1. A synthesis of approaches to assess and value ecosystem services in the EU in the context of TEEB Vilm, 23 May 2013
Strahil Christov European Commission, DG Environment, Unit B2 (Biodiversity)

2. Contents Brief overview of EU Biodiversity Strategy to 2020
TEEB in the context of the Strategy
Study Objectives
Work Description
Task 1 - Review of existing Initiatives
Task 2 - Analysis and synthesis of approaches
Task 3 - Develop common conceptual framework
Task 4 – Recommendations

3. TEEB in the EU 2020 Biodiversity strategy
Rationale behind biodiversity strategy
6 Sub-targets with some specific measures related to TEEB
Target 2 and related measures
Cross-cutting issues:
Financing
Involvement of the private sector
By 2020, ecosystem services are maintained and enhanced by establishing Green Infrastructure and restoring at least 15% of degraded ecosystems.
MS with assistance of Commission, will map and assess state of Es/ES by 2014, value such services and integrate in Accounting and Reporting Systems by 2020
Green Infrastructure Strategy by 2012 to encourage investments in GI (and RPF)
No Net Loss initiative by 2015 (through compensation and offsetting schemes)
Main message is that the study is about delivering on the 2nd part of Action 5.
In this context we have also launched a WG on MAES to address the first part of the action and a set of 6 pilots one of which is on Natural Capital Accounting and links to the contract. Here the aim is to provide guidance to MS on how to conduct valuation and how to integrate these values into accounting systems.
Most important message is that TEEB has shaped the whole EU Biodiversity Strategy.
Comments on above points
- Rationale behind the biodiversity strategy is inspired by TEEB: what are the benefits from biodiversity, who does it benefit/values, what are the drivers of biodiversity loss, and what measures can be taken to address them (see Impact Assessment).
- That lead to the definition of 6 targets, first two one protection and enhancement of biodiversity within protected areas (target 1) and of ecosystem services in the wider landscape (target 2), also focusing on the main drivers of biodiversity loss (agriculture and forestry (target 3) , fisheries (target4), IAS (target 5), and the last one is global dimension (target 6).
- Within these targets some measures are directly related to TEEB – notably target 2. The relevant measures in Target 2 are; 1) MS to map and assess state of ecosystems and their services by 2014, assess their economic value and promote the integration of these values into accounting and reporting systems at EU and national level by 2020, 2) The Commission will develop a Green Infrastructure Strategy by 2012 and work on incentives to encourage investments in GI, 3) Initiative of No net loss of ecosystems and their services (through compensation and offsetting schemes) by 2015.
- TEEB recommendations are also reflected in cross-cutting issues, e.g. financing issues: diversify financing sources including through innovative financing mechanims and market-based mechanisms; generally looking to more involvement from the private sector.

4. Main objectives
Synthesize and evaluate recent and on-going initiatives and assess the scope for integrating these for accounting and reporting at EU level
Formulate steps for ES assessment and valuation into a coherent framework that can be applied by Member States
Assess different approaches for up-scaling and combining ES values into an EU level assessment

5. Task 1: Review of Initiatives using standard format
Field
Name of Initiative
Institutions
Contact Person
Website
Established in
Steps in Assessment Process
Approaches Used
Data sources
Biomes
Categorisation of ES
Coverage of ES
Scale of Analysis
Scale of Aggregation
Key strengths
Key limitations
Screening of reports, proceedings from workshops/meetings and websites
In addition, phone/ contacts with contact persons in 15 EU MS about national initiatives
Two web-based surveys with experts and stakeholders
- Among TEEB conference participants Leipzig March (n=31)
- Among TEEB practitioners and experts (n=18)

6. Task 2: Analysis and synthesis of approaches
Focus on each step in the ES assessment-valuation-accounting/ reporting process
Identify best practices/data requirements/conditions for success
NOT ONE SINGLE STANDARD APPROACH !
Assessment
Valuation
Accounting/reporting
Most efforts on Mapping, some on mapping and valuation together. Very few on accounting and valuation.

7. Task 3: Develop common framework
Develop a common practical framework and guidance for ES valuation and accounting at MS level
Draw on existing initiatives and outcomes of Tasks 1 and 2
Mapping and Assessment of Ecosystems and their Services (MAES) working group
UK National Ecosystem Assessment (UK NEA)
European Environment Agency (EEA) Common International Classification of Ecosystem Services (CICES)
System of Environmental-Economic Accounting (SEEA) Experimental Ecosystem Accounts
Challenges:
Existing initiatives difficult to coherently combine
Missing links between steps in assessment process
Scaling up of ES values

8. Conceptual framework
Consistent with MAES framework and CICES classification
Adapted from Bateman et al. (2011), Mace al. (2011) and UK NEA (2011)

9. Applying the Conceptual Framework: Choices

10. Task 4: Conclusions and Recommendations
No single standard "TEEB" approach on valuation (see graph)
Different definition of economic value Es/ES
Most efforts on mapping ES, limited in valuation and accounting
Real and hypothetical adjustments (controversial in SNA!), actual and potential ES(stock/flow), Spatial scale and variability in ES values
Choices to be made by MS when applying conceptual framework
Crucial to establish links between biophysical provision of ES and their economic values
When integrating in national accounts, important to maintain coherence with SNA based on guidance developed by statistical offices
Careful, stepwise integration via satellite accounts seems most promising way in order to keep core SNA intact. Full integration requires close collaboration between statistical offices
Further integration and implementation of CICES, MAES, SEEA is needed
Step forward is to launch MS initiatives, allow them to mature through monitoring and refining based on empirical experiences (MAES Pilots)
CICES – Common International Classification of Ecosystem Services
MAES – Mapping and Assessment of Ecosystems and their Services
SEEA - System of Environmental Economic Accounting

11. Thank you for your attention
Key document links
EU Valuation Study -
MAES documents -

12. Work description
Task 1: Collect information on relevant initiatives at MS, EU & other levels
Task 2: Analysis and synthesis of different approaches
Task 3: Propose a common framework and draft recommendations
Task 4: Finalize recommendations

13. Number of initiatives addressing each step in the assessment process
Task 2: Analysis and synthesis of approaches
Number of initiatives addressing each step in the assessment process

14. Identified research priorities TEEB conference survey
1) Development common framework
2) Improvement economic valuation methods
3) Improved insight trade-offs biodiversity & ecosystem services
4) Improved accounting practices (national and business)
5) Translation research results into practical policy action
Other:
creation of public awareness
creation of economic incentives
more focus on managed ecosystems
more focus on cultural services in urban areas

15. Key challenges identified in expert survey
Valuation
Reconciling different valuation methods
Lack of reliable large scale valuation studies for key ES
Lack of methods linking non-monetary and monetary valuation
Spatially insensitive valuation methods
Uncertainty precision of values
Accounting
Existing valuation data often not available for well-defined ES
Lack of agreed UN guidance (no proper standards)
Satellite accounts or full integration in core system of NA?
Differences in scales economics and ecosystems
Theoretical adjustments probably impossible with real data

16. EU Biodiversity Strategy to 2020
2050 Vision
2020 headline target
6 Targets:
A Framework for Action for the next decade
6 mutually supportive and inter-dependent targets broken down into a package of actions;
-Protecting and restoring biodiversity and associated ecosystem services (targets 1 and 2)
-Enhancing the positive contribution of agriculture and forestry and reducing key pressures (fisheries, IAS) on EU biodiversity (targets 3, 4 and 5)
-Stepping up EU’s contribution to global biodiversity (target 6) 1
Fully implement nature legislation 2
Maintain & restore ecosystems & services 3
Increase contribution of agri. & forest. to biodiversity 4
Achieve Maximum sustainable yield 5
Combat
Invasive Alien
Species 6
Help avert global biodiversity
loss
Actions / Monitoring