TemaNord 2014:561 TemaNord TemaNord 2014:561 TemaNord Ved Stranden 18 DK-1061 Copenhagen K www.norden.org Ecosystem Services In Nordic Freshwater Management Ecosystem Services – In Nordic Freshwater Management Human wellbeing is dependent upon and benefit from ecosystem services which are delivered by well-functioning ecosystems. Ecosystem services can be mapped and assessed consistently within an ecosystem service framework. This project aims to explore the use and usefulness of the ecosystem service framework in freshwater management, particularly water management according to the Water Framework Directive (WFD). There are several examples of how ecosystem services have been used in WFD related studies in all the Nordic countries. Most of them involve listing, describing and categorizing freshwater ecosystem services, while there are few comprehensive Cost Benefit Analyses and analyses of disproportionate costs that apply this framework. More knowledge about ecosystem services and the value of ecosystem services for freshwater systems is needed. TemaNord 2014:561 ISBN 978-92-893-3851-6 (PRINT) ISBN 978-92-893-3852-3 (PDF) ISBN 978-92-893-3853-0 (EPUB) ISSN 0908-6692 TN2014561 omslag 2.indd 1 02-12-2014 08:01:17 Ecosystem Services In Nordic Freshwater Management Kristin Magnussen, Berit Hasler and Marianne Zandersen TemaNord 2014:561 Ecosystem Services In Nordic Freshwater Management Kristin Magnussen, Berit Hasler and Marianne Zandersen ISBN 978-92-893-3851-6 (PRINT) ISBN 978-92-893-3853-0 (PDF) ISBN 978-92-893-3852-3 (EPUB) http://dx.doi.org/10.6027/TN2014-561 TemaNord 2014:561 ISSN 0908-6692 © Nordic Council of Ministers 2014 Layout: Hanne Lebech Cover photo: SignElements Print: Rosendahls-Schultz Grafisk Printed in Denmark This publication has been published with financial support by the Nordic Council of Ministers. However, the contents of this publication do not necessarily reflect the views, policies or recom- mendations of the Nordic Council of Ministers. www.norden.org/en/publications Nordic co-operation Nordic co-operation is one of the world’s most extensive forms of regional collaboration, involv- ing Denmark, Finland, Iceland, Norway, Sweden, and the Faroe Islands, Greenland, and Åland. Nordic co-operation has firm traditions in politics, the economy, and culture. It plays an im- portant role in European and international collaboration, and aims at creating a strong Nordic community in a strong Europe. Nordic co-operation seeks to safeguard Nordic and regional interests and principles in the global community. Common Nordic values help the region solidify its position as one of the world’s most innovative and competitive. Nordic Council of Ministers Ved Stranden 18 DK-1061 Copenhagen K Phone (+45) 3396 0200 www.norden.org Content Foreword ................................................................................................................................................... 7 Acknowledgement ................................................................................................................................. 9 List of abbreviations........................................................................................................................... 11 Summary ................................................................................................................................................ 13 1. Introduction ................................................................................................................................... 23 1.1 Background and motivation ....................................................................................... 23 1.2 Project goals ..................................................................................................................... 24 1.3 Our approach and outline of the report ................................................................. 24 2. Introduction to Ecosystem Services, Payment for Ecosystem Services and implementation of the Water Framework Directive....................................................... 27 2.1 Introduction to the ES framework and the use of this framework in EU and the Nordic Countries ...................................................................................... 28 2.2 Overview of Ecosystem Services in freshwater ................................................... 32 2.3 The links between the Water Framework Directive (WFD) and the Ecosystem Services (ES) framework ....................................................................... 35 2.4 Economic instruments for locally targeted measures – PES and water quality trading..................................................................................................... 43 2.5 Main findings in this chapter ...................................................................................... 49 3. Use of the ES framework to describe and value benefits of improved ecological status in water.......................................................................................................... 51 3.1 Benefit assessment based on ecosystem services .............................................. 51 3.2 Some issues to consider in ecosystem services benefit assessment of improved water status ............................................................................................. 57 3.3 Examples of identification and mapping ................................................................ 68 3.4 Examples of quantification and valuation ............................................................. 74 3.5 Main findings in this chapter ...................................................................................... 94 4. Assessment of disproportionate costs ................................................................................. 97 4.1 Disproportionate costs in WFD ................................................................................. 97 4.2 Examples of assessment of disproportional costs according to WFD ......... 98 4.3 Main findings in this chapter .................................................................................... 108 5. Perspectives for locally adapted instruments, including PES, for enhanced ecosystem services provision ................................................................................................ 111 5.1 Introducing the examples .......................................................................................... 112 5.2 Agri-environmental policies ..................................................................................... 113 5.3 Moving towards more locally adapted instruments in Nordic countries .......................................................................................................................... 117 5.4 Farmers paid as climate adapters for cities ........................................................ 121 5.5 Nordic Payments for ecosystem services from restored/managed wetlands ........................................................................................................................... 123 5.6 Watershed programmes ............................................................................................ 126 5.7 Water quality trading .................................................................................................. 129 5.8 Main findings in this chapter .................................................................................... 134 References ........................................................................................................................................... 139 Norsk sammendrag .......................................................................................................................... 147 Foreword This report has been commissioned by the Nordic working group for environment and economy in collaboration with the Nordic working group for terrestrial ecosystems. The aim of the report is to explore the use and usefulness of the ecosystem services framework in freshwater management in Nordic countries, addressing the following four topics: • Ways and methods for using ecosystem services in assessing the benefits of ecological improvements in water courses. • Ways and methods for assessing costs, particularly disproportionate costs in line with the water framework directive. • How the ecosystem services framework might contribute to develop targeted and locally adapted instrument mixes at the level of each river basin or water region. • Possible use of payment for ecosystem services as an instrument for targeted freshwater management. The structure of the report reflects these central themes. The report is a follow-up of a report from 2012 on ecosystem services in Nordic water- sheds (Valuation of Ecosystem Services from Nordic Watersheds, NCM 2012). In that report the emphasis was on describing and mapping the ecosystem services provided by different ecosystems on a more general level. The aim of this report is to provide a more policy oriented ap- proach by exploring how the ecosystem services concept can be applied. Management of ecosystem services has lately been among the corner stones in Nordic activities aiming at enhancing green economy. The report has been written by the Norwegian consultancy Vista Ana- lyse. The core team responsible for the report consisted of Kristin Mag- nussen (project leader), Berit Hasler (Aarhus University), and Marianne Zandersen (Aarhus University). Comments and guidance on the report have been provided by the