potential for payments for ecosystem services in uk uplands
DESCRIPTION
Presentation given as part of DEFRA workshop for project on "Opportunities and Barriers to Payments for Ecosystem Services", which is feeding into the development of the Government's forthcoming White Paper on the Natural EnvironmentTRANSCRIPT
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Potential for PES in the uplands
Mark Reed
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Plan Upland ecosystem services Opportunities and barriers for PES in uplands
Focus on carbon Considering water quality and other ecosystem
services
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A land of many uses
The Future?
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Opportunities for PES1. Climate regulation through carbon
sequestration and storage in peat soils
2. Regulation of water quality
3. Regulation of flood risk
4. Regulation of wildfire risk
5. Cultural ecosystem services
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1. Climate regulationPotential to enhance this service: UK’s largest carbon store Losing carbon from degraded peatlands Restoration can stem loss & absorb carbon Short-term CH4 problem, long-term GHG benefit Co-benefits
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Market demand Market demand estimated between 1-10M
tonnes carbon reduction p.a. (BRE, 2009) Companies and individuals Companies interviewed more interested in CSR
than tradable credits Pay premium for UK-based carbon from land-
based project that has co-benefits Must meet rigorous, recognise standards
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Supply Many land owning organisations want to restore
damaged peatlands but do not have the means Keen to use private investment For example:
National Trust, Country Land & Business Association, National Park Authorities, AONBs
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Intermediaries Many exist and have expressed an interest in
carbon sequestration in peatlands Need cost-effective verification and some form
of accreditation e.g. Voluntary Carbon Standard (VCS)
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Barriers May not be possible to satisfy additionality
criteria to access voluntary carbon markets Peatland restoration in RDPs
Accessing compliance carbon markets under Kyoto would require legislative changes at UK and EU levels
To count towards Government commitments under Kyoto and domestic climate legislation, all peatlands need to be counted in GHG inventory
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One way around this... CSR scheme: private investment in restoration Co-ordinate/integrate with existing schemes?
UELS, Glastir
Conservative analysis: carbon payments could subsidise restoration options by around 20% In some cases, could completely pay for options or
generate surplus Depends on carbon price & restoration costs/access
If in GHG inventory, CSR scheme (no tradable credits) counts towards legislative targets
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One way around this... GHG Accounting Guidelines allow UK
companies who have reduced emissions at source to become carbon neutral via offsetting
Consultation on a UK forest carbon code Worth consulting on a peatland code? Initial work done to outline technical, legal,
financial and organisational design of code If consistent with VCS requirements, voluntary
carbon markets remain future option
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2. Regulation of water quality Land management (including restoration) can
reduce DOC and POC Benefits for water companies United Utilities (paid by OFFWAT) already
paying for WQ via land managment Interest varies between companies
Those without major DOC problems not interested Those who perceive WQ
legal responsibility of land managers under WFD won’t pay people to keep law
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3. Regulation of flood risk Evidence that restoration reduces steam
peakflow and hence may reduce downstream flood risk
Effect is short-lived and once the capacity of the soil to store water has been reached (e.g. following a heavy storm), restoration has little
effect on flood risk
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4. Regulation of wildfire risk Restoration raises water table Reduces risk of wildfires burning deep into peat No market for wildfire risk regulation, but may
contribute towards the attractiveness of PES schemes based on carbon or water
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5. Cultural Ecosystem Services Hard to monetarise, but options emerging Visitor payback
“Our Man at the Top”: £50K from £2 accommodation surcharge in the Lake District
Spatial planning approaches Section 106 agreements/CIL
Habitat banking: biodiversity credits to offset impacts of development Like for like under Habitats/Birds Directives Given upland designations, unlikely to be significant
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Conclusion PES by water companies happening already Possible to overcome carbon scheme barriers? Markets for cultural services at early stage of
development, no markets for wildfire regulation Bundling co-benefits with carbon and/or water
may increase the attractiveness/value of carbon/water schemes