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The Economics of Ecosystems & Biodiversity
Session 2:
Biodiversity Loss
TEEB Training
The Economics of Ecosystems & Biodiversity
“What is nature worth?” Video
© Institute on Environment, Minnesota: Big Question: What Is Nature Worth?" YouTube
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The Economics of Ecosystems & Biodiversity
Let’s define….
 Biodiversity loss: The decline of
genetic diversity and distribution and
abundance of species diversity, the loss of
ecosystem structures, and/or the
impairment of ecological functions
 Ecosystem degradation: A persistent
reduction in the capacity to provide
ecosystem services.
 Natural capital: An extension of the
economic notion of capital (manufactured
means of production) to environmental
'goods and services'.
©UNEP/GRID-Arendal
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The Economics of Ecosystems & Biodiversity
2000
© Netherlands Environmental Assessment Agency
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The Economics of Ecosystems & Biodiversity
2050
TEEB Training
© Netherlands Environmental Assessment Agency
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The Economics of Ecosystems & Biodiversity
Level of Biodiversity in the World from 2000 and
2050:OECD/Globio
2000
2050
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The Economics of Ecosystems & Biodiversity
Impact of Biodiversity Loss
Deforestation in the Amazon
Pollution in the mangroves of Bali
Houses collapsing due to coastal erosion in
Alaska
Litter at the docks in Seychelles
©UNEP/GRID-Arendal
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The Economics of Ecosystems & Biodiversity
The Key drivers
 Population size (reaching ~9 billion
people)
 Lifestyle changes (increasing urbanisation
and per capita income growing 2-4 times)
 Governance and policy responses
(coordinating responses to global
challenges)
 Land conversion and habitat loss
(converting 10-20% of additional grassland
and forestland)
 Overexploitation incl. overfishing
(increasing pressure)
©UNEP/GRID-Arendal
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The Economics of Ecosystems & Biodiversity
Key drivers cont…
 Invasive alien species (continuing
spread)
 Reactive nitrogen flow (increasing by
another 66% – already doubled during
the past 50 years)
 Climate change (continuing global
warming – expected to become the
predominant global cause of ecosystem
degradation and ecosystem service
loss)
 Pollution (mainly from excessive
pesticide use in agriculture and
aquaculture; urban and industrial
effluents; mining waste; and excessive
fertilizer use etc)
©UNEP/GRID-Arendal
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The Economics of Ecosystems & Biodiversity
The Impact on ecosystems
Biodiversity (loss)
Fisheries exploitation
Source: FAO 2005a: 7
Forestry – deforestation, afforestation
Coral reefs at risk
Source: Nellemann et al 2008: 22
©2005 Millennium Ecosystems Assessment
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The Economics of Ecosystems & Biodiversity
MA’s major findings regarding
ecosystems
The structure and functioning of the world’s
ecosystems has changed rapidly the past 50
years
 20% of the world’s coral reefs have been
lost and more than 20% are degraded
 35% of mangrove area has been lost in the
last several decades
Rate of species extinction is estimated to be
100 to 1,000 times more rapid than the
“natural” extinction rate
In the past two decades, 35% of mangroves
have disappeared.
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©UNEP/GRID-Arendal
TEEB Training
The Economics of Ecosystems & Biodiversity
Additional findings from other
resources…
• FAO: Global Forest Area has shrunk by approximately 40%
since 1700, Forests have completely disappeared in 25
countries
• Ramsar: Since 1900, the world has lost about 50% of its
wetlands
• Global coral reef monitoring network: Some 20% of the
4
world’s coral reefs- have been effectively destroyed by
fishing, pollution, disease and coral bleaching approximately
24% of the remaining reefs in the world are imminent risk of
collapse through human pressures
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The
The Economics
Economicsof
ofEcosystems
Ecosystems&&Biodiversity
Biodiversity
What is happening to Biodiversity?
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The Economics of Ecosystems & Biodiversity
Why does Biodiversity loss matter?
©2005 Millennium Ecosystems Assessment
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The Economics of Ecosystems & Biodiversity
“Has The Earth passed its tipping
point?” Video
© Institute on Environment, Minnesota, 2010
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The Economics of Ecosystems & Biodiversity
GDP & Natural Capital Loss
How they (don’t) Fit
Relative to 2000
GDP (OECD Scenarios)
2.8%/year
GDP, with feedback on
economic losses from
biodiversity losses integrated illustrative
GDP: 41.4$ trillion (PPP) (10^12)
GDP/capita: 680$ (PPP)
Population 9100 million
Population: 6092 million
GDP adjusted for well-being impact
of biodiversity loss - illustrative
Services that would have been
there, had biodiversity been
halted
Year
2000
Ecosystem
service level
Year 2050
©IEEP, 2009
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The Economics of Ecosystems & Biodiversity
Key Reasons to End the
Economic Invisibility of
Nature
 Costs and risks of business as usual
(BAU) are too large to ignore
 BAU can also exacerbate poverty
 Economic solutions exist across
policy & business which begin by
valuing nature
 To realize the productive and
employment potential of Natural
Capital stewardship
©UNEP/GRID-Arendal
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The Economics of Ecosystems & Biodiversity
Responding to natures Invisibilities;
A Recap so far
 The value of biodiversity and ecosystem services is not being fully
reflected in the markets, price signals and policies
 Decision making (at company, policy & citizen level) often fails to take
into account the local to global benefits of biodiversity and ecosystem
services
 Assessing ecosystem service benefits is critical
 There is a need to improve the economic signals to help take the values of
nature into account
 There is a growing recognition of the need to improve and invest political
capital in natural capital accounts and integrated environmental and
economic accounts
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The Economics of Ecosystems & Biodiversity
Group Exercise 3
• Identify: In pairs of two, 1)
Identify the drivers of
biodiversity loss? 2) What
types of biodiversity loss are
currently happening in your
country.
• Brainstorm: what possible
solutions could there be for
these issues in your
country?
©Master isolated images/FreeDigitalPhotos.net
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