Download The Value of Environmental Goods and Services in KZN

The Value of
Environmental Goods and Services
in KZN
Steve McKean
[email protected]
Debbie Jewitt
Joe Phadima
Myles Mander
Ezemvelo KZN Wildlife
Introduction to Natural Capital and
Ecosystem Services: Some background.
The 4 capitals…..
• Built capital is the infrastructure (buildings, roads,
houses, etc.) that make up the material structure of
human society.
• Human capital is the physical bodies of individual
humans, their health and education, and the information
stored in their brains.
• Social capital is the web of interpersonal connections,
institutional arrangements, rules and norms that facilitate
human interactions.
• Natural capital is the land and the resources it contains,
including ecological systems and services.
Capitals and their connections
Nature:
Ecosystem services,
biodiversity,
Water
Nature destabilizes
economy
(e.g. peak oil or climate
change)
Economy:
(Fixed) Capital
Production
Trade
Society:
Welfare & Rights
Intellectual & Social Capital
Institutions
Governance:
Transparency
Contracts & Accountability
Standards & Laws
Economy destabilizes
nature (e.g. greenhouse
gas or pollution)
Business as usual – natural environment
is infinite...
Growing
Economy and
society
Energy
and
Resources
 Separate from
environment
 Free of
biophysical
constraints
Infinite
environment
 Source of
resources
Wastes
 Sink for wastes
Emerging economic realisation – natural
environment is FINITE...
Growing a
Greener
Economy
Energy
and
Resources
 Source of renewable
resources
 Adding value to the
environment
 Optimizing scarce
resources
Finite
Environment
Wastes
 Source of ecosystem
services
A safe operating space for humanity. Nature 461:472-475
Operating outside the safe space at the local
scale.
• Water quality trends in Albert Falls Dam (1999-2009):
132% increase in Phosphorus; 215% increase in
chlorophyll ‘a’
• Water quality trends in Nagle Dam (1999-2009):
668% increase in TP; 738% increase in chlorophyll ‘a’
• The limitations of built infrastructure:
28 out of 800 waste water works operating with
acceptable standards means huge reliance on natural
capital to supply services
Operating outside the safe space HEADLINES.
• Flood costs KZN R715m
– 25th January 2011
• KZN storm damage hits R40m
– 18th Feb 2010
• R617m for KZN flood damage
– 28th January 2009
• Storms, floods, tornadoes and weather conditions
never seen in KwaZulu-Natal before cost the
provincial government close to R4-billion in 2007.
GREEN INFRASTRUCTURE AND ECOSYSTEM
SERVICES: THE BENEFITS PEOPLE DERIVE FROM
NATURE
.
Why value ecosystem goods
and services?
• Inadequate political and economic support
as the full value to society is not
recognised – failure to recognise
economic value of natural systems
underlie their decline.
• Need for full roles and values of natural
areas in society to be valued and
explained in relevant terms.
• Need a compelling economic case for
biodiversity and ecosystem conservation.
Hence,
KZN Wildlife conducted a study in 2011 to
determine the economic value of the
essential services provides by biodiversity
Biodiversity is the “engine” which produces
services to society which society often
takes for granted.
Habitat types
of KZN
D Jewitt
So what are these services worth?
• The overall value of ecosystems services is calculated
at R149.6 billion per year
• To put the figures in perspective;
2011
R 250,000
R 204,000
Millions
R 200,000
R 149,671
R 150,000
R 100,000
R 50,000
R-
R 70,000
Provincial Finance Budget
KZN GDP
Ecosystem services value
Ecosystem service value from different
habitat types
Grasslands, with services
such as soil erosion
prevention, grazing, flood
damage reduction..
R11.4 billion
Wetlands, with services
such as flood reduction, water
purification.
R38.4 billion
(
Forests, with services such
as carbon sequestration.
Estuaries with services
such as fish and prawn
nurseries.
R2.9 billion
R10.8 billion
Rivers, with.services such
Floodplains, with services
as water supply, water
purification.
such as water quality
management.
R18.7 billion
R43.5 billion
Savannas, with services
Rocky shores and
beaches with services such
such as fuelwood provision,
grazing.
as sea food and recreation.
R19 billion
R275 million
Vegetated dunes, with
services such as the
protection of beach properties
from coastal storms.
Reefs, with services such
as tourism.
R596 million
R4.2 billion
EZEMVELO’s MANDATE
Biodiversity Conservation and EcoTourism
EZEMVELO’s MISSION
T o ensure effective conservation and sustainable
use
of KwaZulu-Natal’s biodiversity in collaboration with
stakeholders for the benefit of present and future
generations
Both inside and outside protected areas
What does that mean in real terms?
Biodiversity offers R150 billion worth of services
Ezemvelo is given a budget of
R512 million to conserve biodiversity
The return on this is R292.36 for every R1
invested by the province in Ezemvelo (with
contributions from other relevant organisations)
What other investment by government provides a
return of this magnitude?
This value could also be taken as the amount that
Treasury would have to fund should there be no
ecosystems services provided
Millions
Important to reverse this trend of value loss through:
rehabilitation, prevent transformation of pristine
habitats, effective management and expand
protected area estate
R 250,000
R 200,000
R 204,000
R 150,000
R 100,000 R 70,000
R 149,671
R 56,634
R 50,000
Value in KZN
Pr
ov
in
cia
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in
an
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B
ud
Ec
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os
t ys
K
te
ZN
m
G
s e
DP
rv
ic e
s v
Pr
al
ot
ue
ec
te
d Ar
ea
s
R ‐
Just over 8% of KZN is
protected, yet protected
areas account for a large
proportion of the value of
services provided
PROJECTED LOSS OF SERVICE VALUE DUE TO
TRANSFORMATION OF NATURAL ASSETS
100
Natural Area Remaining in KZN (%)
90
80
1994
Connectivity Threshold
70
2000
2005
60
2008
Persistence Threshold
50
40
Fragmentation Threshold
30
20
10
0
1994
1998
2002
2006
2010
2014
2018
2022
2026
2030
2034
2038
2042
2046
2050
Year
TOTAL SERVICES
2011
2021
2031
PROVIDED BY
R 149
billion
R 132
billion
R 89
billion
BIODIVERSITY
Consequences of loss?
Some examples
• Alien plants reduce water supply by 7%
already…..predicted to increase to 21% in 20 years.
- Mvoti-Mzimkulu water management area – current
loss = 126 million m3 - projected to grow to 420
3
. million m
- Replacement infrastructure - Spring Grove Dam
142 million m3 - at a cost of R2.1 billion
• Reduction in the efficiency of built infrastructure due
to sedimentation
• Umzimvubu produces 5 million m3 pa due to
degradation – a Spring Grove dam would take 28
years to become filled with sediment
Consequences of loss?
more examples
•
•
•
What would it cost rural households to replace fuel wood with
paraffin for cooking and heating?
What would it cost province to supply rural households with water,
reticulated sewage systems, build only with commercially available
building materials……etc?
What would be the cost of only formal jobs in industry to replace
current jobs associated with agriculture and tourism?
.
•
If natural assets not managed, government would need to find R150
billion to substitute the services which ecosystem goods and
services currently provide to maintain CURRENT livelihoods
Way forward……..
Product improvement:
- Finer scale
- Value ecosystem services of land
cover types and areas in varying
.
condition. E.g. PSED – Provincial
Strategic Economic Strategy
- Incorporating “ecosystem disservices” (e.g. acid mine drainage,
car parks etc)
Way forward……..
Planning:
- All scales but hierarchical - National,
provincial, district municipalities, local
municipalities e.g. PGDS – Provincial
Growth and Development Strategy.
- The full value of biodiversity must be
recognised by economists in order to
make balanced decisions.
- Many different products from different
sources, done in different ways – could
create confusion amongst users!
Thank you!