natural capital accounting: a tool for biodiversity mainstreaming?

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1 Author name Date A tool for biodiversity mainstreaming? 2 nd November 2016, Sogakope, Ghana Steve Bass, IIED Natural capital accounting

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Author name

Date

A tool for biodiversity mainstreaming?

2nd November 2016, Sogakope, Ghana Steve Bass, IIED

Natural capital

accounting

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1. Our progress to date in

mainstreaming biodiversity

We have made good progress in:

• Mainstreaming devt issues into NBSAPs

• Mainstreaming BD into devt plans

We are now moving beyond plans to:

• Mainstreaming BD into govt budgets

We targeted plans and budgets because they are

central to the machinery of government

But they are all about intentions

What might we target next to ensure real progress?

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2. One idea: mainstreaming BD

into national accounts?

National plan

National budget

National accounts

What mandate to do this?

Aichi Target 2 – integrate biodiversity values into

national and local development strategies and plans

and national accounting systems as appropriate

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What are national accounts?An integrated economic information system on

how the economy functions –

stocks of capital produce…

flows of benefits that yield…

value to people, and are…

increased or decreased in the process

Helps economic analysis to inform major govt

decisions on policy and resource allocation

But generally ignore ‘natural capital’

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How can natural capital be

reflected in national accounts?UN System of Environmental-Economic Accounts (2012 )

Integrates economic and ecological understanding of

environment into national accounting

Natural Capital Accounts increasingly common (EU law)

Accounts are physical (stocks & flows) or financial (values)

Aim to improve management of scarce natural capital

Most accounts focus on those parts of natural capital where

env-economy links are already appreciated:

Land, Forest, Minerals, Water, Energy accounts, etc

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Can we account for biodiversity?

Biodiversity accounts are less common: Australia,

Netherlands, Mauritius, UK; Namibia, Uganda?

Most are species accounts – richness, abundance,

distribution; or protected areas accounts

Both species and PAs are:

• central to BD policy

• good proxies for BD

• spatial

• significant but ‘invisible’ in the economy

(food and fibre, nutrient cycling, culture,

tourism, and insurance of future benefits)

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What would biodiversity

accounts achieve?Aichi: plan/report on Aichi targets e.g. costs of achieving targets

PAs: calculate economic benefits from PAs; target cost-effective new PAs;

assess effects of PA fees and increasing revenues

Habitat and species conservation: assess expenditure efficiency

Offsets: ensure no net loss of BD assets

PES: track NC stocks and ES benefit flows, compare with costs

Balance sheet: is national income at expense of liquidating BD assets; or

are BD assets protected for long-term growth?

Local plans: BD spatial accounts link to local socio-econ statistics

Investment: facts to help set resource fees and attract investors

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Best bets for BD mainstreaming

Land accounts can lead to BD accounts

they cover location of env processes and econ activities

Focus on BD stocks initially e.g. wildlife accounts

little data on BD benefit flows, so consequently undervalued

Promote natural capital accounting generally

i.e. NR information at the heart of government machinery!

But ensure NCA is decision-centred

informing important national decisions in e.g. NDP

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