NGOs; donors across spatial & temporal scales

Improving spatial Isolation of PAs; geographical and Global All Governance; and functional ecological biases; limited spatial planning; organizations; institutions; connectivity of trade-offs among societal objectives governments; technological PAs NGOs; donors

Improving PA planning usually depends on individual Global All Governance; transboundary PA governments organizations; institutions and landscape national governance governments; NGOs; donors

Recognizing management by IPLCs and History of conflicts between IPLCs Governments; All Cultural; OECMs and legal PA management; potential NGOs; private governance; displacement, exclusion, distress of IPLCs sector; IPLCs; institutions; due to strict PA governance; unequal donors regional sharing of costs and benefits between conflicts different actors; erosion of ILK

Addressing the illegal wildlife trade Poor law enforcement; limited capacity for Global institutions All Governance; detection; limited surveillance; corruption; (CITES); national cultural; limited capacity of crime investigation governments; economic citizens; IPLCs; NGOs

Improving Lack of recognition of IPLC rights; Governments; All Governance; Sustainable unequal distribution of benefits; elite IPLCs; private institutions; Wildlife capture; leakage effects; lack of sector; NGOs economic Management enforcement of law and international agreements; corruption

Manage IAS Legal and institutional barriers to effective Global All Governance; through multiple management; information management organizations; institutions; policy instruments challenges; lack of resources; limited governments cultural; perception of risks; jurisdictional technology; issues; lack of coherent systemic and economic community-partnered approach to IAS management; lack of economic incentives to engage private landowners; limited engagement of IPLCs

Expanding ecosystem restoration projects and policies

Expanding Uncertainty about effectiveness; limited Governments; National and Technology; ecosystem formal and empirical evaluation of science and local economic; restoration projects; risk for limited acceptance of education cultural projects and project (neglect of community culture and organizations; policies and link values); rapid cultural change private sector; to revitalization IPLCs of ILK

Improving financing for conservation and sustainable development

Improving financing for conservation Lack of understanding of what financing Global Global; Economic; and sustainable development mechanisms are most effective; priorities organizations; regional; governance; for financing in other sectors above national National institutions biodiversity; lack of consistent monitoring governments; of ODA for biodiversity donors

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6.3.2.1 Feeding the world without Efficiency agriculture is applied to both crops and livestock consuming the planet production. Industrial production systems produce over two-thirds of global production of poultry meat, almost Expanding and enhancing sustainable intensification two-thirds of egg production and more than half of world in agriculture output of pork, with beef and milk production remaining less intensified (FAO, 2009). The environmental impacts, To address land degradation (IPBES, 2018b) and including water, soil and air pollution, of intensive livestock other environmental impacts of agriculture, two forms production are significant, and these systems often harbor of ecological modernization are currently considered: poor animal welfare conditions (HLPE, 2016). Challenges (i) sustainable intensification (Sustainable intensification or of efficiency agriculture, including the industrial production efficiency-substitution agriculture (Duru et al., 2015, Schiefer of livestock, generally rely on high levels of anthropogenic et al., 2016), which aims to improve input use efficiency inputs and include the extensive use of non-renewable and minimize environmental impacts. This is currently the resources such as mineral fertilizers and energy, the risk dominant modernization alternative (see Supplementary of pest resistance to agro-chemicals (Duru & Therond, Materials 6.2.2; Chapter 2.3 about trends in production for 2014), human health problems associated with the use marketed commodities). (ii) biodiversity-based agriculture of pesticides and veterinary drugs, the homogenization of aims to develop agriculture enhancing ecosystem services crops, and the biological deterioration of the land. This kind generated by agro-diversity (Duru et al., 2015) (see of intensification may trigger land conversion as has been section on “Encouraging sustainable use of multifunctional the case of soybean expansion in South America (Fearnside, landscapes”, below). 2001; Pacheco, 2012). Shortcomings can also involve leakage effects and failure to address the conservation of Efficiency-based agriculture consists of adjusting practices semi-natural and open habitats (Supplementary Materials in specialized systems to comply with environmental 6.2.2), issues due to the shift of agricultural production regulations and follows the logic of economy of scale from small and medium household farms to international and expression of comparative advantages (e.g., for soil agroindustry pools (Strada and Vila 2015), and exposure to fertility, climate, knowledge, labour costs, infrastructure, market volatility. and regulations) (Duru et al., 2015), aiming at closing yield gaps (Mueller et al., 2012, Chapter 5 section Encouraging ecological intensification and 5.3.2.1). Implementation is based on good agricultural sustainable use of multi-functional landscapes practices (e.g. FAO), and international voluntary standards, including those on animal health and welfare of the World Land-use systems consisting of mosaics of cropland, Organization for Animal Health (OIE), and uses also new grasslands and pastures, and forests, are widely spread technologies such as precision agriculture (Supplementary globally and are critical for food security and sovereignty Materials 6.2.2). (Supplementary Materials 6.2.2). Encouraging use of multifunctional landscapes can be the basis for a shift towards The adoption of these practices can be supported by ecological intensification or biodiversity-based agriculture investment in technological development and outreach, including diversification of food sources, ecological rotation regulations, and public and private quality standards such and agroforestry, promotion of agroecology with a view to as voluntary certification schemes and roundtables (see promoting sustainable production and improving nutrition sections on Improving certification schemes and Regulating (McConnell, 2003). At the same time, these landscapes commodity chains, below). One recent example of the are the space where the largest conflicts with nature mixes of measures that can promote this kind of agricultural conservation can take place (Ravenelle & Nyhus, 2017), modernization is the program to encourage the sustainable especially in the case of wildlife – human interactions. increase of crop yields in smallholder farms in China. In 2003–11, the country increased its cereal production by Multi-functional landscapes also support NCP critical to IPLC about 32% (more than double the world average), largely diets and food systems. These are also gaining attention in by improving the performance of the least-efficient farms, the context of global discourses around food sovereignty through a comprehensive package of measures that (Patel, 2009) and cultural identity (Charlton, 2016; Coté, included public investment, development and testing of 2016; Kuhnlein et al., 2009; Nolan & Pieroni, 2014). Many technologies adapted to specific agro-ecological zones IPLCs and a wide range of rural and peri-urban populations, that improved yields, conserved soils and reduced fertilizer remain highly dependent on hunting, fishing and gathering application, and outreach and farmer engagement (Zhang for their diets, which play a critical role in supporting IPLC et al., 2013). Development of new crop varieties remains health and well-being (Kuhnlein, 2014; Kuhnlein & Receveur, one of several areas of fundamental research that feed 2007; ICC, 2015; Nesbitt & Moore, 2016). As such, drivers of into this approach to increase yields and reduce the use of landscape homogenization and biodiversity loss have been insecticides (Zhang et al., 2013). largely associated with rapid nutritional shifts among IPLCs,

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through the reduction in consumption of locally-sourced conservation in these mixed-use systems (see section on foods as well as the incorporation of industrially processed Improving Sustainable Wildlife Management, below) where products, often leading to increasing rates of overweight, multiple objectives converge. Finally, the farmers’ level of obesity and chronic disease (Popkin, 2004; ICC, 2015; adoption of practices in voluntary schemes (AES, PES, Galvin et al., 2015; Iannotti and Lesorogol, 2014; Reyes- REDD+, technology adoption and certification schemes) García et al., 2018). Measures to promote multi-functional is, in many instances, low and largely determines the landscapes are easier to govern when they are broadly effectiveness of the measures (Giomi et al., 2018; Runhaar defined and linked to values or objectives in the sector or et al., 2017). Two obstacles related to direct payments, a local practices (Runhaar et al., 2017). Community-driven and widely used policy instrument, include its voluntary character culturally-appropriate responses to address these changes and that subsidies often do not cover all costs (Runhaar posit a reconnection of land-based food systems and have et al., 2017). Farmers who do not voluntarily engage in recurrently called for supporting the recognition of IPLC nature conservation could be incentivized by showcasing food sovereignty (Wittman et al., 2010; Morrison, 2011; farmers who have made advances, critical consumers, Rudolph & McLachlan, 2013; Martens et al., 2016). Also, and stricter rules in direct payment schemes or in generic targeting specific measures by identifying agro-ecological agri-environmental legislation (Giomi et al., 2018). Farmers constraints and characteristics of farming systems such need to be motivated, able, or enabled (e.g. through as population pressure, urbanization, governance, income investment in technological development and outreach), and undernourishment, can further help select suitable demanded (through regulations and quality standards measures to promote ecological intensification in agriculture as the IFOAM-Organic standard and roundtables (see (Sietz et al., 2017) and the management of NCP based Improving Certification Schemes and Organic Agriculture, on biodiversity. below), and legitimized to participate and act (Runhaar et al., 2017). There are also other private forms of governance Policy options that have been implemented to promote including the cooperation of farmers with conservation ecological intensification of farming systems include, NGOs, or compliance to conservation standards requested although not exclusively, direct payments such as agri- by companies in agricultural supply chains as part of their environmental schemes (AES) to conserve and better Corporate Social Responsibility programmes (Runhaar et provision ecosystem services (Supplementary Materials al., 2017). 6.2.2) and to maintain and restore habitats (Montagnini et al., 2004), payments for ecosystem services (PES) to Improving certification schemes and organic protect water sources (Frickmann Young et al., 2014), with agriculture biodiversity conservation as a co-benefit (see section on Improving REDD+ and PES), below), and standards and Over the last decades, voluntary sustainability standards certification schemes (see section on Improving Certification (VSS) and certification schemes (VCS) have become a Schemes and Organic Agriculture, below). A form of key governance mechanism affecting land-use decisions biodiversity-based agriculture is permanent (agri)culture, and land-use shifts (Sikor et al., 2013) aiming to mitigate based on broad principles defined as mimicking ecological the negative impacts of agricultural expansion and patterns, locally designed and recuperation of traditional intensification, including deforestation (Milder et al., 2014; ecological practices (Roux-Rosier et al., 2018). Tscharntke et al., 2015), by promoting environmental and biodiversity-friendly practices at the farm level. Studies reveal Technical assistance and investment (including micro-credits) increases in the abundance or species richness of a wide have been used to promote land uses such as agro-forestry range of taxa, including birds and mammals, invertebrates systems that enhance on-farm provisioning (e.g. timber and arable-land flora in certified farms (Hole et al., 2005; and non-timber products in addition to crops and pastures Bengtsson et al., 2005; Tuomisto et al., 2012; Tayleur et al., (Montagnini, 2017, Part III) and regulating services such as 2018), and ecosystem services (Supplementary Materials carbon sequestration. Direct payments (e.g., PES) can be 6.2.2, Kremen et al., 2002; Bengtsson et al., 2005; Hutton & combined with technical assistance since they are effective Giller, 2003), mainly due to lower agrochemical inputs (Aude in overcoming initial economic and technical obstacles to et al., 2003; Hutton & Giller, 2003; Pimentel et al., 2005; the adoption of agro-forestry practices (Cole, 2010), but the Birkhofer et al., 2008) practices need short to medium-term technical support to ensure their long-term retention. These measures have been However, most certification schemes are too recent to combined with REDD+ (see section on REDD+, below) to evaluate detectable impacts (Tayleur et al., 2018) and promote carbon sequestration and halt forest clearing. results on environmental and biodiversity performance are in many cases limited (Gulbrandsen, 2010; Gulbrandsen, Participatory approaches and compensation schemes 2009) or variable (Bengtsson et al., 2005). In some cases, have helped resolve conflicts between food and material certification schemes have spurred more intensive and production and nature conservation, including wildlife degrading land-use practice (Guthman, 2004; Klooster,

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2010) and caused higher deforestation in neighbouring old- improve monitoring and assessment of certification impacts, growth forest areas (Tayleur et al., 2016). including bio-physical (e.g., nutrient leakage, water use efficiency, biodiversity), social and economic criteria. A few studies have also documented positive livelihood outcomes from certification (Bacon, 2005; Bolwig et al., Regulating commodity chains 2009; Gulbrandsen, 2005; Ruben and Fort, 2012) and improved management institutions, but impacts on poverty Two major efforts to regulate commodity chains, alleviation are mixed (Yu Ting et al., 2016). Many schemes particularly for tropical agricultural products, and to have exacerbated problematic political and economic deal with telecoupling issues and the unsustainable inequalities (Gómez Tovar et al., 2005; Ponte, 2008) or failed expansion of these commodities include multistakeholder to enhance market access or benefits (Font et al., 2007), fora and commodity moratorium policies. Examples of especially for smallholder farmers (DeFries et al., 2017; multistakeholder fora are the Roundtable on Sustainable Tayleur et al., 2018). There are also issues of high transaction Palm Oil (RSPO), the Roundtable on Responsible Soy costs, transparency, legitimacy and equity in certification (RTRS) Better Sugar Cane Initiative, and the Roundtable schemes (Supplementary Materials 6.2.2; Eden, 2009; on Sustainable Biomaterial, which aim to engage all private Klooster, 2010; Havice & Iles, 2015; Hatanaka et al., 2005). stakeholders of an agricultural supply chain, including growers; processors; consumer goods manufacturers; Certification of tropical agricultural commodities shows environmental NGOs; social NGOs; banks and investors; clear aggregations in Central America, Brazil, West Africa and retailers to establish a “sustainability” standard, and parts of East Africa and Southeast Asia and has poor and unlike labels that focus on a specific market, these representation in the world’s 31 poorest countries (Tayleur et standards envision to transform the entire sector towards al., 2018), and schemes remain limited in geographic scope sustainability. However, the RSPO standard overlooks (Ebeling & Yasué, 2009; Rametsteiner & Simula, 2003, the root causes of palm oil expansion in the tropics, such Tayleur et al., 2016). as land rights, commodity prices, agricultural systems and market access, resulting in a rather small and local Certification could better contribute to sustainability goals level impact of certification on biodiversity conservation if targeted where benefits can be optimized (Tayleur et al., (Ruysschaert & Salles, 2014; Ruysschaert, 2016). At 2016), i.e. areas of high nature conservation value (including the global level, the RSPO is promoting a segregated landscape level quality) (Hole et al., 2005), in areas of social landscape with large-scale plantations and conservation and economic development priority, and where enabling areas. This could make sense, as large oil palm plantations conditions exist (e.g. governmental complementary policies) are very productive. However, this fails to recognize that (Tayleur et al., 2016). Governments can facilitate the impact the main environmental and social gains can be made by of certification schemes by promoting certification uptake supporting smallholders, who currently produce half as and supporting strategic targeting. Governments involved much as the large-scale plantations (Ruysschaert, 2016; in international aid could engage in coordinating efforts to GRAIN, 2016). finance certification in identified priority areas for social and economic development (Tayleur et al., 2016). Although the RSPO standards may be based on principles of inclusive participation from each member category; Public campaigns on the environmental, health, consensus building; and transparency in the negotiation conservation, and social benefits of certified products are process (RSPO, 2013, Schouten & Glasbergen, 2011), likely to increase consumer demand for these products, in practice, its implementation is more complex, with and measures aiming to enhance social responsibility in RSPO certification favouring three dominant groups multi-national corporations can be effective (Tayleur et of stakeholders: the downstream agro-business firms, al., 2018). Engaging in more equitable food value chains international environmental NGOs, and the largest palm (see sections on Improving food distribution and localizing oil producers (Ruysschaert, 2016). For the downstream food systems, Expanding food market transparency and firms, RSPO certification fulfils their initial goal to secure price stability and Regulating commodity chains) have the their business in the long-term and protect their reputation potential to expand the geographical range and enhance (RSPO, 2002), but it often fails to cover costs of producers, social outcomes. Critical to promoting VCS that balance particularly, the forgone economic opportunity to convert conservation and economic demands is: 1) managing the areas identified as high conservation value (HCV) stakeholder expectations; 2) targeting priority habitats, (Ruysschaert & Salles, 2014). RSPO has tended to species and social groups and 3) implementing adequate favour large-scale producers seeking to get access to post-certification monitoring of impacts (Yu Ting et al., 2016; international markets; smaller firms and smallholders are Tayleur et al., 2018). New technology (e.g., environmental largely excluded either because they sell to domestic data management and sharing infrastructure, modelling, markets where certification is not valued by consumers, or web-based communication) and data availability could help because they find certification too costly and its managerial

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requirements too demanding (Ruysschaert & Salles, 2014; of intellectual property rights to conservation of biodiversity Ruysschaert, 2016; and Supplementary Materials 6.2.2) and plant germplasm (Coomes et al., 2015, see also Chapter 2.1 section 2.1.9.1.1). The debates have involved The case of moratoria such as the Brazilian Soy Moratorium researchers, policy makers, seed producers for the market (Supplementary Materials 6.2.2) appears to have been more and IPLCs, bringing tension over seed legislation, regulation successful in delivering biodiversity conservation outcomes and commercialization (FAO, 2004; CBD The Nagoya (i.e. halting deforestation, Rudorff et al., 2011; Gibbs et al., Protocol, 2014; European Seed Association, 2014). 2015) and has set the stage for other initiatives to improve the sustainability of soy production and raise the awareness of The case of social networks (e.g. farmer seed networks and the markets, like the RTRS and the Soja Plus Program. These community seed banks (Coomes et al., 2015; Pautasso et initiatives are additional to zero-deforestation agreements and al., 2013; Lewis & Mulvany, 1997), illustrate the potential and include other issues related to environmental compliance, challenges of the conservation and sustainable use of local social justice and economic viability at the farm and the genetic resources of global significance. Seed networks are supply chain level. Although there are leakage risks due to cornerstones in maintaining the diversity of crops and their Moratorium restrictions (Arima et al., 2011), recent analysis wild relatives (Tapia, 2000); they account for 80-90% of the is showing no evidence for this (Le Polain de Waroux et al., global seed transfers and supply (Coomes et al., 2015) and 2017). In contrast, there are opportunities for soy production are important channels of innovation and diversity (Coomes in degraded pasture areas without increasing deforestation; et al., 2015), and therefore show considerable potential for combined with the identification of suitable areas, pasture innovation and transformation of agricultural systems aligned intensification techniques and controlling new deforestation, with the SDG, especially if entry points for improvement the soy supply chain in the Amazon may become a good are identified (Buddenhagen et al., 2017). Seed networks example of reconciliation of forest conservation and are found in all regions of the world: Central and South agricultural production. However, despite the good results, America, Africa, Asia; in the Australia, Canada, the UK and there are still threats to the Moratorium. Policy mixes the USA, and particular types of community seed banks supporting this package of measures can be enhanced if have emerged (Vernooy et al., 2015; Dawson et al., 2011; they address failures related to market shares, like the lack Urzedo, 2016). of engagement of traders and importers and the competition with farmers not covered by the Moratorium, which may Options examined in the literature include aspects of seed further demise the motivation of the private sector in keeping quality and distribution, social and economic dimensions the agreement. and global governance issues. Developing quality standards for traits, seeds and other material, and quality control schemes would considerably enhance the potential for Conserving genetic resources for agriculture integration into global processes of sharing and exchange of The diversity of cultivated plants, domestic animals and genetic resources (Coomes et al., 2015; Jarvis et al., 2011), their wild relatives is fundamental for food security globally but the mechanisms of seed sharing require attention, so (Asia, Africa, Central and South America) (McConnell, 2003; that barriers that discriminate disfavored social groups Dawson et al., 2013), and essential to the adaptation of can be addressed and eliminated (Tadesse et al., 2016). agriculture to new and uncertain patterns of climate change. Vernooy et al. (2017) summarize a series of measures to Most of the global genetic diversity in agriculture is kept maintain in situ genetic diversity, which include support to in low-input farming systems (McConnell, 2003), and it is local institutions, actively protect plants and livestock breeds central to food sovereignty and to food as a non-material that can survive extreme conditions, facilitate the restoration contribution to GQL (Chapter 1), also in IPLCs, where it of varieties no longer used, develop platforms to facilitate can also involve cultural keystone species which support access and availability of seeds at the community level, community identity and traditional roles (e.g. taro in the and help access novel diversity not conserved locally. Since Pacific, corn in Central and South America, buffalo in in many cases, farmers have few market or non-market North America). Globally, policy options to protect genetic incentives, different public measures will be necessary to resources for agriculture and forestry include support to protect genetic resources (Jarvis et al., 2011). on-farm conservation (in situ) (Enjalbert et al., 2011; Thomas et al., 2012, 2015) integrated with the conservation of Given that these resources are of global importance (see germplasm in gene banks (ex situ). In situ conservation also Chapter 2.2 section 2.2.3.4.3 on agro-biodiversity requires that the farmers, livestock keepers and foresters hotspots and Chapter 3 on Aichi Target 13) the national and who conserve and manage these varieties, breeds and global mechanisms need to be developed and harmonized. species benefit from maintaining this global common Global mechanisms are governed by three agreements resource (CBD, 2014 Nagoya Protocol; Collette et al., originating from different sectors: The Protocol on Access 2015). The genetic diversity in agriculture underlie current to Genetic Resources and the Fair and Equitable Sharing of debates on food and seed sovereignty, and the implications Benefits Arising from their Utilization under the CBD (CBD,

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2014; Nagoya Protocol), the International Treaty on Plant REDD+ will mostly protect areas not under threat from large- Genetic Resources for Food and Agriculture (ITPGRFA) scale investments (Ziegler et al., 2012; Phelps et al., 2013). (FAO, 2004), and the International Convention for the Some have also accused REDD+ projects of being akin to Protection of New Varieties of Plants (UPOV http://www. land grabs in that they may displace smallholder agriculture upov.int/portal/index.html.en). Despite efforts to harmonize without proper compensation (Lyons & Westoby, 2014; implementation, there are considerable gaps in the Corbera et al., 2017). Future policies to regulate LSLA will coordination of the agreements. need to rely on better monitoring data as a first step, as it is difficult to track the scale and impact of such LSLA. Managing large-scale land acquisitions (LSLA) Encouraging dietary transitions Concerns about LSLA (also sometimes called “land grabbing”) have increased considerably over the past The characteristics of today’s global(ized) food system and decade (Borras et al., 2011; Balehegn et al., 2015) the increasing industrialization of agricultural production, and include issues of food security, equity, leakage and food consumption, and in particular animal protein environmental effects (Grant & Das, 2015; Coscieme et al.,, consumption, are associated with a range of challenges, 2016; Borras et al., 2011; Adnan, 2013). While some see including food sovereignty, biodiversity loss, climate change, land acquisitions as investments that can contribute to more pollution, and animal health and welfare (HLPE, 2016; efficient food production at larger scales (World Bank, 2010; Steinfeld et al., 2006; Garnett et al., 2013; HLPE, 2016; Deininger & Byerlee, 2012), there are strong concerns that Visseren-Hamakers, 2018; McMichael et al., 2007; Jones & food security (especially at local levels) may be threatened Kammen, 2011; Tilman & Clark, 2014). These problems are by these large agribusiness deals (Daniel, 2011; Lavers, especially urgent given the fact that the global production 2012; Golay & Biglino, 2013, Ehara et al., 2018; and of different animal products is expected to double by 2050 Supplementary Materials 6.2.2). (Steinfeld et al., 2006). The expansion of soybean in South America illustrates the challenges of current globalized Displacement of smallholders from LSLA can potentially lead industrial food production, with 45% of livestock feed in the to impoverishment and increased (unsustainable) production EU based on soybean imported from Brazil and Argentina elsewhere once they are removed from lands (Borras et al., (EEA, 2017; Strada & Vila, 2015). 2011; Adnan, 2013); these have happened with frequency in many countries in Africa, where communal land tenure Current consumption of animal products is very unequally authorities have allowed expropriation of locally used lands distributed, and animal protein can continue to play a role without other farmers’ knowledge or compensation (Osinubi in ensuring food security in much of the developing world et al., 2016). There is some evidence that LSLA have (Steinfeld & Gerber, 2010). However, substantially reducing already led to the impoverishment of some communities the consumption of animal products in developed countries and as many as 12 million people (Adnan, 2013; Davis et and emerging economies has the potential to greatly lower al., 2014). In at least some cases, the causal process is the negative impacts of farming while at the same time that land grabs contribute to increased tenure insecurity generating significant dividends in terms of people’s health in surrounding lands, leading farmers to shift to cultivating (Pelletier & Tyedmers, 2010; Smith et al., 2013; Tilman smaller farms with less investments, potentially leading to & Clark, 2014; Bajzelj et al., 2014; Ripple et al., 2014; food shortages (Aha et al., 2017). There is some evidence Springmann et al., 2016, see also Chapter 2.3). that land grabbing is also weakening local systems of common property management, which can make some Different types of policy instruments aimed at lowering and communities less able to adapt to climate changes in the changing consumption have been tried and studied (Story future (Gabay & Alam, 2017; Dell’Angelo et al., 2017), et al., 2008; Vinnari & Tapio, 2012). Informational policy including reducing the forest resources they may depend on instruments aim to foster more sustainable food choices as safety nets (Kenney-Lazar, 2012). by offering information on production characteristics or health implications of food types or products. They range The primary policy mechanisms for combatting large scale from certification schemes and (requiring) labels listing land acquisitions have included restrictions on the size product ingredients or voluntary labels, signaling superior of land sales (Fairbairn, 2015); pressure on agribusiness production methods (in terms of environmental, social or companies to agree to voluntary guidelines and principles animal welfare aspects), to health campaigns (Reisch et al., for responsible investment (Collins, 2014; Goetz, 2013); 2013), and would seem promising given a lack of consumer attempts to repeal biofuels standards (Palmer, 2014); and awareness of the implications of animal protein, an direct protests against the land acquisitions (Hall et al., inaccuracy of messages on the health implications of (red) 2015; Fameree, 2016). REDD+ has the potential to provide meat consumption, and the potential for altering relevant a counterbalance with funding to combat land grabbing, consumer attitudes and motivations identified by research but evidence is unclear if this is really happening yet or if (Boegueva et al., 2017, Dagevos &Voordouw, 2013).

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Economic policy instruments such as subsidies or taxes et al., 2017). Causes and hence possible solutions differ have been used to influence consumer choice via economic geographically, and they include more effective pest incentives and have shown to be particularly effective at control (Oerke, 2006; Oliveira et al., 2014), improved food driving dietary change, at least in developed countries distribution and better food storage in developing regions (Dallongeville et al., 2010; Capacci et al., 2011; Mytton (Sheahan & Barrett, 2017), and consumer education & Clarke, 2012; Thow et al., 2014; Whitley et al., 2018). (Kallbekken & Saelen, 2013; Aschemann-Witzel et al., Regulatory standards, in turn, prescribe what may be sold 2017; Young et al., 2017) and less wasteful marketing to consumers. However, the use of such policy instruments practices in developed countries (Garrone et al., 2014; in the food sector has for the most part been restricted Halloran et al., 2014; Rezaei & Liu, 2017). Some countries, to the case of age-related prohibitions on the purchase of such as Japan, South Korea, Taiwan and Thailand have tobacco or alcohol (also see 6.4). established operating systems that safely recycle more than one-third of their food waste as animal feed (Menikpura However, while the political Zeitgeist has favored et al., 2013; zu Ermgassen et al., 2016; Salemdeeb et al., informational policy tools, they often lack effectiveness. 2017). However, several studies suggest an upper bound to Studies have identified the prevalence of an attitude – action feasible reduction in food waste of around 50% (Parfitt et al., gap, and showed that structural constraints, such as 2010; Bajzelj et al., 2014; Odegard & van der Voet, 2014). information asymmetries and overflow as well as restrictions Cutting food waste will thus require substantial changes in on time and other relevant resources by consumers, have food supply chains and business models (Parfitt et al., 2010; prevented informational policy instruments from achieving Papagyropoulou et al., 2014; Aschemann-Witzel et al., major changes in food consumption patterns (Fuchs 2015; Roodhuyzen et al., 2017). et al., 2016; Horne, 2009). Among private certification schemes, those with the largest market shares often have Improving food distribution and localizing little actual impact on the sustainability characteristics of a food systems food product, as they tend to emphasize documentation rather than performance or fail to tackle the most impactful Localization of food systems is advocated by research aspects of food production, distribution and consumption (Hines, 2000) and by social movements, and has entered (Fuchs & Boll, 2012; Kalfagianni & Fuchs, 2015). policy making at various levels (see e.g., the EU Regulation Simultaneously, studies inquiring into the drivers of meat 1305/2013 on support for rural development or city- consumption have highlighted its promotion via advertising level food policies such as in Toronto or Manchester) and media images that transport images of identity emphasizing territoriality and sovereignty in food production (especially masculinity, but also national and cultural identity) and consumption. The major arguments supporting as well as artificially low meat prices (Bogueva et al., 2017). short food supply chains (SFSCs), beyond their socioeconomic impacts such as revitalization of rural areas and Thus, policy efforts to improve the sustainability of food local cultures (Brunori et al., 2016; Schmitt et al., 2017) consumption in general, and reduce animal protein are their potential to enhance food security and decrease consumption in particular, would require a policy mix food miles, the latter one addressing land-use change reaching far beyond the (nudging of the) individual consumer (less physical infrastructure for transportation), climate

(Fuchs et al., 2013, 2016; Glanz & Mullis, 1988; Wolf & change (lower CO2 emissions due to less transportation) Schönherr, 2011). Such policies would need to focus on and energy use (Mundler & Rumpus, 2012). However, regulating the advertising of animal products, as well as the shortcomings of the local scale are also mentioned in sources of low meat prices, among others through lowering literature, acknowledging that local is not necessarily better subsidies and enhancing (implementation of) animal welfare, in terms of ecological sustainability, health, social justice labor and environmental standards. Simultaneously, policies etc. (Born & Purcell, 2006; Brunori et al., 2016; Recanati could support (elements of) alternative food systems such et al., 2016; Schmitt et al., 2017). Evidence shows that the as community-supported agriculture and different forms of ecological impacts of SFSCs can be diverse, depending on farmers markets (Hinrichs & Lyson, 2007). Altering current the product type, the farming system (Rothwell et al., 2016), dietary trajectories should not compromise the needs the manner of transportation/logistics (Mundler & Rumpus, of low-income populations and of IPLCs and will face 2012; Nemecek et al., 2016), the natural resources significant cultural and psychological barriers (Kuhnlein et al., available locally and the actual social (Recanati et al., 2016), 2006; Whitley et al., 2018). economic and policy context (Leventon & Laudan, 2017).

Positive environmental impacts of SFSCs can be improved Reducing food waste if the localization of agricultural production is coupled with: Food waste currently runs at ~30-40% of all food production i) closing the loops between production, consumption in developing and developed countries alike (Gustavsson et and waste management (Benis & Ferrão, 2017; Sala et al., 2011; Bond et al., 2013; FAO, 2015, 2017; Bellemare al., 2017) (see also the section on circular economy in

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6.4), ii) urban planning (integrating agriculture into the 2008; Krott et al., 2014; Paudyal et al., 2017). Almost one management of urban systems) (Barthel & Isendahl, third of the forests in the Global South are now managed by 2013) through novel technological solutions that enable IPLCs (Figure 6 .2), more than twice the share of protected sustainable but more intensive food production (e.g., areas (Chape et al., 2005; RRI, 2014; Blackman et al., vertical gardens) (see also 6.3.5), iii) alternative food 2017). Global trends towards decentralized management of distribution options (e.g. social supermarkets or food forests, articulated through the active recognition of IPLCs banks) (Michelini et al., 2018), iv) dietary changes as rights to self-governance, have substantially improved discussed below (Benis & Ferrão, 2017), and v) novel the quality of life of forest-dependent communities, by governance solutions across the food chain that enable providing them with greater livelihood benefits (Agrawal more direct engagement of local communities in food et al., 2008; Gautam et al., 2004; Larson & Soto, 2008; production (Sonnino, 2017) and the (re)connection of Phelps et al., 2010; Duchelle et al., 2014; RRI, 2014, various types of producers and consumers (Mount, 2012). 2016; Lawler & Bullock, 2017) including capital formation, governance reform, community empowerment and societal change (Pokharel et al., 2007, 2015). Expanding and Expanding food market transparency and improving of community-based forest management have price stability provided substantial opportunities for the conservation of Food price increases during the 2007-08 world financial forest ecosystems (Ostrom & Nagendra, 2006; Chazdon, crisis resulted in severe impacts on the quality of life in 2008; Sandbrook et al., 2010; Porter-Bolland et al., 2012; many countries (Ivanic & Martin, 2008; Bellemare, 2015), Naughton-Treves & Wendland, 2014; van der Ploeg et al., leading many to assert that policies to increase food market 2016; Asner et al., 2017; Robinson et al., 2017; Stickler et transparency might lead to less volatility (Clapp, 2009; al., 2017). Minot, 2014). Policy responses to price increases have included reductions on food taxes and import tariffs, and Many countries in Asia, such as the Philippines, Vietnam, increasing subsidies and food-based safety nets, although Indonesia and Thailand have put forward new organizations, there is mixed evidence on which policies have been authorities and bottom-up approaches to promote most effective in supporting poor populations (Wooden & community-based approaches to forest management Zama, 2010), indicating that social targeting is needed in (Sato, 2003; Poffenberger, 2006; Salam et al., 2006; combination with food support programs. Sunderlin, 2006; Sikor & Tan, 2011), in the light of growing evidence of their effectiveness at contributing to poverty Public food procurement policies can also play a role reduction (Ostrom, 1990; Brown et al., 2003; Gautam et in stabilizing price support for farmers. In Brazil, where al., 2004; Gilmour et al., 2004; Gautam and Shivakoti, government expenditures represent 20% of the GDP, 2005; Sunderlin, 2006). These large areas managed by two initiatives of public procurement of around US$300 IPLCs do not usually attract financial and other resources million in expenditures are innovating to merge social and akin to that provided for government-managed forest and environmental targets. The Food Acquisition Program protected areas. Moreover, there have been challenges in (created in 2003) and the National Program of School ensuring that communities have the right to benefit from co- Feeding (created in 2009) have the purpose of: (i) providing management arrangements, such as from the sale of timber healthy and balanced food respecting the culture, values and (Gritten et al., 2015) and ensuring that IPLCs do not suffer eating habits, especially for populations in socioeconomic from community forestry arrangements (such as in loss of vulnerability, and (ii) supporting the sustainable development food security or access to resources) (Sikor & Tan, 2011; of smallholding agriculture by incentives for producing Tuan et al., 2017). local and seasonal food (Brazil, 2017). While the impact of these programs requires further evaluation, their goals to Forest titling programs have improved inclusion of settlers acquire locally produced food for school consumption while and secured alienation rights (Nelson et al., 2001; Ostrom encouraging small-scale agricultural economies can be et al., 2002; Pagdee et al., 2006; Jacoby & Minten, 2007; applicable in different contexts. Riggs et al., 2016). However, forest tenure may not change management patterns without supporting the customary 6.3.2.2 Sustainably managing institutions of IPLCs that enforce exclusion rules and legitimize claims to them (Place & Otsuka, 2001; Ojha et al., multifunctional forests 2009; Kerekes & Williamson, 2010; Gabay & Alam, 2017).

Expanding and improving community-based forest Co-management of forest resources between the state management and co-management and IPLCs, as well as other stakeholders, has also been Community-based forest management has emerged as a promoted as an alternative to centralized governance promising forest management alternative to state-controlled approaches to achieve socio-economic and environmental forest management (Charnley & Poe, 2007; Flint et al., objectives in developing countries (Carter & Gronow, 2005;

909 CHAPTER 6. OPTIONS FOR DECISION MAKERS

GLOBAL FOREST TENURE FOREST TENURE BY REGION

35% 8% 6% 7% 1% 30% 7% 25% 5% 33% 32% 24% 20% 3% 23% 59% 62% 92% 15% 18%

10% Latin America Asia Africa 5% Owned by the Government, individuals or fi rms 0% Designated for IPLCs (i .e ., certain rights granted) 2002 2008 2015 Owned by IPLCs

Figure 6 2 Global patterns of forest owned by and designated for IPLCs. Source: RRI (2016) .

Kothari et al., 2013; Akamani & Hall, 2015). As forests (Hack, 2010; Hendrickson & Corbera, 2015; Grillos, 2017). are common-pool resources from which the exclusion Lessons learned from the literature on these economic of potential users is difficult, achieving sustainable forest financing instruments for conservation include the need management can be regarded a collective responsibility, to have in place strong regulatory frameworks; have clear especially in developing countries where the government metrics and indicators; have motivated buyers and sellers has limited capacity to implement appropriate forest policy of services; recognize pluralistic value systems alongside and needs support of diverse stakeholders (Sikor, 2006; financial considerations; acknowledge the importance Ostrom, 2010; Pokharel et al., 2015). In the above context, of distributional impacts when designing economic collaborative governance is an appealing arrangement for instruments; and recognize that economic approaches are sustainable forest management because of its potential to not a panacea (Ezzine-de-Blas et al., 2016; Robalino & combine strengths of different management approaches Pfaff, 2013; Pascual et al., 2017; Hack, 2010; Hendrickson and stakeholders (Carter & Gronow, 2005; Fernández- & Corbera, 2015; Grillos, 2017; van Hecken et al., Giménez et al., 2008). 2017; Salzman et al., 2018; see also section 6.3.4.5 on watershed PES) Improving policies relating to PES and REDD+ One important PES-like initiative is REDD+ (Reducing There has been a rapid expansion in the number of Emissions from Deforestation and forest Degradation), payments for ecosystem services (PES) schemes and part of the negotiations under the UNFCCC since 2005 as projects globally over the past 20 years, and many decision a climate mitigation strategy to compensate developing makers, from governments to NGOs, are considering either countries for reducing GHG emissions from deforestation initial experimentation or continued expansion of PES. and forest degradation. REDD+ also aims to contribute There is a great diversity of institutional configurations in to poverty alleviation of smallholders (through sale of PES arrangements, many of which involve a strong role of carbon credits or direct forest products) and biodiversity the state (McElwee, 2012; Shapiro-Garza, 2013). However, conservation. Carbon forestry projects have expanded the effectiveness of PES approaches is currently unknown, particularly rapidly in Latin America (Osborne, 2011; Corbera namely because they are interpreted and implemented in & Brown, 2010; Rival, 2013) and Africa (Namirembe et many different ways (Borner et al., 2017; Salzman et al., al., 2014). However, the literature is currently mixed on 2018). Overall, the literature indicates that PES approaches the success rates of forest carbon projects in general and are not a panacea (Muradian et al., 2013), due to high REDD+ has faced a number of challenges. These include preparation and transaction costs, uneven power relations, a lack of a strong financial mechanism to ensure sufficient and distribution of benefits (Porras et al., 2012; Salzman funding and demand for credits (Turnhout et al., 2017), the et al., 2018; Berbés-Blásquez, 2016; Cáceres et al., 2016; high costs involved in setting up REDD+ projects (Luttrell Van Hecken et al., 2017). In other words, the performance et al., 2016; Bottazzi et al., 2013; Visseren-Hamakers et of PES depends not just on economic incentives but also al., 2012a), meeting the technical requirements of REDD+ on other factors like motivations and environmental values (Turnhout et al., 2017; Cerbu et al., 2013) and REDD+’s

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ability to deliver non-carbon benefits such as biodiversity (Campanello et al., 2009). Moreover, improved logging conservation (Hall et al., 2012; Venter et al., 2013; Duque et practices in tropical forests can substantially reduce forest al., 2014; Murray et al., 2015) and social livelihoods (Atela et carbon loss and enhance retention (Putz et al., 2008). al., 2015; Boyd et al., 2007; Reynolds, 2012; Caplow et al., 2011; Lawlor et al., 2013). REDD+ has also been observed Promoting and improving forest certification to contribute to a recentralization of forest governance by bringing forests under renewed forms of government Forest certification, an economic instrument introduced control, with potentially negative consequences for nature, in the early 1990s to improve forest management, can NCP and GQL (Ribot et al., 2006; Phelps et al., 2010; help address the concerns of deforestation and forest Sunderlin et al., 2014; Duchelle et al., 2014; Vijge & Gupta, degradation and promote conservation of biological diversity 2014; Abidin 2015). especially in the tropics by promoting sustainable forest management and establishing deforestation-free supply The future of REDD+ depends on its ability to safeguard chains (Rametsteiner & Simula, 2003; Auld & Gulbrandsen, against negative side effects of REDD+ and ensure that 2008; Damette & Delacote, 2011). For instance, certification forests continue to deliver noncarbon benefits (Chhatre has been found to have positive impacts in terms of et al., 2012; Visseren-Hamakers et al., 2012b; Tacconi et ecological outcomes (forest structure, regeneration, and al., 2013; Luttrell et al., 2013, Ojea et al., 2015). As part lower fire incidences) (Kalonga et al., 2015; Pena-Claros of this, REDD+ will need to be inclusive of multiple values et al., 2009) and biodiversity conservation in some places and perspectives, including historical, cultural and spiritual (Van Kuijk et al., 2009; Kalonga et al., 2016). Positive social values (Gupta et al., 2012; Brugnach et al., 2014). This will impacts, such as better working and living conditions, require adequate formal arrangements for the participation active local institutions for discussions among the forestry of IPLCs. This involvement is crucial, since IPLCs control company and local communities, and benefit sharing have substantial areas of tropical forests (Anon, 2009; Bluffstone also been documented (Cubbage et al., 2010; Cerutti et et al., 2013). However, arrangements for participation by al., 2014; Burivalova et al., 2016). There has also been IPLCs in REDD+ policies are not clear in most country criticism of different certification schemes, and forest readiness plans for REDD+, despite safeguard guidance certification more generally, among others on the fact that from UNFCCC (Ehara et al., 2014), and participation most certified forests are in the global North, instead of the has generally been weak in pilot activities, with many South (Rametsteiner & Simula, 2003), in part due to the communities only consulted, rather than being involved in a technical and financial demands for becoming certified can systematic manner in all aspects of REDD+ planning (Hall, represent a hurdle for small and medium-sized enterprises 2012; Brown, 2013). There is evidence that projects where in the South. For instance, current certification schemes IPLCs have been included from the beginning are stronger tend to favor large forestry operations and do not directly (Chernela, 2014). There is also potential for inclusion of translate to smaller operations. While there is still limited IPLCs in community-based carbon monitoring, which has evidence of the impacts of different forest certification proven accurate and low cost (Danielsen et al., 2013; schemes (Visseren-Hamakers & Pattberg, 2013), improved Pratihast et al., 2013; Brofeldt et al., 2014; McCall et al., assessment practices are suggesting ways forward (van de 2016). See Supplementary Materials 6.2.3 for a detailed Ven and Cashore, 2018). discussion on PES and REDD+.

Controlling illegal logging Supporting Reduced Impact Logging (RIL) Illegal logging, which can be viewed as a symptom of failure More responsible logging practices, such as Reduced of governance and law enforcement, is a major problem in Impact Logging (RIL), are options to avoid deforestation achieving sustainable forest management in many countries, and forest degradation. RIL, which involves close planning particularly forest-rich developing countries (Brack & Buckrell, and control of harvesting operations, has increased in 2011). Forest dependent poor people are the most harmed importance in the past decades. Such logging practices by illegal logging while powerful economic groups benefit lower the ecological impacts of logging, especially on the most from it (ODI, 2004). International trade in illegally biodiversity (Bicknell et al., 2017; Chaudhary et al., 2016; logged timber is an important factor associated with this Martin et al., 2015). For example, in a study in East problem (Brack & Buckrell, 2011). In recent years, however, Kalimantan in Indonesia, application of RIL techniques have consumer countries have been paying increasing attention been found resulting in nearly half (36 vs 60 trees per ha) of to trade in illegal timber and have taken different measures collateral damage of trees as compared to the conventional to exclude illegally produced timber from the market. The harvesting methods (Sist, 2000). RIL techniques along with European Union’s Action Plan for Forest Law Enforcement, postharvest silvicultural treatments have also been found Governance and Trade (FLEGT), published in 2003, is an effective in enhancing canopy tree growth and regeneration example of such measures. The FLEGT regulations and and controlling invasion by alien and undesirable species approaches have often been combined with improved

911 CHAPTER 6. OPTIONS FOR DECISION MAKERS

management of concessions in countries participating in Forest concessions can also be an option to protect forest FLEGT through Voluntary Partnership Agreements with cover and regulate use, reducing the pressure to replace the EU (Tegegne et al., 2014). Apart from the European the natural vegetation with other land uses. Concessions Union’s Timber Regulation 995/2010, some other countries, give the holder rights, including harvesting timber (or including Australia, Indonesia, Japan and USA, have their other forest products) and use of forest services (e.g. own law to control illegal logging (Hoare, 2015). tourism, watershed protection) (Gray, 2002). Concessions, if properly governed, can be an important instrument to provide economic value to forests and reduce the Monitoring and regulating forest use pressure to replace the natural vegetation with other land The development and availability of transparent forest uses around the world. Besides employment and revenue monitoring data is a major step to establish and improve creation, forest concessions may reinforce the presence the forest sector (Fuller, 2006). By identifying the extent of of the state and improve the rights over land tenure (FAO, deforestation on a regular basis, decision makers have the 2015). Concessions are also a good governance tool for option to coordinate actions, prioritize areas and develop the state, considering the establishment of conditions and policies to reduce forest losses. In the Brazilian Amazon, compensation, such as the development of local services where the deforestation was substantially reduced from (schools, medical assistance, security) and infrastructure 2004 to 2017 (INPE, 2017), the understanding of forest (water supply, transport, roads, bridges). This instrument change patterns was essential to allocate public resources can be applied not only by entrepreneurs and companies, and to provide the first reaction to the illegal processes that but also by IPLCs with different land tenure regimes (van were leading to deforestation in that region. The monitoring Hensbergen, 2016). Poorly governed concession schemes, systems have been improved to the point of offering daily however, can drive deforestation and marginalize local real-time data, constituting one of the most important tools communities. Governments can enhance the contributions for the fight against deforestation in Brazil (Nepstad et al., of forest concessions by requiring participatory planning, 2014; Assunção et al., 2015). Also, global initiatives like the long-term sustainable forest management, and control of Global Forest Watch are supporting national and sub-national illegal logging. governments to implement national law (as in the case of the law Nr 26331on “Minimum Standards of Environmental Problems of forest concessions in tropical countries are Protection of Native Forests” in Argentina), as well as civil related to weak local governance, poor level of compliance, society and private sector engagement in forest monitoring difficulties with monitoring and traceability systems, low and conservation (FAO, 2015; GFW, 2017). Reforestation technical capacity of managing the forest, and insufficient projects have contributed to reversing the deforestation trend rewards for sustainable forest management in the and increasing forest cover in some countries (Supplementary global timber market (Azevedo-Ramos et al., 2015; van Materials 6.2.3). Especially REDD+ and PES schemes have Hensbergen, 2016; Segura-Warnholtz, 2017). Therefore, contributed to expand reforestation and afforestation projects forest concessions are often regarded drivers of forest in recent years (Carnus et al., 2006; Madsen et al., 2010). degradation (PROFOR, 2017). Corruption in attaining REDD+ projects have expanded particularly rapidly in Latin timber concessions is another problem associated with America (Osborne, 2011; Corbera & Brown, 2010; Corbera this instrument, especially in developing countries. There & Brown, 2008) and Africa (Jindal et al., 2012; Namirembe et are initiatives of implementing monitoring and traceability al., 2014). systems, but it is important to manage the bureaucracy and additional transaction costs that may deter potential Land tenure recognition and cadastral registers are tools investors (Azevedo-Ramos et al., 2015). that contribute to the implementation of regulations aimed to protect forest and support reforestation actions. For 6.3.2.3 Protecting nature within and instance, the Rural Environmental Registry (CAR) in Brazil outside of protected areas records and analyses information about land use and environmental compliance in all private properties. CAR Improving management of protected areas registration is mandatory and linked to official credit support, environmental licensing and regularization. It is also used in There is a large literature that has evaluated the voluntary agreements for trading agricultural products and performance of protected areas (PAs) in halting facilitating the process of forest restoration to reach legal biodiversity loss and securing ecosystem services into compliance (Soares-Filho et al., 2014; Servicio Florestal the future, showing mostly positive (albeit moderate) Brasileiro, 2016). The implementation of the CAR system conservation outcomes (Carranza et al., 2014; Barnes in Brazil is an example of confronting the simultaneous et al., 2016; Eklund et al., 2016; Gray et al., 2016). challenges of monitoring, enforcement and compliance, However, research also points to substantial shortfalls in and reconciling forest and water conservation and other PA effectiveness around the world (Laurance et al., 2012; production sectors, particularly agriculture. Guidetti et al., 2014; Watson et al., 2014; Geldmann et al.,

912 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

2015, 2018; Schulze et al., 2018). Poor PA performance (Bengtsson et al., 2003). PAs then become islands of is attributed to management deficiencies related to biological conservation (Bauer & Van Der Merwe, 2004; inadequate resources and weak governance. It also Crooks et al., 2011; Seiferling et al., 2012; Barber et includes low compliance due to inhibited local access to al., 2014; Wegmann et al., 2014) threatening the long- important resources (Stoll-Kleemann, 2010; Bennett & term viability of their biodiversity, especially many wildlife Dearden, 2014; Bruner et al., 2001; Eklund & Cabeza, populations (DeFries et al., 2005; Newmark, 2008; Riordan 2016; Leverington et al., 2010; Watson et al., & Hockings, et al., 2015). There are also significant geographic and 2014). Evidence shows that improving PA effectiveness ecological biases in the representation of habitats and depends on enforcing sound management (Juffe-Bignoli et ecosystems in PAs (e.g., Pressey et al., 2003; Joppa & al., 2014), monitoring (Schulze et al., 2018) and adequate Pfaff, 2009, Butchart et al., 2012, 2015), which result in resourcing (McCarthy et al., 2012). Using robust methods, unplanned assemblages of PAs confined to economically such as those available via the global Protected Areas unproductive areas (Scott et al., 2001; Evans, 2012), with Management Effectiveness (PAME) initiative, controlling little ecological relevance (Opermanis et al., 2012), which potential bias, and integrating data on ecological ultimately compromise their overall conservation potential outcomes (e.g. temporal and spatial counterfactual (Watson et al., 2014). analysis) and social indicators could make the assessment of PA effectiveness more systematic and comparable Options to address these challenges include several across spatial and temporal scales, addressing the needs policy support tools for (spatial) conservation prioritization of different decision makers more effectively (Coad et al., to inform where to establish new PAs so that more 2015; Eklund et al., 2016; Stoll-Kleemann, 2010; Watson biodiversity is conserved in a cost-effective way, et al., 2016) for all decision makers. accounting for multiple competing sea- or land uses and socioeconomic factors (e.g., Dobrovolski et al., PAs generate multiple benefits to both local and distant 2014; Forest et al., 2007; Isaac et al., 2007; Montesino populations (Chan et al., 2006; Ceausu et al., 2015; Egoh Pouzols et al., 2014; Nin et al., 2016; Di Minin et al., et al., 2011; Larsen et al., 2012; Schröter et al., 2014a), 2017). Spatial conservation planning can be a useful tool and provide fundamental contributions such as protecting for enhancing landscape connectivity, maximizing the watersheds, buffering extreme events, regulating local ecological representation of PA networks and safeguarding climate, harboring biodiversity, and providing spaces of Key Biodiversity Areas (Edgar et al., 2008; Krosby et emotional, social and spiritual fulfilment. Protected areas al., 2010, 2015; Dawson et al., 2011; Cabeza, 2013; and these multiple contributions also have associated Dickson et al., 2014, 2017; Kukkala et al., 2016; Watson costs in limiting and regulating land uses and forms of et al., 2016; Saura et al., 2018). Research has estimated access to resources (Birner & Wittmer, 2004; Holzkamper that only 19.2% of the ~15,000 Key Biodiversity Areas & Seppelt, 2007; Wätzold et al., 2010; Wätzold & identified around the world are fully protected, and that Schwerdtner, 2004; Nalle et al., 2004). Balancing the the proportion of the PAs comprising these areas is benefits and costs of PAs across different stakeholders decreasing over time (Butchart et al., 2012; UNEP-WCMC can increase the management effectiveness of PAs (see & IUCN, 2016). Therefore, protected areas are being also Supplementary Materials 6.2.4). Options include disproportionately established in areas that are suboptimal co-management governance regimes (i.e. sustainable-use from a biodiversity conservation point of view (Butchart et PAs), which engage communities in maintaining cultural al., 2012, 2015). Shifting PA establishment to focus on Key and livelihood benefits (Oldekop et al., 2016), and jointly Biodiversity Areas is thus an important policy priority to consider approaches to mitigating conflicts and managing reverse extinction risk trends. trade-offs. PA effectiveness can also be enhanced by supporting local households to establish or find Building on the expansion of PAs under Aichi Biodiversity alternative livelihood and income options (i.e., improving Target 11, the next phase of global biodiversity targets options and capabilities; Neudert et al., 2017), supporting offers an excellent opportunity to correct some of the benefit-sharing mechanisms that eliminate inequalities geographic biases of establishing PAs in recent decades, (Swemmer et al., 2017) and securing the availability often based on local and opportunistic criteria (Pressey of financial resources to support these measures for a et al., 2003; Joppa & Pfaff, 2009; Lewis et al., 2017). sufficiently long period to ensure sustainability (Wätzold et Especially the conservation of world’s old-growth forests al., 2010). can be addressed in Multilateral Environmental Agreements, as targets for PA expansion (e.g., Watson et al., 2018). Expanding PAs requires managing trade-offs among Improving spatial and functional connectivity of PAs societal objectives, and improvement can be achieved with The functionality of PA networks cannot be maintained global coordination (DeFries et al., 2007; Polasky et al., when the habitat area is too small and fragmented, and 2008; Faith, 2011; Venter et al., 2014) and consultation of when the landscape beyond PA boundaries is inhospitable different stakeholders.

913 CHAPTER 6. OPTIONS FOR DECISION MAKERS

Improving transboundary PA and landscape sanctuary in the high seas (European Parliament, 2014; governance Greenpeace, 2014).

Options to enhance PA effectiveness also need to address Recognizing management by IPLCs and OECMs conservation planning and management at broader geographic scales (van Teeffelen et al., 2006; Le Saout et The conservation of a substantial proportion of the world’s al., 2013; Kukkala et al., 2016). Transboundary conservation biodiversity and NCP largely depends on the customary planning is essential to improve the global status of institutions and management systems of IPLCs (Maffi, biodiversity (Erg et al., 2012; Pendoley et al., 2014; Dallimer 2005; Gorenflo et al., 2012; Gavin et al., 2015; Renwick & Strange, 2014; Lambertucci et al., 2014), particularly et al., 2017; Garnett et al., 2018). Evidence suggests that for wide-ranging species that cannot be conserved IPLCs are able to develop robust institutions to govern their within political boundaries, such as large carnivores land- and seascapes in ways that align with biodiversity (Wikramanayake et al., 2011; Wegmann et al., 2014; Santini conservation (ICC, 2008, 2010; Stevens et al., 2014; Ens et al., 2016; Di Minin et al., 2017), species that migrate et al., 2015, 2016; Trauernicht et al., 2015; Blackman et al., (Flesch et al., 2010; Runge et al., 2015; Owens, 2016) and 2017; Schleicher et al., 2017). These customary institutions species that might shift their range in response to climate and management systems are based on locally-grounded change (Wiens et al., 2011; Zimbres et al., 2012; Johnston knowledge and encoded in complex cultural practices, et al., 2013; Pavón-Jordán et al., 2015). relational values, usufruct systems, spiritual beliefs, kinship- oriented philosophies, and principles of stewardship Research shows that setting conservation targets in a ethics (Berkes et al., 2000; Bird, 2011; Gammage, 2011; spatially coherent manner beyond national borders is Kohn, 2013; Walsh et al., 2013; Trauernicht et al., 2015; vital for improving the effectiveness of PA networks (van Gaudamus & Raymond-Yakoubian, 2015; Fernández- Teeffelen et al., 2015; Wegmann et al., 2014). Different Llamazares et al., 2016; Renwick et al., 2017). works have demonstrated a major efficiency gap between national and global conservation priorities, finding that if Formal recognition of IPLC rights over their territories each country sets its own conservation priorities without can be an effective means to significantly slow habitat international coordination, more biodiversity is lost than if loss (Nepstad et al., 2006; Soares-Filho et al., 2010; conservation decision-making is done through international Ricketts et al., 2010; Porter-Bolland et al., 2012; Nolte partnerships and globally coordinated efforts (Montesino- et al., 2013; Paneque-Gálvez et al., 2013; Ceddia et al., Pouzols et al., 2014; Santini et al., 2016). The European 2015; Blackman et al., 2017). The growing recognition of Union’s Natura 2000 network of PAs provides an illustrative governance diversity in global environmental policy offers example of joint initiatives crossing political and national numerous opportunities for sound management of nature boundaries. With more than 27,000 sites across all EU and its contributions to the larger society (Berkes, 2009; countries, covering over 18% of the EU’s land area and Kothari et al., 2012; Ruiz-Mallén & Corbera, 2013; Nilsson almost 6% of its marine environments, Natura 2000 is et al., 2016), while improving the quality of life of IPLCs, the most expansive coordinated network of PAs in the including addressing some of the human rights violations world (Milieu et al., 2016). It is the cornerstone of the EU’s associated with the establishment and governance of some Biodiversity Strategy to 2020, and one of the largest policy PAs (e.g., Brockington & Igoe, 2006; Goldman, 2011; efforts in conserving biodiversity irrespective of national Kohler & Brondizio, 2016). Certain strict PAs have induced and political boundaries. A plethora of research studies has displacements and exclusion of IPLCs (West et al., 2006; evidenced the overall ecological effectiveness of Natura Mascia & Claus, 2008; Curran et al., 2009; Agrawal & 2000, with a special emphasis on terrestrial vertebrates Redford, 2009; Brockington & Wilkie, 2015), undermining and threatened habitats (Gruber et al., 2012; Pellissier et food sovereignty (Golden et al., 2011; Foale et al., 2013; al., 2013; Kolecek et al., 2014; Sanderson et al., 2016; Nakamura & Hanazaki, 2016; Sylvester et al., 2016) and Beresford et al., 2016; Milieu et al., 2016). The Greater contributing to psychological distress and trauma (Dowie, Mekong Subregion Biodiversity Conservation Corridors 2009; Zahran et al., 2015; Snodgrass et al., 2016). Project or the Mesoamerican Biological Corridor are also key initiatives illustrating the importance of transboundary A crucial breakthrough in conservation paradigms over conservation planning at the landscape level (ADB, 2011; the last decades has been the emergence and growing Mendoza et al., 2013; Crespin & García-Villalta, 2014). awareness of a number of IPLC-centred designations Policy options to promote transformative change towards to conservation, including co-management regimes, sustainability in the Arctic include the application of community-based conservation areas, integrated new, multi-sector frameworks for integrated ecosystem conservation and development projects, sacred natural management (Pinsky et al., 2018), the establishment of sites, Indigenous Community Conserved Areas (ICCAs), a circumpolar network of Protected Areas (Fredrikson, and biocultural approaches to conservation (e.g., Berkes, 2015) and the proposal for the creation of a global Arctic 2004, 2007, 2009; Folke et al., 2005; Armitage et al., 2007;

914 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Kothari et al., 2013; Brooks et al., 2013; Gavin et al., 2015; and the judiciary, (e.g., through the creation of the ICCWC Alexander et al., 2016; Berdej & Armitage, 2016; Sterling Wildlife and Forest Crime Analytical Toolkit; UNODC, 2012) et al., 2017). Many of these approaches will contribute a and informing IWT decision-making (Nellemann et al., substantial share of the world’s “Other Effective Area-Based 2014; Sollund & Maher, 2015). In the meantime, research Conservation Measures” (OECMs) such as proposed under shows that intergovernmental initiatives at the regional Aichi Target 11 (Jonas et al., 2014, 2017; Laffoley et al., level, such as the ASEAN Wildlife Enforcement Network, 2017; Garnett et al., 2018). including 10 Southeast Asian countries, and EU-TWIX, an online forum and database on IWT patterns within the Sacred natural sites, as a specific example of OECMs, European Union, are also essential for assisting national are areas of land or water that have spiritual values to law enforcement agencies in detecting and monitoring IWT certain IPLCs (Thorley & Gunn, 2007; Ormsby, 2011). They across national borders (Rosen & Smith, 2010; Sollund contribute to the conservation of diverse habitats and & Maher, 2015). Civil society and NGO support, such as species as well as traditional land use practices (Salick et through TRAFFIC, has been essential for many countries to al., 2007; Metcalfe et al., 2009; Gavin et al., 2015; Samakov keep their mandatory reporting requirements for CITES up & Berkes, 2017). Their governing institutions are diverse, to date (Reeve, 2006). including informal norms, rules and taboos passed on by generations (Anthwal et al., 2010; Bhagwat & Rutte, Some studies are examining where resources could best 2006b; Bobo et al., 2015; Ya et al., 2014), and are under be prioritized for improved protected area management increasing pressure from globalization (Bhagwat & Rutte, and law enforcement, as well as to disrupt shipping routes 2006; Virtanen, 2002; Domínguez & Benessaiah, 2015; of IWT (Kiringe et al., 2007; Plumptre et al., 2014; Ihwagi Fernández-Llamazares et al., 2018). Sacred natural sites et al., 2015; Patel et al., 2015; Tulloch et al., 2015; Lindsey have been combined with legal and economic instruments, et al., 2017). Improving detection capacity for “invisible” often with controversial results (Bhagwat & Rutte, 2006b; wildlife trades, through improved data, capacity-building Brandt et al., 2015). Appropriate legal recognition of sacred and implementation of innovative technologies such natural sites has been deemed as a critical factor to ensure as DNA barcoding and stable isotope analysis, is often their effectiveness in conserving nature and NCP (Davies cited as a global priority for IWT control (Phelps et al., et al., 2013; Smyth, 2015; Mwamidi et al., 2018). Specific 2010; Nijman & Nekaris, 2012; Phelps & Webb, 2015; legal recognition of sacred natural sites builds on prior Symes, 2017). broader recognition of collective IPLC tenure rights and self-determination (Kothari, 2006; Berkes, 2009; Almeida, Prioritization of IWT in criminal justice systems has generally 2015; Borrini-Feyerabend & Hill, 2015). However, there led to more effective law enforcement responses (Lowther is evidence that top-down forms of recognition, without et al., 2002; Sollund & Maher, 2015; EIA, 2016; Jayanathan, consultation often undermine local initiative and grassroots 2016). Similarly, increases in anti-poaching patrols in action (Borrini-Feyerabend et al., 2010; Kothari et al., 2013). protected areas generally leads to significant declines in Best practice cases indicated that knowledge-sharing and levels of poaching (Dobson & Lynes, 2008; Jachmann, mutual learning are key success factors when sacred sites 2008; Fischer et al., 2014; Critchlow et al., 2016; Henson are recognized as OECMs (Aerts et al., 2016b; Irakiza et al., et al., 2016; Moore et al., 2017). Implementing measures 2016; Jonas et al., 2018). to combat corruption among rangers, crime investigators and other relevant officials and civil servants, is also deemed critical to halt IWT (Smith & Walpole, 2005; Bennett, 2015; Addressing the Illegal Wildlife Trade (IWT) UNODC, 2016). Also, IPLCs are important allies in global Despite intense worldwide efforts, the Illegal Wildlife Trade efforts to combat IWT on the ground (Roe, 2011; MacMillan (IWT) still represents a major threat to endangered species. & Nguyen, 2013; Ihwagi et al., 2015; Cooney et al., 2016; Research shows the major strengths and weaknesses Humber et al., 2016; Benyei et al., 2017; Biggs et al., 2017; of efforts to address the IWT. CITES currently lacks a Massé et al., 2017; Roe et al., 2017), although they often global enforcement agency to oversee compliance, which suffer from blanket hunting bans established at local levels has been argued to compromise its overall effectiveness that do not discriminate between endangered and common (Phelps et al., 2010; Heinen & Chapagain, 2002; Oldfield, animals (McElwee, 2012) as well as use of trade bans to 2003; Zimmerman, 2003; Reeve, 2006; Toledo et al., 2012; address other threats such as climate change (Weber et Challender et al., 2015). Further, CITES enforcement within al., 2015). Similarly, both NGO and research presence have countries is often sporadic at best, with many developing been shown to deter wildlife poaching, particularly in areas countries lacking the knowledge and identification facilities with minimal governmental surveillance (Hohman, 2007; to help control and report illegal trade (Zhang et al., 2008; Pusey et al., 2007; Campbell et al., 2011; N’Goran et al., Shanee, 2012). The International Consortium on Combating 2012; Laurance, 2013; Mohd-Azlan & Engkamat, 2013; Wildlife Crime (ICCWC) has helped in providing support to Daut et al., 2015; Piel et al., 2015; Sollund & Maher, 2015; countries in the fields of policing, customs, prosecutions Tagg et al., 2015).

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Finally, well-targeted, species-specific and evidence-based and operational issues undermine the effectiveness of demand reduction policy interventions for illegally-sourced wildlife compensation payments mostly related to their wildlife and its products are also growing in scope and administration, including crowding-out effects, unequal extent, on the understanding that legally-sourced products distribution of benefits, elite capture, corruption or leakage are managed sustainably based on CITES non-detriment (e.g., Bulte & Rondeau, 2005; Ogra & Badola, 2008; findings, and harvested and traded in accordance with Spiteri et al., 2008; Agarwala et al., 2010; Uphadyay, national and international laws (CITES, 2017; Moorhouse 2013; Anyango-Van Zwieten, et al., 2015). Also, some et al., 2017). Social marketing strategies (e.g. discouraging authors have questioned their financial sustainability in the rhino horn consumption in Vietnam through TV ads with long-term (Nyhus et al., 2003; Bulte & Rondeau, 2005; celebrities) coupled with broad outreach and educational Swenson & Andrén, 2005; Bauer et al., 2015). In general, campaigns, are a common strategy to change consumer research highlights that wildlife compensation schemes behaviour (Drury, 2009, 2011; Dutton et al., 2011; Gratwicke are not a silver-bullet solution, although they might be et al., 2008a; Veríssimo et al., 2012; Challender & MacMillan, indeed valuable in certain contexts and under certain 2014; TRAFFIC, 2016; Truong et al., 2016), although conditions (Haney, 2007; Dickmann et al., 2011; Ravenelle evidence on the effectiveness of such policies is still virtually & Nyhus, 2017). Conservation performance payments, lacking (MacMillan & Challender, 2014; Challender et al., conditional on specific conservation outcomes (e.g., bird 2015). Regular online monitoring of e-commerce platforms, breeding success), have been argued to partially address websites and social media offers substantial opportunities some of the operational challenges of incentives focusing for the enforcement of IWT regulations (Izzo, 2010; Hansen on compensation for losses to predation (Zabel & Holm- et al., 2012; Lavorgna, 2015; TRAFFIC, 2015). Müller, 2008).

Nature-based tourism is another revenue-generating use Improving Sustainable Wildlife Management (SWM) of certain wildlife that can provide incentives for IPLCs to Sustainable Wildlife Management (SWM) is an essential tool conserve biodiversity in appropriate contexts (Bookbinder to conserve wildlife while considering the socioeconomic et al., 1998; Kiss, 2004; Hearne & Santos, 2005; Lindsey needs of human populations, including IPLCs (Gillingham et al., 2005; Lai & Nepal, 2006; Stronza, 2007; Osano & Lee, 1999; Spiteri & Nepal, 2006; Pailler et al., 2015; et al., 2013). IPLCs with economically viable ecotourism Riehl et al., 2015; Campos-Silva & Peres, 2016) and the programs linked to wildlife are likely to steer SWM (Stem et generation of multiple contributions to people (Holmlund al., 2003; Krüger, 2005; Clements et al., 2010; Mendoza- & Hammer, 1999; Díaz et al., 2005; Kremen et al., 2007; Ramos & Prideaux, 2017), but only when benefits are Whelan et al., 2008, 2015; Kunz et al., 2011; Moleón et al., culturally-appropriate and equitably distributed (Bookbinder 2014; Ripple et al., 2014; Poufoun et al., 2016). Several et al., 1998; Naidoo & Adamowicz, 2005; He et al., 2008), best practices in fostering SWM (e.g., mitigating human- land tenure is secured (Charnley, 2005; Haller et al., 2008; wildlife conflicts) have emerged over the last decades Bluwstein, 2017), the social and political justice aspirations (Brooks et al., 2013; FAO, 2016; Nyhus, 2016), and the of IPLCs are respected (Stronza & Gordillo, 2008; Coria debate increasingly includes animal welfare aspects, among & Calfucura, 2012), and the value conflicts introduced by others under the heading of “compassionate conservation” tourism development are fully addressed (Lai & Nepal, 2006; (Bekoff, 2013). Waylen et al., 2010).

Both incentive-driven and financial compensation Although financial benefits to sustain SWM have often been schemes can contribute widely to nature conservation prioritized (Tisdell, 2004; Ogra & Badola, 2008), incentives and benefit sharing with IPLCs and provide economic to engage IPLCs in SWM can also include education, compensation for those bearing most of the costs of empowerment and opportunities for capacity development maintaining public benefits associated with biodiversity (Nabane & Matzke, 1997; Brooks et al., 2009), social conservation (Naughton-Treves et al., 2003; Maclennan services and infrastructure (Spiteri & Nepal, 2006), as well et al., 2009; Persson et al., 2015; Dhungana et al., 2016, as devolution of IPLC rights to manage, and benefit from, Supplementary Materials 6.2.4). However, the effectiveness wildlife conservation (Lindsey et al., 2009; Western et al., of wildlife compensation schemes in conserving nature 2015; Nilsson et al., 2016). Moreover, engaging women in and contributing to local quality of life varies (Boitani et SWM as direct beneficiaries and key stewards of wildlife can al., 2010; Ravenelle & Nyhus, 2017). Some works show help bridging the agendas of gender equality and SWM, that wildlife compensation schemes can reduce conflict particularly within the framework of the SDG (Nabane & (Zabel & Hom-Müller, 2008), reduce wildlife killings (Okello Matzke, 1997; Espinosa, 2010; Staples & Natcher, 2015; et al., 2014) and recover wildlife populations (Persson FAO, 2016; UNEP, 2016; Leisher et al., 2016; Lelelit et al., et al., 2015), particularly in contexts where IPLCs are 2017). Gender mainstreaming approaches are crucial for facing acute subsistence needs or with wildlife that the success of community-based SWM (Ogra, 2012; Meola, imposes disproportionate costs. However, several pitfalls 2013; UNESCO, 2016; Davies et al., 2018).

916 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Manage invasive alien species through multiple threatened by climate change, or protecting coastal areas policy instruments from storms and sea level rise (Locatelli et al., 2015). For There are more than 40 international legal instruments instance, the UN is committed to restoration through dealing with the issue of invasive alien species (IAS), projects such as reforestation for carbon sequestration (e.g. including CITES and the Ramsar Convention on Wetlands, REDD+) (Nellemann & Corcoran, 2010; Watson et al., 2000; as well numerous national laws. However, there are Munasinghe & Swart, 2005) or restoring wetlands for flood many legal, institutional and social barriers to effective protection. There is wide agreement on the importance of invasive species management, including information expanding restoration efforts, including the CBD Aichi Target management challenges, resourcing, risk perception and 15 that commits to restoration of at least 15% of degraded lack of public support, and definitional and jurisdictional ecosystems by 2020, the European Union Biodiversity issues that can generate a lack of coherent, systemic Strategy Target 2, and the Bonn Challenge to restore and community-partnered approach to IAS management. 150 and 350 million hectares of the world’s deforested This is particularly the case in urban and peri-urban areas and degraded lands by 2020 and 2030, respectively. where rapid urban growth and sprawl occurs (Martin et Restoration and reforestation of 12 million ha of forests by al., 2016; Le Gal, 2017; Riley, 2012; Vane and Runhaar, 2030 are also key elements of the implementation of the 2016). Further, low economic incentives to engage Brazilian Nationally Determined Commitments (NDC) of the private landowners can undermine the effectiveness of Paris Agreement. the frameworks for IAS management and biodiversity protection (Martin et al., 2016). Developing and Restoration projects make use of both regulatory and implementing IAS management strategies in collaboration market instruments in policy mixes, such as public with IPLCs has been suggested as an effective means to financing, mitigation banking or offsetting, tax incentives, enhance local capacity to prevent, detect and eradicate and performance bonds (Hallwood, 2006; Reiss et al., IAS in areas inhabited or managed by IPLCs, although the 2009; Robertson, 2004; Ruhl et al., 2009). Tax incentives evidence still lies on weak empirical footing, with only a for set-asides for restoration work, such as Landcare & few case-based studies available (e.g., Hall, 2009; Dobbs Bushcare policies (in Australia), are farmer voluntary policies et al., 2015). It is well established that social, political that encourage community-based strategic restoration and economic values, as well as cultural worldviews projects (Compton and Beeton, 2012), including bush have been shown to underlie the perception of IAS, as set-asides for recovery from grazing and grants to replant well as preferences over management options (O’Brien, and fence off bushland. Farmers pay for at least half the 2006; Warren, 2007; Hall, 2009; Crowley et al., 2017). restoration costs, which can be reclaimed through tax In view of this, direct inclusion of IPLCs on deliberations incentives (Abensperg-Traun et al., 2004). The Working over IAS management decisions can help to identify the for Water Program in South Africa is an example of an most strategic and effective measures for IAS control, approach that combines IAS removal and restoration as well as to anticipate conflict and foster dialogue over through targeted employment and payments to poorer different values in inclusive ways (Robinson et al., 2005; participants. The project has been credited with success Bhattacharyya et al., 2014). in native vegetation species recovery (Beater et al., 2008; van Wilgen & Wannenburgh, 2016) and increasing water Potential solutions include treating IAS as a collective yields (Le Maitre et al., 2000, 2002; Dye & Jarmain, 2004). action problem rather than a private landowner problem Lessons from the South Africa program include the need (Martin et al., 2016; Graham et al., 2016; Graham, 2013; for continuous monitoring and frequent follow-up, the need Howard et al., 2016), implementing projects for removal of to train personnel, and the need for active restoration (and IAS through direct payments (Bax et al., 2003; McAlpine replanting) of native tree species on cleared plots. Another at al., 2007; Rumlerova et al., 2016; Brown et al., 2016), national example of integrating restoration objectives through tax incentives combined with restoration work into specific policies is that of the Rural Environmental and tradeable permits (see examples in Supplementary Registry (CAR), which supports the implementation of the Materials 6.2.4). new Forest Law in Brazil (see section on Monitoring and regulating forest use above). 6.3.2.4 Expanding ecosystem restoration Contextual and historical legacies often shape restoration projects and policies practices. Therefore, there is increasing recognition that Ecological restoration is the process of assisting the restoration projects need to be seen as part of larger recovery of an ecosystem that has been degraded, social-ecological systems (Dunham et al., 2018; Zingraff- damaged, or destroyed (SER, 2004) and reforestation Hamed, 2017), also considering social goals in the planning, can have potential positive impacts to help ecosystems decision-making, implementation and success evaluation adjust to climate change, such as through restoring of such projects (Junker, 2008; Hallett et al., 2013; Higgs, altered hydrological cycles, extending habitat for species 2005; Burke & Mitchell, 2007; Woolsey et al., 2005;

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2007). It is for example increasingly recognised that it is eroded (Aikenhead, 2001; McCarter et al., 2014; McCarter beneficial to involve all relevant stakeholder groups to gain & Gavin, 2014; Tang & Gavin, 2016). For example, in acceptance (Junker et al., 2007) and to promote social and contexts where environmental degradation is linked to environmental learning (Pahl Wostl, 2006; Restore, 2013; the loss of cultural values, ILK revitalization efforts have Petts, 2006). One example is the ‘re-wilding’ approach in been successfully linked to ecological restoration projects, the US (Swart et al., 2001; Hall, 2010) to restore to pre- also providing cultural incentives (Anderson,1996; Long European settlement ecosystems, which contrasts with et al., 2003; López-Maldonado & Berkes, 2017; Reyes- the cultural landscape approach in Germany (Westphal García et al., 2018). Some customary education programs et al., 2010). The importance of community culture and have also integrated ILK in school curricula, contributing normative values in shaping social acceptance of restoration to strengthen networks of ILK transmission (Kimmerer, projects has often been neglected (Ostergren et al., 2008; 2002; Reyes-García et al., 2010; Ruiz-Mallén et al., 2010; Waylen et al., 2009), with acceptance depending on McCarter & Gavin, 2011, 2014; Hamlin, 2013; Abah et al., whether restoration builds upon the emotional or cultural 2015). Similarly, it has been shown that ILK revitalization attachments that communities have to a place or supports efforts are most effective when controlled and managed by traditional patterns of use (Baker et al., 2014; Buijs, 2009; the communities involved (Singh et al., 2010; McCarter et Drenthen, 2009; Lejon, 2009; Shackelford et al., 2013). al., 2014; Fernández-Llamazares & Cabeza, 2017; Sterling Participation, such as through community reforestation, is et al., 2017). Moreover, it is important that revitalization seen to reduce the risk of conflict (Eden and Tunstall, 2006; efforts consider the gendered nature of knowledge and the Gobster and Barro, 2000; Higgs, 2003) and promises more crucial role of women in knowledge transmission (Iniesta- equitable outcomes, such as access to ecosystem services. Arandia et al., 2015; Díaz-Reviriego et al., 2016). This opens restoration as a tool for poverty alleviation. However, there is a knowledge gap in defining measures 6.3.2.5 Improving financing for for social-economic attributes, although this has recently conservation and sustainable received attention (Baker & Eckerberg, 2016). Overall, there is a need for more research into the realized social development and economic outcomes or impacts of restoration (see Financing is a critical determinant of the success or failure Supplementary Materials 6.2.4). of conservation outcomes, as acknowledged in the CBD and SDG which call for increased financing and aid, and Aichi Target 3, which calls for the promotion of positive Revitalizing ILK and restoring IPLC institutions incentives for the conservation and sustainable use of Evidence shows that indigenous and local knowledge biodiversity by 2020. These economic tools for biodiversity (ILK) is rapidly changing and eroding in many parts of the can include instruments such as biodiversity-relevant taxes, world (Cox et al., 2000; Brodt, 2001; Godoy et al., 2005; charges and fees; tradable permit schemes; and subsidies Brosi et al., 2007; Turner & Turner, 2008; Reyes-García that aim to reflect the inherent values of biodiversity in et al., 2007, 2013, 2014; Tang & Gavin, 2016; Aswani their actual use, which have raised billions in recent years et al., 2018). While ILK is inherently dynamic (Berkes, (OECD, 2010b; OECD, 2013). Currently, finance mobilized 1999; Gómez-Baggethun & Reyes-García, 2013; Reyes- to promote biodiversity has been estimated at about US$ García, et al., 2016), it has been shown that at least some 52 billion globally (Parker et al., 2012; Miller, 2014), while dimensions of the social-ecological memory of IPLCs are estimates of the financing necessary to reach international becoming substantially eroded (Ford et al., 2006, 2010; targets range from US$ 76-440 billion per year (CBD, Turvey et al., 2010; Fernández-Llamazares et al., 2015). 2012; McCarthy et al., 2012). An estimated 80 percent of Rapid social and cultural changes create discontinuity in biodiversity conservation funding across low and middle the transmission of ecological knowledge (Singh et al., income countries is derived from international aid (ODA), 2010; Etiendem et al., 2011; Reyes-García et al., 2010, with the remaining 20 percent coming from domestic, 2014; Turvey et al., 2010; Shen et al., 2012; Guèze et private and other sources (Hein et al., 2013; Waldron et al., 2015; Luz et al., 2015, 2017), impact the functioning al., 2013). Other forms of financing besides ODA include of collective institutions, many of which have supported direct payments to those who conserve biodiversity sustainable resource management and diverse biocultural through various transfer mechanisms, including PES (see landscapes for long periods of time (Agrawal, 2001; section on Improving REDD+ and PES, above), eco- Oldekop et al., 2013; Fernández-Llamazares et al., 2016, compensation policies, or ecological fiscal transfers (see 2018; Sirén, 2017). Supplementary Materials 6.2.4 for details on the latter two). Other financing mechanisms can include tradable Policies focused at revitalizing language and local permits, in which markets, auctions or other schemes allow ecological knowledge also contribute to recognizing and, those causing biodiversity loss or pollution to compensate in some cases, restoring IPLCs’ customary institutions for their environmental impacts in other locations (see ecosystem management, which have been weakened or Supplementary Materials 6.2.4).

918 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Though uncertainty exists on overall funding levels baseline and to meet responsibilities for their Flag vessels on (Tittensor et al., 2014), there is widespread agreement the High Seas. that resources are well below needs (James et al., 1999; McCarthy et al., 2012; Waldron et al., 2013) and have Most Aichi Biodiversity Targets are relevant to marine and failed to meet donor commitments (Miller et al., 2013). coastal biodiversity, but Targets 6, 7, 10, and 11 are explicit Developing country capacity to finance conservation in their coverage of fisheries sustainability and ecosystem- and sustainable use is increasing (Vincent et al., 2014), based management (Target 6), sustainable aquaculture and initiatives such as the UNDP BIOFIN project (www. (Target 7), and coral reefs subject to anthropogenic biodiversityfinance.net) have assisted countries with pressures and impacted by climate change and ocean identifying options, but ODA is likely to remain the major acidification (Target 10), and protected areas (Target 11). finance source for now. Existing flows have generally been The ambitious target dates of 2015 (Target 10) and 2020 well-targeted to countries with greater conservation need (Target 6, 7 and 11) have not or will not be met globally (Miller et al., 2013), but there is inconclusive evidence about by 2020. For the SDG, Goal 14 (life below water) is most whether these resources have resulted in conservation explicitly relevant to marine and coastal biodiversity, but success. New trust fund and collective fund approaches most other Goals are also relevant. have been used in recent projects, such as the Amazon Fund to combat deforestation in Brazil (see Supplementary At the frontier between land and seas, coastal areas Materials 6.2.4). However, few if any peer-reviewed studies support dense human populations, are undergoing rapid explicitly examine the impact of specific biodiversity economic development and have been heavily transformed financing projects using robust program evaluation e.g., into cities, ports, tourist facilities and aquatic methods. Bare et al. (2015) find higher rates of forest loss farms, with profound consequences for biodiversity and correlated with aid (concluding not that aid caused loss, ecosystem services such as wildlife habitats and clean but that aid was insufficient to halt existing drivers), while water. Downstream of terrestrial material flows, deltas and Waldron et al. (2017) found that conservation funding estuary systems receive nutrient, sediment, sewage, waste —much of it is ODA—did reduce biodiversity loss by an and pollution loads from distant regions. On land and sea average of 29%. There is a paucity of impact evaluations margins, climate and other hazards are often more severe in the conservation sector that examine socio-economic than inland (United Nations World Ocean Assessment, impacts of financing (Börner et al., 2016; Puri et al., 2016). 2017). Coastal rehabilitation offers some opportunities to Finally, there is a major gap in assessing the long-term partially restore some ecosystem functions after their initial impacts of conservation aid (Miller et al., 2017) (see also transformation or destruction for human use. Supplementary Materials 6.2.4). All of these gaps suggest a strong need for better systems of tracking and assessing Climate change and pollution caused by land and sea- the impacts of different types of financing; in other words, based carbon emissions and waste disposal are impacting not just more financing is needed, but better understanding the High Seas and coastal areas. Direct human exploitation of the mechanisms for success. of the High Seas is also increasing from fishing, shipping, oil and gas extraction, seabed mining, ocean energy production and aquaculture. Consequently, biodiversity 6.3.3 Integrated Approaches for conservation is a key issue in the High Seas (World Sustainable Marine and Coastal Ocean Assessment, 2017; Ingels et al., 2017). High Seas Governance biodiversity is experiencing predominantly negative impacts, e.g., Census of Marine Life (Ausabel et al., 2010), including Marine and coastal areas, covering 70% of the Earth’s in the abundance and diversity of fauna and in the status of surface, include the High Seas or areas beyond national sensitive and unique habitats such as seamounts (Koslow jurisdiction (ABNJ) which cover nearly half of the Earth’s et al., 2017), hydro-thermal vents (LeBris et al., 2017) and surface (Harris & Whiteway, 2009) and territorial waters deep-sea corals (Cordes et al., 2017). from the baseline to national territorial limits. Adding river catchments affecting coastal areas means that much of the The use and management of coastal and marine areas Earth’s surface is directly connected to marine and coastal are divided among many individual and corporate players biodiversity and ecosystem services. Policy instruments whose activities impact the oceans. Unless action is based for coastal biodiversity and ecosystem management span on sound shared knowledge, the players may fail to act in the scale of institutions from global and intergovernmental the interests of conservation (World Ocean Assessment, to local communities, and concern many different sectoral, 2017), e.g., when coastal reclamation projects proceed thematic and cultural stakeholder and rights-holder groups. in ignorance of the potential destruction of ecosystem The United Nations Convention on the Law of the Sea services. In addition, the rights of different players may be (UNCLOS) includes provisions for coastal States to exercise unequal. For example, IPLCs are often long-established national jurisdictions within 200 nautical miles from the inhabitants and users of the coastal environment, but their

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access and ownership often are not secured against larger Another major problem is non-implementation of existing economic activities. legal instruments in international, regional and national levels. Cases that illustrate these problems have been Following the Rio 1992 Earth Summit, conservation exposed in the IPBES regional assessments. For instance, groups, governments and researchers increased attention the regional assessment for Europe and Central Asia to fisheries and other coastal industries impacting highlights that, although the Regional Seas Conventions biodiversity and ecosystem services (Spalding et al., are playing an important role in joint management of 2013; Garcia et al., 2014). Despite the raised awareness, marine areas, the performance is uneven and application action has been slow. For example, despite the ocean’s not consistent with modern conservation principles and importance in climate, oceans will be a major priority capacity of the region (IPBES, 2018a). The regional only in the 6th assessment cycle of the IPCC, due for assessment for Asia and the Pacific highlights the absence completion in 2022. After ten years of discussion, in 2017, of regional seas conventions or other binding legal the UN General Assembly resolved (Resolution 72/249) to instruments for promoting regional joint governance of convene a conference to develop an international legally marine areas (chapter 6, pp. 520-525). binding instrument under UNCLOS in order to address the conservation and sustainable use of marine biodiversity of This section presents both short and long-term policy ABNJ and marine genetic resources benefits sharing. options contributing to integrated approaches to marine and coastal governance. This ranges from identifying Governance of marine conservation still faces major governance gaps, including in legal frameworks, and challenges including a lack of proper international and conditions that may facilitate the implementation of regional legal framework for emerging challenges such available policies in response to immediate needs as the impact of climate change on marine biodiversity. (Table 6 .4).

Table 6 4 Options for integrated approaches for marine and coastal governance.

Short-term Long-term Key obstacles, Major decision maker(s) Main Main options options (in potential risks, level(s) of targeted the context of spillover, unintended governance indirect transformative consequences, driver(s) change) trade-offs

Global marine and coastal

Implementing global marine environment • Industry resistance due to • International (e g. ,. IMO) International, Economic, agreements for shipping competitive pressures, lack • Regional (inter-) regional, institutions of awareness and lack of governmental national, local commitment organisations, • Practical weaknesses • national, sub-national undermining the agreement and local governments, effectiveness, e .g ., flag including government state enforcement of linked authorities, e g. ., port MARPOL management • More enterprises operating • Shipping and logistics outside legal regimes industry

Mainstreaming • Lack of scientific • International inter- International, Economic, climate change knowledge to design governmental agencies, regional, institutions, adaptation and practical measures • International and regional national, local governance, mitigation into • Lack of funding, industry funding bodies technological marine and coastal and government support governance • Regional and national regimes • Risk of resource declines, sectoral agencies loss of human living space, • Conservation-directed food public-private financiers Lack of governance • Science and educational mechanisms to coordinate agencies responses on necessary scales • Donor agencies • IPLCs

920 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Mobilising • Lack of private sector • Maritime industries International, Economic, conservation funding and very high • International and national, national institutions, funding for the reliance on public funds governments governance oceans • Lack of investment assurance • Need for innovative financing mechanisms

International waters: High Seas (ABNJ) and regional waters

Improving shared governance • Maritime territory disputes International, regional, national International, Economic, • Ocean grabbing and failure and local governments regional, institutions, to fully incorporate human national, local governance, dimension in conservation regional and resource governance conflicts • Differences in legal regimes of adjacent regions

Mainstreaming nature and its • Low national priority to • International, regional and International, Economic, contributions to people biodiversity conservation national governments, regional, institutions, • Current sectoral management agencies, national technological, conservation efforts often NGOs, industry, IPLCs, governance need scaling up Consumers • Enforcement costs high, but electronic methods offer new options • Conservation and sectoral agency efforts need greater coherence

High Seas • No legally binding • International and national International, Economic, convention international law for governments, national institutions, comprehensive protection • Non-governmental governance of biodiversity agencies, • Private sector

Coastal waters

Promote integrated management • Long time frame and • National central, sectoral National, local Economic, planning often stronger agencies, NGOs, local and institutions, than implementation; sub- national agencies, technological, • High transactions costs or private sector specific to governance fixed trade-offs can make context, IPLCs system slow to respond to changing pressures or needs of coastal communities

Mainstreaming nature conservation in • Widespread overfishing, • National governments, International, Economic, sectoral management, with an emphasis pollution and habitat private sector management regional, patterns of on fisheries destruction, subsidies, IUU, options, regional and national production, market incentives international organisations, supply and • Weak progress in NGOs, industries and consumption, implementing existing fishers organisations governance, fisheries governance technological framework • Solutions are context specific

Scaling up from • Local conservation needs • National and local National, local Economic, sub-national often precede national governments, IPLCs, institutions, project pilots policies, but scaling up Citizen groups governance local solutions enables cooperation across local jurisdictions • Locally developed solutions may not be fully transferrable to other local situations

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Building ecological • Ineffective planning and • National and local National, local Economic, functionality approval processes for governments, private institutions, into coastal development sector governance infrastructure • Insufficient financial and human resources for monitoring

Engaging stakeholders to achieve • Stakeholders not working • International and national International, Economic, common ecological and social good together on solutions NGOs, private sector national, local institutions, outcomes governments, scientists governance, and educationists, IPLCs cultural

6.3.3.1 Global Marine and Coastal control relied greatly on flag state enforcement (Mattson, 2006) but in addition, port-state enforcement is being Overarching global policies and processes, including and applied in some maritime agreements, such as the Food beyond climate change-related agreements have had major and Agriculture Organization Agreement on Port State impacts on action to protect marine and coastal biodiversity Measures to Prevent, Deter and Eliminate Illegal, Unreported and ecosystem services (chapter 2.1 and 3). In the present and Unregulated Fishing (2009). This combined with new section, we focus on key global agreements that need to be satellite and information technologies are being applied in integrated into policy for marine and coastal biodiversity and efforts to track compliance, but enforcement is still weak ecosystem services. (Petrossian, 2015). Enforcement and implementation are lacking both within and beyond national jurisdiction (Karim, 2015, 2018), but regional cooperative arrangements 6.3.3.1.1 Implementing global marine may improve regulatory capacity and should be further environment agreements for shipping strengthened. In addition, a coordinated and widespread initiative for capacity building to strengthen understanding History shows that global agreements regarding shipping of and capacity for flag state responsibility in the global are challenging to negotiate, and, once agreed and ratified, regulatory apparatus is needed to combat pollution in challenging to implement, and in motivating government, the areas beyond national jurisdiction (World Ocean industry and community stakeholders to act. The existing Assessment, 2017). conventions and protocols on vessel-sourced pollution, including exotic and potentially invasive species from ships’ hull fouling and ballast water, are important examples 6.3.3.1.2 Mainstreaming climate change as shipping grows (World Ocean Assessment 2017, adaptation and mitigation into marine and chapter 17). coastal governance regimes

Several international maritime agreements on the Coordinated measures are needed to combat climate- environment pre-dated UNCLOS, notably the International related stressors on marine biodiversity, e.g., ocean Maritime Organization (IMO) International Convention for the acidification, ocean warming and deoxygenation (Bijma Prevention of Pollution from Ships, 1973 – MARPOL (Karim, et al., 2013; Pörtner, 2014; Levin et al., 2018), as these 2015). UNCLOS was critical, however, as it introduced stressors have sectoral effects, such as on stable fisheries the regulatory framework of duties and jurisdiction of agreements (Brandt & Kronbak, 2010; Galaz et al., 2012). In states addressing the main sources of ocean pollution, the fact, the Paris Agreement is now the first climate agreement success of which heavily depends on detailed regulations to explicitly consider the ocean. International and regional and their enforcement by international, regional and national legal instruments and mechanisms for climate change, institutions. Despite wide convergence of shipping issues oceans, fisheries and the environment are relevant for these and participation of most of the countries as well as the challenges, but they remain inadequate (Galland et al., considerable success of IMO Conventions, worldwide 2012; Herr et al., 2014; IPCC, 2017). At the least, sectoral uniform enforcement, monitoring and control still need and general ocean governance will have to mainstream development (Karim, 2015). Enforcement, monitoring and major climate issues in governance regimes at international,

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regional and national levels. This mainstreaming will help The majority of current biodiversity funding is from public sectoral management adapt and mitigate emissions. If finance (e.g., GEF) (Huwyler et al., 2014) and is affected by linked to climate actions, this may also help reduce some the short-term time horizons of political agendas and public of the knowledge gaps on climate and the ocean, and gaps opinions. Following models used in climate (Buchner et between scientific and government attention to climate al., 2015) and development finance (Gutmann & Davidson, change (Magnan et al., 2016; Gallo et al., 2017). Achieving 2007), growing attention is given to the potential use of policy coherence over such complex issues also requires market-based mechanisms used in terrestrial systems for significant new knowledge on the oceans and climate which the High Seas, such as payments for ecosystem services can feed back into climate science. In the case of proposed and biodiversity offsets (Gjertsen et al., 2014). climate solutions such as geoengineering to capture carbon from the atmosphere, the IPCC warns that the impacts Clean, renewable ocean-derived energy has the potential on marine ecosystems “remain unresolved and are not, to reduce carbon emissions and meet 10 percent of therefore, ready for near-term application” (http://www.ipcc. EU demand by 2050 (Ocean Energy Europe, 2015). ch/ipccreports/tar/wg3/index.php?idp=25). Technologies of this magnitude, however, are impeded by high initial investments and risks. These barriers may be Many impacts of global changes are highly unbalanced, overcome through public-private collaboration and require because telecouplings affect people who have not caused careful planning and environmental impact assessment the problems. Sea level rise is eroding the living space of (Economist Intelligence Unit 2015). There is potential for many marginal coastal people in developing countries, e.g., increased research and infrastructure support for wave and on low-lying Pacific islands and coastal mangroves in Asia. tidal energy technology, which have been slow in terms of Funds set up to address these transfer issues, e.g., the technological advancements (REN21, 2018; Bruckner et Green Climate Fund and other multilateral instruments will al., 2014). not have their intended effects unless greater priority is given to developing countries (Friends of the Earth and Institute for A portion of the profits from ocean-based goods and Policy Studies, 2017), and these funds need to specialize services could be directed into conservation research, and cooperate effectively to provide coherent support monitoring, and enforcement. For example, ocean tourism, (Amerasinghe et al., 2017). managed with respect for, with and by local communities, can yield successful results if earning from tourism are funneled into supporting sustainable management 6.3.3.1.3 Mobilising conservation funding for (Cisneros-Montemayor et al., 2013; Hess, 2015); and the oceans appropriate incentives in fishing could help change current practices such as derelict gear that threaten habitats and According to some estimates, the oceans provide trillions of natural capital stocks (Grafton et al., 2006; Grafton et USD annually in goods and services to society (Costanza et al., 2008). al., 1997). Policies and incentives towards the sustainable use of the oceans – from controlling overfishing and Global cooperation is needed to develop innovative pollution to promoting new technologies for energy and mechanisms to conserve the ocean, just as global carbon sequestration to incentives for sustainable tourism – collaboration is needed to address air quality and have economic and social impact across sectors of society atmospheric emissions. Ocean conservation projects may and regions, benefiting private and public economies, be funded by a proposed Ocean Bank for Sustainability and and local communities. However, innovative solutions are Development and trust funds. The Ocean Bank concept needed for improving financing for conservation action has been supported by several NGOs that argue current for the ocean. Some estimates suggest that that market- development banks and structures are not sufficient for based mechanisms could, for example, deliver up to 50% the largest ecosystem (WWF, 2015). Proponents envision of the finance for coral reefs (Parker et al., 2012), including that this new institution arrangement could be funded by for instance cap-and-trade programs such as the Ocean states and private investors, providing knowledge, project Appreciation Program (Ocean Recovery Alliance, 2016), development, training, and financing (Cicin et al., 2016). green bonds (Thiele, 2015a), and blue carbon sequestration Trust funds can offer long-term financial assistance and have to benefit biodiversity (Maldonado & Barrera, 2014; Murray already been applied to marine conservation management et al., 2011; Thiele & Gerber, 2017). On the High Seas, (MAR Fund, 2014; MRAG, 2016), e.g., a fund for a the financial mechanisms to support conservation are not protected area in Kiribati compensates the government for well established and new institutional financial structures, license profits forgone (MRAG, 2016). including financial solutions that allow for private funds to be invested in conservation, such as from international In the last 20 years, conservation organisations – markets, are increasingly recognized as essential international, national and local – e.g., IUCN, WWF, CI, (Madsbjerg, 2016). TNC, WCS and their local chapters – have developed

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major coastal conservation programs, supported by Fisheries Management Bodies and their conventions, funding from (mainly) US based philanthropic foundations and GEF Large Marine Ecosystems (LME) programmes (Packard, Walton, Pew, etc.) and often giving particular can also play an important role in combating land-based attention to charismatic ecosystems, e.g., coral reefs, marine pollution. and mega-fauna, e.g., whale shark, cetaceans and other marine mammals, and penguins. However, as the A common first step in establishing international coastal foundations turn more to Blue Economy issues such as cooperation is a transboundary programme of technical fishing and food security, their future efforts may not be cooperation, such as the Regional Seas Programmes and so focused on biodiversity conservation, calling attention Conventions and the GEF initiated LME projects. Many of to the importance of diversifying funding mechanisms these programmes have helped create effective environment supporting marine and ocean conservation and agreements among countries. sustainable use. Territorial disputes may impede conservation, to the extent that in contentious areas, multilateral cooperation has been 6.3.3.2 International waters: High Seas limited to technical cooperation among a subset of countries (ABNJ) and regional waters rather than active management (Williams, 2013). Where Significant areas of the ocean are outside settled national maritime territory disputes remain, countries are urged to jurisdictions, although certain activities may be under the settle these through the UNCLOS legal routes. UNCLOS controls of regional bodies or of global agreements. Some offers four options for dispute settlement and by finding the disputes over precise jurisdictions remain. A few countries, means that best suits, states have settled many disputes. including the USA, have not signed the United Nations However, instances where some of the large powers have Convention on the Law of the Sea (UNCLOS), but largely opted not to resort to UNCLOS dispute settlement system abide by its provisions. The High Seas sustain global- may jeopardize the effectiveness of the forum (Klein, 2014; scale ecosystem functions and provide essential benefits Gates, 2017). to humans (Rogers et al., 2014) but are subject to three increasing trends (World Ocean Assessment, 2017). First, “Ocean grabbing” is a term used to describe an emerging human needs are increasingly met from the ocean, some concern over the dispossession or appropriation of ocean directly, e.g., food from fisheries, aquaculture and ranching space or resources from prior users, rights holders or (Ferreria et al., 2017; APEC, 2016), and some indirectly, inhabitants resulting from governance processes with power e.g., greater shipping of commodities in an increasingly asymmetries among participants. More broadly, the issue globalized world (Simcock & Tamara, 2017; Simcock, 2017). of accumulation by dispossession is both an issue that can Second, direct drivers affecting the High Seas are expected impede conservation and be used by conservation interests to increase, including fishing, aquaculture, mining, energy to obtain a foothold over community lands (Harvey, 2003; and defence activities, sound pollution from transportation, Hall, 2013; Benjaminsen & Bryceson, 2012). If the needs and chemical and biological pollution from increased use of local communities and ecosystems are not fully taken of the sea and coastal living. Third, as efforts to increase into account, allocation of access rights to ocean space the sustainability of ocean uses within national jurisdiction or resources may undermine human security and impair increase (FAO, 2016; CBD, 2017), some of the effort is biodiversity components. Conservation allocations such as moving offshore (Merrie et al., 2014; Gjerde et al., 2013). marine protected areas, and rights-based approaches such These three trends have major impacts on nature and its as individual fisheries quotas may be conducted in ways that contributions to people, including the challenge of managing do not undermine human security and ecological functions rapidly emerging industries such as mining, undersea (Bennett et al., 2015). communications and energy. Improving shared governance, mainstreaming nature, and a new High Seas convention are Thinning and disappearing sea ice, melting permafrost, and proposed as options. circumpolar climate change, however locally and regionally varied, are commonly identified as playing their part in 6.3.3.2.1 Improving shared governance rapidly unsettling the geographies of Arctic governance (Overland & Wang, 2013; Smith & Stephenson, 2013; Supporting and expanding existing conservation Hussey et al., 2016; Stephenson, 2018). Strategies are cooperation mechanisms represent a promising short- being sought that will promote renewed international term option for protecting High Seas biodiversity. Some cooperation and reduce the risks of discord in the Arctic, of these institutions are expanding their initiatives into as the region undergoes new jurisdictional conflicts and areas beyond national jurisdiction, e.g., through fisheries increasingly severe clashes over the extraction of natural observer programs, anti-IUU (illegal, unreported and resources in a region that is critical to the prevision of unregulated) fishing measures. Regional organisations, globally important NCPs (Berkman & Young, 2009; Young, particularly, the Regional Seas Programmes, Regional 2010; Keil, 2015; Hussey et al., 2016; Harris et al., 2018).

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Figure 6 3 Multiple ocean uses and examples of institutions related to areas beyond national jurisdiction illustrating the different ocean depths relevant to the activities and institutions. Source: UNEP-WCMC (2017) .

Several organizations have advocated for the negotiation 2006) and improved transboundary conservation planning of a harder law regime for the Arctic (Kankaanpää & Young, (Greenpeace, 2014; Hussey et al., 2016; Edwards & Evans, 2012), including firmer institutional, financial and regulatory 2017; Harris et al., 2018). foundations for the Arctic Council (Berkman & Young,

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6.3.3.2.2 Mainstreaming nature and its 2017). Sectoral management agencies, including fisheries, contributions to people and NGOs such as Global Fishing Watch, are now testing new technologies such as satellite monitoring of electronic Recognising the rising pressures on biodiversity on the High fisheries operations, onboard CCTV monitoring of catch Seas, most sectoral regulatory agencies are recognizing and bycatch, and real-time data entry (Hosken et al., 2016). the need to mainstream biodiversity conservation into These technologies can lead to better monitoring, control their approaches to policy and management (CBD, 2016). and surveillance. Responding to growing public pressure from NGOs and international agencies, measures are being introduced. For Greater efforts are needed to achieve coherence between instance, Regional Fisheries Management Organisations the efforts of sectoral management agencies and the efforts (RFMOs) are implementing UNGA Resolution 61/105 to of biodiversity conservation agencies, including those led protect deep sea Vulnerable Marine Ecosystems (VMEs) by intergovernmental organizations such as the CBD, e.g., from bottom trawling (Rice et al., 2017). Similarly, sectoral program for identifying Ecologically or Biologically Significant agencies such as the International Seabed Authority for Areas (EBSAs – Johnson et al., 2018), and by NGOs, e.g., deep-sea mining (Anton, 2011) and International Maritime Birdlife International. In fisheries, poor coherence leads to Organisation for shipping are adopting, or urged to, low returns on conservation and management investments additional policies and measures to manage and mitigate (Garcia et al., 2014a). The obstacles to improving coherence the pressures of these sectors on High Seas biodiversity are high because it requires governance processes with and their habitats. convening power to bring the agencies together, the duty to cooperate both in selecting policies and measures that work The effectiveness of conservation policies for the High synergistically and implementation strategies that encourage Seas depend crucially on how well they are implemented, cooperation (Garcia at al., 2014b). a challenge that sectoral regulatory agencies have been grappling with for decades. In some areas, there is a need 6.3.3.2.3 Pathways to protect nature in the for substantive scaling up resources and prioritizing areas High Seas of rising pressure, e.g., for tuna fisheries (Juan-Jorda et al., 2017). A major obstacle is the lack of priority that countries The need for coherence poses the greatest challenge, give to international arrangements for nature conservation. and greatest opportunity, for changing the trends of loss The latter highlight the role of regional management in High Seas biodiversity. The limitations of UNCLOS bodies and their secretariats in mobilizing action, and to deal effectively with nature conservation in the High that of NGOs that advocate action through campaigns Seas biodiversity was recognized over a decade ago. engaging public attention and presenting submissions to Open Ended Working Groups of the UNGA (http:// management bodies. www.un.org/depts/los/biodiversityworkinggroup/ biodiversityworkinggroup.htm) prioritized three themes: the The experience of RFMOs in protecting VMEs from deep ability to apply spatial management tools, including High sea fishing shows that a strong science foundation is Seas Marine Protected Areas (MPA) binding on all marine crucial as the knowledge basis (MacDonald et al., 2016), in industry sectors; marine spatial planning across sectoral addition to guidance on suitable conservation management agencies; access and benefits sharing to marine genetic measures (FAO, 2009). As little of the seabed is mapped, resources; environment impact assessment, technology however, the knowledge base is generally poor. Protection transfer and capacity building. is still feasible using responsive mechanisms based on existing knowledge, e.g., real-time move-on (cease-fishing) UNGA has initiated in 2017 an intergovernmental rules triggered when the presence of a VME is identified conference on an international legally binding instrument through bycatch indicator taxa; and great progress under UNCLOS on the conservation and sustainable use on identifying VMEs and Ecologically and Biologically of marine biological diversity of areas beyond national Significant Marine Areas, even with incomplete information jurisdiction (General Assembly Resolution 72/249); with (Dunn et al., 2014). expected conclusion in 2020. These negotiations will be a major factor in the future trajectories of High Seas For RFMOs and other sectoral agencies, member States biodiversity. An eventual future instrument is likely to include need to provide costly surveillance and enforcement (Rice provisions for area-based management including MPA, et al., 2014). These functions present a greater challenge environmental impact assessment and marine genetic on the High Seas than within national jurisdictions, resources. National government are encouraged to support but additional policy interventions have enhanced the the timely agreement of an effective instrument for marine effectiveness of existing policies, e.g., the FAO Port State protection and then implement the provisions with regard Measures Agreement (2009, in force 2016) increased the to key sectors, e.g., fishing, seabed mining, coastal oil and effectiveness of other measures to deter IUU fishing (FAO, gas, geoengineering and waste disposal.

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6.3.3.3 Coastal Waters through assisting community engagement and capacity building, monitoring and evaluation, and developing and National governments play a major role in determining implementing economic incentives to support MPA (Mascia the balance of coastal protection and resource use, and et al., 2009). global codes and conventions can help promote national action, e.g., SDG 14 (life below water). Governments Marine spatial planning (MSP) is a comprehensive “public face the challenges of harmonising and coordinating process of analyzing and allocating the spatial and temporal responsible agencies and interests, setting national policies distribution of human activities in marine areas to achieve and priorities, coordinating and integrating planning, ecological, economic, and social objective that are usually resourcing, implementing, monitoring and reporting. specified through a political process.” (IOC-UNESCO Locally led initiatives can also feed up into national policies Marine Spatial Planning Programme – http://msp.ioc- (see 6.3.3.3.3). unesco.org/). It evolved together with MPA developments (Katsanevakis et al., 2011), bringing together multiple users 6.3.3.3.1 Promoting integrated management of the ocean – energy, industry, government, conservation and recreation. Not an end in itself, intent of MSP is a Since the 1980s integrated coastal environment coordinated and sustainable approach to ocean use. management concepts have been a focus of academic Policy-relevant guidebooks have been developed to support attention (Merrie & Olsson, 2014). Conservation, implementation (e.g., Ehler & Douve, 2009). Despite good international and national organisations also have promoted, pilot cases and some success, a 2012 review concluded developed and piloted several related forms of integrated that: “Comprehensive MSP initiatives are relatively new marine and coastal management, especially Integrated and thus largely untested. In those that are underway, Coastal Management (ICM) and Sustainable Development in there appears to be greater emphasis on planning than on Coastal Areas (ICM/SDCA – http://www.pemsea.org/our- post-plan implementation” (Secretariat for the CBD and work/integrated-coastal-management/SDCA-framework), GEF, 2012, p.32). Furthermore, the requirements of cross- MPA, Marine Spatial Planning (MSP) (Ehler & Douvere, 2009) sectoral decision-making can be seen by line ministries and Ecosystem Based Management (EBM) (Agardy et al., as onerous and undesirable (Secretariat for the CBD 2011). MSP and MPA illustrate the challenges. and GEF 2012), although this is clearly very important in implementing the mainstreaming requirements of the CBD. MPA have been applied most commonly to fisheries and A further challenge is that the adaptable nature of MSP must special area conservation. Their effectiveness depends continually maintain a balance of ecosystem conservation on the economic conditions, governance and institutional and economic and social aims (Merrie & Olsson, 2014), contexts in which in which they are applied (Agardy et making frequent updates and adaptive responses al., 2011; Ban et al., 2013; IPBES, 2018c), their location necessary. National capacity to implement integrated (Mouillot et al., 2015), and local livelihood activities that are environmental stewardship can be affected also by the displaced by the MPA must be addressed (Cudney-Bueno relative powers of the ministries. In some governments, et al., 2009; Bennett & Dearden, 2014; IPBES, 2018d). environment ministries are newer and weaker compared to economic and central ministries (Jordan et al., 2010). Conversely, when MPA management incorporates biophysical, economic, and social characteristics of the Overall, the obstacles to implementation, longer time system, more sustainable fishing practices may result (Cinti frame for success, complexity of the integrated solutions, et al., 2010; Sciberras et al., 2015; Gill et al., 2017). and need to be responsive to changing externalities (e.g., climate change, new trade agreements, changing markets MPA and systems of interconnected MPA offer conservation for traditional products, etc.) all mandate that governance management options for both the short and long term, arrangements focus also on shorter term responsive action, for governments, private, NGO, and IPLC actors. The including sectoral in cases, to address the most immediate social and economic benefits of MPA can improve problems in a step by step approach. Nevertheless, community well-being via increased income from fisheries sectoral or local actions need to be nested with higher or tourism (McCook et al., 2010), and IPLCs can engage level institutions adjudicating on cross-sectoral trade-offs in stakeholder processes so that MPA benefit both people resulting from specific actions, such as those competing for and nature (Bennett & Deardan, 2014). The private sector coastal space: ports, urban development, fisheries, tourism, can contribute innovative financing for implementing and conservation. and enforcing MPA (Theile & Gerber, 2017). Rights- based approaches to MPA management and ocean Integrated management at the national and local levels: governance offer a promising option to strengthen MPA National governments, pivotal to integrating management and MPA Networks implementation (Bender, 2018). NGOs across scales and to negotiate international and regional have an important role to play in implementing MPA, agreements. Typically, an international agreement is the

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catalyst for national action, however avoiding piecemeal be more effective than formal external ones in promoting solutions is difficult since local and national levels actors management. In Indonesia, continuous traditional marine are continuously responding to accelerate social and management such as sasi laut and pangalima laut were environmental changes. On the other hand, localized more potent and likely to be obeyed than more modern solutions can be effective. For instance, while a global proclamations, e.g., of Marine Protected Areas (Harkes & instrument against plastic pollution will take time, national Novaczek, 2002; Wiadnya et al., 2011). In Sumatra with and sub-national actions are contributing to address well-conceived external support, even cases of corrupt the problem (Niaounakis 2017). National and state devolved authority could be turned around into local governments, for instance, can impose restrictions on the community advantage (Warren & Visser, 2016). sale and use of single-use plastic bags, for instance as did Chile in 2017 in restricting such items particularly in coastal 6.3.3.3.2 Mainstreaming nature conservation villages and towns. in sectoral management, with an emphasis on fisheries Decentralizing policies to sub-national and local governance have a direct impact on the type of coastal and marine National resource managers of coastal waters, private management. In the last three decades, coastal and marine sector enterprises, citizens and consumers can all play management has been affected by the opportunities a role to help prevent environmental damage, including and challenges caused by national re-organisations by protecting vulnerable areas, changing damaging associated with the devolution and decentralisation of manufacturing practices, sensitive land development, government powers to state, province or local government waste disposal and consumption patterns. Collectively, and community levels, requiring rapid capacity building these mainstreaming approaches are now being referred at sub-national levels. In Southeast Asia (e.g., Indonesia, to as ecosystem-based approaches to management Philippines and Vietnam) devolution models were embraced within specific sectors. Sectoral activities and policy often with varying results. Indonesia has received major World determine the conservation approaches but focus on Bank development and conservation support for community components of nature most closely linked to their sectoral and local government-based empowerment, and the activities. For example, fisheries experts have been early local outcomes covered the spectrum from responsible to diagnose environmental problems such as fish stock leadership, to elite capture, patronage networks, and overexploitation and bycatch, but less likely to focus on outright corruption (Warren & Visser, 2016). Another a seabird colony finding insufficient food because of a example of diverse outcomes of local level management fishery harvest. Effective governance is needed to ensure is the coastal cities in the Great Buenos Aires conurbation sectors do not prioritize resource uses to a level that risks (Argentina), comprising ten different jurisdictions at national, unsustainable practices. provincial and municipal government level. Responding to local politics and globalization pressures on competitive In addition to risk of overharvesting, the IPBES regional industries, decades of decentralization or federation efforts assessments for Africa, the Americas, Asia and Pacific, were resolved essentially in favour of decentralisation rather Europe and Central Asia found that fisheries conservation than metropolitan integration (Dadon & Oldani, 2017). is threatened also by other external threats, including many types of pollution, habitat destruction for industries and Successful short and medium-term sub-national human living space, invasive alien species from sources interventions can include small scale actions and projects including ballast water introductions, nutrient driven hypoxia, at sectoral or cross-sectoral level, as for this scale, sectoral jelly-fish blooms, and climate change. These problems call boundaries may not be so rigidly delineated. Technical for the joint effort of governance institutions from local, to projects, research institutes (as entry points for diagnosis, national, and regional, and even global. finding solutions, monitoring status) and community, including youth, engagement, are critical elements to the Managing the impacts of fishing and fish supply chains success of grassroots conservation. to conserve the target stocks and the environment has become a recognized environment priority, e.g., SDG Indigenous Peoples and Local Communities are central target 14.4 and Aichi target 6. One-third of marine fish to sub-national marine conservation action but vary stocks (including invertebrates) are fished at biologically significantly in terms of their capacities and needs to unsustainable levels, 60% at sustainable levels, and 7% manage marine resources under different types of underfished (FAO, 2018a). However, many marine fish pressures. Across the world, the position and contribution stocks are of unknown status, suggesting that estimates of IPLCs to coastal management vary significantly from about sustainable fisheries management may be over- areas where communities retain full control to various types optimistic (FAO, 2018a). Positively, there is evidence that of mixed arrangements, to complete deprivation of rights. stock rebuilding is occurring in countries including USA, Evidence demonstrates that local customary institutions can Australia, Namibia, Canada, and the European Union (FAO,

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2018a). However, evidence on ending overfishing and comprehensive environmental as well as human rights and rebuilding depleted stocks suggests that the successful equity principles. recovery of depleted marine resources depends possibly more on management of infrastructure and socio-economic “Balanced harvest” (Garcia et al., 2016) has been debated contexts than on having accurate stock assessments alone, as a possible approach to increase food from the sea especially if management measures that are suited to data- while maintaining sustainable fisheries but evidence on its poor fish stocks are used (e.g. IPBES, 2018c; Brodziak et effectiveness is lacking as it has not yet been implemented. al., 2008; Rosenberg et al., 2006; Caddy & Agnew, 2004; Garcia et al., 2018). To address sustainability through eliminating IUU fishing, countries and Regional Fishery Bodies should not only Despite evidence for the need to address overexploitation exercise effective fisheries management, but also implement from fishing, many countries and RFMOs have not fully strong surveillance capacities, e.g., Petrossian, 2015, (see implemented the extensive international legal framework, 6.3.3.2.1 and 6.3.3.1.1) and adequately invest in research including both hard and soft law instrument, referred to and technical capacity, for instance improving recognition of as the Code of Conduct for Responsible Fisheries and its illegal landing species and sizes (e.g., Romeo et al., 2014). instruments (FAO, 2012). The World Ocean Assessment (United Nations, 2017) proposed the following options: Customized options to reduce and eliminate bycatch and ending overfishing and rebuilding depleted stocks; discards are essential to minimize ecosystem impacts of eliminating IUU fishing; reducing the broader ecosystem fishing (Hall et al., 2017; Gladics et al., 2017; Gilman et al., impacts of fishing including habitat modification and 2016, Little et al., 2015; Broadhurst et al., 2012). National effects on the food web; reducing the adverse impacts measures to reduce the direct impacts of fishing on marine of pollution; and reducing the adverse impacts of mammals, sea turtles and seabirds have proven successful perverse subsidies. (Grafton et al., 2010). In fisheries for migratory species and in remote ocean areas like those in the Southern Ocean, A major challenge is that the options are highly context international inter-organizational collaboration is needed specific and need to be purpose built, albeit lessons can (Osterblom & Bodin, 2012). In addition to managing bycatch be learned from practice elsewhere and locally specific and discards, reducing the broader ecosystem impacts solutions involve opportunities for co-management. of fishing depends on establishing new and implementing Developed countries may use complex, data rich ecological- current MPA, and restoring critically endangered economic models (Nielsen et al., 2018), but the models, ecosystems (e.g., Kennelly & Broadhurst, 2002; Fourzai et management institutions and methods, e.g., catch shares, al., 2012). Adoption of the ecosystem approach to fisheries individual transferable quotas (ITQs), may not suit developing across countries has, according to FAO, been slow but has country and small-scale fisheries. Specific cultural and consistently moved forward (FAO, 2018b). ecological contexts are important for successful community- based fisheries management, making any model hard to Fishery subsidy reforms, which includes elimination of upscale (Poepoe et al., 2007), although local leaders, social harmful subsidies, decoupling subsidies from fishing effort, capital and incentives were found to be important (Gutiérrez re-orienting subsidies to management and technological et al., 2011). improvements, conditioning subsidies on fishery performance, and substitution of ongoing subsides for Communities making a living from small-scale fishing and buyback schemes (Cisneros-Montemayor, 2016; Tipping, coastal resources have often been ignored in national and 2016) are innovative attempts to redress current failures in international policy, despite their strong dependency on the interest of resource protection and sustainability. the resources (García-Quijano et al., 2015). Furthermore, assessments, including the present one, generally neglect Seafood certification and ecolabelling are economic to consider women’s role in this sector and thereby ignore instruments designed to change consumer seafood major unrecorded fish catches (Gopal et al., 2017). As demand for well-defined target species or fisheries well as women, policies need to consider the rights and whose sustainability is under threat, direct them to better concerns of Indigenous Peoples with respect to livelihoods, environmental choices, create market access, and provide equity and rights, participating and contributing knowledge incentives to improve fishing practices through price to fisheries and coastal ecosystem management (Capistrano premiums to producers (FAO 2018b). The uptake of these & Charles, 2012; Fisher et al., 2015). The 2015 Voluntary schemes has been much greater in developed countries Guidelines for Securing Sustainable Small-Scale Fisheries and is considered to have had the most important non-State in the Context of Food Security and Poverty Eradication positive impact on fisheries sustainability, but more efforts (SSF-VG) were developed to overcome the neglect of local are needed to increase its uptake and the lower barriers communities, indigenous and non-indigenous. Countries are to entry for developing country and small-scale fisheries encouraged to implement the SSF-VG, which incorporates (Gutierriz et al., 2016; FAO, 2018b). In view of the diversity

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of ecolabelling and certification schemes have developed, payment schemes for blue carbon; and in West Africa, for which FAO has established a Global Benchmark Tool. To mangrove conservation has progressed in a six-country date, only three fisheries and one aquaculture scheme have development project with local partners. been benchmarked. Several schemes are now addressing social standards but as yet these lack agreed performance 6.3.3.3.4 Building ecological functionality into norms (FAO, 2018b). As precursors to certification, fisheries coastal infrastructure improvement programs (FIPs) are important stepping stones towards sustainability (https://fisheryprogress.org/). Given the inevitability of future coastal infrastructure development, it is vital that decision makers consider the Certification and ecolabelling have had a major positive ecological functions of coastal ecosystems from the start impact on improving fisheries sustainability and, for (Daffron et al., 2015). Altered and damaged ecosystems developed counties, may be the most important recent are difficult to restore or rehabilitate, or not politically or non-government fisheries management initiative. Evidence economically feasible. Maintaining and managing natural shows that support of governments and other fisheries system by removing stressors such as pollutants may be actors are essential for fisheries certification (Gutierrez et al., a fraction of the costs of restoration (Elliot et al., 2007). 2016). Controversy over certificate standards and questions In some cases, however, created ecosystems may even over accountability for the certification machinery and be culturally preferred. With the rapid increase in created decisions have arisen (Miller & Bush, 2015; Gulbrandson & coastlines, especially around urban areas, ecosystem Auld, 2016). In addition, certification has had only modest rehabilitation, increasing attention has been paid to success so far in including developing countries and small- remediation and multi-purposing coastal structures such as scale fishers and producers. A further challenge is that only breakwaters and marinas. some consumers are yet willing to pay more for certified seafood (FAO, 2018b). 6.3.3.3.5 Engaging NGOs, industry and scientists as stakeholders to achieve common 6.3.3.3.3 Scaling up from sub-national project ecological and social good outcomes pilots Across countries, interpretations and awareness of the National agencies, including government science and importance of conserving nature and its contributions to management agencies, play key roles identifying, people in the oceans are diverse and dynamic, although a diagnosing, researching and developing technical projects growing degree of convergence is emerging as a result of and pilots on marine biodiversity conservation, often local social movements, global environment conventions following specific sub-national cases, such as Australian and agreements, scientific efforts, and environmental efforts to sustainably manage competing uses of the Great advocacy. New national and local environmental NGO are Barrier Reef Marine Park (Merrie & Olsson (2014). emerging, creating greater and more distributed demands for conservation action. For instance, large international Scaling up is the challenge for sub-national initiatives. NGO have set up national branches and joint ventures in In Asia, the PEMSEA partnership has demonstrated the many countries, bringing their own concepts and values feasibility of building on small scale local success. For and adapting them to local circumstances and channels of example, in Batangas, Philippines, efforts spread from five influence. Although the translations do not always work, with local authorities to 34, covering the watershed and coastal time and experience, the short-term actions can mature to areas of the whole province (http://www.pemsea.org/our- more appropriate forms for local ecosystems and species, work/integrated-coastal-management/ICM-sites). By 2021, values and knowledge, e.g., national versions of seafood ICM is expected to reach 25% of the East Asia region’s consumption guides. coastline using the PEMSEA model that has performed well in East Asia, as national governments collaborate towards Powerful industry players may obstruct and even capture a regional strategy. The work starts at the local government the political processes, e.g., port infrastructure, shipping, level, rather than relying on national policy to initiate action. industrial fishing, tourism and real estate (Jenkins & Like other integrated approached, ICM relies on networks of Schröder, 2013; Bavinck et al., 2017), but industry experts reaching out to interested local actors, having also actors are also highly relevant to finding solutions. attracted attention from international donors. Options to involve private interests include corporate social responsibility, market-based instruments such as Successful examples of local governance, albeit with certification (e.g., seafood certification, 6.3.3.3.2) and best external support in most cases, are described in the IPBES practice in fisheries and aquaculture production methods regional assessments. For instance, since 2005 in the (Jenkins & Schröder, 2013). In the case of coastal hypoxia Pacific region, locally managed marine areas have grown in caused by nutrient loading, more attention is needed to number; in Madagascar, the NGO Blue Ventures is piloting engage sectors responsible for the largest point-source

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nutrient emissions (farmers, intensive livestock producers, status and scope of legal rights governing access to water agricultural chemical and fertilizers companies) in policy (McCaffrey, 2016; Murthy, 2013). It is critical to understand decision-making, remedial action, educational programmes the combination of options and instruments that can and training sessions (STAP, 2011). be designed to meet policy objectives and allocations arrangements (WWAP, 2015; OECD, 2015). In the short- Marine assessment processes provide opportunities for term, a clear legal status needs to be in place for all management agencies, research institutes, NGO and types of water, such as surface water, groundwater and other citizen groups to assess and report the status of wastewater along with a clear indication of the ownership nature and its contributions to people, to identify issues and user rights and polluter duties. Such a legal regime will and suggest solutions. International collaboration on enable the responsible authority/ies to determine the level assessments and standards can enable national status of access to be given to various users, monitor the losses reports to be shared and information to be aggregated and in water distribution, impose sanctions such as fines or compared regionally and globally. In addition to international penalties, and determine the response measures in cases government organization assessments, such as the World of exceptional circumstance, such as drought and severe Ocean Assessment, NGO and privately funded systems can pollution (Ring et al., 2018; Acosta et al., 2018; Stringer et contribute to collaborative efforts such as the Ocean Health al., 2018; Scarano et al., 2018; WWAP, 2015). Index (http://www.oceanhealthindex.org/). In many countries, environmental flow allocations continue to be used as a surrogate for the protection of Indigenous 6.3.4 Integrated Approaches for Peoples and Local Communities’ interests in water Sustainable Freshwater management (e.g., NWI, 2004; DoW, 2006), with little or no consideration for IPLC customary rights of freshwater Freshwater ecosystems include rivers, lakes, reservoirs, resources in water allocation decisions (Finn & Jackson, wetlands and groundwater systems. The options for 2011; Bark et al., 2012; Jiménez et al., 2015). Low decision makers discussed under this section are based representation of IPLCs in water resource decision-making on SDG6 (clean water and sanitation) and several Aichi has often led to conflicts and disagreements over values and Biodiversity Targets (ABTs). Population growth, climate management priorities, which have often been aggravated change, increasing demand for water, institutional policies, by clashes between market-based instruments and local and land-use change – all interact to determine available customary rights (Boelens & Doornbos, 2001; Boelens & water supply and use (Liu et al., 2013). Short and long- Hoogendam, 2001; Trawick, 2003; Jiménez et al., 2015) term options to manage water need integrated and (Also see Supplementary Materials 6.3). adaptive governance that reduce pressures on water, encourage nature-based solutions and green infrastructure, This section presents both short and long-term options for and promote integrated water resource management decision makers that contribute to integrated approaches to as well as considerations of water-energy-food nexus freshwater governance (Table 6 5). . (WWAP/UN-Water, 2018). Adaptive measures include rainwater harvesting, improved pasture management, 6.3.4.1 Improving water quality water reuse, desalinations and more efficient management of soil and irrigation water, among others (Jiménez et Setting clear water quality standards: Improved water al., 2014). Inclusive and informed approaches to water quality standards are essential to protect both nature and governance open up opportunities for stakeholders human health, by eliminating, minimizing and significantly with diverse interests to be involved in making decisions reducing different streams of pollution into water bodies that are integrated, adaptive, resilient, innovative and (SDG6) including river basins (Figure 6 .4). Command and responsive (WWAP, 2018; Ison & Wallis, 2017; Razzaque, control regulations such as end-of-pipe control, quality 2009; Pahl-Wostl, 2007). Transformational change requires standards and discharge permits have a significant role to a move away from the business as usual approach and play to reduce point source pollution (e.g., wastewater from puts emphasis on the recognition and integration of households, commercial establishments and industries) multiple values, including intrinsic and relational values, (Kubota & Yoshiteru, 2010; UNEP, 2016; OECD, 2017; in water management (WWAP/UN-Water, 2018; Bartel et WWAP, 2017; WWAP, 2012). A strong and transparent al., 2018). implementing authority with necessary technical and managerial capacity as well as provisions on access to The complexity of water resources is reflected in its status information that benefits implementation and enforcement as an economic good as well as a public good (CESCR, processes would benefit such regulatory measure (UN- 2003; Griffin et al., 2013; Whittington et al., 2013). It is Water 2015b). In addition, mitigation of the impacts of well established that challenges to water management pollution from non-point or diffuse sources (e.g., run-off from are aggravated as there are ambiguities in relation to the urban and agricultural land) requires ecological responses,

931 CHAPTER 6. OPTIONS FOR DECISION MAKERS

Table 6 5 Options for integrated approaches for freshwater governance.

Short-term Long- Key obstacles, potential Major decision maker(s) Main Main options term risks, spill-over, unintended level(s) of targeted options consequences, governance indirect trade offs driver(s)

Improving water quality

Setting clear water • Identification of non-point National sub-national and National, Institutions, quality standards; sources local government, private sub-national, governance, data gathering & • Lack of managerial and technical sector, IPLCs, civil society local technological monitoring capacity

Collaborative initiatives and IPLC • Lack of adequate monitoring; Global, regional, national All Institutions, monitoring • Lack of adequate or effective government, private sector, governance remedial action IPLCs, civil society, donor agencies, science and education organisations

Technological advances • Lack of quality standards Regional, national All Economic, • Lack of institutional and financial government, private sector, technological capacity donor agencies, science and education organisations

Strengthening • Lack of compliance monitoring Global, regional, national All Economic, standards for • Lack of enforcement government, private sector, institutions, corporate sector donor agencies, NGOs governance

Managing water scarcity

Water abstraction • Abstraction charge may not National sub-national, local National, Institutions, charge reflect the environmental cost and government; IPLCs, private sub-national, economic, vulnerability of local population sector, citizens (households, local governance, consumers), community demographic groups, farmers

Restrict • Lack of management plan for National, sub-national, local, National, Economic, groundwater groundwater private sector, IPLCs, citizens sub-national, institutions, abstraction • Lack of (or weak) ownership right (households, consumers), local governance . of groundwater community groups, farmers demographic • Lack of monitoring of data • Lack of policies harmonising groundwater with energy, agriculture and urban development policies

Water efficient • Lack of access to water efficient National, sub-national, local, National, Technological, agricultural technologies for agriculture and private sector, farmers, IPLCs sub-national, institutions, practices optimized irrigation systems local governance, • Lack of technical assistance and economic finance

Engaging stakeholders

Integrated, rights • Weak (or lack of) transparent National, sub-national, local National, Institutions, based, and process to identify relevant government; private sector, sub-national, governance, participatory stakeholders civil society, IPLCs, donor local cultural approach to water • Weak provisions to access agencies, science and management information by stakeholders education organisations • Ineffective participation of all stakeholders including IPLCs • Weak (or lack of) a right based approach to protect water resource • Inadequate regulatory framework to support custodianship and open access

932 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Use of economic instruments

Payment for water ecosystem • Lack of quantifiable environmental National, sub-national, local National, Economic, services objectives at the watershed level government, civil society, sub-national, institutions, • Lack of evaluation of IPLCs, private sectors, donor local governance environmental additionality agencies • Lack of monitoring of ecosystem services outcomes

Improving investment and financing

Public private partnership • Ineffective regulation, monitoring National and local All Economic, • Lack of consideration of ILK and governments; civil society institutions, IPLC cultural values including communities, small governance farmers, workers, women, and IPLCs . Agribusiness, mining companies, finance capital, and international financial institutions

Promoting Integrated Water Resource Management

Fostering polycentric governance • Fragmentation of instruments and National and local Regional, Economic, institutions governments, IPLCs, Civil national, sub- governance, • Complexity of issues Society, private sectors national, local institutions • Reluctance to move beyond traditional methods

Facilitating integration across • Acknowledge water-food-energy National and local Regional, Economic, sectors nexus governments, IPLCs, Civil national, sub- governance, • Broadening the knowledge base Society, private sectors national, local institutions, technological

Harness international normative • Lack of compliance and National and sub-national Regional, Economic, framework implementation government national, sub- governance, national, local institutions

Encouraging transboundary water management

Implementing international law • Lack of political will • Treaty Secretariats Global, Economic, norms and basin treaties • Fragmentation • National and Supra- international, institutions, national governments national governance, • Lack of funding regional • Lack of implementing • Non-state actors such as conflicts mechanisms and institutions NGOs, private sectors, individuals

Addressing fragmentation • Lack of political will Treaty secretariats, National Global, Governance, • Lack of implementing institutions supra-national governments regional, institutions national

Strengthening participatory tools • Lack of information Treaty secretariats, Global, Governance, • Lack of effective consultation and national and supra-national regional, institutions participation; governments national • Weak institutions to promote co- decisions • Lack of monitoring

and education and awareness programmes (OECD, 2017). Collaborative initiatives: The countries with shared A basin wide programme can play a positive role in reducing water may develop and enforce water quality standards run-off from agriculture (UNEP 2016; GEO6 Freshwater). through international or inter-state agreements (GEO-6 Moreover, nature-based measures on water purification, Freshwater, 2017). Agreements managing transboundary soil erosion, urban stormwater run-off, flood control can water can identify highly contaminated sites, develop and effectively promote green infrastructure (WWAP/UN Water implement remedial action and monitoring, and contribute 2018; Also see section 6.3.5.3). to measurable improvements in the water quality (GEO-6,

933 CHAPTER 6. OPTIONS FOR DECISION MAKERS

No data Low (0-2) Moderate (2-5) Elevated (5-15) High (>15) 2000-2005 BASE PERIOD

No data Low (0-2) Moderate (2-5) Elevated (5-15) High (>15) 2050

Figure 6 4 Water quality risk indices for major river basins. Water quality risk indices for major river basins during the base period (2000-2005) compared to 2050 (Veolia & IPFRI, 2015, fi g .3, p .9) .

Freshwater; UNEP, 2016). Well-defined and collaborative al., 2015; Bradford et al., 2017) different IPLC groups are international commissions (e.g., Rhine Action programme) engaging, or even initiating community-based monitoring of or national institutions (e.g., London River Action Plan, 2009) freshwater quality (Deutsch et al., 2001; Benyei et al., 2017), can reduce fragmentation of water management and provide although evidence on the effectiveness of these initiatives is a valuable platform for all relevant actors within the river still largely lacking. basin (UNEP, 2016). Such international (e.g., Danube river, Black Sea) and national as well as local collaboration (e.g., Technological advances: Options targeting the treatment ‘River Chief’ system in China, Wang et al., 2017) to set water of wastewater and water reuse include pollution prevention quality standards can help ensure that financial resources are at the source (e.g., industries, agriculture), treatment of spent in the most effective way (UNEP, 2016; WWAP, 2017). polluted water, safe reuse of wastewater, and the restoration and protection of ecosystems (UNEP, 2016; WWAP, 2017; IPLC monitoring: The intimate connection that WWAP, 2012). The discharge of untreated wastewater can IPLCs maintain with their freshwater bodies, through have severe impacts on human and environmental health, intergenerational transmission of knowledge and practices, including outbreaks of food-, water- and vector-borne puts them in a privileged position to closely monitor water diseases, as well as pollution and the loss of biological quality (Sardarli, 2013; Bradford et al., 2017; see chapter diversity and ecosystem services (WWAP, 2017). The 2.2). In many IPLC worldviews, water is a spiritual resource collection of wastewater and applying appropriate levels of (e.g., the lifeblood of Mother Earth) that must be respected treatment for other uses or discharge into the environment and kept clean (Mascarenhas, 2007; Collings, 2012; can be improved with quality standards and regulations Basdeo & Bharadwaj, 2013; Weir et al., 2013; Morrison for incoming wastewater streams and outgoing treated et al., 2015). Given that pollution poses important threats wastewater (WWAP, 2017; OECD, 2017). In addition, it is to many IPLC livelihoods and cultures (e.g., Orta-Martínez well established that sufficient institutional capacity and et al., 2007, 2017; Kelly et al., 2010; Harper et al., 2011; financing are required to build wastewater treatment plants in Huseman & Short,2012; Nilsson et al., 2013; Jiménez et developing countries and emerging markets (WWAP, 2017).

934 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Data gathering and monitoring: Although there are for policy makers is to put water rationing measures to attempts to gather water related global monitoring data reduce freshwater usage. Water authorities and government (WWAP, 2017; WWAP, 2012), it is well established that there may decide to promote water rationing as an emergency is a lack of data relating to water quality and wastewater measure or as part of a legal water right (GEO6 Freshwater management, particularly in developing countries (UN- 2017). Option such as water abstraction charge (or water Water 2015a) and most notably, in areas inhabited by IPLCs resource management charges) commonly targets industrial (Nilson et al., 2013; Bradford et al., 2017). Policies that users, agriculture, hydropower producers, domestic users promote holistic assessment of water including gathering of and energy production (OECD, 2015), but the charges data on water quality and cycle can inform decision-making may not lower water consumption (Finney, 2013; Kraemer, and increase understanding on how to manage water and 2003a). To mitigate the negative impacts of any water ecosystem services sustainably (UNEP, 2016; WWAP, 2012; allocation reform, the decision makers may need to find a WWAP, 2015). balance among divergent interests (Finney, 2013; Rogers, 2002). Abstraction charges for large scale usage of surface Strengthening standards for the corporate sector: and groundwater can be an option to allocate and use There will always be trade-offs between business needs water more efficiently. However, such abstraction charge and targets. Better understanding is needed between needs to reflect the environmental cost and vulnerability of long-term approaches to meet global goals and short-term the local population (Finney, 2013; OECD, 2017b; Kraemer approaches chosen by companies. There is opportunity et al., 2003a). to develop and strengthen voluntary standards that comply with international best practices (e.g., CEO In addition, coherent policy across sectors such as water, Water Mandate’s Integrity Guidelines and Framework, energy, climate change and agriculture is needed so that International Water Stewardship Standard, European Water policy reform in one sector does not encourage over- Stewardship Standard), IFC Performance Standards on consumption of water resources (FAO, 2014; Bazilian Environmental and Social Sustainability and SDG6. These et al., 2011; Olsson, 2013; Benson et al., 2015). In the voluntary standards aim to enable business and their short-term, e.g., modifications in the land use policy may supply chains to comply with the voluntary standards. encourage conservation of water through the use of water Recently, the global corporate reporting standards for water efficient agricultural practices, optimized irrigation systems, have been revised to measure water consumption and improved crop varieties, rainwater harvesting and floodwater withdrawal in water stressed areas more efficiently (GRI storage, and discourage agricultural runoff and water loss 303: Water, 2018). Such reporting standards aim to enable in the regions with water scarcity (Reddy et al., 2018; the corporate decision makers to assess the impacts of OECD, 2015). Greater policy coherence will play a crucial their activities on water and how to sustainably manage role to reduce negative economic, social and environmental the resource. Increasing trade of ‘virtual water’ has led to externalities; however, such coherence is vital for better competition with local water users and exacerbated the coordination among decision makers and increased need for inclusive and informed water governance (Sojamo collaboration among stakeholders (Rasul, 2016; FAO, 2014; et al. 2012; Sojamo & Archer 2012). Indeed, several Hussey & Pittock, 2012; Benson et al., 2015). certification schemes include water use and water pollution related issues (e.g., GlobalGap, MPS-ABC, the Rainforest Option such as desalination of water is used in arid west Alliance, IFOAM, Alliance for Water Stewardship). These Asian countries and US (e.g., California) and resulted in certification schemes are not without criticisms such as increased investment in new desalinization plants (West lack of transparency, exclusion of stakeholders, negligible Asia Regional GEO-6, 2017; North America GEO-6, 2017). environmental benefits, and poor monitoring. The challenge Solar desalinization is an alternative that is being applied is to ensure that the certification schemes do not create in several small island states (GEO-6 Freshwater, 2017). unequal allocation of water between export-oriented There are trade-offs involved as desalination projects companies and local water users’ communities and respect require large amounts of energy and ‘produces highly local and customary water rights. concentrated brine’ (OECD, 2017) which can negatively affect coastal ecosystems (WWAP, 2017). Thus, the 6.3.4.2 Managing water scarcity efficiency of the desalinization projects is contested and inconclusive. Water scarcity is common throughout West Asia and Asia Pacific regions, and in arid parts of Africa and the Restrict groundwater abstraction: Groundwater Americas (GEO-6 Freshwater, 2017). Water scarcity leads abstraction has risen sharply over the last 50 years (Shah to droughts, soil degradation, excessive extraction of et al., 2007) and groundwater pollution has degraded groundwater and loss of wetlands with negative impacts groundwater dependent ecosystems (FAO, 2016a, b; on nature and NCP (WWAP/UN Water, 2018; CBD, 2015; Wada, 2010; Foster, 2013). Surface water and groundwater Wetlands International, 2010). In the short-term, one option are closely linked and should be managed conjunctively

935 CHAPTER 6. OPTIONS FOR DECISION MAKERS

(Foster, 2011). It is well established that there is a need incentives can be integrated into national water supply for better data regarding existing groundwater resources schemes (WWAP, 2017; Hanjra et al., 2015). Consulting including their recharge, use and discharge rates (UNEP, with various water users and engaging them in monitoring 2012; Pandey et al., 2011). As for options, first, in the and performance assessment can help the decision short-term, a management plan on groundwater or both makers to decide the preferred reform options for water surface and groundwater may clearly set out a framework management, recognise multiple values and gain a better for groundwater allocation and may contain water quality understanding of the preferences of different waters users and salinity management plan (OECD, 2017b; OECD, 2015). (Megdal et al., 2017). Second, another short-term approach would be to adopt the rights-based approach to manage water (including Greater engagement of IPLCs in water governing bodies groundwater) that may strengthen the provisions on such as through negotiated agreements (Jackson & Barber, ownership of water, user rights and customary rights, rules 2015) can serve a purpose in incorporating IPLC social, related to pollution control and roles and responsibilities spiritual and customary values in water management (King of competent authorities (WWAP, 2015; Winkler, 2012; & Brown, 2010; Finn & Jackson, 2011; Barber & Jackson, Misiedjan & Gupta, 2014; Mechlem et al., 2016). Third, 2012), as well as local ecological knowledge (Weir et al., collection and monitoring of data are even more crucial for 2013; Escott et al., 2015). For example, native title law in groundwater management due to the interconnected nature Australia recognizes Aboriginal rights and cultural values of surface and groundwater and the need for monitoring of water, requiring environmental flow requirements for groundwater abstraction is well established (Custodio, 2002; indigenous values in water plans (Jackson & Morrison, Konikow, 2005; Shah et al., 2000; FAO, 2016). However, 2004; Jackson & Langton, 2011; Jackson et al., 2014). such monitoring will require installation of water meter and More specifically, adaptive water management regimes have tracking of water usage and consumption and monitoring been shown to be effective in accommodating IPLC water aquifers is technologically demanding and costly (OECD, entitlements and greater participation of IPLCs in multi- 2017b; Van Geer, 2006). Fourth, groundwater allocation stakeholder water governance (Bark et al., 2012), which needs to be coherent with policies in other sectors such may include greater roles of IPLCs in market-based water as energy, agriculture and urban development so that trading and management mechanisms, where they currently subsidies in one sector do not lead to overconsumption of play a minor role (Jackson & Langton, 2011). groundwater (Varady, 2016; Hussey & Pittock, 2012; Alley et al., 2016). Non-governmental organisations can play a role in the formulation of river trusts to protect certain species or 6.3.4.3 Engaging stakeholders pollution event and manage the water catchment (e.g., Severn Rivers Trust in the UK). Success of this type of Engagement of stakeholder includes integrated and arrangement depends on the voluntary participation of participatory approach to freshwater management and communities to reach local solutions. Such trust, as a helps the decision makers to identify innovative and custodian of the waterways, can work with its partners equitable solutions (Varady, 2016). For river basins and and volunteers to look after the heritage and wildlife on the water catchments management, multi-level collaborations canals and rivers for present and future generations (e.g., of government bodies, multi-stakeholder engagement UK Canal and River Trust, 2015). and partnership of various water users at the local level remain crucial (Megdal et al., 2017). Instead of ‘top down’ Along these lines, there is a growing trend towards the policies, it is well established that ‘bottom up’ policies recognition of the rights of rivers, as part of a broader connecting decision makers and water users promote movement promoting the rights of nature (Pacheco, 2014; informed decisions, enhance effectiveness of decisions, Akchurin, 2015; Díaz et al., 2015; Borràs, 2016; Demos, and reduce conflicts among water users (Varady, 2016; 2015; Humphreys, 2016). For instance, by granting legal UNEP, 2016; WWAP, 2017). For example, comprehensive personality to the Whanganui River, the Government treatment of wastewater is generally undertaken at the of New Zealand found an innovative way to honor and local level. Therefore, stakeholder engagement (e.g., respect the Maori traditional worldviews that see the through communication, consultation, participation, river as “an indivisible and living whole”, as well as the representation, partnership, co-decision) and motivation its associated traditional customary institutions for river for compliance remain crucial for any local policy measure governance (Te Awa Tupua (Whanganui River Claims (Akhmouch & Clavreul, 2016). In addition, any such local Settlement Act, 2017; Archer, 2013; Strack, 2017). The measure will need to be adapted to economic inequalities, legislation recognizes the river as a “living entity” and local circumstances, ecosystem needs, competing uses establishes a co-management regime for collaborative of water and culturally acceptable practices (WWAP, water governance with the Whanganui River Iwi, an 2017). To increase the use of treated wastewater at the indigenous community with cultural ties to the river national level, quality standards along with financial or legal (Hutchison, 2014; Tanasescu, 2015).

936 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

6.3.4.4 Use of economic instruments effective remain a critical one. First, as stated above, impact evaluation systems (and their costs) should be There are a range of economic instruments that guide considered in the design of schemes. The establishment of the water sector including tradeable quotas, abstraction an impact evaluation system should be considered as an charges, payment for ecosystem services (PES), license inherent part of PES design. Win-win outcomes from PES fees, biodiversity offsets, and subsidies (UNEP 2007; should not be taken for granted. Indeed, over-reliance on Grafton 2011). payments as win-win solutions may lead to disappointed results (Muradian et al., 2013). Second, in order to enhance Currently, Latin America is the region that counts with more legitimacy, the possibility of the existence of multiple values cases of implementation of PES dealing with the protection should be acknowledged in the design, implementation and of watershed services (Brauman et al., 2007; Brouwer et al., evaluation of PES schemes. The socioeconomic outcomes 2011; Grima et al., 2017; Martin-Ortega 2013; Stanton et al., of the payments might have different meanings to different 2010). State-led programs constitute the majority of these social groups. Third, the assumptions about the relationship schemes. Studies assessing the effects of the PES on water between land use and the provision water-related ecosystem flows or quality are basically non-existent, in part due to the services should be derived from empirical evidence. Fourth, methodological difficulties and costs that entail to carry out the management of the scheme should follow adaptive such type of analyses (Alam 2018; Salzman 2018). Most of and dynamic principles, based on knowledge generation PES dealing with water-related ecosystem services are based and incorporation into the design and implementation. Any on empirically untested assumptions about the relationship social-ecological system is dynamic, and the effectiveness of between land use and the condition and flow of water interventions is dependent on the capacity of managers to resources. However, such relationships are complex, and follow and be responsive to changes. generalizations are difficult to hold (Scott et al., 2004; Sun et al., 2017). Reviews on PES in watersheds have found that 6.3.4.5 Improving investment and most of them are unable to demonstrate impacts on water- financing related ecosystem services (Brouwer et al., 2011; Yan et al., 2018). In general, the lack of evaluation of environmental The targets of SDG 6 and the related Aichi Biodiversity additionality is a pervasive problem in PES (Pattanayak et Targets (2, 7, 8, 11, 14, 15) require investment in hard al., 2010), though there have been recent advancements infrastructure, such as water- and wastewater- treatment (Jayachandran et al., 2017). The lack of enforcement of plants, reservoirs, pipes, and sewers; and investment conditionality, monitoring of ecosystem services outcomes in service systems, including enforceable legal rights, and evaluation of impacts are reported as recurrent caveats democratic accountability, research and support for local of PES design (Ezzine-de-Blas et al., 2016). communities and small farmers. The key decision makers for these public goods can be categorized as (A) national and Considerable knowledge gaps still remain with regards local governments elected by the people of the country; (B) to several subjects in PES schemes implemented in organisations including indigenous and local communities, watersheds: (a) How to address the uncertainties associated small farmers, workers, women, and ethnic groups. In with the relationship between land use and the provision of parallel there are others pursuing private or market goods, hydrological services; (b) The extent to which PES schemes including (C) agribusiness, mining companies, finance are inducing additional effects not only in land use practices capital, and international financial institutions. There are but also on the conditions of water resources; (c) How conflicts of interest between these groups in relation to different payment modalities influence rules about the choices for financing investment. management of common pool resources, such as water; and (d) The long-term relational and behavioural implications of It is well established that investment in wastewater the payments among the involved stakeholders, particularly treatment needs to be combined with regulation, monitoring relations between agents along the watersheds. In addition, and enforcement (WWAP 2017; OECD 2017a). Leaving the next generation of studies should pay more attention to ownership and investment to market mechanisms leads how to deal with the trade-offs that arise between pursuing to land and water ‘grabs’, (Woodhouse 2012; Mehta et al. ideal design principles, on one hand, and transaction costs 2013), and to price hikes for water and sanitation services and the need to reconcile different policy goals, on the (Chong et al., 2006). Thus, business and international other. Attention should be also given to the profile of PES financial institutions (group C) have advocated the use of participants, which has important implications for impact private finance, reinforced by international public sector assessment (Grillos 2017; Jack & Jayachandran 2018). agencies, to select suitable projects for commercial viability, with public benefits emerging as externalities (Serageldin Since the effects of PES schemes on water-related 1995; Marin 2009; McKinsey 2009). This includes the ecosystem services remain largely uncertain, the issue of consistent promotion of Public Private Partnerships what can decision makers do to make these interventions (PPPs) as a vehicle for financing investment required for

937 CHAPTER 6. OPTIONS FOR DECISION MAKERS

the SDG. PPPs can help incentivize and even co-finance 2012; Nikolakis et al., 2013; MacIean & The Bana Yarralji the wastewater sector and promote small- and medium- Bubu Inc. 2015) have been deemed as key enabling factors scale entrepreneurs (WWAP 2017; Murray et al., 2011). for fostering effective IPLC participation in water governance However, benefits arising from PPP projects in the water (Escott et al., 2015). sector are contested and the need to integrate social and environmental considerations in the PPP is well established 6.3.4.6 Promoting Integrated Water (Martin 2009; Stringer et al. 2018). Sustainable financing for Resource Management water pollution may benefit from a mix of economic policy instruments that promote an efficient allocation and use of Fostering polycentric governance: Particular institutional water and reduce water pollution (UNEP 2016) challenges of catchment-level governance are the reluctance of existing power structures to devolve authority Actual private investment in water, wastewater and other (Jager et al., 2016; Moss 2012; Ring et al. 2018) and infrastructure has failed to meet expectations, and has to move beyond specific pollutants to more systematic been almost negligible in lowest income countries (Clarke governance. Implementation of the Water Framework Annez 2006; Foster & Briceño-Garmendia 2010; Gleick Directive (WFD) illustrates how many member states 2014; Hall & Lobina 2006). Public sector investment, have maintained existing structures and procedures while financed by both tax revenues and utility surpluses, has resisting the transfer of power to new river basin authorities been the key to development of water infrastructure both in (Jager et al., 2016; Ring et al. 2018). Failure to implement high income countries, including France, and in developing plans also often compromises the delivery of WFD countries, where the MDG for drinking water was met objectives (Voulvoulis et al., 2017). Implementing polycentric ahead of target (Foss-Mollan 2001; Pezon 2009; Hall & governance remains a key option. For example, the South Lobina 2012). For governments and civil society (groups A African National Water Act (1994) aims to adopt a system and B), public finance is more susceptible to democratic of polycentric governance at the level of 19 Catchment accountability and control. Formal techniques, such as Management Authorities. While the approach has seen cost-benefit analysis, have been used for many decades some of the challenges of devolution discussed above, it to evaluate government decisions on investment in water has been successful in addressing cross-sectoral integration resources, water supply and sanitation (Haveman 1965; (Muller 2012; Stringer et al. 2018). Gunter & Fink 2010). Facilitating integration across sectors: IWRM enables Investment by small farmers, especially with public sector decision makers to move beyond single-issue policies. support, can result in more sustainable and biodiversity Linking land-use and water planning for example has sensitive investment in irrigation (Xie et al., 2014; Woodhouse resulted in large urban populations gaining access to et al., 2017; Fraiture & Giordano 2014) and public sector water and sanitation (GEO6 H20 chapter; PanEurope investment in irrigation can successfully reflect economic and GEO6; North American GEO6; LAC GEO6). Understanding resource factors (Rosegrant & Pasandaran 2016), whereas telecouplings between distant natural and human systems the use of market mechanisms by raising prices impacts are an important option for holistic approaches to managing farmers’ income without improving efficiency (Varela-Ortega complex socio-ecological systems (Liu 2013; Liu 2015). et al., 1998). Meanwhile, Natural Capital Accounting could Consideration of the Water-Food- Energy nexus contributes provide an option for the efficient use of scarce natural to taking telecoupling between distant and local drivers resources. The WAVES partnership, for example, has of change into account when implementing IWRM (e.g., supported Botswana, Madagascar and Rwanda to develop Stringer et al. 2018). In addition, such integration would accounting methods which include natural capital (Waves benefit from the application of social science research to Partnership 2013; Stringer et al. 2018). enable greater inclusion of knowledge from policy and political science and public administration and provide IPLCs have often expressed that engagement in water important insights into watershed governance (Sabatier et management is generally limited to consultative capacity al., 2005; McDonnell 2008; Cook & Spray 2012; Lubell & through ineffective representative processes (Behrendt & Edelenbos 2013). Thompson 2004; Hunt et al., 2009). The development of partnerships optimizing IPLC participation offers substantial Harness international normative framework: Adoption opportunities for greater IPLC engagement in water of integrated watershed, catchment and river basin management (Tinoco et al., 2014; Escott et al., 2015; management strategies is emphasized as one option to Jackson & Barber 2015). Capacity building relevant to water maintain, restore or improve the quality and supply of resources management (Jackson & Altman 2009; Hoverman inland water resources (CBD COP Decision IV/4 (1998)). & Ayre 2012), financial support to allow for participation The UNECE Water Convention on the Protection and Use (Jackson et al., 2009; Escott et al., 2015) and greater of Transboundary Watercourses and International Lakes consideration of ILK and IPLC cultural values (Mooney & Tan (1992) requires parties to take “all appropriate measures”

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to conserve and restore ecosystems (Article 2). These of integrating sectorial policies to avoid perverse include the establishment of water quality objectives and outcomes (European Commission for Europe 2011). The criteria, conservation and restoration of ecosystems, UN Watercourses Convention and the UNECE Water and development of concerted action programmes for Convention are the two main international Conventions the reduction of pollution. The Ramsar Convention on governing the management of transboundary water Wetlands (e.g., Resolution VIII.16, 2002) also emphasizes resources. Both are in force, open to all countries and the importance of restoration and the inclusion of multiple mutually reinforcing (McCaffrey 2014). Rieu-Clarke actors including private landowners, NGOs, and IPLCs in and Kinna (2014) therefore recommend a ‘package wetland restoration planning and implementation (WWAP- approach’ and three institutional options for States to UN Water 2018). A key option for riparian governments and address fragmentation while simultaneously implementing NGOs is to harness the international normative framework both Conventions. The first option suggests that the to implement national and watershed scale measures. UNECE Secretariat would be responsible for servicing This includes the development of legal instruments and both Conventions. The second envisages two parallel policies for controlling alien species and wetlands restoration institutional frameworks where each Convention has its – e.g., the Working for Water (WfW) programme pays own Secretariat. The final option is to maintain the status actors to remove invasive alien species in South Africa quo where contracting states would not need to make any while enhancing the capacity and commitment to solve amendments to the two existing Conventions. invasive species issues (https://www.environment.gov. za/projectsprogrammes/wfw). (See section 6.3.2.5 for Strengthening participatory tools: Data sharing ecosystem restoration). provisions within transboundary agreements is an important option for enhancing effective transboundary water resource 6.3.4.7 Encouraging transboundary management. Even where data is shared, concerns often remain over their veracity (Turton et al., 2003; Timmerman water management & Langaas 2004; Grossmann 2006; Armitage et al., 2015; The IWRM options (section 6.3.4.6) are also applicable to Gerlak et al., 2011). Conversely, data and information can the transboundary context. In addition, further options are facilitate transparency and trust which in turn enhances set out below. compliance (Young 1994; Burton & Molden 2005; Gerlak et al., 2011). In addition, improved stakeholder engagement Implementing international law norms and basin and enhanced capacity for integrated problem solving treaties: Existing international obligations provide the are key components of the success of the transboundary normative framework and a level playing field for basin endeavor (Dore et al., 2012; Lim 2014). Where stakeholders level implementation at national and transboundary perceive particular rules to have emerged from a legitimate levels. For example, the UN Watercourses Convention’s process, they are more likely to comply with their process-based norms offer options for interpreting and commitments (Franck 1998; Jacobson & Brown Weiss implementing the convention and implementing an 1998; Breitmeir et al., 2006; Brondizio & Le Tourneau 2016; effective system at the national level (Rieu-Clarke & Lopez Diaz et al., 2018). 2013). In addition, basin level treaties can offer effective mechanisms for managing transboundary basins and preventing the escalation or emergence of transboundary 6.3.5 Integrated Approaches for disputes (Brochmann & Hensel 2009; Tir & Stinnett 2012; Sustainable Cities Dinar et al., 2015). The content and design of such treaties need particular consideration (Dombrowsky 2007). For Urbanization is one of the most forceful drivers of instance, options for securing compliance include strong ecological change (Seto 2013), with more than two mechanisms for dispute resolution (UNEP 2002; Lim 2014) thirds of the world’s population expected to live in cities and recognition of non-state parties (Jacobson & Brown- by 2050 (United Nations 2010). The most significant Weiss 1998). On the other hand, sanctions are the least growth in urbanization during the 21st century will occur effective in terms of implementation across national borders in the developing world, particularly Africa and India, (Brunée 2007). which combined will add more than 1 billion new urban residents by 2040 (UNDESA 2014). In urban areas human Addressing fragmentation: Regime fragmentation is a populations and human built infrastructure are the most key obstacle of the law of transboundary watercourses dense (Grimm et al., 2008), and can drive significant (Zawahri 2011; Rieu-Clarke & Pegram 2013) as there is impacts on local, regional, and global nature and its a common trend to adopt bilateral agreements within sustained contributions to people’s quality of life if not multilateral river basins (Song & Whittington 2004). The managed properly (McPhearson et al., 2018). More than second assessment of the implementation of the UN half the global urban population lives in settlements of less Watercourses Convention emphasizes the importance than one million, and attention is needed across the urban

939 CHAPTER 6. OPTIONS FOR DECISION MAKERS

hierarchy, from global cities to towns and small villages (UN coastal locations (Bai et al., 2016). Reducing the impact of Habitat and United Nations ESCAP 2015). climate change will require a more integrated approach to urban design, planning and construction; urban ecosystems; Globally, urban land cover is projected to increase by and transport, energy, water and urban governance 1.2 million square kilometers by 2030. This could result in (Rosenzweig et al., 2016). It will also require implementation considerable loss of habitats in key biodiversity hotspots, by all levels of government – both national urban policy including the Guinean forests of West Africa, the tropical and state and local strategies and actions (OECD 2010), Andes, the Western Ghats of India, and Sri Lanka (Seto yet many barriers exist that prevent integrated urban et al., 2012), and of Mediterranean habitat types (Elmqvist approaches, ranging from financial challenges to lack of 2013). Yet despite major changes to ecological properties, information to sectoral fragmentation (Runhaar et al., 2018) critical NCPs are still present in urban settings (Gomez 2013a, Gomez 2013b). An array of options for the The good news is that urban planning and policy in cities protection, adaptive management and restoration of nature around the world are already developing novel approaches, in cities are thus critical to maintain a supply of nature’s methods, and tools for developing sustainable cities, contributions to urban populations and are essential to including in developing countries (Norman 2016, McEvoy engender more sustainable futures for city inhabitants et al., 2013, Measham et al., 2011). This section reviews (McDonald 2013; McPhearson et al., 2014). options in the short and longer-term to enable sustainability transitions in cities, while recognizing that the challenges, Planning for the impacts of climate change on urban and thereby the options, differ in the global South and settlements is also a core challenge for our urban future, North (Nagendra et al., 2018). The section focuses on as highlighted by the inaugural IPCC Conference on Cities the main groups of options for sustainable cities: urban and Climate Change in early 2018. Cities consume 75% planning for sustainability; nature-based solutions and green of the world’s energy use and produce more than 76% of infrastructure; reducing the impact of cities; and enhancing all carbon, and are therefore major contributors to climate access to urban services for a good quality of life (see for an change, but are also highly vulnerable to risks, especially in overview Table 6 .6).

Table 6 6 Options for sustainable cities.

Short-term options Long- Key obstacles, potential Major decision Main Main (both incremental term risks, spill- over, unintended maker(s) level(s) of targeted and transformative) options consequences, governance indirect trade-offs driver(s)

Urban planning for sustainability

Bioregional planning Traditional urban planning that National & local National, Economic, focuses only on development government, civil society regional, local demographic, Institutions, governance

Nature-friendly urban development Lack of understanding of habitat National & local National, Institutions, needs of animals and plants government regional; local governance

Increasing green space Trade-offs between densification Local government Local - and green space, increasing land prices

Protecting land for Zoning that limits urban food Local government, civil Local Cultural urban agriculture and production, increasing land prices society food security

Nature-based solutions and green infrastructure

Promoting or Resistance to requiring GI by law, National and local National, local - requiring green roofs increases in maintenance costs, lack government to counterbalance of incentives temperature effects

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Planting trees to reduce Trade-offs between densification Local government, civil Local - air pollution, mitigate and green space, concerns about society climate change and liability and building damage, costs storm-water control of maintenance

Protecting watersheds and wetlands Trade-offs with other land uses, Regional and local Regional, Health for habitat conservation, clean water pressures for development of governments local supply and storm-water control coastal areas

Protecting, creating or restoring Trade-offs with other land uses, Governments Regional, - wetlands, tidal marches or mangroves pressures for development of local for flood protection coastal areas

Reducing the impacts of cities

Encouraging articulated density to Trade-offs between densification Regional and local Regional, Economic, enable public and active transportation and green space; changes in lifestyle governments local demographic, (e .g walking, bicycles) needed cultural, Institutions, governance

Reduce transport Changes in lifestyle needed, political Governments National, Cultural energy use through will to increase taxes on externalities regional, local road-use pricing, promoting public transportation

Mitigating building Resistance to requiring codes by Industry, governments Local Technological energy use by energy- law, costs of retrofitting efficient building codes

Addressing urban consumption by Change in lifestyle needed, planning Governments, industry, All Economic, encouraging alternative business for circular economy needed civil society Cultural, models institutions, governance

Enhancing access to urban services for good quality of life

Enhancing access to clean water High costs for water infrastructure, Governments, industry, Local, Economic, and sanitation, through SUWM, concerns about private sector civil society, private regional governance partnerships, investment, etc . involvement, sectoral siloing sector

Improving management Difficult to reach informal Local government, civil Local Economic of solid waste through settlements society incentives & other programs

Improving access to transportation High cost; major shift of focus Governments National, Economic by investing in public and active needed in transportation planning regional, local transportation

Encourage participatory Challenges entrenched interests and Local governments Local Governance planning approaches authorities

6.3.5.1 Urban planning for sustainability environment (McLennan 2004). Innovative urban planning theories have emerged, such as Ecological Design The SDG, UN Habitat (Quito 2016) and the World (Rottle & Yocom 2011), New Urbanism, Sustainable Urban Forum (Kuala Lumpur 2018) have all collectively Urbanism (Farr 2008), Ecological Urbanism (Mostafavi & reaffirmed the positive contribution integrated strategic Doherty 2010), Agricultural Urbanism (De La Salle and urban planning can make in protecting nature within and Holland 2010), Landscape Urbanism (Waldheim 2007), around cities (Folke et al. 2002; Norman, 2018). Over the Green Urbanism (beatley 2000), Biophilic Urbanism past few decades, “ecocities” and “green cities” theories (Beatley 2009), Ecocities (Register 2006), and Ecopolises began to emphasize the importance of ecosystems within (Ignatieva et al., 2010). These approaches emphasize cities and in linked rural areas (Yang 2013). Sustainable ecological restoration and connected multifunctional urban design seeks to maximize the quality of the green infrastructure, prioritize walkable and mixed land built environment and minimize impacts on the natural uses (Register 2006).

941 CHAPTER 6. OPTIONS FOR DECISION MAKERS

Options for sustainable urban planning include: bioregional 2014; Ecologic Institute 2011; Georgescu et al., 2014). planning; nature-friendly urban development; increasing The European Commission defines green infrastructure (GI) green space in cities; and protecting land for urban as “a strategically planned network of natural and semi- agriculture (see Supplementary Materials 6.4.1 for a natural areas with other environmental features designed detailed discussion). and managed so as to deliver a wide range of ecosystem services” (European Commission 2015). Yet, agreement Bioregional planning: Inter- and transdisciplinary, on what exactly constitutes GI is elusive since the term collaborative, and strategic urban planning and design is often used to refer to interventions across a variety of that integrates with surrounding regions can offer scales including large national ecological networks, wetland numerous benefits to water, renewable energy, and restorations, storm-water projects, public green space, air quality (Breuste et al., 2008; Raudsepp-Hearne et allotments, green corridors, street trees, green roofs and al., 2010; Beatley 2011; Colding 2011; Novotny et al., walls, permeable pavements and even private gardens 2010; McDonald & Marcotullio 2011; Pauleit et al., (Cameron et al., 2012; Cohen-Shacham et al., 2016). 2011; Ignatieva et al., 2010; Ahren 2013; Carmen et al., 2013; Alexandra et al., 2017). Green infrastructure can be a critical source for security and improving human wellbeing in urban areas (Gill et al., 2007; Nature-friendly urban development: Ecosystems are Foster et al., 2011; Depietri et al., 2011). Different types often highly fragmented in urban areas, which can of GI can play a role in providing nature’s contributions to alter the genetic diversity and threaten long-term urban residents such as storm water management and flood survival of sensitive species. To ensure viable urban protection, temperature regulation, cleaner air and water, populations, urban planners need to understand urban food production, recreation, and health benefits, species’ needs for habitat quality and connectivity as well as contributing to habitat creation and restoration, (Kabisch et al., 2017; Braaker et al., 2014; Colding connectivity of ecological networks, and increasing urban 2011). Ecologically progressive urban planning and biodiversity (Andersson et al., 2014; Garmendia et al., policy are already demonstrating how biodiversity 2016). GI is also thought to present the most cost effective conservation and management to enhance local and synergistic solution for ensuring local climate change ecosystem services production can be part of urban adaptation, and promoting low carbon cities (Fink 2016). For transitions and transformations for sustainability example, incorporating green infrastructure in urban design, (Kabisch et al., 2017). especially in warmer climates, can potentially reduce the use of air conditioning, increase significant energy savings, Increasing green space and greenbelts throughout and therefore indirectly reduce GHG emissions (Alexandri & cities: GIS and other holistic spatial planning tools and Jones 2008; Georgescu et al., 2014). technologies can be used to create new green spaces and improve and connect existing ones using (Pickett & Specific options for using GI approaches to address urban Cadenasso 2008; Vergnes 2012). problems include the following (see Supplementary Materials 6.4.2 for a detailed discussion). Protecting land for urban agriculture and food security: Urban and peri-urban agriculture, in the form GI to counterbalance temperature effects: The role of of private gardens, vegetated rooftops, or vertical some types of GI (trees, green roofs and green walls, gardens can both increase food security and conserve parks, ponds) in regulating temperature, including biodiversity. Demonstrating that urban agriculture reducing the effects of urban heat islands, is well reduces environmental deterioration, increases food established. security, produces jobs, and connects communities can support rezoning efforts and integration with GI for reducing air pollution: Vegetation can remove or climate adaptation and flood mitigation policies (Smit reduce certain pollutants from the atmosphere, including 1996; Resource Centers on Urban Agriculture and greenhouse gas emissions through carbon sequestration, Food Security). and trees act as carbon sinks in urban settings (McPherson 1998; McPherson & Simpson 1998).

6.3.5.2 Nature-based solutions and GI to provide clean water supplies: Provisioning green infrastructure of water is a critical nature contribution to people (NCP) provided by ecosystems and protecting Increased use of green infrastructure and other ecosystem- watersheds and wetlands within cities and in the based approaches can help advance sustainable urban region is crucial. This will also support other regulating development while reinforcing climate mitigation and NCP including flood alleviation, nutrient cycling, and enhancing the quality and quantity of urban NCP (RUAF habitat conservation.

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GI for storm-water management: The benefits and cost- empowerment of grass roots initiatives that match solutions effectiveness of GI for storm water and flood control in to demand (Brink et al., 2016). Lastly, urban planning urban areas are well established (Kabisch et al., 2016). decision-making processes could benefit from incorporating the concept of the insurance value of ecosystems. This GI for storm and flood control: A growing number refers to placing importance on the role of nature in of cases are demonstrating the effectiveness of conferring resilience that secures the long-term conditions ecosystems as nature-based solutions to buffer the necessary to sustain a good quality of life for humans impacts of climatological, hydro-meteorological and (Green et al., 2016). This can be applied in an urban even some geophysical hazards such as landslides planning context to help target investments for GI and (Renaud et al., 2016; McPhearson et al., 2018). The urban nature restoration, and might even require involving creation or restoration of wetlands, tidal marshes, or insurance industry sectors as key investors in GI and nature mangroves provide water retention and protect coastal restoration efforts (European Commission 2015). However, cities from storm surge flooding and shoreline erosion despite the recognition of nature-based approaches as during storms (Haddad et al., 2015; Gittman et al., “low regret” measures for climate change adaptation and 2014; Kaplan et al., 2009). Similarly, “sponge cities” disaster risk reduction at both local (Kabisch et al., 2017) in China, defined as urban development that takes and global levels (UNISDR 2005, 2015; IPCC 2012), such into account flood control and water conservation approaches still remain the most disregarded component of through infrastructure planning and ecosystem-based urban plans and strategies (Renaud et al., 2013; Matthews protection, are using GI to combat persistent and et al., 2015). significant urban flooding challenges (Li et al., 2017). 6.3.5.3 Reducing the impacts of cities Notwithstanding the substantial evidence for the benefits of GI as nature-based solutions, some concerns remain With global populations urbanizing, the environmental relating to trade-offs, protection of biodiversity, and impacts of cities have become increasingly large, such as governance and equity issues. Further research is needed increasing demand for materials to create infrastructure, to better understand the synergies and trade-offs between vehicles and buildings (IRP 2018). Within this context it is the different benefits offered by GI (Haase, 2015). Promotion necessary to look at the ‘solution space’ for cities, noting of GI at present seems to be focused on opportunities for that some directions for alleviating urban environmental economic growth, enhancing durability of infrastructure, impact are at a national or societal level, and international and cost reduction (Garmendia et al., 2016). GI initiatives city-peer organisations such as ICLEI or the C40 would benefit from more explicitly incorporating nature collective are sharing experiences among cities on conservation objectives, as well as assessing and reducing impacts. safeguarding the impacts of GI projects on biodiversity (Eggermont et al., 2015; Garmendia et al., 2016). A recent The literature on resource efficiency indicates that key issues EU publication noted the need for habitat suitability and of concern for urban areas are limited reserves, recycling, mapping of nature’s contributions as part of GI approaches and reducing consumption, and from this a systems (EEA 2014). In addition, it is also necessary to evaluate the perspective and circular economy ideas of industrial ecology degree of transferability and uptake of GI research within the have emerged (Miatto et al., 2016; Heinz Schandl et al., developing world context, since most research originates 2016; Schandl et al., 2015; UNEP 2016). It is worth noting in developed countries (Shackleton 2012). Barriers to that although thousands of cities report on their (usually GI implementation often include a lack of incentives, only direct) GHG emissions, monitoring of the whole urban little institutional support, and concerns about increased metabolism of cities is more rare, but increasing (Kennedy maintenance costs (Zhang et al., 2012). et al., 2011; Huang et al., 2015). Research agencies and NGO are beginning to gather data at the national and Mainstreaming of GI, and nature-based solutions in international scale, and research indicates that network general, may include several options. First, meaningful system modeling approaches, global life-cycle perspectives, participation from multiple stakeholders is essential in and multi-criteria assessments can be key tools (Beloin- order to identify commonalities and differences between Saint-Pierre et al., 2017). Urban environmental assessments stakeholder preferences (Hansen & Pauleit 2014), and to will need to become as much a part of planning as housing, encourage co-production of initiatives to ensure ownership transport and economics if we are to measure progress in and stewardship (Nesshöver et al., 2017). Secondly, long- the resource efficiency of cities. The urban literature points term guardianship of urban areas may require recognition to changes in urban density and form, efficient transport, and institutional support for diverse forms of property and how people build, consume, and live in cities as key rights arrangements such as Urban Green Commons components to increasing efficiency and reducing impacts (e.g. collectively managed parks, community gardens, (Reid Ewing & Cervero 2010; Reid Ewing & Rong 2008; allotments) (Colding & Barthel 2013), as well as the Weisz & Steinberger 2010).

943 CHAPTER 6. OPTIONS FOR DECISION MAKERS

Specific options for reducing the impacts of cities include where inhabitants of informal settlements, or slums, have the following (see Supplementary Materials 6.4.3 for a access to few or no services (Nagendra et al., 2018). detailed discussion). Reducing informal settlements was one of the Millenium Development Goals, and more steps can be taken to Encouraging density and in-filling: Sprawling cities address these targets to enhance the quality of life for generally require more energy for transport per capita the quarter of the world’s population that live in informal (Newman & Kenworthy 1989), more car travel, less settlements (UN-Habitat 2015, Richards 2006). Options travel by public transit (Kenworthy & Laube 1999) and include increasing access to clean water and sanitation; accommodate larger floor area in buildings, which improving management of solid waste; increasing access consume more electricity (Kennedy et al., 2015). To to transportation and green spaces; and transforming be an effective intervention for socio-economic and governance approaches (see Supplementary Materials environmental benefit, density must be implemented at 6.4.4 for a detailed discussion). key transport nodes, surrounding and linking between activity centres (Suzuki et al., 2013). Improving access to clean water and sanitation: Increasing access to sanitation and clean water by Planning urban form and transport: Planners and fostering partnerships between all actors to encourage a industry need to create neighborhoods of mixed land bottom-up, participatory approach, including recognition use and diverse housing options that pre-empt the of where the informal sector provision of water is need for citizens to travel across the city (Cervero & working, could increase effectiveness and socio- Guerra 2011; Ewing et al., 2008; Grubler et al., 2012; economic benefits (Ahlers et al., 2014; Annamalai 2016; Marshall 2008). Other options to reduce transport Bonnardeaux 2012; McFarlane 2008). Sustainable energy use include internalization of external costs urban water management (SUWM) is the umbrella term (e.g. congestion pricing), making public transport more for adaptive, integrated, participatory delivery of water, attractive, and not extending the road network (Grubler and in most cases, barriers to SUWM are not technical, et al., 2012). but institutional (Brown & Farrelly 2009; Marlow et al., 2013). In some cases, public-private partnerships may Mitigating building energy use and emissions: Buildings work, while in others not (Koppenjan & Enserink 2009; are the single largest energy use sector within cities Zhong et al., 2008). As noted in section 6.3.4, investing world-wide (Weisz & Steinberger 2010). Significant in natural ecosystems such as wetlands can also help operational savings can be achieved from implementing to conserve biodiversity while helping communities energy efficient building codes (Pauliuk, Sjöstrand, manage their own water supplies (Postel 2005). & Müller 2013) and with new urbanization and replacement of existing stock, there is an opportunity Improving management of solid waste: A top-down to decouple energy needs from urban growth (UN approach to improve solid waste management could Environment and International Energy Agency 2017). be integrated sustainable solid waste management (ISSWM) policy, which provides a legal framework Addressing urban consumption: Reducing the indirect to enforce effectiveness (Shekdar 2009). Less costly impact of urban consumers can be achieved by approaches could be incentive programs and tiered promoting the selling of services instead of consumer trash collection (pay-as-you-throw) which could goods that provide the service. Implemented significantly reduce the amount of solid waste produced through the ‘circular economy’, this collectively can and increase the amount of materials recycled (Dahlen help separate material needs from consumption 2010; Folz & Giles 2002) and composting or waste-to- (IRP 2018) (see further discussion in section 6.4 on energy programs in place (Sharholy 2008). sustainable economies). Improving access to transportation: Access to Transformative urban governance: Engaging citizens safe, affordable, accessible, and sustainable public in planning, including participatory budgets, is an transportation systems helps communities to thrive important role for (local) governments (Grubler et al., socially and economically (Litman 2013; Kenworthy 2012; IRP 2018). 2006; Litman 2006; Newman 2006; Banister 2001; Deakin 2001; Newman 1999; Cervero 1996; Crane 6.3.5.4 Enhancing access to urban 1996). Other options include promotion of low- cost alternative transportation, such as bicycles or services for good quality of life ride sharing. One of the main targets of SDG 11 (sustainable cities and communities) is to ensure access for all to basic services. Improve access to green space: As noted previously, This is especially urgent in cities in the global South, green spaces in cities can contribute to NCP

944 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

provisioning and biodiversity protection, among other polluting and over-exploiting species and habitats, advantages such as increasing GQL, promoting introducing invasive alien species, and contributing to healthy physical and mental well-being (Nadja Kabisch climate change (CBD/SBSTTA/21/5, Jones et al., 2015; et al., 2017; van den Bosch & Sang 2017; Dennis McDonald et al., 2009; chapter 2.1). The transition from 2016; Gomez 2013; Lee & Maheswaran 2011), and a fossil-fuel energy based system to renewables has decreasing crime (Bogar 2016; Donovan 2012; Troy been identified as a necessary action for a sustainable 2011; Kuo 2001). future. This is reflected by SDG 7 (affordable and clean energy), aiming to ensure access to affordable, reliable, Improving participatory planning and governance for sustainable and modern energy for all, as well as to inclusion: One of the targets of SDG 11 is to enhance increase the share of renewables in the global energy and expand on participatory and integrated planning mix (UNDP 2016; CBD 2016; CBD 2017). Nevertheless, at all levels of governance (UN-SDG 11), which can to ensure the sustainability of an energy transition, help contribute to GQL. Participatory planning offers impacts of renewables on other SDG (Nerini et al., 2017) views that may otherwise have been neglected (Innes & as well as on nature and NCPs – especially trade-offs Booher 2010). between renewable energy oriented land uses and nature conservation, also covered by the Aichi Targets – has to be equally taken into account (Santangeli et al., 2016a, 6.3.6 Integrated Approaches b; for relevant SDG and Aichi Targets see chapter 3) for Sustainable Energy and (See Supplementary Materials 6.5 for discussion on Infrastructure associated challenges).

It is well established that the energy supply sector based As Figure 6 .5 indicates, expansion of energy oriented on fossil-fuel energy systems is the largest contributor to biomass (biofuel) production has more serious impacts greenhouse gas (GHG) emissions (IPCC 2014; Bruckner on nature and NCP than solar and wind energy, although et al., 2014; Van der Voet 2012; McDaniel & Borton regional differences across the globe are significant. 2002). Extraction, storage, transformation and use of Therefore, in this section, biofuels related issues are energy sources (i.e. the energy, mining and infrastructure assessed in more detail while other renewable energy sectors) have considerable negative impact on biodiversity sources (including solar, wind, hydropower and their mixes) and ecosystem services via degrading, fragmenting, are discussed throughout.

BIOENERGY WIND SOLAR PV

100

0 NET POWER POTENTIAL (%) ASIA ASIA ASIA AFRICA AFRICA AFRICA GLOBAL GLOBAL GLOBAL EUROPE EUROPE EUROPE AUSTRALIA AUSTRALIA AUSTRALIA SOUTH AMERICA SOUTH AMERICA SOUTH AMERICA NORTH AMERICA NORTH AMERICA NORTH AMERICA CENTRAL AMERICA CENTRAL AMERICA CENTRAL AMERICA

Figure 6 5 Trade-offs between renewable energy potential and protected areas (Santangeli et al., 2016b). Percentage (relative to the total potential of each source) of unrestricted power generation potential available for bioenergy (in the form of Miscanthus × giganteus), wind energy and solar photovoltaic summarized by continents and globally . The bars show generation potential within current PAs (Protected Areas; black section of each bar), top ranked areas for 17% PA expansion (dark grey), 17–30% highest ranked areas (light grey) and for the remaining 70% of the landscape (white) .

945 CHAPTER 6. OPTIONS FOR DECISION MAKERS

Key governance challenges are the acknowledgement most of these conflicts (Oxfam et al., 2016; Dell’Angelo of multiple values in relation to the impacts of current et al., 2017a, 2017b; RRI 2017). In general, large-scale and planned energy use on nature, NCP and GQL, as energy development projects, either renewable or non- well as managing trade-offs and telecouplings. Energy renewable, often trigger trade-offs between climate use is closely linked to a whole range of political, social change mitigation, energy provision, social development and economic interests (Hall et al., 2013; Huber 2013; and nature conservation objectives (e.g., Humpenöder et Mitchell 2011). Institutional interplay across levels – e.g., al., 2018). the course of national borders, the setup of electricity markets, the distribution of property rights, regulations Energy production and use are connected by telecouplings and decision-making processes – defines who owns to many other ecosystems and resource uses at multiple resources needed for the generation of energy, who scales and sectors, raising concerns over biodiversity gains access to energy, and who bears the burdens (e.g., the impact of climate change from energy-related (Heindl 2014). GHG emissions), human health (e.g., the impact of indoor pollution due to inefficient energy technologies), water use The ways in which energy, mining and infrastructure and fisheries (e.g., the impact of hydropower), agriculture projects are carried out and implemented trigger conflicts and forestry (e.g., bio-energy as replacement for fossil fuels), between worldviews and values, raise implementation and mining (e.g., rare earth, cobalt, lithium etc. extraction for problems, and often affect IPLC rights to land and storage) (Doria et al., 2017). water, as illustrated by an increasing number of social- environmental conflicts throughout the world (Arsel & This section focuses on options for sustainable energy Angel 2012; Rival 2009; Islar 2012; Jordà-Capdevila & systems exist for various decision makers, including the Rodríguez-Labajos 2014; Martinez-Allier 2014; Ehara development of sustainable biofuels strategies, encouraging et al., 2016; Spice 2018). At least 40% of all the 2,588 comprehensive environmental impact assessment, ensuring socio-environmental conflicts documented globally compensation and innovative financing for environmental happen to involve IPLCs (EJAtlas 2018). Similarly, from and social impacts, ensuring access to energy for all by the 501 land and environmental defenders that have promoting community-led initiatives, promoting inclusive been assassinated worldwide (2014-2016), almost governance, and promoting sustainable infrastructure 40% were IPLCs (Global Witness 2015, 2016, 2017). (Table 6 .7). Disputes over land ownership are an underlying factor in

Table 6 7 Options for integrated approaches for sustainable energy and infrastructure.

Short-term options Long- Key obstacles, potential risks, Major decision Main Main term spillovers, trade-offs and maker(s) level(s) of targeted options unintended consequences governance indirect driver(s)

Biofuels strategies

Develop • Lack of cross-sectoral policy Global institutions, All Technological, sustainable frameworks Regional bodies, National economic biofuels • Fragmentation and the lack of and local governments, strategies coordination between different Private sector, IPLCs institutions and sectors • Trade-offs between low GHG energy production and biodiversity

Environmental Impact Assessment

Improve environmental impact • Dominance of economic valuation International bodies, All Patterns of assessment and technical knowledge National and local production • Lack of institutional capacity governments, IPLCs and supply

946 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

Compensation and financing

Strengthen biodiversity • Compensation does not address National, sub-national National, local Economic, compensation policies root causes of overdevelopment and local governments, governance for development and • Difficulties in raising funds in Private sector, IPLCs, infrastructure losses developing countries Civil society, Landowners and other ecosystem • Risk for negative impacts services beneficiaries on livelihoods by shifting conservation away impacted areas • Ambiguous guidance to developers • Limited capacity for implementation • Inadequate monitoring and enforcement

Promote innovative • Lack of understanding of novel Global financial Global, Economic financing for sustainable financial tools (e .g . green bonds institutions national, infrastructure and performance bonds) National and subnational subnational • Concerns about returns of governments investment Private corporations • Potential for ‘greenwashing’

Community-led initiatives

Promote community-led initiatives • Technical and social lock-ins National governments, Local, Patterns of hindering energy independency Local governments and regional, production • Controversial political and municipalities, NGOs and national and economic interests cooperatives, Private consumption, sector, Citizen and IPLCs technological • Energy oligopolies

Inclusive governance

Promote inclusive governance • Inappropriate siting of energy International bodies, All Governance, infrastructure harming IPLCs National and local cultural • Lack of free, prior and informed governments, Private consent of IPLCs sector, IPLCs • Economic interests overruling other aspects

Sustainable infrastructure

Promote • Lack of institutional capacity National and local All Technological sustainable • Lack of economic power governments, Patterns of infrastruc- Universities, Private • Lack of political will production, ture & Sector supply and technology consumption

6.3.6.1 Development of sustainable Gota et al., 2015; Malins 2015). Favourable taxation and biofuels strategies export levies are applied by several countries (e.g., Brazil and Indonesia). Global subsidies for liquid biofuels exceeded Some international organizations (see e.g., IPCC 2014; US$20 billion in 2014 (Worldwatch Institute 2014). The Searchinger et al., 2017; IRENA 2017), regional organizations adoption of biofuel policies has decelerated worldwide but (EC 2009) and country governments view biofuel as a clean current policies still tend to underestimate risks of biofuels energy source that support climate mitigation strategies (Goetz et al., 2017; Le Bouthillier et al., 2016; De Man & (REN21 2018). Sixty-four countries are in the process of German 2017; Oliveira et al., 2017; Fargione et al., 2008 – mandating or increasing mandated blending of biodiesel or see Supplementary Materials 6.5.1). ethanol in motor fuels, being Brazil, EU, Argentina, Canada and China the largest markets (Edenhofer et al., 2011; IPCC At the international and national level, incorporating 2014; UN General Assembly 2015; IEA & OECD 2013; sustainability criteria in renewable energy laws can recognize

947 CHAPTER 6. OPTIONS FOR DECISION MAKERS

the interlinkages between energy use and production, and its For any generation of biofuels to be sustainable, global impacts on biodiversity (Le Bouthillier et al., 2016; Fritsche & demand would have to be reduced, and opportunity Iriarte 2014; Lin 2012; Frank et al., 2013). For example, the costs compared to other technologies considered EU Renewable Energy Directive (EU 2009) sets a mandatory (e.g., photovoltaic, Searchinger et al., 2017). Several 10% minimum target for the share of biofuels in transport governments plan to replace gasoline powered engines petrol and diesel consumption by 2020 to be achieved by by electric ones in the near future to achieve the targets all Member States, but to mitigate telecoupling effects it set in the Paris Climate Agreement, which could massively also requires biofuel production to fulfil several sustainability reduce the demand for ethanol and biodiesel. However, criteria. Options for national governments to mitigate risks advancing e-mobility would amplify other problems, e.g., of land use change and biodiversity loss related to the the production of lithium and other metals and rare earths expansion of bioenergy production include monitoring and (Xiong et al., 2018), and expanding it to shipping and air reporting with a focus on potential regulation (e.g., water transport (including military) is questionable. Reducing competition in South Africa), as well as corrective action transport volumes, e.g., by shorter supply chains, local (e.g., adjustment of the volume of renewable fuels mandated production and better public transport, is another option, such as in the US and EU). Creating country-wide zoning which would however require far-reaching reforms of the (e.g., Brazil, Mozambique) can serve as basis of selecting taxation and subsidy system. “marginal” or “waste lands” for biofuel production (e.g., India, MNRE 2009), although this is contested in literature (Goetz et 6.3.6.2 Encouraging comprehensive al., 2017; Montefrio & Dressler 2016; Baka 2013), especially environmental impact assessment (EIA) because such categories, many of which are inherited from colonial occupation, represent rich ecosystems that In the context of energy, the purpose of an environmental provide multiple NCP, locally and regionally (Ahmed et al., impact assessment (EIA) is to assess how the project 2017). Sector-specific zoning (e.g., Brazil’s Agroecological might cause harm to the environment and to the people Zoning for Sugarcane) and regulation is another option to and their livelihoods through extraction and infrastructure improve sustainable energy use, which can be interlinked development. EIA in the mining sector is encouraged with infrastructure policies. Private sector recently used worldwide by national laws and international financing to implement codes of conduct (e.g., Brazil’s Agro- organizations (IFC 2012; Equator Principles 2013). While environmental Protocol of the Sugar-based Ethanol Sector) EIA is integrated within the national laws of countries and certification systems (e.g., Indonesian Sustainable around the world (Morgan 2012; UNEP 2018), case Palm Oil), as well as environmental impact assessment and studies demonstrate that social and ecological impacts, management procedures. However, the current performance IPLC participation, mitigation measures as well as post- of such certifications remains poor, due to the proliferation of monitoring of renewable energy projects may not be low-quality ecolabels and the low market share of certified adequately addressed in the EIA (Fearnside 2014; Larsen crops; but also, because ecosystem services and broader et al., 2018; Schumacher 2017) and weak implementation cross-sector repercussions of biofuels production and use of EIAs remains a challenge (European Commission 2013). are not part of such schemes (Gasparatos et al., 2018; Numerous well established impact assessment methods German et al., 2017). can be considered helpful for incorporating diverse value systems in the EIA process concerning energy. For Second and third generation biofuels (non-edible plant example, biodiversity-inclusive EIA offers opportunities for biomass and unicellular photosynthetic microorganisms, effective participatory mechanisms engaging those who respectively) are promoted as possible alternatives to depend the most on nature and its contributions, such edible plant based biofuels (Ravindran et al., 2016; Lackner as Indigenous Peoples and Local Communities (Akwé: 2015; Mohr & Raman 2013). However, assessments about Kon Guidelines 2004; IFC 2012, Standard 7); however, their effects and associated risks are largely theoretical there are associated challenges particularly in developing and premature until these technologies are applied widely countries (Craik 2017; Quintero 2012). EIA may also serve (Goetz et al., 2018; Ravindran et al., 2016; Lackner 2015; as background for “no net loss” and “net gains” biodiversity Mohr & Raman 2013). Second generation biofuels are policies (IFC 2012, Standard 6) using compensatory confronted with sustainability problems similar to those of mechanisms (e.g., offsets), in response to impacts identified the first generation (Mohr & Raman 2013). Third generation in the EIA. biofuels (e.g., microalgae) seem to employ significantly less land resources for their production, but their production Different options exist to improve EIA practice for energy, is very energy intensive and economically unviable today. mining and infrastructure. Applying the precautionary Technological innovation aims to improve processing principle to EIA requires decision makers to identify areas of technologies as well as microorganisms, pointing to uncertainty and to consider the implications of knowledge additional risks in form of genetic engineering (Ravindran et gaps (CBD EIA Guidelines, para. 42). Another option is to al., 2016; Lackner 2015). incorporate adaptive management into EIA instruments via

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requirement for ex-post monitoring and follow-up measures There are potential positive effects of compensation (CBD EIA Guidelines, para. 44). Integrating ecosystem schemes, e.g., making new financial resources available services into EIA helps managing trade-offs if implemented for conservation (estimated at several billions per year), in a context-specific manner, by providing a basis to reducing the costs of environmental compliance, and prioritize certain functions and benefits and to identify a supporting the social and economic development of local wider range of stakeholders affected by potential changes to populations (ten Kate et al., 2004). International experience ecosystem services (OECD 2008; Landsberg 2011; Baker suggests that no net loss policies combined with biodiversity et al., 2013). Such approaches are emerging in EIA practice offsetting and banking can be effective at involving the (European Commission 2013; IFC 2012, Standard 6), but private sector in conservation, especially relative to different environmental assessment contexts, resource widespread uncompensated losses of biodiversity from availability, local capacity and accessible information are development projects (ten Kate et al., 2014; OECD 2016; likely to drive such integration of ecosystem services (Baker Vaissière et al., 2016). However, there is little comparable et al., 2013). data about the amount of compensatory measures and resources allocated for this approach (Villarroya & Puig Strategic environmental assessment (SEA) has been 2010; Xie et al., 2013). They are intended to be a ‘last introduced to expand the scope of impacts by looking at resort’ option, but critiques note that offsets do not address the cumulative effects from programmatic or other spatially the root causes of overdevelopment of energy, mining and related actions (Abaza et al., 2004; UNEP 2018). Challenges infrastructure projects leading to nature deterioration, and aside, widening the scope is possible by incorporating scarcity can create value in markets and banks (Spash ecosystem services (Slootweg et al., 2010; Geneletti 2013; 2015). Only a handful of studies have investigated the Landsberg et al., 2013; European Commission 2013; local impacts of offset projects on IPLCs, which remains a Baker et al., 2013) or integrating Health Impact Assessment research gap (Bidauda et al., 2017), given that developers with SEA. At present, there is very limited consideration who buy offsets tend to be more powerful actors than of health in SEA (e.g., in Scotland, Douglas et al., 2011), impacted IPLCs (Apostolopoulou & Adams 2017) and although good examples exist, e.g., the assessment of some localized and site-specific biodiversity losses can health impacts of wind power (Knopper & Ollson 2011; be irreplaceable (ICMM & IUCN 2012) There is also little Van den Berg 2003; Pedersen et al., 2004), and the use of literature on the effective use of resources, which makes the the Integrated Environmental Health Impact Assessment results of improving social and economic conditions within approach (Briggs 2008; http://www.integrated-assessment. project areas inconclusive. eu/). See Supplementary Materials 6.5.2 for a detailed discussion on IEA. Risks and challenges (see Supplementary Materials 6.5.3) must be addressed for offsetting to deliver on its promise, 6.3.6.3 Ensuring compensation and including the lack of clear policy requirements that offer unambiguous guidance to developers and offset providers innovative financing for environmental (e.g., Quétier et al., 2014), inadequate monitoring and and social impacts enforcement and lack of political will to require and enforce Compensation approaches have been developed as an best practice in offsetting (IUCN 2014; ten Kate & Crowe instrument to deal with environmental and social effects that 2014). More participatory processes of offset definitions and cannot be fully avoided or mitigated in energy, mining and politics have been proposed to address these challenges infrastructure projects (Koh et al., 2017). Since the 1970’s, (Mann 2015). several countries developed laws and regulations to apply compensatory measures as a requirement for environmental Standards and obligations for environmental performance licensing (Rundcrantz & Skärbäck 2003; ten Kate et al., or liability in infrastructure and development can mobilize 2004; Rundcrantz 2006). Many compensation approaches significant amounts of private capital. Innovative are driven by requirements for ‘no net loss’ of biodiversity – mechanisms like performance bonds (whereby a sum applied now in more than 80 countries – but goals are often of money commensurate with the estimated cost of site challenged by unclear definitions of the baseline reference rehabilitation is held by a banking or insurance institution for ‘no net loss’ (Maron et al., 2018). Compensation can to be relinquished upon satisfactory end of the project) take form of measures to reduce environmental impacts, are recommended to encourage biodiversity protection to improve social conditions, or monetary payments to during resource extraction, and to ensure sufficient financial offset ecological losses (Villarroya & Puig 2010; Gastineau sources to restoration after resource extraction activities end & Taugourdeau 2014). Recent trends include projects for (ICMM 2003, 2008). Another new mode of private financing compensatory mitigation, biodiversity offsets, mitigation are green bonds, a US$694bn market in 2016, with notably banking, habitat banking, species banking, and wetlands increased use in Asia (Climate Bond Initiative 2017; Clapp mitigation (OECD 2016) (see Supplementary Materials 6.5.3 2018). Green bonds raise capital to finance climate-friendly for a detailed discussion). projects in key sectors like transport, energy, building

949 CHAPTER 6. OPTIONS FOR DECISION MAKERS

and industry, and water (Croce et al., 2011). Institutional Although community-based renewables tend to be less investors are expected to be the dominant buyer of green detrimental than large-scale energy development projects bonds, and they are touted to provide returns comparable as induced land use change is of lower scale and intensity, to conventional non-green bonds. they might have adverse effects on nature and society (see e.g., Castán Broto et al., 2018; Islar 2012; Aksungur 6.3.6.4 Ensuring access to energy for all et al., 2011), which has to be mitigated. Overcoming the financial, infrastructural, institutional, socio-cultural by promoting community-led initiatives barriers of community based renewables is possible Energy poverty exists both in developing and developed if supporting policy is combined with transformation countries and is embedded in the wider socio-cultural, management (Goddard & Farelly 2018), and if governance economic and political context, therefore reflects significant engages actors from different decision-making levels inequalities within and across nations (Brunner et al., 2018; (Markantoni 2016; Goldthau 2014) and vulnerable groups Monyei et al., 2018; Sadath et al., 2017). Citizen’s inclusion like women and IPLCs (UNDP 2012) (See Supplementary to renewable energy production and distribution provides Materials 6.5.4). more affordable and just energy access, contributes to behavioural change towards more sustainable energy 6.3.6.5 Promoting inclusive governance consumption and helps to reduce the adverse impacts of in planning and implementation of energy use on nature and NCP (Schreuer & Weismeier- Sammer 2010; Rijpens et al., 2013; Kunze & Becker 2015; energy and infrastructure projects Islar & Busch 2016). Different types of community-led Excluding local inhabitants from planning energy, mining and energy initiatives have emerged all over the world, providing infrastructure development projects often leads to socio- access to clean, reliable and affordable energy. Energy environmental conflicts (Finer et al., 2008, 2015; Filho 2009; autonomy, realized through decentralized renewable energy Kumpula et al., 2011; RAISG 2016; Wilson & Stammler production and consumption in local communities and 2016) and legal disputes, coming with severe financial often driven by social and technological innovation to match and reputational risks for both states and corporations demand and supply, has been targeted by sustainable and (Nielsen 2013; Greenspan et al., 2014; Wilson & Stammler local low-carbon communities in Europe and beyond (Rae 2016). Large-scale infrastructures are often planned and & Bradley 2012; Yalçin-Riollet et al., 2014; Hobson et al., implemented without the Free, Prior and Informed Consent 2014; Lee et al., 2014; Hoicka & MacArthur 2018). (FPIC) of IPLCs (Hope 2016; Dunlap 2017; MacInnes et al., 2017; Fernández-Llamazares et al., 2018), generally Low-carbon communities can take various organizational resulting in habitat and biodiversity loss and threatening local forms and renewable energy cooperatives (REC) represent livelihoods and good quality of life (Muradian et al., 2003; a major type which builds on the democratic governance of Escobar 2006; Finley-Brook 2007; Araujo et al., 2009; Finer renewables and provides economic payback to members & Jenkins 2012; Athayde 2014; Laurance & Burgués-Arrea who join RECs and invest in renewables (Herbes et al., 2017). For example, the rights of Indigenous Peoples in 2017; Hentschel et al., 2018; Heras-Saizarbitoria et al., voluntary isolation and initial contact are under assault from 2018). Major technological solutions to provide accessible infrastructure expansion (Finer et al., 2008; Martin 2008; energy to communities in isolated regions include, among IACHR 2013; Pringle 2014; Kesler & Walker 2015). others, small-scale photovoltaics (Menconi et al., 2016; Monyei et al., 2018), run-off river hydropower (Egre & Increased public scrutiny of the social-environmental Milewski 2002; Wazed & Ahmed 2008), and mixes of impacts of extractive activities has led industry to adopt different renewable energy sources (Kaldellis et al., 2012). a diverse set of voluntary CSR instruments, including the Off-grid, micro-grid and hybrid solutions, applied together Extractive Industries Transparency Initiative, the UN Guiding with smart technologies, are efficient ways of producing, Principles on Business and Human Rights, the Free Prior storing and sharing renewable energy within communities and Informed Consent, or the Social License to Operate (Menconi et al., 2016). Financing such developments (SLO) (Prno & Slocombe 2012; Business Council of British and system transitions may build on public financing and Colombia 2015; Moffat et al., 2016; Bice 2014). SLO refers incentives to increase citizen investment (e.g., feed-in to the outcome of engagement processes between industry tariffs) (Curtin et al., 2017), market based investments and communities to establish acceptance of extractive (Linnenluecke et al., 2018), and alternative financial models activities (Nielsen 2013; Boutilier & Tgompson 2011), and like co-operatives or crowd-funding (Gezahegn et al., become central in defining what levels and kinds of social 2018; Hall et al., 2018; Vasileiadou et al., 2016). Realizing and environmental harm are acceptable, what actions for the urgency of providing modern energy technology and compensation or restoration are appropriate, and how services has also prompted development institutions, such responsibilities for these actions are distributed (Meesters as World Bank and UNDP, to support renewable energy & Behagel 2017; Idemudia 2007). The concept, however, facilities led by communities (UNDP 2012). does not indicate when a SLO is in place, nor does it

950 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

necessarily imply consent, legitimacy or responsibility of 6.3.6.6 Promoting sustainable mining activities (Owen & Kemp 2013; Boutilier 2014). infrastructure

Environmental justice movements, including different forms Due to an unprecedented explosion of infrastructure of IPLC activism, are gaining prominence in response to development, extensive areas of the planet are being the expansion of infrastructure development and extraction opened to new environmental pressures (van Dijck 2008; activities onto IPLC territories (Martínez-Alier et al., 2010, Balmford et al., 2016; Johansson et al., 2016; Gallice et 2014, 2016; Petherick 2011; Athayde 2014; Spice 2018). al., 2017; Kleinscroth & Healey 2017) as part of massive Mainly through global citizen action, social mobilization infrastructure-expansion schemes—such as China’s and capitalizing on modern technologies, the local social- One Belt One Road initiative (Laurance & Burgues 2017; ecological struggles of IPLCs become matters of global Lechner et al., 2018) and the IIRSA program in South concern (Earle & Pratt 2009; Lorenzo 2011; Temper & America (Laurance et al., 2001; Killeen 2007). These Martínez-Alier 2013; Pearce et al., 2015; Januchowski- new “development corridors”, including roads, highways, Hartely et al., 2016). International human rights law protects hydroelectric dams and oil and gas pipelines come with the right of IPLCs to give or withhold their Free Prior high environmental and social costs, including deforestation and Informed Consent in relation to resource extraction, (Barber et al., 2014; Fernández-Llamazares et al., 2018), infrastructure or energy development projects in their biodiversity loss (Laurance et al., 2001, 2006, 2008; Pfaff territories (Cariño 2005; Edwards et al., 2011; Ward 2011; et al., 2009; Benítez-López et al., 2010; Sloan et al., MacInnes et al., 2017). Such principle is best understood 2017), land grabbing (Toledo et al., 2015; Alamgir et al., as an expression of the right to self-determination of IPLCs 2017), social disruption (Mäki et al., 2011; Baraloto et al., (Charters & Stavenhagen 2009; Hanna & Vanclay 2013; 2015) and violation of IPLC customary rights (Fernández- Doyle 2015) and is enshrined in the UN Declaration on Llamazares & Rocha 2015; Martínez-Alier et al., 2016; the Rights of Indigenous Peoples, ILO Convention 169, Delgado 2017). and the Nagoya Protocol on Access and Benefit Sharing, as well as in several national laws (Ward 2011; MacInnes The total length of paved roads is projected to increase et al., 2017). Although the implementation of FPIC faces globally by 25 million kilometres in 2050 (Dulac 2013), with several challenges on the ground (Anaya 2005; Perreault nine-tenths of all road construction occurring in developing 2015; Pham et al., 2015; Dehm 2016), its legal significance countries (Laurance et al., 2014). Given that new roads is gaining global recognition and lays a solid foundation for generate large ecological footprint (e.g., Laurance et al., simultaneously supporting nature conservation and human 2002, 2009), a viable and cost-effective way to avoid well-being (Page 2004; Magraw & Baker 2006; FPP et al., habitat loss in areas of high conservation value, also 2016). Increasing engagement of IPLCs in project planning, including protected areas, is to keep them road-free by consultation or social impact assessment is likely to be best “avoiding the first cut” (Caro et al., 2014; Laurance et served by the adoption of standards and policies such as al., 2014, 2015; Alamgir et al., 2017; Sloan et al., 2017; the Equator Principles, the Global Reporting Initiative, or Fernández-Llamazares et al., 2018). Another vital tactic is to the UNEP’s Policy on Environmental Defenders (Lane et use large-scale, proactive land-use planning. Approaches al., 2003; FPP 2007; Yakovleva et al., 2011; UNEP 2018) such as the “Global Roadmap” scheme (Laurance & and binding instruments such as the Escazú Agreement on Balmford 2013; Laurance et al., 2014) or SEA (Fischer environmental rights in Latin America and the Caribbean 2007) have been successfully used to evaluate the relative (ECLAC 2018). costs and benefits of infrastructure projects, and to spatially prioritize land uses to optimize human benefits while limiting A convergence of demand-driven leverage is likely to new infrastructure in areas of intact or critical habitats (e.g., improve the regulatory stringency and enforcement in Laurence et al., 2018; Laurance et al., 2015; Balmford et countries supplying key mineral resources. For example, al., 2016; Sloan et al., 2018).With many roads becoming in the conflict between IPLCs in Orissa State, India, and rapidly dysfunctional, investing in maintenance represents a the bauxite mining operations of Vedanta Resources more sustainable option than road expansion (Wilkie et al., (Razzaque 2013), environmental activism, human rights 2000; Burningham & Stankevich 2005; Luburic et al., 2012; protests and court cases remained ineffective for years, Alamgir et al., 2017). until important shareholders (e.g., the Church of England and the Norwegian government) decided to disinvest in the Infrastructure development related to renewable energy company, and the government withdrawn the clearances of sources can adversely affect nature and humans, the mining project (Goodman et al., 2014; Iyer 2015). This decreasing the net benefits and sustainability of case also highlights the possible role of shareholder activism renewables (Drewitt et al., 2006; Cohen et al., 2014; in promoting inclusive governance for energy, mining and Lang et al., 2014; Drecshler et al., 2017). Life cycle infrastructure development (Cundill et al., 2017; Goranova & assessment can help decision makers choose the best Ryan 2014). See Supplementary Materials 6.5.5. renewable energy source for specific purpose. Along with

951 CHAPTER 6. OPTIONS FOR DECISION MAKERS

EIA or SEA, a landscape approach using geographical information systems can be applied to compare the 6.4 TRANSFORMATIONS impacts of different energy scenarios on nature and NCP, TOWARDS SUSTAINABLE by integrating various types of data (Benedek et al., 2018; European Commission 2014; Jones et al., 2015). Resource ECONOMIES extraction (e.g., rare earth, cobalt, lithium) for assembling electrical components of renewable energy production, The publication of the IPCC special report on global warming especially batteries and photovoltaics, will further increase of 1.5°C made clear that under current development and affect the environment (Fthenakis 2009; Larcher trajectories global warming will exceed 1.5°C during & Tarascon 2015). Sustainable mineral sourcing could the coming two decades (IPCC 2018). Similarly, it has be improved via global governance which sets and become evident (this report; UN 2018) that achieving the monitors international targets (Ali et al., 2017). Geological internationally-agreed 2030 Sustainable Development Goals exploration plans considering the overlap between and the 2050 Vision for Biodiversity will require transformative protected areas and the prevalence of mineral resources change towards sustainable economies. This is the context (e.g., the MiBiD index) could further decrease the impact within which progress towards sustainable landscapes, of mining on nature (Kobayashi et al., 2014). Similarly, the marine and ocean systems, freshwater management, urban negative impacts of energy-related infrastructure can be systems, and energy and infrastructure are subsumed, and mitigated through the use of land-use zoning to identify for which they represent vital parts of the solution. sensitive areas (e.g., Laurance et al., 2015; Balmford et al., 2016; Sloan et al., 2018) or through sensitive operating A plethora of definitions for a sustainable economy have practices – e.g., turning off wind turbines when large been suggested (e.g., King & Slesser 1994; Bartelmus numbers of soaring migratory birds are passing (Hüppop et 1999; Pearce & Barbier 2000; Urhammer & Røpke 2013; al., 2006; Allinson 2017). Pullinger 2014; Martin 2016). In the IPBES context it can be defined as an economy that does not produce the indirect Dams – producing hydropower, improving navigation or and direct drivers impinging on nature, nature’s contributions providing secure water supply (Nilsson et al., 2005) – also to people, and a good quality of life, and account for the have largescale landscape impacts (e.g., Belo Monte Dam important role that telecoupling, trade, supply chains, in Brazil, Lees et al., 2016). More than 50,000 dams above and producer-consumer interactions now play in our 15 m height exist worldwide (Lejon et al., 2009), and several global system. This requires that economic, social and examples point the significant negative impacts they have technological indirect drivers and the patterns of production, on nature and society (Tullos 2009; Finer & Jenkins 2012; supply, and consumption that make up the economy Fearnside 2016; Dudgeon 2010; chapter 4; Doria et al., respect ecological limitations and ecosystem integrity 2017; Beck et al., 2012), which are often not well mitigated (Raworth 2015; Bengtsson et al., 2018). (Zarfl et al., 2015; Poff & Schmidt 2016; Winemiller et al., 2016; Latrubesse et al., 2017). A sustainable economy must also provide more equitable access to the fruits of development and quality of life Despite their negative environmental and social impacts, (O’Neill et al., 2018). Some impacts on nature can be dams may generate new benefits (Menzie et al., 2012), caused by poorer households forced to exploit natural such as create habitat for protected species, or function resources due to a lack of other economic options, as a refuge under climate change, making it difficult to although the poor are often well aware of their dependence consider biodiversity trade-offs associated with decisions on nature and protect biodiversity (Martinez-Alier 2002). about dam removal (Lejon et al., 2009; Beatty et al., Other data suggests that it is inequality in particular that 2017). While many studies show positive effects of dam may lead to negative impacts on the environment as removal on biodiversity (e.g., O’Connor et al., 2015), others wealth concentrates among people who are not willing highlight unintended risks and consequences, such as to pay for the provisioning of public goods (Boyce 1994; dispersal of invasive fish (Lejon et al., 2009), colonization Kashwan 2017). Policies aimed at reducing poverty and of non-native plants (Tullos et al., 2016) or spread of inequality thus have the potential to be linked up with accumulated contaminants (O’Connor et al., 2015). Case priorities for NCP conservation (Johnson 1973). Rethinking studies also show that deliberations about dam removal what makes an economy sustainable thus will need to tend to create situations where locals become divided focus not only on incorporating pluralistic values of nature, between environmental, economic, and cultural losses as this report has noted, but also rethinking what it means and gains (Reily & Adamowski 2017). In sum, the complex to have a good quality of life, and how it links to nature consequences of dam-removal are unresolved, and and its contributions (Naeem et al., 2016). The concept studies are typically not framed to inform management of an “adequate standard of living” as a human right concerns that are context-specific (Tullos et al., 2016). See derives from the Universal Declaration of Human Rights Supplementary Materials 6.5.6. (UN 1948). Policies to achieve a “social protection floor”

952 THE GLOBAL ASSESSMENT REPORT ON BIODIVERSITY AND ECOSYSTEM SERVICES

to protect this right include measures and institutional Further, a sustainable economy must be one in which reforms to achieve both basic income security and climate change causes and impacts are addressed, universal access to essential, affordable social services (UN to ensure that carbon emissions do not remain an 2018). These aims could be combined with more nature- environmental externality, that globalization does not specific measures and attention in the 21st century, such exacerbate the impacts of climate change, and that as including ideas about access to NCP as part of social communities have sufficient financial means to reduce protection measures. vulnerability and adapt to forecasted changes (O’Brien

Table 6 8 Options for transformation to sustainable economies.

Short-term options Long-term Key obstacles, potential Major decision Main Main options risks, spill- over, unintended maker(s) level(s) of targeted consequences, trade-offs governance indirect driver(s)

Reforming Subsidies

Assess impacts of Long-term Vested interests opposed; political National; sub- National and Economic, all subsidies policies removal of all challenges: beneficiaries of subsidy national; and local sub-national institutions (e .g . energy, fisheries, environmentally- policies protest their removal; welfare governments; agriculture, water); removal unsound impacts of subsidy removal for some research & of cost ineffective subsidies subsidies communities education organizations

Address over and under consumption

’Nudges’ to consumers; Expansion Beliefs in rationality of markets; Citizens; private National and Economic, product labelling; local of sharing dogma of consumer sovereignty; sector; national local cultural reuse or fix-up initiatives; economy; lack of policies that address leakage governments; corporate or NGO led transition towns; & telecoupling; political risks for tax NGOs; scientific initiatives to discourage sufficiency increases; potentials for consumer groups overbuying; taxes on orientation of backlashes consumption; consumer consumers; reduced-consumption design for movements sustainability for products and services

Reducing unsustainable production

Taxes on resource Circular Lack of data and research on efficacy; National, sub- National and Economic, consumption and economy; market forces promoting growing national and local local cultural degradation; circular change production; insufficient consumer governments; economy models; production interest private sector; use of LCA as policy systems NGOs tool; corporate social based on responsibility (CSR) LCA; capping of resource consumption

Reforming trade regimes and financial systems

Changes in trading rules; Reforming Vested interests opposed; complexity National All Economic, stricter regulation of trade system and opaqueness of information governments; institutions commodity futures markets & WTO; future intergovernmental regulation on institutions environmental derivatives

Reforming models of economic growth

Use of alternative measures Move toward Mostly academic exercises so far; lack Global institutions; All Economic, of economic welfare and steady state of clarity on how to achieve steady- national governance, Natural Capital Accounting economics state or degrowth; political risks of governments; institutions paradigm not supporting economic growth private sector and degrowth at all costs; initial welfare impact agenda of recession or degrowth; need to reallocate large sector of economy

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& Leichenko 2000; Stern 2006; Betzold & Weiler 2017). 6.4.1 Reforming environmentally Failure to act now on reducing emissions is likely to impose harmful subsidy and tax policies severe economic risks to economies around the globe (Stern 2006; Hsiang et al., 2017), yet recent modelling Aichi Target 3 calls for the elimination, phasing-out or notes the particular challenges of holding warming to reform of incentives, including subsidies, that are harmful 1.5 degrees given strong economic inequality, high to biodiversity. It is estimated that financial support to dependence on fossil fuels for global trade and transport, agriculture that is potentially environmentally harmful and inadequate climate policies (Rogelj et al., 2018). While amounted to USD 100 billion in OECD countries in 2015, many policies have as their stated goal a nexus of nature and that fossil fuel subsidies account for USD 345 billion protection, climate mitigation or adaptation, and poverty globally (OECD 2017a). The amount of finance mobilized reduction, successes in this area are still difficult to find to promote biodiversity is therefore conservatively (Boyd et al., 2007, Reynolds 2012, Caplow et al., 2011, estimated to be outweighed by potentially environmentally Lowlor et al., 2013). harmful subsidies by a factor of 10. Other potentially environmentally harmful subsidies that may also adversely This transformation of the global financial and economic affect biodiversity and ecosystems include those that system towards sustainability is both necessary and encourage overcapacity in the fishing and forestry sector, possible, as the current system increasingly reflects subsidies that encourage urban sprawl, and the over- dominant power and geopolitical interests rather than a consumption of water. commitment to sustainability and equity. Aichi Biodiversity Target 4 calls for governments, business and stakeholders Given the magnitude of these harmful subsidies, governments at all levels to take steps towards “sustainable production should consider the fiscal and environmental implications and consumption”, as does SDG 12 (responsible of their policies and work to identify and assess both consumption and production) (Bengtsson et al., 2018) their direct and indirect impacts on terrestrial and marine (section 6.4.2 and 6.4.3). International systems of trade ecosystems. Many of these support policies were put in and national systems of positive and negative subsidies place for other reasons, such as to maintain the economic are also tools for achieving more sustainable ends (section viability of rural areas, but such objectives can be achieved 6.4.1 and 6.4.4). Finally, there are alternative models of the with policies that promote public goods, rather than the economy (including green growth and degrowth) to achieve over-exploitation of natural resources. Reducing harmful a good quality of life without contributing to degradation subsidies and increasing positive environmental subsidies of nature and nature’s contributions to people (see section allows countries to compensate for the cost of adopting 6.4.5). There are a number of possible options for decision environmentally friendly production and consumption makers to begin to transform our economic system into a behaviour and by so doing, encourage such behaviour. more sustainable one, ranging from immediate short-term Examples of positive subsidies with outcomes on options and longer-term options that may take decades or biodiversity include grants to farmers who construct contour more to implement. Given the size and scope of the global bunds on steep slopes, which is a policy within both the economy, encompassing all levels from local economic US Conservation Reserve program and the EU CAP (see output of firms to global trade between nations, different Box 6 .5). options can be applied at different scales, from individual consumers up to international institutions. This section Agricultural subsidy policy reform has already taken place provides a review of these options (Table 6 .8). with success in some countries; agricultural subsidies were reformed in Switzerland and New Zealand, and pesticide

Box 6 5 Positive Subsidies.

The EU Common Agricultural Policy (CAP) has long tried to landscape of high-value habitats and biodiversity, etc. (CDB use generally voluntary schemes aiming at providing incentives 2015), and they receive payments to cover the cost of these to farmers to conserve and better provision ecosystem enhancements or income lost from doing so. However, the agri- services on their individual farmlands and prevent agricultural environmental payments of the CAP in particular are reported land degradation (e.g. overuse of pesticides or tillage). Under to have only a moderate positive impact on biodiversity (e.g., CAP, farmers are required to make a five-year obligation to Capitanio et al., 2016; Overmars et al., 2013; Whittingham use environmentally friendly farming practices (for example, 2011; Kleijn et al., 2006; Primdahl et al., 2003) (see Ring et al., conservation set-asides, organic agriculture, low-intensity 2018, section 6.5.2). systems, integrated farm management; preservation of

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subsidies were removed in Indonesia (OECD 2017c). cover an estimated one quarter of funding needed to Subsidy reform can be combined with other measures, meet their SDG commitments (Franks et al., 2018) (see for example removing harmful subsidies from livestock Figure 6 .6). India, Indonesia, and Mexico recently reduced production, imposing taxes, and internalizing social and their subsidies for transport fuels, and major reforms of environmental externalities in food production costs (Stoll- fuel or electricity prices are taking place in Argentina, Kleemann & Schmidt 2017). However, the full impact of Egypt, Iran, the Gulf Co-operation States, and Morocco removal of subsidies on biodiversity and nature is not well (OECD 2017a; Rosas-Flores et al., 2017; Wesseh et al., understood, given the long time-lags necessary to judge 2016; Bhattacharyya et al., 2017). Iran was able to end such impacts. ecologically undesirable fuel subsidies by instituting a universal dividend while phasing out subsidies (Tabatabai In another example, removal of inappropriate subsidies 2012), and subsidy removal can result in opportunities to fossil fuel energy will help reduce carbon emissions. for conservation and potential energy savings, as shown Estimates of the global costs of subsidizing fuels from in in Malaysia (Yusoff & Bekhet et al., 2016). China has 2012 to 2015 range between US$300-680 billion per year also recently removed some energy subsidies (Jiang et depending on accounting methods (Franks et al., 2018). al., 2015; Lin et al., 2014; Lin & Li. 2012) reporting both G7 countries alone provided at least $100 billion annually economic and environmental gains (Hong et al., 2013). The in subsidies for the production and consumption of oil, gas starting point for energy subsidy reform from these cases and coal, despite pledges from these countries to reduce points to the need to clearly define the policy objectives, them (Whitley et al., 2018). Reducing energy subsidies understand the distribution of the costs and benefits and spending these funds instead on SDG would allow of subsidies, assess economic as well as social and many countries to go a long way towards meeting their environmental impacts, actively promote the dissemination domestic financing needs. For example, Vietnam has of information to stakeholders, and engage with all relevant annual per-capita fuel subsidies of US$35, which would parties (Barg et al., 2006).

Fraction of public SDG needs covered by subsidy removal Share of public ﬁ nance in total needs (%) > median < median <10 10-20 20-30 30-60 60-100 >100

No data

Figure 6 6 Fraction of the national public investment need for the SDG agenda that could be ﬁ nanced by freeing up funds that are used at present for subsidizing fossil fuels. Source: Franks et al. (2018) .

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In the fisheries sector, subsidies have been estimated to be Tax havens reduce the amount of financing available to at least 13 billion per year (OECD, 2017b; Sala et al., 2018). governments for global public goods provisioning and Many governments subsidize fishing by national fleets, provide bad actors with opportunities to avoid financial often exceeding the net economic benefit. Fisheries subsidy scrutiny, reducing the impact of policies such as certification reform took place in Iceland, New Zealand and Norway or supply chain monitoring (also see section 6.3.2). A recent in the 1990s in attempts to reduce pressure on fishing study of tax havens found that 70% of known fishing vessels stocks but remains a problem in many other countries and implicated in illegal fishing are flagged in a tax haven, and in particular in High Seas fishing. A recent review of High that nearly 70% of foreign capital to the largest companies Seas fishing found that without subsidies and low wages raising soy and beef in the Amazon, prime drivers of (often slave level labor), “more than half of the currently deforestation, was channeled through tax havens (Galaz et fished high-seas fishing grounds would be unprofitable al., 2018). at present exploitation rates” (Sala et al., 2018) (also see section 6.3.3.3.2). 6.4.2 Addressing Over- and Under- International action can help countries become motivated to consumption tackle subsidy reform, such as through “informal international law” (Pawley et al., 2012). They include declarations by Over-consumption by households is a major driver of the leaders of the Group of Twenty (G20), the Group of resource use and depletion, primarily in housing, mobility Seven (G7), and the Asia-Pacific Economic Cooperation and nutrition (Spangenberg & Lorek, 2002). Involuntary (APEC) countries. SDG target 14.6 calls on countries to under-consumption is synonymous with poverty and prohibit certain forms of fisheries subsidies that contribute to a lack of options, while overconsumption results from overcapacity and overfishing, and Target 12.C makes a similar unsustainable choices and practices. Overconsumption appeal to phase out “inefficient fossil fuel subsidies”. The plays a major role in driving NCP loss and is associated with WTO has more stringent rules, or “hard law” on controlling higher carbon footprints (Ivanova et al., 2017). Reduced subsidies in general, and the Agreement on Agriculture has consumption is thus also an imperative to meet the Paris stewarded a gradual reduction in the most trade-distorting Agreement climate targets, which are unlikely to be met support to the farming sector, but none of these address with resource efficiency or alternative energy sources alone environmental effects specifically. At the global level, there (Alfredsson et al., 2018). Patterns of over-consumption, are calls for streamlining positive renewable energy subsidies however, vary greatly within and across global regions, with as well as involving global institutions like the WTO and the involuntary under-consumption and poverty representing the UNFCCC in the energy subsidy reform (Cosbey & Mavroidis reality of a significant portion of the world population. 2014; Rubini 2012; De Bièvre 2017; van Asselt & Kulovesi 2017; Van de Graaf & van Asselt 2017). One basic misperception is that a better life is held to emerge from more consumption opportunities. Instead, Commonly cited obstacles for subsidy reform include studies show human needs are limited and mostly concerns regarding impacts on competitiveness and non-material; they can be satisfied with less resource distributional impacts, including employment. However, ex- consumption than usual in the affluent countries (Steinberge post empirical analysis has found little evidence in this regard & Roberts, 2010) if suitable satisfiers are chosen (Max-Neef (OECD 2017c). Vested interests and political acceptability et al., 1989). Satisfaction with GQL has been shown not to can also present barriers to subsidy reform. Political economy increase above a certain income threshold (Max-Neef 1995) insights from successful biodiversity policy reform can shed and to be decoupled from income and thus consumption light on how this transition can be achieved in practice thereafter (Layard 2005; Hoffman & Lee 2016) (although (OECD 2017c). These suggest the need to: act quickly when the rich seem to be happier than the poor in most societies presented with windows of opportunity that may be outside (Veenhoven 2010)). the influence of domestic policy makers and unrelated to the environment (for example, human health); build alliances Consumption-focused policies have a significant opportunity between economic and environmental interests (e.g., to complement other nature conservation efforts (Igoe 2013; when there are common interests between certain groups, Isenhour 2014) with a resource conservation potential of even though the motivations may not be); devise targeted demand-side measures potentially matching supply side measures to address potential impacts on competitiveness options (Cruetzig et al., 2016; Lazarus et al., 2011), in and income distribution; build a robust evidence base on the particular when combined with policies to compensate social costs and benefits of reform; and encourage broad for rebound effects (the phenomenon where increased stakeholder engagement (OECD 2017c; 2011). efficiency leads consumers to take that additional money and increase consumption elsewhere) (Jackson 2005; Finally, ensuring compliance with fair tax policies can Lorek & Spangenberg 2014). We here review options for help ensure funding for biodiversity and nature as well. consumers, governments and the corporate sector.

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Consumers’ action options: Grassroots and civil society service agreements or collaborative consumption networks. organizations have advocated a wide range of lifestyle Many consumers favor the removal of dangerous products modifications and shifts in consumer behaviours, often from the market and a stronger role for governmental focusing on information and education initiatives for affluent agencies in protecting consumers over more choice and environmentally conscious consumers, such as (Isenhour 2011). generating pressures on corporations and governments by mobilizing the social norms of affluent consumers (Conroy Taxing consumption: Many taxes on activities or products 2001) and engaging in the co-designing of products and exerting negative (and often indirect) effects on ecosystems services (Fuad-Luke 2008). Critics point out that these and biodiversity rely either on the polluter-pay principle or successes are often short lived and have done little to on the user-pay principle (Ekins 1999). Examples of these challenge dominant consumption logics or practices. “green” taxes and levies can include: Furthermore, studies indicate that changing the composition of consumption has limited effects on the overall Pesticide taxes, e.g. France, Denmark, Norway, environmental impact (Røpke 2001) and that it is reducing Sweden, United States (OECD 2017a; Hogg et al., the level of resource consumption that reduces drivers of 2014). However, moderate increases in the tax rate environmental damage (Lorek 2010; di Giulio & Fuchs 2014; alone appear not to be sufficient to reduce use (Sainteny Lorek & Spangenberg 2014). 2011; Jacquet et al., 2011).

Already a number of consumers have chosen to reduce Fee-based licenses for logging, fishing and hunting their consumption by practicing ‘voluntary simplicity’, often are price mechanisms to limit certain detrimental motivated more by lifestyle choices rather than concerns mechanisms (Fisher et al., 2008). about sustainability (McDonald 2015) and in conjunction with reducing their income and increasing their leisure Taxes on luxury and consumer goods have shown some time and thus avoiding rebound effects (Freire-González success in reducing excess consumption and raising et al., 2017). As such changes are not easy in the current money for other initiatives (Schor 2005). consumer society (Speck & Hasselkuss 2015), dedicated policies are called for to make a resource-light, good life Road and congestion charges, often in large cities like easier (Schneidewind & Zahrnt 2014; Heindl & Kanschik London and Stockholm, have been shown to reduce 2016). transportation by single occupancy vehicles and lower carbon emissions (Newberry 2005). Government policy options supporting consumers: To influence conscious decisions, awareness-raising and Carbon/energy/fuel taxes with the main motivation to information campaigns are viable options. However, the mitigate climate change also reduce environmental risks literature on their effectiveness is unclear, particularly for the and threats to ecosystems (Ekins 1999). average consumer who may not share strong environmental norms (Stern 2000; Spaargaren et al., 2013). An option to Eco-VAT. In Brazil, an ecological value added tax is paid influence spontaneous decisions is the choice architecture to municipal governments (Farley and Costanza 2010). approach including nudging, i.e. offering pre-set default options which in some cases had a strong influence However, while these targeted fees and taxes, and VAT on consumers’ propensity to make desirable choices more generally, dampen consumption, very few direct (Gsottbauer & van den Bergh 2011). Nudges can include consumption taxes have been designed specifically in tailored messaging or offer peer comparisons, provide order to preserve nature and NCP. Taxes can be combined disclosures or warnings, create default rules, or use social with other economic instruments for these ends; for norms (Sunstein 2015; Lehner et al., 2015; Halker 2013; example, revenues from taxes may be used to finance Olander & Thorgersen 2014). However, nudging has been other biodiversity-conserving activities, like protected areas effective only if the required change of everyday life routines (Farley and Costanza 2010; Raes et al., 2016). As no global and the effort required were not too onerous (Keller et al., assessment of the effectiveness of these kinds of taxes is 2016). There is also very little evidence that non-regulatory found in the literature, the evidence remains inconclusive measures used in isolation, including nudges, are effective (Hogg et al., 2014). More empirical work on the experimental for biodiversity conservation (Newton et al., 2013; Hobson use of different taxation schemes and their environmental 2013). Legislation and norms have the advantage of outcomes is recommended. binding all consumers for all kinds of decisions to the same standards, and to be implementable in relatively short time. Local and regional governments across the world are also They range from broad ecological tax reforms to bans of investing in a wide range of programs to encourage more single-use disposable products, disincentives for travel resource-light consumption including elements of sufficiency or meat consumption, and public investments in product such as hosting repair cafes, materials exchanges/swaps,

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and innovating ‘collaborative consumption’ events like tool products and business models by taking resource limitations lending libraries. Authorities have also indirect influences (and implicitly biodiversity aspects) into account alongside on consumption patterns and levels: public transport economic considerations throughout the supply chain planning can enhance the accessibility without car use, (Ayres 1989). A large number of studies have shown that with positive environmental and quality of life outcomes. avoidance costs tend to be lower than damage and repair Additionally, in most countries, public procurement is the costs (Aslaksen et al., 2013; Gee et al., 2013; Simberloff single largest purchaser of goods and services. This gives 2014, EEA 2017). public authorities from the local to international level the opportunity to strengthen sustainable suppliers and nudge As one example, carbon pricing is currently in discussion as others towards greening their offers, by stimulating the a possible way to spur development of non-fossil fuel energy demand for energy saving buildings, recycled products or sources and reduce carbon emissions (Essl & Mauerhofer organic food, reducing the consumption of materials, energy 2018); a recent study found that while the potential to raise and land and thus mitigating several direct and indirect revenue from carbon pricing is highly variable depending drivers of nature deterioration (Brammer & Walker 2011; on country’s emission intensity and economic activity, many Lutz 2009). low income countries could finance much of their needs to implement the SDG with a carbon pricing scheme starting Corporate action reducing consumption: Corporations and at $40/ton (Franks et al., 2018). To avoid disproportionate industry associations have responded to consumer demand negative effects on producers and resulting rises in prices, through sustainable sourcing practices and consumer resource caps and taxes can be complemented with awareness campaigns in the interest of both resource compensatory measures, such as carbon dividends and protection and building brand loyalty. However, Williamson subsidies to low income energy users. et al. (2006) found that such voluntary approaches will not alter the behaviour of manufacturing enterprises significantly Transitioning to a circular economy: The major aim of the unless they have a positive effect on the bottom line, e.g. by Circular Economy (CE) is to decouple economic growth reducing resource or labor cost, ensuring employee morale and the deterioration of the environment (Ghisellini et al., (Jacobsen & Dulsrud 2007) or avoiding regulation by pre- 2016), suggesting that economic prosperity and improved empting measures (Marsden & Flynn 2000). The research environmental quality can be achieved together at the on such Corporate Social Responsibility (CSR) programs same time (Kirchherr et al., 2017) through technological, tends to conceptual rather than empirical, except for some economic and social innovations (Jesus & Mendonça labelling and certification programs (Carlson et al., 2018). 2017). There are many competing definitions about what See Supplementary Materials 6.6.1 for a detailed discussion the circular economy is and how far it can be implemented on addressing overconsumption. at the micro (e.g. company, consumer), meso (e.g. industrial park) or the macro (regional, national, global) level (Kirchherr et al., 2017). According to a frequently cited 6.4.3 Reducing unsustainable definition, CE is “an industrial system that is restorative production or regenerative by intention and design. It replaces the ‹end-of-life› concept with restoration, shifts towards the Several studies have shown that production systems use of renewable energy, eliminates the use of toxic focused on economic growth correlate with increasing chemicals, which impair reuse, and aims for the elimination environmental impacts, both on micro/household and on of waste through the superior design of materials, macro/cross-national levels (Hayden & Shandra 2009; products, systems, and within this, business models.” Rosnick & Weisbrot 2007; EEA 2014; Ward et al., 2016). (Ellen MacArthur Foundation 2013: p7). Most discussions Policy options include the setting of resource caps and about CE recognize that it may not be possible to make taxes, transitioning to a circular economy, corporate social the economy fully circular. For example, Figure 6 .7 offers a responsibility, and using life cycle analysis as a policy representation of the CE that allows for raw materials input support tool. and residual waste outputs.

Resource caps and taxes: Resource caps and taxes are a CE is promoted in various countries worldwide (for way to limit the volume of resources used or produced in examples, see Supplementary Materials 6.6.2). production processes. Examples with positive environmental Nevertheless, consensus is still lacking on how far the effects include water extraction charges or energy sector global economy is progressing towards a CE. Cooper et al. charges (McDonald et al., 2012), e.g., car fleet gasoline (2017) estimated that potential savings of energy used for consumption limits as an obligation to manufacturers and economic activities worldwide could reach 6-11%, while public procurement. Caps and taxes support transformative Haas et al. (2015) carried out a material flows analysis on change as reducing supply modifies the competition rules data from 2005 and estimated that the recycling within in a market economy, requiring companies to redesign the economy as share of processed material reached 6%

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Figure 6 7 Depiction of the circular economy. Source: https://www .europarl .europa .eu/ireland/en/news-press/circular-economy-meps-call-for-“systemic-change”-to- address-resource-scarcity .

globally and 13% in the EU. Reasons for these relatively companies have the potential and responsibility to make a low numbers are thought to be the large proportion of substantial contribution to arresting declines in biodiversity non-recyclable fossil fuel and biomass material throughput and ecosystems services (Armsworth 2010; Lambooy (Haas et al., 2015), and the accelerating production due 2011; Athanas 2005; ‘Biodiversity in Good Company’ to the rebound effect (Zink & Geyer 2017). Other factors Initiative https://www.business-and-biodiversity.de/en/ include policy and enforcement failures, consumer about-us/). The ultimate role of companies should be preferences, costs, and infrastructure deficits (for details, to identify, to be transparent and accountable for their see Supplementary Materials 6.6.2). impacts (ISO 26000) (ISO 2010), and to develop strategies to reduce negative and to maximize positive impacts. Corporate social responsibility (CSR): CSR initiatives are However, since the inception of the CBD in 1992, little voluntary efforts by companies to address social and progress has been achieved in terms of involving the environmental concerns arising from business activities business community in protecting biological diversity (Robinson 2011; European Commission 2011, Dyllick worldwide (Overbeek et al., 2013). For instance, most of & Hockerts 2002; Baumgartner 2014; O’Connor & the Fortune 500 companies do not systematically record Spangenberg 2008). CSR is used by sectors that are their activities regarding biodiversity and ecosystems directly affected by the degradation of local ecosystems service management (Bhattacharya, 2013); a recent and habitat loss (e.g. fisheries, agriculture, forestry, study found only 5 companies in the Fortune 100 had tourism) (Boiral & Heras-Saizarbitoria 2017; Hastings & specific and measurable commitments to biodiversity Botsford 2003; Pickering & Hill 2007) as well as sectors (Addison et al., 2018). However, research suggests that that are indirectly affected through their globalized business profits and good condition of biodiversity are supply chains (Robinson 2011). The idea of CSR is that often correlated (Tilman et al., 2006; Worm & Barbier

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2006; Bishop et al., 2008; Lambooy 2011) (see also (Waincymer 1998) or, similarly, to ban shrimp from fisheries Supplementary Materials 6.6.2). operations and nations that do not implement turtle conservation measures (Benson 2003). Other examples Using life cycle analysis as a policy support tool: Life include domestic support for multifunctional agriculture cycle assessment (LCA) offers a method for quantitatively (see also 6.3.2) (Dibsen et al., 2009; Hasund 2013, Potter assessing and evaluating the inputs, outputs, and potential & Burney 2002; Potter & Tilzey 2007). Tensions have also environmental impacts of a product system throughout its been identified between the GATT and biosecurity issues life cycle (ISO 2006a). It is widely applied by companies related to preventing diseases and invasive species from (Frankl & Rubik 2000; Clift & Druckman 2015) to inform entering (Maye et al., 2012). consumers (Del Borghi 2013) and for public policy making (Owsianiak et al., 2018). However, the inclusion A different issue identified in literature is related to the WTO of biodiversity in LCA has been limited to specific species Agreement on Trade-Related Aspects of Intellectual Property or has related factors such as climate change or land use Rights (TRIPS) (Brand & Görg 2003). While the potential of (Verones et al., 2017; Goedkeep et al., 2013; deBaan et WTO and other free trade agreements and WTO regulations al., 2013; Schenk 2001; Penman et al., 2010; Curran et to contribute to conservation and sustainability is criticized al., 2011; Koellner et al., 2013; Souza et al., 2015; Winter (Waincymer 1998; Brand & Görg 2003), some suggest et al., 2017; Chaundhary et al., 2015; see Supplementary that the inclusion of environmental provisions in TRIPS can Materials 6.6.2). Several authors have discussed options to prevent negative environmental impacts and even promote incorporate ecosystem services into LCA (Zhang et al., 2010 conservation and good environmental practices (Neumayer a, b; Bakshi & Small 2011; Koellner & Geyer 2011; Cao et 2000; Ivanova & Angeles 2006). Opportunities within WTO al., 2015; Othoniel et al., 2016; Blanco et al., 2017; Bruel have been identified in the Technical Barriers to Trade et al., 2016) but so far with little progress. LCA approaches (TBT) agreements and in Preferential Trade Agreements have a number of limitations, as they present many choices (Charnovitz 2007). Also, the Geographical Indications (GI), and assumptions, are complex and require sufficient and part of TRIPS, can provide opportunities for conservation standardized data, provide a snapshot at a specific point and sustainability, but only if nature and biodiversity friendly in time which may be outdated by innovation or modified practices are embedded in the GI specification (Garcia et supply chains by the time the data is used, and focus al., 2007). on reducing the impacts per unit of consumption, not on reducing consumption levels themselves (Pré Consultants While other regional or bilateral free trade agreements 2006; Finkbeiner 2014; Galatola & Pant 2014). such as NAFTA include environmental provisions, these have mostly been implemented in a narrow way and have not resulted in significantly raised levels of environmental 6.4.4 Reforming trade regimes protection (Sanchez 2002). At the global level, WTO has to address disparities and started to discuss environmental provisions as part of distortions the Doha negotiations since 2001, but negotiations were not successful and ended in 2016. Since then, bilateral Key global commodities with negative impacts on nature are trade agreements have increased in importance, as have among the major items traded internationally and subject the intensification of ‘trade wars’. The consequences of to rules through the WTO and other regional and bilateral this situation for international cooperation, as well as for trade deals. There is growing evidence that these trading nature, its contributions and the quality of life are yet to rules often encourage overproduction or unsustainable be determined. production, and that future markets can create pressures for expansion of production in unsustainable ways (Pace & Reforming derivative and futures markets: The increasing Gephart 2017; Bruckner et al., 2015). While challenging, it trade in futures and derivatives over the past decade have is increasingly acknowledged that reforming trade systems been associated with outcomes that affect biodiversity. and financial markets is essential to controlling the impact of Futures and comparable financial products such as global economic drivers on nature. derivatives are essentially contracts between buyers and sellers of commodities that stipulate volumes, price Reforming the trade system: There are general concerns and delivery date (Pollard et al., 2008). Derivatives and that trade liberalization contains considerable risks for futures turn variability into a credit risk that can be hedged nature and the environment. For example, tensions have against, traded, and speculated on, and signal the ongoing been identified between WTO regulations, particularly commodification of new forms of nature (Smith 2007; the General Agreement on Tariffs and Trade (GATT) and Cooper 2010). For example, climate and weather derivatives environmental concerns. Documented cases focus on have emerged, seen as a flexible and cost-effective way for efforts to ban tuna from fisheries operations and nations companies to reduce risk and become more creditworthy that do not implement dolphin conservation measures (Pryke 2007; Cooper 2010). While futures and derivatives

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contracts can offer potential income stability and protection regulations on commodities futures markets with a view against risks, they are also an opportunity for speculation to reining in speculative financial investments that could and hedging on price movements which can lead to affect prices and destabilize markets (Helleiner 2018). In turbulence and price volatility (Cooper 2010). This means the United States, the Dodd-Frank Wall Street Reform that, when unregulated, these markets can pose a potential and Consumer Protection Act authorized the adoption of threat to sustainability and contribute to social crises new rules to strengthen the position limits and reporting (Heltberg et al., 2012). requirements to restrain excessive speculation. However, the substance of these rules has been weakened In the United States, home to the largest commodity and their implementation has been delayed following futures markets, financial regulations designed to prevent extensive lobbying and court challenges from the financial excessive levels of speculation by financial investors were industry. The European Union also developed more in place for much of the 20th century. These rules included stringent regulations known as Mifid II, but these rules reporting requirements as well as ‘position limits’ that were also weakened in the face of the financial industry. It restricted the number of commodity futures contracts is unclear whether the new regulations in the US and EU, purely financial investors (also referred to as ‘non- once fully implemented, will achieve their intended effect, commercial operators’) could hold at any given time. Over and their subsequent impact on agricultural outcomes the course of the 1980s to early 2000s, these regulations that affect biodiversity. were gradually relaxed (Clapp & Helleiner 2012). Following the deregulation of the US futures markets, speculative investment in agricultural commodities increased from 6.4.5 New models for a US$ 65 billion in 2006 to US$ 126 billion in 2011 (Worthy sustainable economy 2011). It has been suggested that this contributed in part to the 2007-2008 food crisis, as a number of observers In recent decades, many have questioned the economic noted that food prices were rising more quickly and sharply growth paradigm and its compatibility not only with than was warranted by the underlying fundamentals of environmental sustainability but also achieving a good supply and demand for those crops at the time (e.g., FAO quality of life for all. The challenges of climate change 2008). Analysts identified speculative financial investment, and biodiversity loss, in particular, underline that the scale including commodity index products marketed to large of economic activity has already pushed society out of institutional investors, as a potential factor in driving up the safe operating space of the planet (Rockström et al., food prices (Masters 2008; Ghosh 2010) with severe 2009; IPCC 2018). By detaching mainstream paradigms impacts on the quality of life in many countries (Ivanic & of unending economic growth from economic and social Martin 2008; Bellemare 2015). Although there is debate relations, alternative ways of understanding human and over the extent to which financial speculators were societal well-being have been proposed (Costanza et al., responsible (see, for example, Sanders & Irwin 2010), 2014; Cattaneo 2014; O’Neill 2012). A central idea in several international organizations have noted that financial these approaches is to decouple growth of the economy speculation in agricultural commodity markets can make and enhancement of human well-being from resource use food price trends more volatile (BIS 2011; UNCTAD 2011). and extraction. The most prominent models are the Green Higher and more volatile food prices matter for biodiversity Economy (also called Green Growth or Inclusive Green because when food prices rise, investment in agricultural Growth, promoted by the OECD, UNEP and EU), which production also typically rises, influencing land-use trends. builds upon earlier discussion on ecological modernization At the height of food price volatility in the 2008-2013 (Mol & Spaargaren 2000), and the model of (physical) period, there was a rush to increase production, especially Degrowth leading to a steady state economy (Daly 1974; of cereal crops such as wheat, maize and rice, as well as Denaria et al., 2013). oil crops such as soy (FAO 2017). The core assumption of the Green Economy model is that As commodity exchanges around the world, including increasing economic activity as well as the generation in developing countries, develop to include more of income and jobs can be achieved without becoming sophisticated financial and investment products, it is unsustainable. Key strategies in this endeavor include important for them to consider adopting regulations that increasing the efficiency of resource use by means of seek to limit excessive financial speculation on those technological and social innovations (York & Rosa 2003) markets that can affect biodiversity outcomes (FAO et and transitioning towards more sustainable patterns of al., 2011): for example, by putting limits on the number consumption (UNEP 2002). Other discussions highlight the of contracts per trader in each market (Ghosh et al., possibilities of substituting natural capital for human capital 2012) and by enhancing market transparency (Clapp and human made capital (Pearce et al., 1989; Pearce & 2009; Minot 2014). In the wake of the 2008 financial Barbier 2000), while protecting a critical level of natural crisis, governments around the world sought to tighten capital (Deutsch et al., 2003; Ekins 2003).

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The toolbox used in green economy policies typically instruments from the green economy toolbox, like green includes a mix of regulatory (laws, voluntary agreements), taxes or consumer campaigns (Kallis et al., 2012; Rigon economic or market based (green taxes, credits, 2017), but not others such as biodiversity banking due to certification, subsidies, offsetting, PES, circular economy) reservations against the commodification of nature (Gómez- and informational instruments (labeling, consumer Baggethun & Ruiz-Pérez 2011). campaigns), with an emphasis on the latter two. On the consumption side, Green Economy strategies call for Evidence of the effectiveness of alternative models of the (voluntary) changes in consumption patterns towards the economy, including associated strategies and practices, growth in production and consumption of non-material is inconclusive. Yet, existing evidence shows that current or non-resource intensive goods and services. There are strategies and practices have not accomplished a however strong criticisms to this Green Economy concept decoupling of economic growth from energy and materials arguing that the suggested measures may indeed be consumption over an extended time span (chapter 2). indispensable, but not sufficient in the long term and that Without an adjustment of orientations and priorities, more fundamental change is necessary (Victor 2008; including an effective instrumentation of such policies, Jackson 2009). a sustainable economy is not going to be achieved. These alternative models and associated strategies and Degrowth, including the older idea of a steady state practices offer opportunities to promote nature and its economy (Daly 1974), contests the necessity of economic contributions, recognize value pluralism (Pascual et al., growth as a condition of human well-being and good 2017), and enhance inclusiveness as recognized in the quality of life. Foremost amongst these is that for an SDG. An example of such a value pluralist approach is economy to remain within ecological bounds, it must the concept of Good Living (“Buen Vivir”), which means possess a constant stock of physical capital at a level that material, social and spiritual well-being of people who live can be maintained by material flows remaining within the not at the cost of others or nature (Brand et al., 2017; regenerative capacity of the ecosystem (Daly 1974). Only Beling et al., 2018). This concept of Good Living has been if economic output could be decoupled from resource adopted in the Bolivian constitution, calling for recognition use, growth in Gross Domestic Product (GDP) would of the rights of nature and holistic understanding (IPBES be consistent with sustainability. Models of degrowth 2016; Pacheco 2014a, b), albeit with limited impact on go beyond the physical steady state and advocate “an the country’s neo-extractivist policy (Beling et al., 2018). equitable downscaling of production and consumption Other examples include the broad discussion on the that increases human well-being and enhances ecological transition to an “ecological civilization” in China (Yan & conditions at the local and global levels, in the short and Spangenberg 2018). long-terms” (Schneider et al., 2010:512). This implies reduced growth in the physical part of the economy and Since the GDP does not capture the state of the as a result in the monetary or financial side (Spangenberg environment, biodiversity nature and its contributions, 2010). On the consumption side, degrowth goes beyond and is not a measure of welfare in itself, the discussion of greener consumption patterns by advocating for reduced alternative models of the economy has extended to the consumption levels overall. development of alternative measures to represent human well-being and good quality of life (see chapter 2). Some, Strategies for degrowth include limits on resource like the Index of Sustainable Economic Welfare (ISEW) extraction, new social security guarantees and work-sharing (Daly & Cobb 1989) and the Genuine Progress Indicator (reduced work hours); universal basic income and income (GPI) (Cobb et al., 1995), are based on GDP calculation; caps (see Supplementary Materials 6.6.3); consumption subtracting the “bads” like environmental degradation and sufficiency, and resource taxes with affordability safeguards; biodiversity loss in monetary terms and adding the “goods” redistribution of wealth, support of innovative models of not included in the GDP such as the value of unpaid work. “local living”; commercial and commerce free zones; new A comprehensive set of indicators for short and longer-term forms of money; high reserve requirements for banks; development has been suggested by the Stiglitz-Sen- ethical banking; green investments; cooperative property Fitoussi Commission set up by the French government and cooperative firms (Eckersley Ro 2006; Jackson 2009; (Stiglitz et al., 2010). Another prominent measure is Korten 2008; Latouche 2009; Spangenberg 2010; Klitgaard the Gross National Happiness Index, introduced by the & Krall 2012; Heikkurinen 2016; Samerski 2016). Already Bhutanese Government. This measure focuses on equitable existing practices that adopt these models or parts include social development, cultural preservation and conservation eco-communities and villages, cooperatives, community of the environment (Verma et al., 2017). Recently, local, currencies, time banking or urban gardening (e.g., Cattaneo regional and national governments, including different & Gavaldà 2010; Nierling 2012; 2010; Dittmer 2013; States in the US (see Talberth & Weisdorf 2017 for an Xue 2014; LeBlanc 2017; McGuirk 2017). In a degrowth overview), and Belgium (Bleys 2013) have shown interest in strategy, these practices are integrated with selected these measures.

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Further innovations have been proposed in accounting 6.4.6 Conclusions systems to incorporate environment and ecosystems. To this end, UN Statistics extended the international The existing economic system of capital-intensive statistical system by satellite accounts of physical flows exploitation of nature, extensive international trade and and environmental goods, and in its latest version the value their telecouplings, and wide-ranging inequality between of ecosystems and their services (https://seea.un.org/). countries and between peoples within countries, is not a This includes amongst others Material Flow Accounting system that is natural or to which there is no alternative. (MFA) and Material and Energy Flow Accounting (MEFA) To the contrary, such an economic system has evolved (Bringezu et al., 1997; Haberl et al., 2004) and Natural over time due to human interventions, institutions, policy Capital (NC) assessment and accounting (Natural Capital choices and options, and as such, can be transformed Coalition 2017). There is a wide variety in methods and just as it was created. The problem is often one of both approaches. Some of these focus on only one ecosystem recognizing the scope of the problem through sharing service or form of capital (for example carbon), some use information, implementing more inclusive and realistic formal accounting methods and involve monetization, economic accounting, as well as tackling reforms to the and again others use non-monetary units to quantify system through gradual incremental changes like changing and express environmental stocks and flows (Day 2013; consumer behaviour, incentivizing different economic Faccoli et al., 2016; Bateman et al., 2011; Donnely et al., pathways, reducing production impacts, and reforming 2016; Agrawala et al., 2014; Robèrt 2002; Schmidt-Bleek trade, subsidies and markets or various kinds. More 2008; Spangenberg et al., 1998; Dittrich et al., 2012; transformative options like creating circular economies, Ulgiati et al., 2011, Ayres et al., 1996; Steen-Olsen et moving to degrowth and steady-state economic paradigms, al., 2012; Giampietro et al., 2014; Lomas & Giampietro tackling inequality, and revamping the way we finance and 2017; ten Brink 2012; UNU-UHDP and IHDP 2014) (see prioritize conservation of nature and biodiversity will require Supplementary Materials 6.6.3). concerted efforts from a range of decision makers, with national governments, private corporations and international There is as yet no evidence of the effectiveness of the use institutions leading the way. Designing such an integrated of environmental accounting approaches. As an information world economy that values nature and its contributions instrument, its effectiveness is based on the premise that in pluralistic ways, recognizes their long-term importance more information will result in better decision-making (Guerry to human quality of life, and rightfully prioritizes them as et al., 2015; Mace et al., 2015) – a premise that is largely public goods above private profit is a long-term vision that unsupported (Caceres et al., 2016; Turnhout et al., 2013; will require innovative, imaginative and adaptive ways to Wesselink et al., 2013). Yet, as has been shown for other transform our current economic and governance systems. information tools such as models or indicators (Turnhout et al., 2007; Van Egmond & Zeiss 2010; see Section 6.2.2), environmental accounting may be helpful as a tool for the facilitation of dialogue on the diverse values of nature and biodiversity. However, in order to enable this role, it is important that it uses a broad perspective that includes non-economic values and that it employs a participatory approach so that relevant stakeholders can contribute to the definition and identification of indicators for nature, ecosystem services, environmental assets, and natural capital (Turnhout et al., 2007; Raymond et al., 2009).

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