Dr Jackie Crafford Prime Africa Consultants Technical support to UNEP Pretoria South Africa jcraffordprimeafricanet Dr Thierry Oliveira Lead Economist UN Environment ID: 933064
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Slide1
The Contribution of Forest Ecosystems to the Economies of Africa
Dr Jackie Crafford
Prime Africa Consultants Technical support to UNEP Pretoria, South Africa j.crafford@primeafrica.net
Dr Thierry Oliveira Lead Economist UN Environment Nairobi, Kenya Thierry.Oliveira@unep.org
Mr Samuel Muriithi Lead Forest Economist
Kenya Forest Services
Nairobi, Kenya
smuriithi2000@yahoo.co.uk
Slide2A glance into the application of environmental economic accounts
Slide3History
Since 2013, working in partnership with Ministries and Statistical Agencies within the following countries:KenyaMorocco GabonCote d’IvoireNigeriaUganda
3
Slide4Objective4
To provide technical support to relevant country Ministries and Statistical Agencies:1. To demonstrate how key economic sectors as well as human well-being are dependent on forests and forest ecosystem services in general, and 2. More specifically the contribution of these particular services to the real economy.
Slide5Activities5
Linking ecosystem services, especially regulating services, to the economy and demonstrating that these services provide direct and indirect benefits to economic sectors Conduct a forest ecosystem services (especially regulating services) valuation. This activity will result in the quantification of intermediate input of ecosystems into the economy. Specific sub-activities include: Strengthen national institutional capacities to construct and manage Input-Output tables , and carry out data collection and ecosystem services valuation.
Develop economic and planning models.
Slide6Outputs6
Technical Papers on an economic case for valuing selected critical regulating services made through the setting-up of production function tablesExcel based forest and forest ecosystem services accountsHybrid input-output table and economic planning model including quantitative (cost-benefit) analysis of selected policy instruments.
Slide7Background to Forest Accounts and Methodology
Measuring economic activityMeasuring ecosystem benefits - Millennium Assessment: Ecosystem ServicesLinking ecosystems and the economy7
Slide8Input-Output Table
Production
EconomicConsumptionHousehold
Economic Analysis Framework
Slide9Ecosystems
Ecosystem Services Analysis Framework
Millennium Assessment
Slide10Ecosystems
Production
EconomicConsumptionHousehold
Provisioning
Ecosystem Services
Cultural
Ecosystem Services
Inputs /
Final Consumption
Linking the Frameworks
Slide11Ecosystems
Production
EconomicConsumptionHousehold
Regulating
Ecosystem Services
Provisioning
Ecosystem Services
Cultural
Ecosystem Services
resilience
inputs
Inputs /
Final Consumption
Linking the Frameworks
Slide12Ecosystem Services: Classification SystemsMillennium Ecosystem Assessment (http://www.millenniumassessment.org/en/Index-2.html)
The Economics of Ecosystems and Biodiversity(TEEB) (http://www.teebweb.org/)International Classification of Ecosystem Services(CICES) (http://cices.eu/)United States final ecosystem goods and services(US-FEGS) (http://unstats.un.org/unsd/envaccounting/seeaRev/meeting2013/EG13-3-FEGS.pdf)12
Slide13Provisioning Services
Examples of economic sectors (energy, fisheries, agriculture, water and health, public administration and defense, tourism)
Food (crops, livestock, fisheries, aquaculture, wild food)FishFiber (timber, cotton, hemp, silk, firewood)Loss of forest stocks; overexploitationGenetic ResourcesRare high-risk speciesCultural ServicesExamples of economic sectors (energy, fisheries, agriculture, water and health, public administration and defense, tourism)Spiritual and Religious ValuesHabitatAesthetic ValuesHabitatRecreation and EcotourismHabitat
Slide14Regulation Services
Examples of economic sectors (energy, fisheries, agriculture, water and health, public administration and defense, tourism)
Climate RegulationCarbon loss, effects on the micro-climateWater RegulationRisks to water resources, Hydro-electricityWater Purification and Waste TreatmentAgricultural production losses and cost of raising water and wasteErosion RegulationLoss of nutrients, impact on fish resourcesDisease ControlMalaria increaseNatural disaster mitigationTsunami mitigation by mangrove swamps
Slide15Ecosystem impacted
Change in ecosystem services
Water regulationErosion regulationHazards / ImpactsMicroclimateSeasonal flowWater purification and treatment of sedimentClimate regulation
Forests
Wood harvest
Examples of Economic Sectors
0100
Agriculture
0210
Silviculture
0230
Gathering of non-wood forest products
3510
Electricity
power
generation
3600
Water collection, treatment and supply
5590
Accommodation (
tourism
)
8400
Public administration
8600
Human
health
activities
?
Slide16Production impacted
Ecosystem impacted
Change in ecosystem servicesWater regulationErosion regulationHazards / ImpactsMicroclimateSeasonal flow
Water purification and treatment of sediment
Carbon sequestration
Change in the cost of water treatment
Climate regulation
Forests
Wood harvest
Impact on
health
(the
risk
of malaria)
Impacts on
fishing
Impact on electricity
Changing the level of available water
Change in forest products/ Impacts on industries
Provision of habitat for single
species
Sector
(
D
irect Impact)
0100
Agriculture
0210
Silviculture
0230
Gathering of non-wood forest products
3510
Electricity
power
generation
3600
Water collection, treatment and supply
5590
Accommodation (
tourism
)
8400
Public administration
8600
Human
health
activities
Natural
disaster
mitigation (mangroves)
Slide17Production impacted
Resource impacted
Change in ecosystem servicesWater regulationErosion regulationConversion to other land usesMicroclimateSeasonal flow
Water purification and treatment of sediment
Carbon sequestration
Change in the cost of water treatment
Climate regulation
Forest
Wood harvest
Impact on
health
(the
risk
of malaria)
Impacts on
fishing
Impact on electricity
Changing the level of available water
Change in forest products/ Impacts on industries
Provision of habitat for single
species
Pd5
Pd2
Pd1
Pd3
Pd4
Pd6
Pd8
Sector
(
D
irect Impact)
0100
Agriculture
0210
Silviculture
0230
Gathering of non-wood forest products
3510
Electricity
power
generation
3600
Water collection, treatment and supply
5590
Accommodation (
tourism
)
8400
Public administration
8600
Human
health
activities
Natural
disaster
mitigation (mangroves)
Pd7
Pd9
Pd10
Slide18Production impacted
Resource impacted
Change in ecosystem servicesWater regulationErosion regulationConversion to other land usesMicroclimateSeasonal flow
Water purification and treatment of sediment
Carbon sequestration
Change in the cost of water treatment
Climate regulation
Forest
Wood harvest
Impact on
health
(the
risk
of malaria)
Impacts on
fishing
Impact on electricity
Changing the level of available water
Change in forest products/ Impacts on industries
Provision of habitat for single
species
Pd5
Pd2
Pd1
Pd3
Pd4
Pd6
Pd8
Sector
(
D
irect Impact)
0100
Agriculture
0210
Silviculture
0230
Gathering of non-wood forest products
3510
Electricity
power
generation
3600
Water collection, treatment and supply
5590
Accommodation (
tourism
)
8400
Public administration
8600
Human
health
activities
Natural
disaster
mitigation (mangroves)
Pd7
Pd9
Pd10
Slide1919
Forest Area
AccumulationChange in Forest AreaProductionPd1, Pd2Forest Accounts (SEEA Methods)
Slide20Production impacted
Resource impacted
Change in ecosystem servicesWater regulationErosion regulationConversion to other land usesMicroclimateSeasonal flow
Water purification and treatment of sediment
Carbon sequestration
Change in the cost of water treatment
Climate regulation
Forest
Wood harvest
Impact on
health
(the
risk
of malaria)
Impacts on
fishing
Impact on electricity
Changing the level of available water
Change in forest products/ Impacts on industries
Provision of habitat for single
species
Pd5
Pd2
Pd1
Pd3
Pd4
Pd6
Pd8
Sector
(
D
irect Impact)
0100
Agriculture
0210
Silviculture
0230
Gathering of non-wood forest products
3510
Electricity
power
generation
3600
Water collection, treatment and supply
5590
Accommodation (
tourism
)
8400
Public administration
8600
Human
health
activities
Natural
disaster
mitigation (mangroves)
Pd7
Pd9
Pd10
Slide21Pd3: Carbon sequestration example
21IPCC Carbon Calculator
Slide22Pd4: Water Flow and Nutrient Flow example
22
Slide23Pd5: Water Treatment example23
Slide24Pd6: Health: Malaria example24
Slide25Pd7: Natural disaster mitigation example 25
Slide26Pd8: Species / habitat example26
Slide27Pd9: Fishing example27
Slide2828Pd9:
Hydroelectricity example
Slide29Environmental Entry-Exit Table: Forest
29
?
Slide30User-friendly interface30
Slide31What do we use these tools for?
31
Slide32Forest loss has negative consequences
Forest loss comes at a cost to natural ecosystemsNatural ecosystems produce valuable ecosystem services that have real economic value for present and future generationsIn the case of deforestation, some of the key forest ecosystem services are lost:Carbon stock, water purification, reduction of water yield due to sedimentation of dams, reduction of fish production, loss of habitat for species, and increased risk of diseases such as malaria.
This results in negative economic consequences (externalities) for:The present generationAnd future generations32
Slide33Key Questions
What is the real contribution of forests to the Economy?- (e.g. Informal economy use of fuel wood; ecosystem services benefits; insurance value)How do we incorporate this value in the National Accounts?What risks are forests facing in the future?
- (e.g. climate change, deforestation)How to mitigate these risks?- (i.e. policy instruments)How can we optimise benefits?- (i.e. investments)33
Slide3434
UN-REDD + has developed a mechanism based on carbon capture - and uses incentives to internalize such damage.However, the benefits of deforestation far outweigh the benefits of carbon capture, and therefore the carbon mechanism alone is not sufficient to change behavior of land owners.Additional / complimentary policy instruments are required
Slide35Examples of forest policy instrumentsCarbon tradeCertified plantation forestry
Agroforestry Value addition through industrialization and conservation of biodiversityEco-tourismPayment for ecosystem servicesIt is to be noted that these policy options are not mutually exclusive, but may be applied in an integrated manner.35
Slide36A word from KFS
Mr Samuel Muriithi – Lead Forest Economist, KFS36
Slide37Thank You