The WAVES Partnership: processes and emerging results

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1 The WAVES Partnership: processes and emerging results Transformative Initiatives in Biodiversity Mainstreaming and Financing Rio Conventions Pavilion Event 16 October 2014 Valerie Hickey Environment and Natural Resources Global Practice, The World Bank

2 Outline of the presentation 1) Background on Natural Capital Accounting (NCA) 2) Where has NCA been most useful? 3) What is the role of WAVES? 4) WAVES progress and some lessons

3 1. Background on NCA What we measure affects what we do; and if our measurements are flawed, decisions may be distorted. Stiglitz, Sen and Fitoussi (2009)

4 GDP does not measure

5 Towards better measures of wealth We don t judge a company solely on the basis of its income statement, we look at both income and balance sheet. Increasing assets (wealth) support long-term growth. In the short term, income can appear to grow by liquidating assets, but this undermines longterm growth. Economic development is a process of building wealth and managing a portfolio of assets

6 Why is natural capital important? Shares of comprehensive wealth, by income class, 2005 Low Income Countries 36% 14% 50% Natural capital is most important in low income countries more than twice as large as produced capital Middle Income Countries 21% 20% 59% In middle income countries natural capital and produced capital are roughly equal High Income Countries 17% 3% 80% Intangible wealth dominates in all countries, especially in high income countries Intangible Capital Produced Capital Natural Capital

7 What is the methodology for NCA?

8 2. Where has NCA been most useful? 1. Indicators: for monitoring sustainable development 2. Water accounting: managing a scarce resource 3. Energy and air pollution: cleaner, more efficient production 4. Stocks of minerals & energy: managing resource rents for long term growth 5. Land and ecosystems: balancing the needs of tourism, agriculture and other uses

9 What are the main uses of NCA? Scorekeeping Better indicators for monitoring sustainable development: Wealth and Adjusted Net Savings Management Better tools for managing natural capital to promote growth and poverty reduction Weighing tradeoffs of land use Prioritizing investments in forest resources management, protected areas

10 Indicators of sustainability: A negative result

11 Contribution of marine ecosystem services to the economy of Zanzibar (thousand US$) % Share of GDP Number of Jobs Tourism 23.6% 9,351 + Seaweed farming 0.4% 16,422 Fishing 6.2% 37,203 Mangrove harvesting <0.1% unknown Total 30.2% 62,976 +

12 3. What is the role of WAVES? WAVES is a global partnership that aims to mainstream Natural Capital in development planning and national economic accounts in support of sustainable development.

13 WAVES aims to 1) Help countries adopt and implement accounts that are relevant for policies and compile a body of experience; 2) Develop ecosystem accounting methodologies; 3) Establish a global platform for training and knowledge sharing; and 4) Build international consensus around natural capital accounting.

14 The number of countries are growing

15 First results What causes forest depletion in Guatemala?

16 First results Botswana: Are scarce water resources allocated efficiently?

17 Ecosystem accounts in WAVES core implementing countries Botswana Ecosystem accounts to inform the National Development Planning Support the implementation of ecosystem management plans for areas like Okawangu, Chobe and Makgadikgadi Discussing to include ecosystem services like livestock grazing, tourism, wildlife habitat and carbon sequestration Colombia Land and forest accounts for selected watersheds Potentially ecosystem accounts for the Magdalena river basin The Philippines Ecosystem accounts for Southern Palawan to inform policy on competing land uses - Ecosystem services included are e.g. water regulation, crop production, soil erosion prevention, wildlife habitat Ecosystem and water accounts for Laguna lake to inform land use planning and water pricing soil erosion prevention, reduced sedimentation, water provisioning, flood regulation

18 Ecosystem accounts informing land use management in the Philippines National Mineral Accounts: What is the mineral wealth of the Philippines & how could it be shared equitably & sustainably? Ecosystem account in mineral & biodiversity rich land: What are the social, economic & environmental trade-offs of different resource use scenarios & what are the implications for sustainable management?

19 Context of Ecosystem Accounts Drivers of Ecosystem Change in Southern Palawan Global demand for minerals High demand for cash crops Population growth

20 Accounts Land Water Ecosystem Biodiversity

21 Biodiversity Account Palawan Fruit Bat Acerodon leucotis Crab-Eating Macaque Macaca fasicularis Pollination & Dispersal

22 Global engagement Post-2015 Development Agenda Working with partners Communities of Practice Regional trainings and technical meetings Working with the private sector

23 Progress on developing methodologies Field testing ecosystem accounting Compiling policy applications Training and capacity development in forest ecosystem accounting

24 Communicating NCA

25

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