- The Global Initiative for the Economics of Ecosystems and Biodiversity (TEEB) is a worldwide effort aimed at enhancing awareness of the economic advantages of global biodiversity.
- The initiative seeks to “underscore the values inherent in nature.”
- Launched in 2007 by Germany and the European Commission, the Economics of Ecosystems and Biodiversity (TEEB) is spearheaded by Pavan Sukhdev.
- Its overarching objective is to integrate the values of biodiversity and ecosystem services into decision-making processes at various levels.
- TEEB has specifically directed its endeavors toward three key habitats: forests, inland wetlands, and coastal and marine ecosystems.
- TEEB aimed to globally promote awareness regarding the economic benefits of biodiversity. The primary objectives included highlighting the increasing costs associated with biodiversity loss and environmental degradation, fostering collaboration among experts in science, economics, and policy, and facilitating meaningful solutions.
- TEEB employed a systematic valuation approach to assist decision-makers in recognizing the diverse array of benefits provided by ecosystems and biodiversity.
- The initiative sought to demonstrate the economic values of these benefits and encourage their integration into decision-making processes when relevant.
- One of the key goals of the research was to establish an objective global standard for natural capital accounting.
- The research findings indicated that biodiversity and environmental loss could potentially cost 18 percent of the global economic output by the year 2050.
- Notably, the World Bank has taken a significant role in recent efforts to incorporate the costs of biodiversity loss and climate change into national accounts.
OBJECTIVE
- The primary objective of TEEB is to underscore the escalating costs associated with biodiversity loss and the degradation of ecosystems.
- Additionally, it aims to convene experts from the fields of science, economics, and policy to facilitate tangible and practical actions.
AIMS
TEEB pursues its objectives through five key deliverables:
Science and Economic Foundations:
- Evaluate and communicate the scientific and economic foundations related to biodiversity and ecosystem services.
- Analyze the policy costs and the costs of inaction concerning biodiversity and ecosystems.
Policy Options:
- Provide policy options for decision-makers at both national and international levels.
Decision-Making Assistance:
- Offer decision-making assistance specifically tailored for local administrators.
Business Risks and Opportunities:
- Assess business risks and opportunities associated with biodiversity and ecosystem-related actions.
- Develop relevant metrics for businesses to incorporate biodiversity considerations.
Citizen and Consumer Ownership:
- Promote ownership and engagement of citizens and consumers in biodiversity and ecosystem conservation efforts.
APPROACH:
TEEB advocates a comprehensive three-step approach to analyzing and structuring biodiversity and ecosystem services valuation. This approach is guided by three fundamental principles:
Recognizing Value:
- Emphasize the intrinsic value of ecosystems, landscapes, species, and other elements of biodiversity across diverse human societies.
- Highlight instances, such as the existence of sacred groves in certain cultures, where recognizing value has contributed to the protection of natural areas and their biodiversity.
Demonstrating Value:
- Present the economic value of biodiversity, allowing decision-makers to consider the full spectrum of nature’s costs and benefits beyond those directly involved in market transactions as private goods.
Capturing Value:
- Introduce mechanisms that integrate biodiversity and ecosystem values into decision-making processes.
- Implement incentives and price signals, such as payments for ecosystem services, reforming environmentally harmful subsidies, or introducing conservation tax breaks.
ISSUES WITH TEEB
Concerns have been raised regarding TEEB and the broader practice of valuation, expressing apprehension about the potential ‘financialization’ of nature and its services. There is a fear that this process may eventually lead to the commodification and marketisation of essential ecosystem functions.
- ‘Financializing’ Nature:
- Concerns exist that assigning monetary values to nature’s services might result in the ‘financialization’ of these services, potentially leading to their commodification and integration into market systems.
- Market Commodification:
- Critics argue that once the values of nature are expressed in monetary terms, there is a risk of nature becoming a market commodity subject to free trade, similar to other commercial entities.
- Privatization of Public Goods:
- The privatization of previously public ecosystem goods and services is highlighted as a potential consequence. There is concern that private interests contributing to environmental degradation may gain control over these privatized resources.
Counter Arguments and Perspectives:
- Existing ‘Trade’ of Ecosystem Services:
- Some argue that essential ecosystem services are already being ‘traded,’ often without explicit acknowledgment. For instance, land concessions for activities like mining or logging may not consider the implicit price of the ecosystem services lost due to land-use changes.
- Distinguishing Value from Price:
- It is emphasized that putting a value on nature’s ecosystem services is distinct from putting a price on nature itself. The valuation process aims to recognize the inherent worth of these services without necessarily translating them into market transactions.
- Economic Policy Instruments:
- Economic policy utilizes various instruments, both market-based and non-market-based, to reflect the value of nature’s services. TEEB does not advocate a blind reliance on markets but provides a model for effective communication with decision-makers within the economic framework.
- Toolkit for Good Stewardship:
- TEEB is presented as a toolkit for decision-makers, offering a model to communicate in economic terms while emphasizing the importance of good stewardship. It encourages the evaluation and incorporation of responsible environmental decisions into policymaking.
TEEB AND INDIA
The Ministry of Environment and Forests has introduced the Economics of Ecosystems and Biodiversity TEEB-India Initiative (TII) to shed light on the economic implications of biodiversity loss and the subsequent decline in ecosystem services. Here are key details regarding TEEB’s presence in India:
- Focused Habitats:
- The TII has directed its efforts towards three specific habitats: forests, inland wetlands, and coastal and marine ecosystems. These habitats were identified as crucial areas for understanding the economic dimensions of biodiversity and ecosystems.
- Implementation and Collaboration:
- TII is being implemented through a technical collaboration with GIZ under the Indo-German Biodiversity Programme. This collaboration underscores the international dimension of the initiative, emphasizing joint efforts between India and Germany in addressing biodiversity-related challenges.
- Pilot Project and Sectoral Synthesis:
- The initiative includes a pilot project, the outcomes of which will be integrated into the sectoral synthesis for the identified ecosystems. This approach allows for practical insights and recommendations based on the economic implications of biodiversity loss in specific regions.
- Launch and Global Dialogue:
- The TII was officially unveiled during the Brazil-India-Germany TEEB Dialogue, hosted by India in September 2015. This event served as a platform for global discussions on the economic aspects of biodiversity, reflecting India’s commitment to addressing these issues collaboratively.
- Research Presentation:
- The comprehensive research results from the TEEB-India Initiative were formally presented at the 21st session of the UNFCCC CoP (Conference of the Parties), held in Paris in November-December 2015. This global stage allowed for the dissemination of findings and insights to a broader audience involved in climate-related policymaking.
The TEEB-India Initiative signifies India’s proactive stance in understanding and addressing the economic dimensions of biodiversity loss, contributing valuable research outcomes to the global discourse on sustainable ecosystem management.
FAQs – The Economics of Ecosystems and Biodiversity (TEEB)
1. What is TEEB?
A: The Economics of Ecosystems and Biodiversity (TEEB) is a global initiative launched in 2007 to enhance awareness of the economic benefits associated with global biodiversity. Led by Pavan Sukhdev, it aims to underscore the values inherent in nature and integrate the values of biodiversity and ecosystem services into decision-making processes.
2. Who initiated TEEB, and when was it launched?
A: TEEB was initiated by Germany and the European Commission, officially launched in 2007. Pavan Sukhdev led this initiative, emphasizing the economic advantages linked to biodiversity on a global scale.
3. What are the primary objectives of TEEB?
A: TEEB has overarching objectives that include highlighting the rising costs of biodiversity loss, fostering collaboration among experts in science, economics, and policy, and facilitating practical actions to address these challenges. The initiative aims to underscore the economic benefits of biodiversity.
4. How does TEEB contribute to decision-making?
A: TEEB employs a systematic valuation approach to assist decision-makers in recognizing the diverse benefits provided by ecosystems and biodiversity. It seeks to demonstrate the economic values of these benefits and encourages their integration into decision-making processes when relevant.
5. What habitats has TEEB specifically focused on?
A: TEEB has directed its efforts toward three key habitats: forests, inland wetlands, and coastal and marine ecosystems. These habitats are considered crucial for understanding the economic dimensions of biodiversity and ecosystems.
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