Post on 22-Jan-2020
Conservation makes good economic sense: “eco-civilization” & biodiversity in the oceans
Laurence McCook, Ph.D.麦库克 劳伦斯, 博士
Head of Oceans Conservation,World Wide Fund for Nature Hong Kong
Pew Fellows
in Marine Conservation
Conservation makes good economic sense: “eco-civilization” & biodiversity in the oceans
Laurence McCook, Ph.D.麦库克 劳伦斯, 博士
“President’s Visiting Professorial Fellow” 国际访问学者 客座教授
Prof. Huang Hui, Dr Lian Jiansheng, Dr Lei Xinming,
黄晖 研究员 练健生 博士 雷新明 博士Chinese Academy of Science: Sth China Sea Institute of Oceanology,
中国科学院南海海洋研究所
Chen Zhu, Guangdong Fisheries & Oceans Admin./ Coral Reef Branch, China Pacific Soc.
Prof. Xue Guifang, KoGuan Law School, Shanghai Jiao Tong Univ.
Prof. Put Ang, Chinese University of Hong Kong
Pew Fellows
in Marine Conservation
Marine Natural Capital Accounting in China
• Who’s who
要高度重视海洋生态文明建设,加强海洋环境污染防治,保护海洋生物多样性,实现海洋资源有序开发利用,为子孙后代留下一片碧海蓝天。To give our future generation clear water and blue sky, we must place high priority to ocean eco-civilization development, strengthen the prevention of ocean environment pollution, protect ocean biodiversity and achieve sustainableexploitation of ocean resources.
President XI JinpingOpening remarks,Ocean Economy Conference, ShenZhen, Guangdong, 15 Oct 19
13th 5 Year Plan – “Ecocivilisation”
opportunity for international Leadership
十三五生态文明建设是中国成为世界领袖的机遇
Legal basis for transformative change in marine environmental management海洋环境管理转型的法律基础 -
emphasizes 强调 :
• environmental management环境治理
• marine protection 海洋保护
• improved water management节水管理
• poverty alleviation 扶贫
• Rule of Law 法制建设
13th 5 Year Plan – “Ecocivilisation”
opportunity for international Leadership
十三五生态文明建设是中国成为世界领袖的机遇
“Balancing” environment & economy
环境 / 经济方面
Human Benefits
人类的利益
Environmental Benefits
环境的效益
Growth or sustainability?
Impacts on human well-being:
“Balancing” environment & economy
环境 / 经济方面
Human Benefits
人类的利益
Environmental Benefits
环境的效益
Human Benefits人类的利益Ecosystem Goods & Services:生态服务
Food 食物Coastal Protection 堤防护岸
Tourism 旅游Waste disposal, … 清洁污染
“Balancing” environment & economy
环境 / 经济方面
Human Benefits
人类的利益
Environmental Benefits
环境的效益
Ecosystem Goods & Services:(Millenium Ecosystem Assessment)
Provisioning Services:Products extracted from
ecosystems
• Food: Fish, Seaweeds, etc;
Wild & mariculture
• Oxygen/Clean Air
• Chemicals, Medicines etc
• Genetic Resources
• Energy: wave, wind,
currents
• (Tourism)
Regulating Services:Non-extractive services from
ecosystems
• Coastal (storm) protection
• Climate regulation
• Carbon sequestration
• Waste removal / treatment
• Biological / disease control
Cultural Services:Derived from aesthetic
values:
• TOURISM
• Heritage
• Spiritual/ inspirational/ therapeutic
• Recreational
• Scientific
• Educational
Supporting Services:Services that support ecosystems to provide other services
• Habitat provision ・ Nutrient cycling ・ Primary production
esp. larval supply ・ Biodiversity maintenance
Completing the “Balance Sheet”e.g. over-fishing
Benefit Cost
Fisheries ¥6,590,000
Jobs 890
Biodiversity ❤️
Totals: BIG Lessimportant
Completing the “Balance Sheet”e.g. over-fishing
Benefit Cost
Fisheries ¥6,590,000
Jobs 890
Biodiversity ❤️
Totals: BIG Lessimportant
2 critical problems:
1. ❤️more important than ¥$ to benefit people(but harder to measure) (family)
→ Caution on the whole topic
2. Incomplete…
Completing the “Balance Sheet”e.g. over-fishing
Benefit Costs
Fisheries ¥6,590,000
Jobs 890
Biodiversity ❤️
Tourism
Coastal Protection
Carbon Capture & Heat Sink
Cultural: Heritage etc
Other Provisioning: therapeutic, etc
Other Regulating:
Other Supporting: Nutrient cycling…
Ecosystem Functions (≠ Services)
Totals Big ?
Completing the “Balance Sheet”e.g. over-fishing
Benefit Costs
Fisheries ¥6,590,000 ?
Jobs 890 54,000
Biodiversity ❤️
Tourism ?
Coastal Protection ?
Carbon Capture & Heat Sink ?
Cultural: Heritage etc ?
Other Provisioning: therapeutic, etc ?
Other Regulating: ?
Other Supporting: Nutrient cycling… ?
Ecosystem Functions (≠ Services) ?
Totals Big ?
¥28,000,000,000
Completing the “Balance Sheet”e.g. over-fishing
Benefit Cost
Fisheries ¥6,590,000
Jobs 890
Biodiversity ❤️
Totals: BIG Lessimportant
Completing the “Balance Sheet”e.g. over-fishing
Benefit Costs
Fisheries ¥6,590,000 0
Jobs 890 0
Biodiversity ❤️
Tourism 0
Coastal Protection 0
Carbon Capture & Heat Sink 0
Cultural: Heritage etc 0
Other Provisioning: therapeutic, etc 0
Other Regulating: 0
Other Supporting: Nutrient cycling… 0
Ecosystem Functions (≠ Services) 0
Totals Big Less
Benefit Costs
Fisheries ¥6,590,000 ?
Jobs 890 54,000
Biodiversity ❤️
Tourism ¥28,000,000
Coastal Protection ?Billions
Carbon Capture & Heat Sink >>0
Cultural: Heritage etc $ >>0
Other Provisioning: therapeutic, etc >>0
Other Regulating: >0
Other Supporting: Nutrient cycling… >>0
Ecosystem Functions (≠ Services) >0
Totals Not so big ~very BIG
Completing the “Balance Sheet”e.g. over-fishing
Environment & (good, complete) Economicse.g. Great Barrier Reef as Infrastructure
大堡礁遗产与基础设施
$0
$1
$2
$3
$4
$5
$6
Billion十亿Aust
2004 2012 2016
Income 收入
Current Investment目前的投资
incl. non-market values非货币的价值
“Infrastructure value”Investment“基础设施价值” 投资
• x 4 more investment
• Not business-like…
?Coastal storm protection?
v
v
1 m
v
1 m
Valuing Coastal Processes & Reef Loss
Guidelines for Valuing Coastal Protection Services from Mangroves and Reefs. M W. Beck & G-M Lange (eds)
Bu
ilt C
apit
al F
loo
ded
($
B)
Global Flood Protection Savings from Coral Reefs
Ecosystem Goods & Services & Natural Capital / Natural Resources
1. “Inclusion of non-extractive services substantially alters the outcomes of economic analysis” Armsworth & Roughgarden 01
2. “Total Value” ≠ $Financial value(much greater than) >> $Financial value (c.f. family)
Extractive:Natural Resources
e.g. fish
Marketable $$$¥¥¥
(Non-extractive)e.g. Coastal Protection
(Non-marketable)
e.g. Spiritual, Supporting- primary
production
Ecosystem Goods & Services / Natural Capital
Ecosystem Goods & Services & Natural Capital / Natural Resources
1 & 2. “Total Value” >> $Financial value >> Extractive value
3. “True” Value > or >> current known value
Extractive: e.g. • Fish• Tourism• ?Medicines• ?new?
Marketable $$$¥¥¥
(Non-extractive) e.g.•Coastal Protection•Larval fish habitat•?Unknowns?•?Unknowns?•?Unknowns?•?Unknowns?
(Non-marketable) e.g.
• Spiritual, beauty, heritage• Primary production•Nutrient cycling• ?Unknowns• ?Unknowns• ?Unknowns• ?Unknowns
Ecosystem Goods & Services / Natural Capital
Commons
Shared/public resources, held in common, not owned privately
• Use (extraction/harvest) of common/public resources for private benefit often uncosted & unpaid = subsidy
• Damage to, or loss of, common/public resources for private benefit often uncosted & unpaid = subsidy
Completing the Balance Sheetfor Common Resources
Private Benefit
PrivateCosts
PublicBenefit
Public Costs
Fisheries ¥6,590,000 ?
Jobs 890 54,000
Biodiversity ❤️
Tourism ¥28,000,000
Coastal Protection ?Billions
Carbon Capture & Heat Sink >>0
Cultural: Heritage etc $ >>0
Other Provisioning: therapeutic, etc >>0
Other Regulating: Carbon Capture, etc >0
Other Supporting: Nutrient cycling… >>0
Ecosystem Functions (≠ Services) >0
Totals Not so big ~very BIG
Private Benefit
PrivateCosts
PublicBenefit
Public Costs
Fisheries ¥6,590,000 ?
Jobs 890 54,000
Biodiversity ❤️
Tourism ¥28,000,000
Coastal Protection ?Billions
Carbon Capture & Heat Sink >>0
Cultural: Heritage etc $ >>0
Other Provisioning: therapeutic, etc >>0
Other Regulating: Carbon Capture, etc >0
Other Supporting: Nutrient cycling… >>0
Ecosystem Functions (≠ Services) >0
Totals Not so big ~very BIG
Reversing the “Economic Burden of Proof” for Common Resources
Private responsibility
Current governance, in effect, conflates public & private benefits & assumes:
• Public costs ≈ 0 unless shown otherwise
• Public should pay costs of assessing public costs
– Time & $¥
• Incentivizes environmental degradation & lack of accountability
Public responsibility
Reversing the “Economic Burden of Proof” for Common Resources
• Require full accounting for natural capital as part of economic assessments assessing:
– complete costs
– overall benefits to public
• A due diligence responsibility of developer/s
• Where costs are difficult to assess, require justification & demonstration of reasonable assessment.
• (If its not practical, not economically viable…)
Ocean Catastrophe & Pilot Ocean Accounts
Me 30 Now My children
30 yrs old
The solution: Innovations
The Problems & The Costs
Ocean Accounts -> Policy: Change Discussion of “Economics”
• Demand urgent uptake– We know enough to have a guess
– Best guess is much better than inaction/delay
• Demand more than GDP
• Demand accountability for comprehensive environmental accounts
• “We can’t afford not to act”: Preventing degradation is much cheaper than restoring.– Its also possible
• Ongoing Growth is not sustainable on a finite planet
• Time for economists to step up & call out bad or incomplete economics
Change the business models
• Business runs the world
• Time for business to step up &
• Time for Governments to pressure & reward that
• Environment is not optional, more important than profitability:
– c.f. historical changes in business
• Pay the full costs of “externalities”
✓? Resources (provisioning services)
✘ Pollution (waste removal)
✘ Losses of services
Let’s keep it great
''me like your work because it makes the sea grow better & not get killed as much. I wish could do that work when I grow up.“Alison McCook Mar 2004 Aged 4
WWF Principles for a Sustainable Blue Economy:
wwf.panda.org/our_work/oceans/publications/sustainable_blue_economy_reports.cfm
• Provides social & economic benefits for current & future generations
• Restores, protects & maintains the diversity, productivity, resilience, core functions & intrinsic value of marine ecosystems = Natural Capital
• Is based on clean technologies, renewable energy & circular material flows
• Governed by Public & Private processes that are:
– Inclusive;
– Well-informed, precautionary & adaptive
– Accountable & transparent