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www.aidenvironment.org Biodiversity and socio-economic impacts of trade-oriented agro-commodity production systems UNEP 28 November 2007 Jan Joost Kessler AIDEnvironment [email protected] 1 Objectives of the study • To assess the biodiversity and socio-economic impacts of the Dutch / EU trade and consumption of certain agro-commodities • To develop a suitable methodology to do so • Focus at agro-commodities for which NL is important consumer and the most important producer countries: – – – – soy (in Argentina and Brazil) palm oil (in Indonesia and Malaysia) beef (in Argentina and Brazil) coffee (in Honduras and Vietnam) 2 Assessment of biodiversity impacts 1. Selection of administrative units in countries where production is concentrated 2. Insight in production systems 3. Data on land-use dynamics / expansion for agrocommodities in recent 5-8 years (= study period) 4. Calculation of 5 indicators based on concept of Natural Capital Index 3 Natural Capital Index = quantity x quality 4 The decline of NCI as land-use intensifies Biodiversity ( NCI) 100% Literature review - Tropical & temperate regions - Plants, insects, birds, other vertebrates selective logging secondary vegetation 50% plantation mean species abundance pristine forest 1,2 1 0,8 0,6 0,4 0,2 pasture cropland plantations agroforestry 0% secondary forest degraded selective logging primary forest 0 5 Reference data on NCI decline for land-use Main GLC 2000 class Sub category Description NCI loss by class (%) Forests (1, 2, 3, 4, 5, 6, 7, 8, 9, 10) Primary vegetation (forest) Minimal disturbance, where flora and fauna species abundance are near pristine 0 Slightly disturbed or managed forest Extractive use like hunting, selective logging, timber extraction and re-growth 30 Secondary forests Natural regrowth 50 Forest plantation Planted forest often with exotic species 80 Primary vegetation (grass / shrublands) Grassland or shrubs dominated vegetation (e.g. steppe, tundra or savannah) 0 Livestock grazing Grasslands with wildlife replaced by grazing livestock 30 Man-made pastures Forests and woodlands converted to grasslands for livestock grazing. 90 Mosaic: cropland / forest (17) Agroforestry Agricultural production intercropped with (native) trees. 50 Cultivated and managed areas (16, 18) Low input agriculture Extensive resource-use and low external input agriculture 70 Intensive agriculture High external input agriculture, dependent on external inputs and/or irrigation. 90 Shrubs and grasslands (11, 12, 13, 14, 15) 6 Biodiversity indicators used in study Indicators Description of relevance B0. Area increase agro-commodity Area change used for agro-commodity production in study period B1. Growth factor commodity crop area The ratio between B0 and original production area. B2. NCI in the production area compared to the national average The NCI in 2000 (taking into account different types of land use) in the production areas as compared to the national average. B3. Loss of biodiversity due to the commodity NCI loss in the study period as a result of the commodity expansion. B4. Relative contribution of the commodity to overall biodiversity loss NCI loss by the commodity during the study period as a proportion of overall NCI decline by land-use B5 Ecological claim (overall biodiversity loss) Overall biodiversity loss from natural ecosystems with corrections for the original land use and multiplier effects. 7 Example of results for soy in Brazil Country and production areas B0: Area increase by commodity (x 1000 ha) B1: Growth factor commodity (%) B2: NCI in production area in 2000* (in % NCI) B3: NCI loss by commodity (% NCI) B4: Part of commodity to NCI loss (in %) B5: Ecological claim (in km²) Soy Brazil 962 0.24 −− 1 1 1,656 Paraná 1,801 0.45 −− 1 2 2,065 Mato Grosso 2,940 0.56 + 3 17 31,552 Goiás 1,470 0.55 −− 4 10 13,311 Tocantins 233 0.92 + 1 5 2,407 Maranhão 253 0.74 = 1 3 2,480 Piauí 143 0.93 = 1 2 1,400 9,860 0.46 76% 1 3 65,498 Rio Grande do Sul Total Brazil 8 Biodiversity loss from soy in Brazil and Argentina before 1995 (yellow) and between 1995-2004 (red) 9 Some conclusions • • • • • • • • B0: Expansion of selected commodities in selected production areas during study period was 28 m ha, and about 67 m ha in the countries. B1: Soy showed the highest growth factors (80-90%). Low growth factors occur in established region. Growth factors are highest in frontier regions. B2: In expansion and frontier areas NCI is often higher than the national average. B3: NCI loss by commodity is generally not high (1-5%), because areas are large. B4: The contribution from commodity production during the study period to overall biodiversity loss by land-use may be more than 10%. B5: reflects the ecological impacts in terms of area with 100% NCI loss, which may be quite high. Corrected for multiplier effects. Total biodiversity loss caused by the commodities in selected areas in the study period corresponds to 154,000 km² (= four times the Netherlands). Multiplier effects are macro-level changes due to the agro-commodity, e.g. displacement of people or expansion as a result of food competition. 10 Assessment of socio-economic impacts Indicators E. Economic E1. Per capita gross domestic product (national and administrative units) E2. Employment rate S. Social S1. Food security, child mortality S5. Poverty (index) V. Vulnerability V1. Conflicts V2. Inequality 11 Assessment of socio-economic impacts Economic / Profit Commodity, country and production regions GDP / capita Employmt. rural/urban Social / People Food security Poverty / HPI Vulnerability / people Conflicts Inequality / Gini Planet NCI change Soy Brazil Established Expansion Frontier Legend: better or similar starting situation, with favourable or similar rate of change better or similar starting situation, with unfavourable rate of change worse starting situation, with favourable or similar rate of change worse starting situation, with unfavourable rate of change 12 Main conclusions • • • • • Considerable loss of NCI by agro-commodities, mainly in expansion and frontier areas, can be roughly quantified by using NCI and reference data Loss of NCI by production and trade of agro-commodities is not, or not sufficiently compensated by improvement of socio-economic well-being, especially in frontier areas The methodology allows one to assess these changes at subnational level, especially for selected areas where statistics are available – assessments at national level would not be useful Major risks now with expansion of biofuels (e.g. palmoil) Doubts about theory of export-oriented growth? 13 Thank you 14