OAS Department For Sustainable Development

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OAS DepartmentFor SustainableDevelopment
ReefFix Valuation of the Benefits of Marine
Ecosystems Richard Huber Bahamas Moriah Harbour
Cay National Park April 2009
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DepartmentFor SustainableDevelopment
Best Defense is a Good Offence. Protect Diverse
Ecosystems.
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Evaluation Methodology

• Protected areas cover 11 per cent of the worlds
  land surface 1 per cent of the worlds oceans.
• IUCNs World Commission on Protected Areas, TNC,
  UNEP-WCMC, UNESCO, CBD, GEF develop appropriate
  tools
• In the Caribbean region, hard coral cover
  declined by 80. 35 of mangroves have been lost
  in just 20 years.

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Ecosystem Change
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Direct drivers growing in intensity
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Conversion of forests to farmlands in Santa Cruz,
Bolivia

• 1975 Forested landscape

• 2003 Large corporate agricultural fields
  transform the landscape

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Shrimp farms replacing mangroves in Gulf of
Fonseca, Honduras
1987-1999 shrimp farms and ponds have
mushroomed, carpeting the landscape around the
Gulf of Fonseca, Honduras, in blocks of blue and
black shapes
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Changes in Ecuadors largest sea port Gulf of
Guayaquil, Ecuador
Ecuadors primary city and largest sea port
1985-2000 Loss of mangrove and growth of
aquaculture can be seen
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Visible changes in Iguazú National ParkSouth
America

• 1973 Forest cover is extensive throughout the
  region

• 2003 Extensive deforestation in Paraguay

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Changes in tropical forests of RondoniaBrazil

• 1975 -Healthy natural vegetation

• 1989 -Fishbone pattern on the landscape
  indicate agriculture fields

• 2001 -Agriculture continues to replace forest
  cover

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Mexicos largest natural lake Lake Chapala,
Mexico

• 1983 Level of the lake has declines noticeable
  decreases in wetlands

• 2001 Alteration in the contours of the
  shoreline is clearly visible

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Urban encroachment on Floridas Everglades,
United States

• 1973 Rapid urban expansion has converted
  farmlands to cityscapes

• 2002 Existence of vast wetlands Everglades
  threatened by urban encroachment

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Marine Protected Areas Management Effectiveness

• (i) WCMC-WDPA (attributes, databases development
  and interoperability, and Management
  Effectiveness),
• (ii) work with the IABIN Protected Areas Thematic
  Network, and
• (iii) the IABIN Ecosystems Thematic Network
• Do economic valuation of benefits

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Initial conclusions from Caribbean MPA analysis

• Relative success issues relating to legal
  establishment, biodiversity condition assessment,
  boundary demarcation, design and objective
  setting
• Relative failure activities relating to people
  (both local communities and visitors), management
  planning, monitoring and evaluation, budget and
  education and awareness

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Not going to make 2010-2012 targets (Woods,
Louisa 2006)
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Growth global marine area protected areas (Woods,
Louisa 2006)
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Percentage marine habitat types protected (Woods,
Louisa 2006)
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Contigent Valuation of Coral Reef Biodiversity

• How much would you be w.t.p. (consumer surplus or
  individual utility) per year for the next five
  years to a trust fund to improve coral reef
  health.
• Montego Bay 3.24 -- NPV 13.6m6.0
• Total NPV -- 460,000/ha or 46,000/ha/yr on an
  annualized basis -- Depended on whether
  respondents believed that CRs had inherent rights
  or humans had inherent duties.
• Total NPV of 400m for Mobay Reefs

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Global Optimization using combined cost and
benefit functions

• Optimal improvement of coral reef abundance of
  13 requiring net expenditures of 27m
• Interventions -- installation of sediment trap,
  waste aeration, sewage outfall, improved SWM
  collection, and implementation of economic
  incentives to improve waste mngt. by the hotel
  industry.
• Financing -- Voluntary 1/Night Hotel Tax

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MODIS Rapid Response Fire Detections for 2004
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Payments for Ecological Services

• Carbon markets the absorption of carbon dioxide
  from the atmosphere. Water markets (Mexico)
  provide payments for nature's hydrological
  services filtering of water through wetlands,
  creation from cloud forest. Biodiversity
  markets (Costa Rica) pay annual fee e.g.
  40/ha/yr for the management and preservation
  biological processes as well as habitat and
  species. Bundled payments (Caribbean?) secure
  all or a combination of carbon, water, and
  biodiversity services. Bundled payments also
  include certified timber or certified
  agricultural produce.

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Ecosystems under threat from Climate Change
Coral Reef bleaching/ Marine Parks with no take
zones
Deforestation/Smartwood
Integrated coastal zone management/Ecotourism
Monoculture/Shade coffee alternative
Forest/wetlands Payments eco services
Areas of work policy strengthening technology
transfer/data capacity building - strategic
alliances adaptation measures
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Theory of Payments for Environmental Services
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The logic of Payments for Environmental Services
(PES)
Conservation
Deforestation, fire, and use for pasture
Upland farmers cut forests reducing downstream
benefits

• Voluntary Participation Private Partnership

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Year 2000
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Threats to Coral Reefs

• Pollution
• Sedimentation
• Unsustainable fishing
• Habitat destruction
• Disease
• Coral bleaching

Sediment Plumes
Black Band Disease
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• The growing number of marine protected areas
  (MPAs) globally represents an increasing interest
  in marine conservation and fisheries management.
• an MPA network is defined through social and
  ecological criteria.
• From a social perspective, a network is comprised
  of people and organizations that manage component
  MPAs, benefit from the network, and promote the
  networks viability through shared administrative
  responsibility and information.
• an ecological Network, individual MPAs must
  interact ecologically (e.g., source or sink of
  larvae and propagating organisms, protection for
  habitat, and threatened or endangered species) to
  enhance fisheries and biodiversity conservation.

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Science-based planning,exist numerous
institutional issues

• limiting access to resources, boundary
  delineation, monitoring compliance, finding
  common goals and identity, and conflict
  resolution.
• Management success includes common institutional
  processes and legal support, improved
  understanding of benefits from a network and
  improved habitat conditions and fishery yields
  associated with MPAs

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ReefFIX

• ReefFix (ICZM) Coral Reef and Mangrove
  Restoration and Watershed Management
  Demonstration program
• Montego Bay Marine Park Trust, Jamaica
• Parque Nacional del Este in the DR
• Moriah Harbour Cay National Park in Exuma in the
  Bahamas
• Haitis Caracol's Mangroves Park (N-E of Haiti)

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Haiti Value of Reefs, Mangroves
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Ecosystem Service Values by Cover Type for Marine Parks and Environs in the Caribbean Ecosystem Service Values by Cover Type for Marine Parks and Environs in the Caribbean Ecosystem Service Values by Cover Type for Marine Parks and Environs in the Caribbean Ecosystem Service Values by Cover Type for Marine Parks and Environs in the Caribbean Ecosystem Service Values by Cover Type for Marine Parks and Environs in the Caribbean
Land Cover Ave./ha/yr Lower Bound Upper Bound Area (ha)
Disturbed and Urban Beach        
Beach 88,000 77,000 99,000  
Beach near dwelling 117000 140,000 94000  
Coastal Riparian Forest 1826 5542 13,000  
Freshwater Stream 1595 1231 939  
Freshwater Herbaceous Swamp 72,787 32000 96000  
Grassland/pasture 118 118 118  
Near shore aquatic habitat 16, 283 4630 27935  
Coral Reef environ 10,000      
Mangrove 37,500      
Mangrove 500,000 200,000 900,000
Mangrove restoration 225 216,000

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The Value of Coral Reefs

• Ecosystem Services
• Tourism
• Fishing
• Shoreline protection
• Natural products

• Ecosystem Functions
• Biodiversity
• Trophic complexity
• Primary productivity

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Policy recommendations

• Tackle the problem of non-point and point source
  pollution through sediment trap and sewage
  treatment
• Make use of the cultural importance residents
  place on marine ecosystems to
• improve coral reef management
• Develop a comprehensive system of user fees for
  visitors of the Marine Protected
• Research catch shares, a system of fisheries
  management tools that meet science-based
  conservation targets by allocating proportional
  management responsibility to fishermen (or groups
  of fishermen) and creating incentives to enhance
  that proportion, like money in the bank. 
• Track success of individual transferable quotas
  and other types of catch shares

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CORAL FARMING METHODS Culturing Mother Colonies
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Longer-Term Planning for Resilience

• Resilient reefs are likely to have one or more of
  the following
• Cooler water due to upwelling/mixing
• Rapid currents that flush toxins
• Shading of UV by cliffs/shelves
• Turbid waters that screen UV
• Communities that have adapted or acclimated
  to past fluctuations in temperature/UV
• Conditions that are conducive to coral
  recolonization

Currents
Shading
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NEWLY REPLANTED SECOND GENERATION MOTHER COLONIES
5cm wire mesh
Established 14 months after planting and ready
for trimming in 3-4 months From finger-sized
fragments it takes less than two years to get
full-sized mother colonies!
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Tying the marine ornamental trades to sustainable
financing for coral reef conservation?
Source Austin Bowden-Kerby, PhDCounterpart
Internationals Coral Gardens Initiative
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Coastal Capital Fisheries and Tourism Economic
Valuation of Coral Reefs in Tobago and St. Lucia
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Coral Reefs economically important to St. Lucia

• Tourism and Recreation - US160 to 194 million
  in 2006.
• Coral reef-associated fisheries - US0.5 0.8
  million / year
• Shoreline protection services US28 and 50
  million per year.
• These are significant compared to St. Lucias
  GDP, which was 825 million in 2005.
• Source WRI. Coastal Capital Economic Valuation
  of Coral Reefs in Tobago and St. Lucia Coral
  reefs provide other important values not
  estimated in this study, and these numbers should
  be regarded as a lower bound estimate.

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InVEST Interface
http//invest.ecoinformatics.org
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Early results
Water payments WWF and CARE
REDD
Water yield
Carbon storage
Charcoal harvest
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WIN-WIN StrategyPolitically Difficult?

• Social Forest to reduce poverty
• Improving livelihoods of people dependent on
  forest and tree resources

• Economic Improving forest concession management
• Reducing illegal logging.
• Increasing government revenues from forests

• Environmental services and values
• Bringing hectares into new protected areas
• Improving management of protected areas
• Improving management of natural forest

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Economic indicators (GNP) are flawed

• do not account for the degradation in ecological
  services that industry and commerce cause
• EXAMPLE valuing forests only for timber ignores
  indirect costs that society bears
• soil erosion -- nutrient loss,
• increased flooding,
• declines in fisheries and water quality,
• reduced carbon storage capacity,
• changes in regional temperature and rainfall,
• diminished wildlife habitat and recreational
  opportunities.

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State
The Law
Regulators
Plants

• Regulatory Standards
• Market-based Instruments
• Legal Liability

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and Other Actors are Important
Plants

• Power
• Social Norms
• Negotiations

Citizens
Community
NGOs
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• Reputation
• Profits

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The New ModelMultiple Agents, Multiple
Incentives
State
Markets
Community
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Policy Experiment PROPER Indonesias Public
Disclosure Program
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5 Color Scheme for Green Performance
A
B
D
F
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PERFORMANCE CRITERIA
PERFORMANCE LEVELS
Clean technology, waste minimization, pollution
prevention, conservation, etc.
GOLD
Above standards good maintenance, housekeeping,
sludge management, etc.
GREEN
BLUE
Efforts meet minimum standards
RED
Efforts dont meet standards
No pollution control effort, Serious
environmental damages
BLACK
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INCENTIVES
GOLD
Public Praise
GREEN
BLUE
RED
Public Pressure Legal Enforcement
BLACK
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Eco efficiency Voluntary Performance
Information Ratings