WRI Stories Feed: Economic Valuation of Coral Reefs in the Caribbean

Video: Protecting Coral Reefs

Lauretta Burke — Fri, 13 Feb 2009 16:18:46 -0500

Reef ecosystems face both local and global threats. Here is what needs to be done to ensure the world’s corals and mangroves are preserved.

This video talks about the upcoming Reefs at Risk Revisited project, and how placing an economic value on coral reefs and mangroves can help make the case for conservation. (Read the extended Q&A here.)

Belize’s Reefs and Mangroves Tagged with High Economic Value

Paul Mackie — Fri, 14 Nov 2008 00:00:00 -0500

Three key services provided by coral reefs and mangroves in Belize are worth an estimated US$395 million to US$559 million per year, according to a report released today by the World Resources Institute and the World Wildlife Fund.

Annual Economic Contribution of Coral Reefs and Mangroves in Belize“Putting a dollar value on the goods and services provided by reefs and mangroves helps to translate them into a language that everyone speaks,” said Lauretta Burke, a senior associate at WRI. “Hopefully, these findings will contribute to well-informed decisions regarding the management of these critical resources.”

The report, [Coastal Capital: Belize](node/10497), estimates the annual economic value of coral reef- and mangrove-associated tourism in Belize at between US$150 million and US$196 million, accounting for between 12 and 15 percent of the Caribbean nation’s GDP. Benefits from reef- and mangrove-dependent fisheries contribute a further US$14 million to US$16 million to the economy.

Reefs and mangroves also protect coastal properties from erosion and wave-induced damage. WRI estimates that Belize’s coral reefs provide an estimated US$120 million to US$180 million in avoided damages per year. Mangroves protect the coastline from both waves and storm surge, providing an additional US$111 million to US$167 million in protection annually.

Despite growing recognition of the economic importance of coastal resources, reefs and mangroves face growing threats from unchecked coastal development, over-fishing, and pressures from tourism. Climate-related changes such as warming seas and fiercer storms will compound these impacts in the future.

“The goods and services offered by coral reefs and mangroves are frequently overlooked or underappreciated in coastal investment and policy decisions,” said Emily Cooper, a research associate at WRI and lead author of the study. “The amount currently invested in protecting Belize’s coral reefs and mangroves is very small when compared to the contribution of these resources to the national economy.”

Belize’s Marine Protected Area (MPA) system is widely hailed as an example of forward-thinking in marine conservation. Consisting of 18 protected areas managed primarily by the country’s fisheries and forestry departments in collaboration with local NGOs, the MPAs are an important draw for divers, snorkelers and sport fishermen, and contain no-fishing areas that help to maintain stocks of key commercial species. The system, however, is under-funded, and staff, fuel, and equipment limitations make it difficult to curb illegal fishing and monitor visitation in most of the reserves.

“Belize’s reefs and mangroves offer crucial socio-economic benefits but are already threatened by overuse, degradation and fragmentation. Climate change will undoubtedly compound these through increased frequency of impacts from mass bleaching and storm occurrences, as well as coastal erosion and sedimentation,” said Nadia Bood, Mesoamerican reef scientist and climate change officer for WWF Central America. “This makes urgent the need to act now to alleviate human threats and increase the resilience potential of these very important ecosystems.”

WRI’s Coastal Capital project receives key financial support from the Oak Foundation, the Netherlands Ministry of Foreign Affairs, SwedBio, the Campbell Foundation, and the MacArthur Foundation. The full report can be accessed on WRI’s website at http://www.wri.org/publication/coastal-capital-belize .

EPA Partners With WRI to Heighten Awareness of Ecosystem Services

Paul Mackie — Wed, 29 Oct 2008 11:13:15 -0400

The World Resources Institute (WRI) and the U.S. Environmental Protection Agency (EPA) today announced a collaboration to deliver improved science and practical tools to help companies and governments protect ecosystems and address climate change.

“This is an important collaboration in bringing research on ecosystem services into the mainstream of science, business and public policy,” said Rick Linthurst, national program director of the EPA’s Ecological Research Program.

WRI’s ecosystem services brochureEcosystem services are the benefits people obtain from forests, wetlands, and other ecosystems. A forest, for example, not only provides wood for timber and paper but also controls erosion, purifies water, stores carbon dioxide, and offers recreation.

The partnership will bring a greater recognition and understanding of the importance of ecosystems to economic development and human well-being. It will also help planners better determine development options that allow affected natural resources to continue to produce services that meet the needs of current and future generations.

Craig Hanson, acting director of WRI’s People and Ecosystems Program, added, “This collaboration will link EPA’s quality scientific research on ecosystem services with WRI’s work to help private- and public-sector leaders make the connection between healthy ecosystems and the attainment of their economic goals. This partnership will make our Corporate Ecosystem Services Review, mapping of ecosystem services, and economic valuation efforts even more powerful.”

Businesses, local and state governments, researchers, and international organizations - which are increasingly retooling their environmental-management systems to address ecosystem services - will benefit from the partnership.

As part of the collaboration, Dr. Suzanne Marcy, lead for outreach and education in the Ecological Research Program of the EPA’s Office of Research and Development, will be based at WRI’s headquarters. She will focus on linking emerging scientific data about the health and economic value of ecosystem services with WRI’s various projects on water quality, biofuels, coral reefs, and business sustainability, among others.

In addition, WRI’s research will inform the EPA Ecological Research Program’s initiatives in the Coastal Carolinas, the Willamette Valley in Oregon, Tampa Bay, the upper-Midwest, and the Southwest.

High Economic Values Placed on Coral Reefs in Tobago and St. Lucia

Paul Mackie — Sat, 14 Jun 2008 00:00:00 -0400

Direct annual economic benefits of tourism and fisheries resulting from coral reefs amounts to US$94 million in St. Lucia and US$44 million in Tobago. Those numbers amount to 11 percent and 15 percent of those Caribbean islands’ yearly gross-domestic product.

Tobago reefs“The health of Tobago’s reefs is vital to the island’s tourism product,” said Cmdre. Anthony Franklin, director of the Institute of Marine Affairs. “Tourists and local residents should benefit greatly in the future because of the advances these economic baseline findings could provide towards smart policies.”

The findings were announced here today along with the release of the full study, Coastal Capital - Economic Valuation of Coral Reefs in Tobago and St. Lucia, by the World Resources Institute (WRI), the Buccoo Reef Trust (BRT), the Institute of Marine Affairs, the Government of St. Lucia, and many others.

“Hopefully, knowing the economic value of the reefs will help policymakers develop and manage these beautiful and beneficial coastal areas with caution and care,” said Lauretta Burke, senior associate at WRI and lead author of the study, which puts dollar values on tourism, fisheries, and shoreline protection provided by reefs.

“Reef-valuation numbers arm government officials with powerful information they can use to make educated policy. They also provide the public and other interested parties with something they can use to push officials to make smart policies,” added Dr. Owen Day, director of the BRT.

Coral Reefs in Tobago

In Tobago, more than half of tourists dive, snorkel, or take a glass-bottom boat to the Buccoo Reef. Reef-associated tourism in Tobago contributes an estimated US$43 million in direct expenditure, such as food, lodgings, and ocean-related recreation. Two estimates not captured within the Tobago economy were also determined. One, the annual value of local residents’ use of the reefs and coralline beaches is estimated between US$13 million and US$44 million. Two, the additional satisfaction derived by participants above what they paid for dive and snorkel trips is estimated at US$1 million.

In St. Lucia, more than one-quarter of tourists dive or snorkel during their visits. The direct economic impact from reef-associated tourist expenditure was more than US$91 million last year. In addition, the annual value of local residents’ use of the reefs and coralline beaches is estimated between US$52 million and US$109 million. Additional satisfaction derived by participants above what they paid for dive and snorkel trips is estimated at US$2.3 million.

Fishery activity impacted by coral reefs have a much smaller economic impact, but provide other important benefits such as jobs, cultural value, and a safety net of food, especially during difficult economic time periods. The annual direct economic impact of coral reef-associated fisheries is estimated between US$700,000 and $US1.1 million for Tobago and US$400,000 to US$700,000 for St. Lucia.

Tobago, which is about 26 miles long and six miles wide, has coral reefs that protect nearly 50 percent of its shoreline. The annual value in 2007 of shoreline-protection services provided by coral reefs - in potentially avoided damages - is estimated to be between US$18 million and $US33 million.

St. Lucia, which is about 30 miles long and 14 miles wide, has coral reefs that protect 44 percent of its shoreline. The annual value in 2007 of shoreline-protection services provided by coral reefs - in potentially avoided damages - is estimated to be between US$28 million and $US50 million.

Funding for this project came from the MacArthur Foundation, the United Nations Environment Program - Caribbean Environment Program, the Ocean Foundation, the Henry Foundation, the Curtis and Edith Munson Foundation, the Netherlands Ministry of Foreign Affairs, SwedBio, the International Coral Reef Action Network (ICRAN), and the Buccoo Reef Trust.

Leading Companies Responding to Ecosystem Degradation

Paul Mackie — Mon, 10 Mar 2008 15:35:37 -0400

Corporate Ecosystem Services Review road-tested by Akzo Nobel,

BC Hydro, Mondi, Rio Tinto, and Syngenta

Global warming may dominate headlines today. Ecosystem degradation will do so tomorrow.

To prepare businesses for this new landscape, three organizations today launched a set of guidelines designed to help companies proactively develop strategies to manage risks and opportunities arising from ecosystem degradation.

The guidelines, called the “Corporate Ecosystem Services Review,” were developed by the World Resources Institute (WRI) in collaboration with the Meridian Institute and World Business Council for Sustainable Development (WBCSD). Five WBCSD members - Akzo Nobel, BC Hydro, Mondi, Rio Tinto, and Syngenta - “road-tested” the methodology and provided input to its design.

“The world’s forests, wetlands, and other ecosystems are under tremendous pressure due to climate change, land conversion, and many other factors,” said Jonathan Lash, president, WRI. “As ecosystems degrade, companies will face operational, regulatory, and reputational risks while those that offer solutions may find new business opportunities and new sources of revenue.”

Ecosystems provide companies with a wide variety of benefits or services including freshwater, wood, pollination, climate regulation, and protection from natural hazards, to name a few.

“Ecosystem services are often unacknowledged, yet they underpin many corporate activities,” said John Ehrmann, managing partner of the Meridian Institute. “I am pleased with the feedback from company managers who are finding the guidelines helpful for developing strategies that improve both corporate performance and ecosystem stewardship.”

The road-testers found that the guidelines can provide a number of other benefits as well. They can help companies anticipate new markets and government policies that may emerge in response to ecosystem degradation. They can strengthen corporate environmental impact assessments by adding considerations traditional methods may overlook. They also can help companies better manage conflicts over resources, identifying options for better trade-offs between ecosystem services.

“The methodology helped us identify and rank emerging problems, and provided us with a framework for turning risks into opportunities,” said Peter Gardiner, natural resources manager at Mondi, a leading international paper and packaging manufacturer.

Mondi’s newfound strategies include a number of operational changes that will increase the company’s efficiency in using freshwater, a scarce ecosystem service, and lead to new markets for the company’s byproducts.

“The Corporate Ecosystem Review helped us to better understand how a number of emerging environmental changes are likely to affect our business and how our company might best position itself to respond to these changes,” said Steve Hunt, senior vice president, Asia-Pacific, Eka Chemicals, a division of chemical giant Akzo Nobel.

Some road-testers, such as Mondi and BC Hydro, used the guidelines to gain insight into the direct implications that ecosystem trends pose for them. Other road-testers, such as Akzo Nobel and Syngenta, applied the methodology to understand the risks faced by a segment of their customers due to ecosystem degradation and, in turn, discovered opportunities for new products or services that address these risks. The guidelines profile these and other road-test experiences.

“We’re going to be hearing a lot about the Corporate Ecosystem Services Review. A couple dozen more WBCSD members are already taking it up this year,” said Björn Stigson, president of the WBCSD. “Leading companies realize that they need to be prepared for the business challenges posed by ecosystem decline.”

The guidelines were launched at WBCSD’s annual conference of delegates in Switzerland. For a copy of The Corporate Ecosystem Services Review, visit www.wri.org/ecosystems/esr.