The economics of ecosystems & biodiversity – An interim report

May 2008

Biological diversity represents the natural wealth of the Earth, and provides the basis for life and prosperity for the whole of mankind. However, biodiversity is currently vanishing at an alarming rate, all over the world. We are, so to speak, erasing nature’s hard drive without even knowing what data it contains. The aim of the Convention on Biological Diversity (CBD) and its 190 Contracting Parties is to significantly reduce the loss of biodiversity by 2010. This is an ambitious goal which can only be achieved through the concerted efforts and combined strength of all sections of society. We therefore need both national and international alliances between policy makers, science, the public and business.
Some solutions are already visible, however, and economics could play an important part. Although forests are at risk of conversion to agriculture, grazing lands and biofuel production, they can play a valuable role as carbon sinks and biodiversity vaults, and this capacity could be recognized by a higher market value.
Taking inspiration from ideas developed in the Millennium Ecosystem Assessment, our initiative, The Economics of Ecosystems and Biodiversity (TEEB), aims to promote a better understanding of the true economic value of ecosystem services and to offer economic tools that take proper account of this value.
TEEB is in two phases and this interim report summarizes the results of Phase I. It demonstrates the huge significance of ecosystems and biodiversity and the threats to human welfare if no action is taken to reverse current damage and losses. Phase II will expand on this and show how to use this knowledge to design the right tools and policies.

By: European Communities

 
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