ARCTIC COUNCIL CAFF Assessment Series Report 12 September 2015 The Economics of Ecosystems and Biodiversity (TEEB) for the Arctic: A Scoping Study Acknowledgements CAFF Designated Agencies: • Norwegian Environment Agency, Trondheim, Norway • Environment Canada, Ottawa, Canada • Faroese Museum of Natural History, Tórshavn, Faroe Islands (Kingdom of Denmark) • Finnish Ministry of the Environment, Helsinki, Finland • Icelandic Institute of Natural History, Reykjavik, Iceland • Ministry of Foreign Affairs, Greenland • Russian Federation Ministry of Natural Resources, Moscow, Russia • Swedish Environmental Protection Agency, Stockholm, Sweden • United States Department of the Interior, Fish and Wildlife Service, Anchorage, Alaska CAFF Permanent Participant Organizations: • Aleut International Association (AIA) • Arctic Athabaskan Council (AAC) • Gwich’in Council International (GCI) • Inuit Circumpolar Council (ICC) • Russian Indigenous Peoples of the North (RAIPON) • Saami Council This publication should be cited as: CAFF 2015. The Economics of Ecosystems and Biodiversity (TEEB) Scoping Study for the Arctic. Conservation of Arctic Flora and Fauna, Akureyri, Iceland. ISBN: 978-9935-431-46-2 An executive summary of this report is available under a separate cover: CAFF 2015. The Economics of Ecosystems and Biodiversity (TEEB) Scoping Study for the Arctic. Executive Summary. Conservation of Arctic Flora and Fauna, Akureyri, Iceland. ISBN 978-9935-431-45-5 Cover photo: Man cutting up seal. Photo: Carsten Egevang/ARC-PIC.com Back cover: Drying fish. Photo: Scott Hillebrand/USFWS Design and layout: Courtney Price Graphics: Courtney Price and Ólafur Jensson For more information please contact: CAFF International Secretariat Borgir, Nordurslod, 600 Akureyri, Iceland Phone: +354 462-3350, Fax: +354 462-3390 Email: [email protected], Internet: www.caff.is About the project The TEEB Scoping Study for the Arctic was directed and funded through an international partnership with funding and in-kind support from partners and from the Nordic Council of Ministers, through the Terrestrial Ecosystem Group (TEG). Partners are the Conservation of Arctic Flora and Fauna working group of the Arctic Council (CAFF) with Sweden as the lead country, the UNEP Regional Office for Europe, the UNEP TEEB Office, WWF Global Arctic Programme and GRID-Arendal. The report is an early implementation action responding to ABA recommendations 12. The Study fulfils Action 12.1 from the Actions for Arctic Biodiversity, 2013-2021: Implementing the recommendations of the Arctic Biodiversity Assessment. CAFF Designated Area Contents Memorandum to the Senior Arctic Officials ......................................................................................................7 Preface .................................................................................................................................................................8 Key findings ........................................................................................................................................................10 Chapter 1. Context and issues ...........................................................................................................................12 1.1. What is TEEB? ...........................................................................................................................................................................................12 1.2. Scoping study objectives ....................................................................................................................................................................12 1.3. Policy relevance of TEEB in the context of the Arctic Council ...............................................................................................13 1.4. Introduction to ecosystem services ................................................................................................................................................17 1.5. Introduction to the TEEB approach .................................................................................................................................................19 1.6. Scoping study methods and knowledge base ...........................................................................................................................22 1.7. Arctic issue scan .....................................................................................................................................................................................23 Chapter 2. Arctic ecosystem services ................................................................................................................32 2.1. Description of Arctic ecosystem services ......................................................................................................................................32 2.2. Beneficiaries of Arctic ecosystem services ....................................................................................................................................39 2.3. Status and trends of ecosystem services and ecosystems .....................................................................................................44 Chapter 3. Governance of Arctic ecosystem services ......................................................................................51 3.1. Ecosystem services as a lens for policy integration ...................................................................................................................51 3.2. Governance of ecosystem services: Critical elements ..............................................................................................................54 3.3. Policy options for integrating ecosystem services ....................................................................................................................60 3.4. Governance of ecosystem services and the Arctic Council ....................................................................................................66 3.5. Some related TEEB initiatives in the region .................................................................................................................................67 3.6. Ecosystem services in Arctic oil and gas development: An industry perspective ..........................................................70 3.7. Ecosystem services and Arctic tourism ..........................................................................................................................................72 3.8. Challenges and limitations for the governance of Arctic ecosystem services ................................................................73 Chapter 4. Valuing ecosystem services in the Arctic ........................................................................................77 4.1. Introduction .............................................................................................................................................................................................77 4.2. Economic values ....................................................................................................................................................................................78 Chapter 5. Policy focus for a TEEB Arctic study ................................................................................................86 5.1. List of potential policy areas for a TEEB Arctic study.................................................................................................................87 5.2. Scoping of policy areas ..............................................................................................................................................................................88 Chapter 6. Stakeholder analysis ........................................................................................................................93 6.1. Identifying stakeholders and setting priorities ...........................................................................................................................93 6.2. Basis for engagement ..........................................................................................................................................................................95 Chapter 7. The way forward ...............................................................................................................................97 7.1. Policy context ..........................................................................................................................................................................................97 7.2. Objectives .................................................................................................................................................................................................97 7.3. Suite of options for the way forward ..............................................................................................................................................98 7.4. Outputs (preliminary list) ..................................................................................................................................................................100 7.5. Stakeholder engagement ................................................................................................................................................................101 7.6. Governance ............................................................................................................................................................................................102