How can we sustainably utilize biodiversity?

How can we sustainably utilize biodiversity?
The Futurability of Biodiversity Chapter 11 How can we sustainably utilize biodiversity? From Chapter 1 to Chapter 10, we have looked at biodiversity from various viewpoints, including ecology, folklore, sociology and economics, etc. Therefore, today, as a conclusion to those chapters, I would like us to consider the future of biodiversity from now on. The 2 photos in this slide are examples of how people and biodiversity interact at present. On the left, is a scene in Malaysia, where people are weaving baskets and mats from vines gathered in a forest. Biodiversity is closely linked to the livelihoods of people. The photo on the right was taken in Japan. Boy scouts are collecting organisms at a pond. Thus, biodiversity plays a big role as an education site for people to experience nature. In these ways, we can see that biodiversity is extremely important even in our lives today. How will we be interacting with biodiversity in 50 years from now? For us to maintain the current relationship, or actually enhance that relationship, what do we need to do? Today, I would like us to look at the relationships between biodiversity and people, and about the future of biodiversity. Fifty years from now, how will the relationships have changed between human beings and various organisms? Photo (right): Echigo-Matsunoyama Museum of Natural Science, ‘Kyororo’

What are the key points when we deal with biodiversity problems?
Today’s Topics 1. Fundamental ways of thinking about biodiversity problems What are the key points when we deal with biodiversity problems? 2. Solution strategies for biodiversity problems How can we solve various biodiversity problems? Right, today, we have 2 topics to work on. First is the fundamental ways of thinking about biodiversity problems. Here, biodiversity problems is the term I will use to refer to the problems emerging from reductions in biodiversity. We will look at the key points that we must keep in mind when thinking about these problems. After that, I would like us to look specifically at how these biodiversity problems can be resolved.

1. Fundamental ways of thinking about biodiversity
What are the key points to consider when dealing with biodiversity problems? 1) Human well-being 2) Global views 3) Cost for solutions 　There are 3 key points that must be kept in mind when considering biodiversity problems. First key point: Biodiversity-rich ecosystems have a bearing on the well-being of humans. Second key point: Biodiversity problems have to be appraised on a global scale. Third key point: The economic view of the necessary costs to resolve biodiversity problems. We will use the following slides to look at these key points in detail.

1. Fundamental ways of thinking about biodiversity 1) Human well-being
Ecosystems with high biodiversity bring us a good life. 1) Supply of safe foods 2) Agriculture with low risks of insect pests or diseases 3) Prevention of various disasters 4) Cultural diversity 5) Opportunities for local education The first point concerns how ecosystems with high biodiversity bring us a good life. What kind of life are we talking about when we say, “a good life?” Well, here, we are not talking merely about an economically good life. We also are talking about: 1) Supply of safe foods, 2) Agriculture with low risks of insects or disease, 3) Prevention of various disasters, 4) Cultural diversity, 5) Opportunities for local education, 6) Opportunities for sightseeing or recreation (in other words opportunities to reduce mental stress), and 7) Future possibilities for finding new medicines or natural resources. And, biodiversity-rich ecosystems are essential to the “good life” described here. The next slides will let us look at this in greater detail. 6) Opportunities for sightseeing or recreation 7) Future possibilities for finding new medicines or natural resources

1) Supply of safe foods e.g., oriental stork rice in Toyooka city, Japan - Returning oriental storks to the wild means recovery of ecosystems where oriental storks can survive. Oriental storks require rice fields with reduced amounts of agricultural chemicals. To start with, let us look at the supply of safe foods. In recent years, concern about food safety is increasing. And, in response to the social needs reflected in that concern, more and more, safety conscious agricultural produce is being retailed. In Toyooka, Hyogo prefecture, Japan, an “oriental stork rice” brand is being marketed. Toyooka is a city attempting to reintroduce oriental storks to the wild. In July 2007, amidst heavy media coverage, the first chicks in 46 years left the nest in a natural location. The reintroduction of oriental storks to the wild means that the bird’s natural habitat has to be restored. Back in the 1960s, the number of oriental storks in Japan plummeted due to the impact of agrochemicals. So, what Toyooka is having to do is promote farming with reduced agrochemicals to create paddy fields that can support organisms, such as the loach, that the Japanese oriental storks dine on. And paddy fields that can support oriental storks and their many food sources are safe rice production sites – hence the marketing of an oriental stork rice brand. Oriental stork rice Oriental stork foraging for food Photo: Toyooka city, Hyogo Prefecture

2) Agriculture with low risks of insect pests or diseases Number of parasitic wasps varies among various vegetations. The relationships between number of parasitic wasps and forest ages Next, let us look at agricultural production with low occurrences of insect pests or diseases. Parasitic wasps lay their eggs in the bodies of other insects, and the hatched larvae eat the host insects in order to grow. There are many varieties of parasitic wasps, and each variety lays its eggs in different varieties of host insects. And, many varieties of these insects are agricultural pests. As part of a study on forest ages, this graph shows the types and numbers of parasitic wasps living in forests of various ages. The blue squares denote wasps that lay eggs in insects which eat the leaves of grasses and trees. The brownish dots denote wasps that lay eggs in insects which eat withered tree trunks, fungi and decomposing fallen leaves, etc. From the graph, it is clear that both types of wasps live in large numbers in low-age forests. In other words, many parasitic wasps live in grassland. In recent times, the management and upkeep of satoyama areas are declining, while the forests and grasslands that rural people once utilized are advancing in age. Yet, to maintain species types and numbers of parasitic wasps, grassland and young forests are needed. And, it is thought, by maintaining diverse vegetation of varying ages, pest related crop damage can be reduced. Parasitic wasp (Braconidae) ovipositing on a leaf beetle (Phratora laticollis) (Maleque et al. 2010)

3) Prevention of various disasters Plantation forests consisting of a single species are vulnerable to disasters. Next, I would like to talk about preventing disasters. The example I will use here is the one from Chapter 5. With monocultural plantations, all the trees – only species that can be used as timber - are planted simultaneously, so that the forest’s species composition is simple and sizes are very similar. In Japan, densely needled conifers such as cryptomeria (Japanese cedar) and hinoki (Japanese cypress) are widely used in plantations. And, dense foliage means that these trees are susceptible to winds, with entire plantations sometimes being blown down by strong winds such as typhoons. And, when such a large number of trees get blown down, soil is washed away and the forest’s ability to store water weakens, which greatly increases the risk of further disaster. Counter to this, in forests where various species of trees grow, timber production efficiency may be less, but there is far less likelihood of the entire forest being blown down. Forests with high biodiversity are far less susceptible to the risk of disaster. Plantation forest blown down by typhoon (left: Sakhalin fir, right: cedar) Photo: (left) National institute for Environmental Studies (right) Keizou Hirai (From Chapter 5)

4) Cultural diversity Many organisms are symbolically used in local and/or traditional festivals. Festivals in Kyoto and organisms Aoi Festival (corsage) Asarum caulescens Cercidiphyllum japonica Gion Festival (talisman) Bamboo grass Fire Festival in Kurama (torch) Japanese wisteria Azalea Cedar Asarum caulescens In traditional festivals, the regional animals fulfill important roles. This slide shows 3 representative festivals held in Kyoto. The Aoi Festival is held each year in May as a procession through the city by people dressed in costumes of the late Heian period (794 to 1185). Everyone in the procession also wears on their chests a decoration of asarum caulescens and katsura leaves. At the Gion Festival in July, chimaki made from bamboo grass are sold as a talisman to ward off evil. At the fire festival held in Kurama in October, a large number of men parade through the streets with burning torches, which are made of cryptomeria and rhododendron branches (rich in oil content) wrapped in Japanese wisteria vines. All of these organisms are, indeed, the symbols of those festivals. It would be no exaggeration to say that without the lapel adornment of the Aoi Festival, without the chimaki talisman of the Gion Festival and without the torches of the Kurama Fire Festival, all festival identity would be lost. Torch in fire festival

5) Opportunities for local education Local ecosystems are useful materials for environmental education of children living there. - Children learn the local uniqueness through the study of such ecosystems. Biodiversity has close links to local education. Depending on the region, the biodiversity varies, and those peculiarities become symbols in their home regions. And, put to good use in educational activities, these symbols help develop regional societies founded on the good points of their regions. The photo on the left in this slide shows children on a local study of plant distribution. The photo on the right shows a play in a cultural presentation featuring the region’s lifestyle. By studying local plants and studying local lifestyles, children gain in-depth knowledge about local biodiversity, and thus they come to acknowledge biodiversity as one of the symbols of their region. Examining plant distribution Presentation about life in the community

6) Opportunities for sightseeing or recreation Ecosystems with high and unique biodiversity captivate and attract tourists. Ecosystems with high biodiversity or ecosystems with rare organisms captivate and attract tourists. This slide shows the famed Jomon cedar on Yakushima island, Japan and tourists who have come to see it. This Jomon cedar is one of the biggest natural growing cedars on Yakushima island. The people who gather to view this rare tree come away satisfied and refreshed. If the forests of Yakushima were all individual-species plantations, do you think people would make the trip to the island? I think we can safely say that there would not be many visitors. It is because the island has a unique ecosystem, that it has become a tourist spot. Jomon cedar in Yakushima island and people observing the tree

7) Future possibilities for finding new medicines or natural resources - High biodiversity provides us with a higher possibility of finding useful options in the future. Petroleum will be exhausted in the near future. …We will need alternative materials and biofuels. Finally, future possibilities for finding new medicines or natural resources. Of all the organisms in the world, there are some yet to be discovered, and when and as they are discovered, they will doubtless become new medicines or new resources of the future. And, the higher the biodiversity in an ecosystem the more likely that ecosystem will be the home to such valuable organisms. Since the energy revolution, we have been dependent upon fossil fuels in our daily lives. Nevertheless, fossil fuels will run out at some point. In particular, petroleum is expected to last only another 40 or so years. Petroleum is not just an energy source it also is a raw material for plastics. Once petroleum runs out, we will probably return to an era where organisms are used as biofuels and materials, other than plastics. From this, we can see that by preserving ecosystems with high biodiversity, we can help to preserve “comfortable ways of life”. Primary forest in Lambir Hills National Park, Sarawak, Malaysia

1. Fundamental ways of thinking about biodiversity 2) Global views
Biodiversity problems are international problems. 1) Many animals migrate beyond international borders. 2) Activities of some countries affect the biodiversity of other countries. 3) It is difficult to achieve a consensus about biodiversity conservation among countries. The second key point to be kept in mind when thinking about biodiversity problems is that biodiversity problems cannot be resolved just at national level, they are international problems. To highlight this, we have 4 points in this slide: 1) Many animals migrate beyond international borders, 2) Activities of some countries affect the biodiversity of other countries, 3) It is difficult to achieve a consensus about biodiversity conservation among countries, and 4) Sharing the benefits of biodiversity may not be fair among countries. Okay, now let us look at these points one by one in detail. 4) Sharing the benefits of biodiversity may not be fair among countries.

1) Many animals migrate beyond international borders. Some animal species move from one country to another (or others) during their lives. Habitats of some organisms occupy several countries. In such cases, conservation in only one country is not enough for preventing extinction. First, point number 1: Many animals migrate beyond international borders. Some animal species – like migratory birds – move across borders from one country to another (or others). The black-faced spoonbill (Platalea minor), a rare migratory bird species, with only a small number existing across the globe, breeds on the Korean Peninsula and winters in Taiwan or Indochina. Therefore, to conserve the black-faced spoonbill, conservation action needs to be taken in both the breeding place and wintering places. Yet again, there are some animals distributed across a number of countries. For example, tigers can be found across a wide range of land from Russia and China through to India. And, to prevent the extinction of a species like the tiger, it is not enough to protect the habitat in just 1 country. The idea of national borders has to be put aside, and, instead, measures - such as determining the entire habitat of a species and establishing an appropriate protected area or areas – must be implemented. Platalea minor Panthera tigris　 Photo: (left) Yasunori Maezawa

2) Activities of some countries affect the biodiversity of other countries. The more foreign countries import timber or palm oil from Malaysia, the more tropical rainforest disappears. The more foreign countries import cashmere from Mongolia, the more the goat population increases, resulting in degradation of grasslands. Activities in some countries can lead to the decrease in biodiversity of other countries. The photo on the left is an aerial shot of tropical rainforest in Borneo. The crisscrossing lines you can see are forest roads for transporting logged timber, which is exported in log or plywood form. The biggest importer of these wood materials is Japan. The photo on the right is a huge oil palm plantation that stretches as far as you can see. It probably just looks like forest to you, but, in fact, all the trees are lined up in evenly spaced rows, which tells us that all of the trees are oil palm ones. European countries and Japan import vast amounts of palm oil as a material for dishwashing detergents and as a emulsifier for chocolate and ice cream, etc. Once logging zones and plantations reach these vast sizes, it will take a very long time for the land to revert to tropical rainforest. So it is, that by importing tropical materials and palm oil, Japan and the nations of Europe are causing the loss of high-biodiversity tropical rainforests in Malaysia. Therefore, we must include these international connections and others in the plans we make to conserve tropical rainforests. Forestry roads for logging Huge oil palm plantation

3) It is difficult to achieve a consensus about biodiversity conservation among countries. If some countries adopt a production method which emphasizes biodiversity conservation, they may lose the price competition to products made in other countries which do not consider biodiversity conservation. Measures to conserve biodiversity differ depending on the country. This is 1 reason why it is difficult to reach consensus on how to resolve biodiversity problems. Just like the oriental stork rice example I gave earlier, many living things can be seen in a paddy field where agrochemicals are reduced. The photos on the right are some of the organisms seen in and around such a paddy field. These include loaches and aquatic insects, such as and water stick insects, frogs and salamanders, that feed on aquatic insects, and weasels and grey-faced buzzards (Butastur indicus) that feed on frogs. Thus, a paddy field where less agrochemicals are used also can function as a habitat for diverse forms of wildlife. Eco-friendly rice production is less efficient and requires extra effort – for example, the farmer has to weed the paddy field instead of using herbicides and, if water is left in the paddy over winter for wildlife, the paddy field softens, making it difficult for heavy machinery to be used. For such reasons, production costs increase, and, likewise, the rice price increases too. And, if another country ignores biodiversity, and produces less-safe, cheap rice, the eco-friendly rice nation will lose out in the price war. The final result being that biodiversity in both countries will decrease. Therefore, an internationally aligned production method that attaches importance to biodiversity is needed. Biodiversity in paddy field where agrochemicals are reduced. Photo: Yasunori Maezono 　　　 Echigo-Matsunoyama Museum of Natural Science, ‘Kyororo’

4) Sharing the benefits of biodiversity may not be fair among countries. Developed countries gain profits from new medicines whose resources are taken from the forests of developing countries. The profits should be fairly shared with developing countries which conserve biodiversity of their forests. Lastly, point number 4 about sharing the benefits of biodiversity may not be fair among countries. Among the trees of the tropics, discovered plants have turned out to be wonder drugs for combating illnesses like AIDS. Moreover, soil microbes such as fungi are revealing discoveries including organisms that function as antibiotics and chemotrophs. This kind of biodiversity sometimes has enormous economic value. These organisms are intrinsically the resources of the countries that possess tropical rainforests. Nevertheless, the technologies of developed nations are required to separate out the medicines and chemical substances and make practical commodities of them, as there are not many developing tropical countries with such expertise. Moreover, developed countries are really chasing after information about useful constituents, so that they can study the structure in order to chemically synthesize the constituents for mass production. And, when they achieve this, they do not have to even purchase constituents from developing countries, which means that even though developing countries own useful resources, developed countries are the ones making use of them and making a profit from them, giving rise to an imbalance. To deal with biodiversity problems, such as those encountered in the above 4 items, international cooperation and agreements are essential. Tropical tree Tropical fungus

Economic loss in the event we take no measures now:
1. Fundamental ways of thinking about biodiversity 3) Cost for solutions Economic estimation for solution of biodiversity problems The economics of Climate Change (Stern review) Concerned with climate change’s effects on the economy Submitted by Dr. Stern to the UK’s Ministry of Finance Economic loss in the event we take no measures now: 5 to 20% of GDP Cost for measures we take now: c. 1% of GDP While considering biodiversity problems, we must remember the last of our key points – the cost of solutions. On the 30th of October 2006, the British Treasury (Ministry of Finance) announced a review on The Economics of Climate Change, known as the Stern Review after the compiler Dr. Stern. He and his team evaluated the economic impacts accompanying climate change in areas such as agriculture, infrastructure and industrial manufacturing. And his results show that if no action is taken now, profit losses due to damage will be 5 to 10 percent of GDP; whereas, if action is taken now, those losses will not amount to 1 percent of GDP. So, even in economic terms, Dr. Stern’s conclusion is that we will better off if we tackle global warming issues immediately. Effects of climate change on the economy (agriculture, infrastructures, industry, etc.) (year, based on the total GDP in the world) As for measures against global warming, early action lessens economic loss. 　

Biodiversity version of Stern review
1. Fundamental ways of thinking about biodiversity 3) Cost for solutions Biodiversity version of Stern review TEEB (The Economics of Ecosystems & Biodiversity) Edited by UN special adviser Pavan Sukhdev (Deutsche Bank AG). Interim report was released at COP9. Attempted to estimate the cost of degradation of biodiversity. ex. The multiple values of coral reefs: Recreation value US$184 per visit globally Ecological service (protection of coastal areas in many islands of Southeast Asia) US$55 - $1,100 per hectare per year Well, even in the area of biodiversity, economic evaluation of costs and values are advancing in the shape of TEEB (The Economics of Ecosystems & Biodiversity). Pavan Sukhdev of Deutsche Bank AG is compiling TEEB, with an interim version having been released already at COP9. Sukhdev is attempting to evaluate the costs in scenarios where biodiversity deteriorates in several ecosystems. For example, if coral reefs were lost, the values of the reefs as recreation spots (an equivalent of 184 US dollars per visit globally) are lost. And, he estimates that 50 to 1100 US dollars per hectare per year are needed to protect the coastline of islands in Southeast Asia. Further, TEEB introduces progressive precedents like setting up a market for trading biodiversity. The final version of TEEB is due for release at COP10. - Advanced attempts to conserve biodiversity by introducing progressive use of market mechanisms. TEEB’s final report will be released at COP10.

Summary 1. Fundamental ways of thinking about biodiversity
Preserving ecosystems whose biodiversity is high brings us better lives not only monetarily but also spiritually and culturally. For solutions to biodiversity problems, international cooperation is essential. Interim report of TEEB reveals the vast costs of degradation of biodiversity. Final report of TEEB will be released at COP10. Now let me summarize the first topic. Preserving ecosystems whose biodiversity is high brings us better lives not only monetarily but also spiritually and culturally. For solutions to biodiversity problems, international cooperation is essential – in other words, an single country cannot solve the problems. Even viewed economically, the swift implementation of countermeasures to tackle biodiversity problems will produce better results.

2. Solution strategies for biodiversity problems
How can we solve various biodiversity problems? 1) Certification systems 2) Harnessing market mechanisms 3) Establishment of new social institutions 4) Corporate Social Responsibility (CSR) 5) Reconsideration of our ways of thinking Well, we have looked at the key points that need to be given consideration when thinking about biodiversity problems, so now let us move on to the second topic. So, how can we solve current biodiversity problems? Here, in this slide, we have a list that I would like us to follow as we think about this question. The items cover: 1) certification systems, 2) Establishment of market mechanisms that utilize incentives, 3) Establishment of new social institutions, 4) Corporate Social Responsibility or CSR, and 5) Reconsideration of our ways of thinking.

- Forest certification system (FSC)
2. Solution strategies for biodiversity problems 1) Certification systems Distinguishing products produced with respect for the sustainable use of biodiversity In cases where products are taken or grown using methods which degrade biodiversity as little as possible, they are certified and labeled. Ex. - Forest certification system (FSC) - Aquatic products certification system (MSC) - Oil palm plantation certification system (RSOP) The first economic mechanism to look at is distinguishing products produced with respect for the sustainable use of biodiversity. By making such distinctions, consumers can use money to selectively purchase the conservation of biodiversity. If certification systems that certify that products are taken or grown using methods which degrade biodiversity as little as possible can be introduced, products can be shown to be different. For wood materials there is already the forest certification system (FSC), and marine products (aquatic products) are certified by the Marine Stewardship Council (MSC). There is no certification system for palm oil yet, but a certification system is in place for oil palm plantations. Likewise, the Fair Trade system using certification systems is gaining momentum in the agricultural produce industry. A problem with certification systems is that labeled products do not sell if consumers are unaware of the issues in conservation of biodiversity. Therefore, when creating an economic mechanism, we must simultaneously raise awareness among consumers. - Fair trade certification system (FLO) Problem Labeled products do not sell if customers do not take into account the conservation of biodiversity.

Development of a new market which deals with biodiversity
2. Solution strategies for biodiversity problems 2) Harnessing market mechanisms Development of a new market which deals with biodiversity 1) UN-REDD (Program on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries) Creating a financial value for the carbon stored in forests, offering incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development. One of the forms of emissions trading, but also plays an important role in the conservation of tropical rainforests. The second economic mechanism is the development of a new market which deals with biodiversity. The Program on Reducing Emissions from Deforestation and Forest Degradation in Developing Countries (REDD) is a form of carbon dioxide emissions trading that plays an important role in conserving rainforests with high biodiversity.

2. Solution strategies for biodiversity problems 2) Harnessing market mechanisms
Concept of REDD Baseline (estimated by past trends) Carbon emissions due to decrease of forest Reduced carbon emissions (Developing countries can sell the right to emit CO2) Actual emissions (measured by monitoring) 2010 2015 time Pilot Projects: 750,000 hectares of forest in Indonesia’s Aceh province. Objective: Reduce 85% of future reduction (10 million CO2 tons in 30 years) Merrill Lynch (US securities company) declares they will invest US$9 million for 4 years In this slide, we have the concept of REDD in graph form. Forests act as a source of carbon dioxide absorption. If forests continue to be reduced at the current pace, the carbon dioxide absorption source will be lost, and – it is thought - the amount of carbon dioxide that would have been held by forests will remain in the atmosphere. The red line in the graph is the transition of the amount of carbon dioxide if deforestation continues. This is conjecture based on past trends. Conversely, if deforestation is stopped right now using some kinds of measures, the future carbon dioxide emissions in the atmosphere can be reduced. The blue line shows the transition of carbon emissions if deforestation is halted. The amount of carbon dioxide absorbed by forests can be measured via monitoring. Therefore, developing nations can subtract the blue line from the red line, and sell the amount of reduced carbon dioxide as emission credit (eco right). And, REDD is the mechanism aiming to provide this kind of incentive to developing countries, so that they protect their forests. In Aceh province, Indonesia, the REDD program already is being tried out. The Aceh provincial government is aiming to cut carbon dioxide emissions by 100 million tons over the next 30 years by cutting back by 85 percent the deforestation of 750,000 hectares of Ulu Masen forest. The major US securities corporation Merrill Lynch has announced that it will invest 9 million dollars in the project over 4 years. The world awaits the outcome. The REDD project still has many problems that need to be worked out through discussions – such as, finding a method that will accurately measure reductions in carbon dioxide, deciding how to distribute profit acquired as a result of emission credit trading, how to define forest degradation, and how to encourage participation by local communities, etc. Discussion Measure Report Verify (MRV), Benefit sharing, definition of deforestation, Participation of indigenous communities

Development of new market which deals with biodiversity
2. Solution strategies for biodiversity problems 2) Harnessing market mechanisms Development of new market which deals with biodiversity 2) No net loss of biodiversity (Biodiversity Offsets) When a habitat is developed, we try to reduce negative impacts on the habitat by avoidance or minimization. In cases where some ill effects still remain, we compensate for them by conserving alternative habitats. The order of priority Negative impacts on ecosystem Avoidance Remaining impacts An approach known as biodiversity offsets also has started. Biodiversity offsets is a way of thinking where the loss of a habitat (due to development, etc.) is offset or counterbalanced by the conservation of another location as the habitat. In fact, in some cases, areas that are restored or protected in offset schemes are bigger than the original habitat. To explain biodiversity offsets, I need to first tell you about no net loss. No net loss is a methodology for situations where even if an ecosystem is altered, the biodiversity existing prior to the alteration will not suffer degradation. There are 3 methods for achieving this. The slide shows the order of priority. When an ecosystem is altered, the first thing to do is to avoid negative impacts. By doing so, the negative impacts seen when avoidance is not practiced are to some extent reduced. However, there are some impacts that cannot be avoided. In such cases, those negative impacts must be minimized. And, the more they can be minimized, the less negative impacts there will be. Yet, still there will be impacts. In such cases, an alternative habitat must be acquired. In other words, biodiversity offsets are implemented to negate the impacts. Put another way, biodiversity offsets indicate the final stage of no net loss. Minimization Remaining impacts Compensation by alternative habitat Biodiversity Offsets No net loss (Modified Tanaka 1996)

BBOP (Business and Biodiversity Offset Programme)
2. Solution strategies for biodiversity problems 2) Harnessing market mechanisms BBOP (Business and Biodiversity Offset Programme) Partnerships between conservation organizations, governments, companies, financial institutions, etc. supporting biodiversity Biodiversity offsets of BBOP not only compensate habitats but also improve the quality of habitats, conserve habitats and settle negative impacts thoroughly. The Business and Biodiversity Offset Programme (BBOP) is the program promoting biodiversity offsets. And, in the same way as the certification organizations described earlier, BBOP consists of various interested parties. The biodiversity offsets advocated by BBOP are not just methods for conserving a new habitat but also for enhancing the quality of the original habitat, conserving it and drastically rectifying the causes of the negative impacts. Nevertheless, there are limits to what biodiversity offsets can achieve. Biodiversity varies depending on the region. Therefore, especially in target cases, where the ecosystem contains endemic species or rare species, it will be impossible to offset impacts by arranging an alternative habitat.

Payment for ecosystem services
2. Solution strategies for biodiversity problems 2) Harnessing market mechanisms Development of a new market which deals with biodiversity 3) PES (Payment for Ecosystem Services) - Paying for various ecosystem services (provisioning, regulating, cultural and supporting) . Mechanisms of PES in Costa Rica Public or private institutions Profit from credit Fuel tax MOE* Forest agency FONAFIFO** Foreign countries OCIC*** The third market mechanism is Payment for Ecosystem Services or PES. With REDD and biodiversity offsets, the approach is the actual conservation of the ecosystem. Whereas, with PES, the approach is to pay for ecosystem services received from the ecosystem concerned. In the case of Costa Rica, PES is being used in areas such as forest management and conservation in order to restore forests and produce timber. The cost of forestry support is met by donations from public and private institutions, as well as proceeds from fuel tax imposed on beneficiaries of forest ecosystem services, and emissions credits. Here, fuel refers to gasoline, and forest ecosystem service refers to the forest absorbing carbon dioxide. In other words, carbon dioxide is produced when gasoline is burnt, and the forest absorbs that carbon dioxide, so the beneficiaries of this carbon absorption have to pay for the conservation of that forest via tax. In addition, the carbon dioxide absorbed by forests is tradable in the form of emissions credits. Emissions credits are sold overseas via OCIC (Oficina Costarricense de Implementacion Conjunta, a certified body that monitors climate change). The profit from these emissions credits are pooled in the national forestry budget fund (FONAFIFO). This fund is then handed over as payments to landowners who maintain ecosystem services such as reforestation and/or forest conservation, with sums corresponding to the sizes of the land areas that have benefited from such eco friendliness. Further, a part of the proceeds derived from emissions credits is used to cover expenses for supporting the forestry industry. Landowners take to conserving forests if they know they can earn money by planting trees or conserving forests. PES is a mechanism with two aims: the first being to gather money for forest management and the second being forest conservation by landowners. Payment for ecosystem services * the Ministry of the Environment ** Fondo Nacional de Financiamiento Forestal *** Oficina Costamicense de Implementacion Conjunta Landowners Reforestation Forest conservation Forest management Credit Modified from Original figures by Response Ability, Inc.

Development of social institutions for biodiversity
2. Solution strategies for biodiversity problems 3) Establishment of new social institutions Development of social institutions for biodiversity Present social institutions Convention on Biological Diversity Establishment of protected areas or protected species + new social institutions Ex. Environmental Tax Citizens pay environmental tax such as forest tax, carbon tax, headwater conservation tax, etc. …People who receive the benefits of biodiversity should pay the expenses for conservation of biodiversity. In cases where the economic mechanisms I have just described do not work effectively, political measures, etc., need to be used to revise the mechanism. Therefore, next, we will look at solution strategies using social institutions. With present social institutions, the systems used include multilateral/bilateral biodiversity agreements and the creation of refuges such as national parks. In addition to these, if new social institutions could be created, there is potential for even more effective conservation of biodiversity. For instance, one such idea would be to create a tax institution (system) where people pay a tax for the environment. Based on the idea that people who benefit from biodiversity should bear the cost of the benefits they reap, taxes such as forest tax, carbon tax and water source tax would be levied from citizens.

Examples of Environmental tax Germany
2. Solution strategies for biodiversity problems 3) Establishment of new social institutions Examples of Environmental tax Germany Environmental tax was introduced from 1999, and tax rate was increased in five steps. In the case of primary energy, environmental tax was set as a fuel tax. Electricity tax was newly established as environmental tax. Biofuels and electricity from renewable energy are tax-free. Use Taxable fuels Oil-related tax Environmental tax - Electricity (ct*/kwh) 2.05 Fuel for a vehicle Gasoline (ct/l) 50.11 15.34 Diesel (ct/l) 31.70 Natural gas (ct/l) 6.00 2.00 LPG (ct/l) Fuel for heating 4.09 Heavy oil (ct/l) 1.53 0.97 LPG (ct/kwh) 0.18 0.37 In fact, there are countries that have introduced environmental tax as a measure for countering global warming. Here, let us look at the examples of Germany and the United Kingdom. Germany introduced an environmental tax in 1999, with the tax rate increased in 5 steps up to 2003. In the case of primary energy, an environmental tax was added to the already existing fuel taxes. Further, although up to 1999, tax was not levied for electric power, from 1999 onward an environmental tax was placed on power. However, electric power derived from renewable energy remained untaxed. The table in the slide shows the current fuel taxes and environmental taxes. Environmental taxes are levied with a distinction between primary energy for vehicle fuel and primary energy for heating. *ct: euro cent

Examples of Environmental tax
2. Solution strategies for biodiversity problems 3) Establishment of new social institutions Examples of Environmental tax The United Kingdom Climate Change Levy (CCL) was introduced from 2001. Tax rate (/kwh) LPG 0.07 pence Gas or coal 0.15 pence Electricity 0.43 pence In the United Kingdom, a climate change levy (CCL) was introduced from An environmental tax (levy) has been added to the prices of fossil fuels and power, in order to reduce carbon dioxide emissions, a cause of global warming. Both countries (Germany and UK) have succeeded in reducing consumption of fossil fuels thanks to the introduction of environmental taxes. Likewise, environmental taxes are likely to be effective for biodiversity, too. Both countries (UK & Germany) succeeded in reducing consumption of fossil fuels, and environmental taxes concerned with biodiversity conservation are likely to be effective.

Biodiversity conservation in CSR
2. Solution strategies for biodiversity problems 4) Corporate Social Responsibility (CSR) Concept of CSR Corporations should have a responsibility to conserve social and natural environments for building a sustainable society. Biodiversity conservation in CSR Panasonic Corporation Financial support of the Arctic circle project of WWF Tree planting at schools in the world (700,000 trees in 2008) Sumitomo Forestry CO. LTD The forth solution strategy for biodiversity problems is Corporate Social Responsibility or CSR. The CSR concept was originally established in Europe. The idea is that corporations should not just concern themselves with the economy but – like NPOs - must take responsibility for society and the environment, etc., in order to provide the architecture for a sustainable society. And, as a form of CSR, recently, more and more companies are working to conserve biodiversity. For example, Panasonic has become a sponsor of the WWF arctic circle project and is also involved in a tree planting project where 1 tree gets planted each time a certain product gets sold. Likewise, Sumitomo Forestry uses sustainably produced forest resources while placing importance on biodiversity, and is trying to build a forest model where conservation and utilization are compatible. In essence, CSR should involve activities that do not target profit – however, corporations being agents of activity to start with, it is very difficult for them to continually pursue CSR without some kind of profit. If a company uses CSR to tackle biodiversity problems, consumers will acknowledge that company as an “eco-friendly business”. Furthermore, consumers will regard that eco-friendly company’s products and services as safe, and increasingly use those products and services. Thus, in a sense, CSR activities are profitable for corporations. Making available an appropriate and stable supply of sustainable forest resources while placing importance on biodiversity As a business leader instigating growth in the forestry industry, establish a sound model for both preserving and utilizing our forests.

Recognition of the value of biodiversity
2. Solution strategies for biodiversity problems 5) Reconsideration of our way of thinking Recognition of the value of biodiversity Conservation of biodiversity means supporting our well-being. Biodiversity plays important role for education of feelings. Children get unique ways of thinking or fertile creativity from mechanisms of organisms or ecosystems. 　For biodiversity problems, a final solution strategy we need to consider is about each and everyone of us changing our awareness of the issues. Biodiversity conservation is not simply a nostalgia trip about loving animals but rather acute problems directly linked to the well-being of humans. The first important thing to do is acknowledge the reality of those acute problems and their ramifications. Furthermore, biodiversity plays an important role in the education of children. Children should not just be taught cultural sentiments. In many cases, children need to be exposed to organisms and ecosystems to help them develop rich senses of inventiveness and creativeness. Photo: (right) Echigo-Matsunoyama Museum of Natural Science, ‘Kyororo’

Ten things to do for the conservation of biodiversity
2. Solution strategies for biodiversity problems 5) Reconsideration of our way of thinking Ten things to do for the conservation of biodiversity For recognizing the value of biodiversity… 1. Count the number of species which are used in your daily life. 2. Pay attention to nature around you when you walk. 3. Let children play in the field. In the next couple of slides, we have 10 things we can all do for conservation of biodiversity straightaway. First, 5 things for recognizing the value of biodiversity. 1. Count the number of species which are used in your daily life – remember that most things you use, such as food, clothes, notebooks and printouts, etc., are derived from organisms. 2. Pay attention to nature around you when you walk. Enjoy the various seasons and their colors (many people benefit psychologically from such sensations). 3. Let children play outdoors in the vicinity of forests and rivers. They will experience enjoyment different to the fun they have with videogames. 4. For those who live in regions with seasons, it is important to eat food that is in season. Especially in temperate regions, there are many seasonal foods, such as edible wild plants in spring, tomatoes in summer, mushrooms in autumn and Chinese cabbages in winter. Seasonal foods are one of the benefits of biodiversity. 5. Participate with your family in local traditional events. Nearly all such events use organisms, and if you get to know what meaning or significance they have, you will probably come to understand the special characteristics of your own region. 4. Eat foods in season. 5. Participate in traditional events in your community.

Ten things to do for conservation of biodiversity
2. Solution strategies for biodiversity problems 5) Reconsideration of our way of thinking Ten things to do for conservation of biodiversity For sustainable use of biodiversity… 6. Choose the products or services of corporations which work on the conservation of biodiversity. 7. Don’t abandon foreign pets. 8. Eat various foods as much as possible. The next 5 things are about sustainable utilization of biodiversity. First, item 6., Choose the products or services of corporations which work on the conservation of biodiversity in order to support the activities of those corporations. 7. Take responsible care of any foreign pets you have and take care of them until they die. Never tell children to give pets their freedom because it is unfair for them to die in captivity. Caring for a pet until its death is an important lesson that should be learnt. 8. Eat various foods as much as possible. Doing so will help increase demand for various food materials, as well as being good for your health. 9. Even if they are slightly more expensive, choose fair trade crops. Doing so leads to fair trade farmers getting a fair share of the profit. 10. Do not take rare species, but take their photo instead. Discovering the true worth of organisms in nature is far better than just viewing a specimen case or garden. 9. Choose crops which are dealt with by fair trade. 10. Don’t take rare species, but take their picture instead.

Summary 2. Solution strategies for biodiversity problems
As for economic solutions, we should construct new economic mechanisms which enable us to choose products considering sustainable uses of biodiversity. Also, a new market which deals with biodiversity should be developed. As for social institutions, new ones such as environmental taxes would be effective for conserving biodiversity. Biodiversity conservation by CSR should be developed. We should realize our daily lives are supported by biodiversity. Okay, now I would like to summarize the second topic. There are 4 solution strategies for biodiversity problems – they are: the creation of economic mechanisms, the creation of social institutions, implementation of CSR activities and the reforming of our recognition of biodiversity. And, although there are problems with these solutions, we should aim to implement them immediately, to give biodiversity a future.

Summary of Today’s Topics
How can we sustainably utilize biodiversity? 1. When we think about biodiversity problems, we should consider the following three points: biodiversity supports human well-being, international corporation is essential for the solution of biodiversity problems, and early solutions lessen economical losses. 2. As for the solution strategies for biodiversity problems, the following three measures would be effective: economic mechanisms which give incentives for conservation of biodiversity, new social institutions which regulate utilization of biodiversity, and conservation activities by CSR. However, what is most important is our consciousness. Now to summarize the entire chapter. First, when we think about biodiversity problems, we must not forget the following three points: biodiversity supports human well-being, international cooperation is essential for the solution of biodiversity problems, and early solutions lessen economical losses. Second, as for the solution strategies for biodiversity problems, the following 3 measures would be effective: economic mechanisms which give incentives for conservation of biodiversity, new social institutions which regulate utilization of biodiversity, and conservation activities involving CSR. However, what is most important is our consciousness or awareness. 35

Let’s do the exercises below:
1. Let’s think about concrete methods for solving biodiversity problems. 2. When a corporation deals with biodiversity conservation as CSR, what are the benefits for that corporation? Examples of how you might deal with the exercises. 1. Give a free reply. 2. Primarily, CSR activities are supposed to be detached from profit. However, as corporations are the main constituent of the activities, it is difficult for them to maintain such activities without making a profit. So, if a company tackles biodiversity problems, consumers will recognize that company as an “eco-friendly corporation”, and regard the company’s products and services as being safe, which will lead to increases in purchases of them. Recent corporate homepages have detailed explanations of CSR activities, which shows how CSR is one of the tools used in image strategy. 3. Give a free reply. 3. How should we live with biodiversity? Offer your opinion.

Glossary (1/2) Biofuel Synthesized fuel such as alcohol which is made from organisms. Major materials are crops such as corn, sugar cane, soybeans, etc. Fair trade Involving trade which supports producers in developing countries by paying fair prices and making sure that workers have good working conditions and fair pay. FSC Forest Stewardship Council. The biggest certification authority of forest products. Non-profit organization established in Canada in FSC evaluates whether sustainable use is considered or not in forests or forest products. See Chapter 9 for details.

Glossary (2/2) MSC Marine Stewardship Council. This authority certificates fishery interests which use sustainable methods. In the 1990’s, fishing grounds of the walleye pollock in Canadian waters were heavily damaged by excessive fishing. Taking the opportunity, WWF and Unilever established MSC in1997. In 1999, MSC became independent from the two organizations as a non-profit organization. Parasitic wasp Wasp which oviposits on the bodies of the other kinds of insects. Hatched larvae live on the insects and eat them, and finally kill them. Parasitic wasp plays an important role as predator of insect pests.

References Maleque, M.A., Maeto, K., Makino, S., Goto, H., Tanaka, H., Hasegawa, M. and Miyamoto A. (2010) A chronosequence of understorey parasitic wasp assemblages in secondary broad-leaved forests in a Japanese 'satoyama' landscape. Insect Conservation and Diversity 3: DOI: /j x Tanaka A. (1996) The role of mitigation in EIA Systems-Comparison of Japanese and American Experiences-IAIA’96 Conference Proceedings 1:

Cited Websites Business and Biodiversity Offset Programme
Deustches Generalkonsulat Osaka-Kobe, Japan FoE Japan Nikkei Inc. Panasonic Corporate Sumitomo CO. LTD. The British Embassy

How can we sustainably utilize biodiversity?
Authors & Credits The Futurability of Biodiversity Chapter 11 　　　How can we sustainably utilize biodiversity? Authors Tohru Nakashizuka Masahiro Ichikawa Stewart Wachs Aya Hatada Satoshi Yamashita Martin Piddington Application software Microsoft PowerPoint® Illustration & design Be4°TECH Photos Biodiversity Photos Echigo-Matsunoyama Museum of Natural Science, ‘Kyororo’ Hiromitsu Samejima Keizo Hirai Masahiro Ichikawa National Institute for Environmental Studies Ryo Tsujino Toyooka city, Hyogo prefecture Yasunori Maezono Kaoru Maeto Masahiro Aiba Tohru Nakashizuka Wataru Fujita

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