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Biodiversity in the EU Budget and Tracking

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OECD Environment
OECD Environment

Biodiversity in the EU Budget and Tracking - Laure Ledoux As part of the OECD side event at CBD COP 14, Sharm El Sheikh, November 2018

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Biodiversity in the EU budget and tracking Laure Ledoux Deputy Head of Unit Biodiversity Unit, DG Environment, European Commission
Financing biodiversity in the EU budget  Mainstreaming climate and biodiversity in the EU budget: integral part of all main instruments. • Focus on Natura 2000 network and green infrastructure  LIFE instrument: limited in size but key role for biodiversity • Traditional projects for nature and biodiversity • Integrated Projects for implementing EU legislation – integrating different sources of funding • Financial instruments: Natural Capital Financing Facility to leverage funding from the private sector  Biodiversity tracking
Tracking  Climate and biodiversity mainstreaming in the 2014- 2020 budget • 20% climate target • International commitments under CBD  Tracking methodology, based on rio markers • Implementing act on climate tracking • Internal process for biodiversity tracking  Annual budget statements and communication on EU draft budget
Draft Budget 2018 Biodiversity financing
Draft Budget 2018 Biodiversity financing (2)
Natural Capital Financing Facility (NCFF) Objectives: address market failures and demonstrate to private investors the attractiveness of revenue-generating or cost-saving natural capital projects; leverage funding from private investors for investments in ecosystems and ecosystem-based solutions to climate change adaptation. € 100-125 million Investment facility for 9-12 operations by 2021 Executed by EIB; EU contribution: € 50 million as guarantee, €10 million for Support Facility to help develop projects Project categories: Payments for ecosystem services, Green infrastructure projects, Pro-biodiversity and pro-adaptation businesses, Projects involving biodiversity offsets EU Business and Biodiversity Platform Including Community of Practice on Financing and Biodiversity
Thank you for your attention! For more details on Biodiversity Strategy and related actions: http://ec.europa.eu/environment/nature/index_en.htm Ecosystem Assessment Platfom: http://biodiversity.europa.eu/ecosystem-assessments
EU biodiversity mid-term review (1)  Policy frameworks in place and progress under each target  A wealth of positive experience to build on  Insufficient scale and timelag for measurable improvement in the state of biodiversity Targets can only be reached if implementation and enforcement efforts become considerably bolder and more ambitious, and integration effective. At the current rate of implementation, biodiversity loss will continue in the EU and globally, with significant implications for the capacity of ecosystems to meet human needs in the future.
EU biodiversity mid-term review (2)  Strong partnerships and full engagement of key actors: 1. Complete and manage effectively Natura 2000 2. Implement Invasive Alien Species Regulation 3. Recognize natural capital throughout the EU  Effective integration with a wide range of policies: • Coherent priorities and adequate funding • Agriculture and forestry • Marine and fisheries • Regional development Achieving biodiversity objectives can contribute to the growth and jobs agenda, food and water security and quality of life, as well as to the SDG implementation.
MAES overall conceptual framework
EurostatEurostat What do we need for ecosystem accounting in the EU? • We need biophysical accounts • for direct use and as a basis for valuation studies, upscaling • We need an EU data layer of accounts • reference frame for countries • data foundation for responding to EU policies • Key Policy issue: • measure changes in our natural capital stock and what impacts it has on our economy and society. • assess the extent and condition of ecosystems that is needed so that they can carry on delivering essential services to our economy and society
Potential policy uses of NCA Make better decisions by accounting for range of ecosystem benefits and values in decision-making; Determine synergies/trade-offs At macro-level: •Develop macro-indicators, both physical and monetary •Raise awareness; Identify limits and thresholds (sustainability dimension) Sectoral and environmental policies: •Show how sectors benefit from and impact on natural capital •Synergies and trade-off across policies •Common reference frame for assessing progress towards targets (eg 15% restoration target) •Streamlined reporting across policies Other dimensions: international (WAVES, UNSD) and corporate (EU B@B; Natural Capital Protocol)

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Biodiversity in the EU Budget and Tracking

  • 1. Biodiversity in the EU budget and tracking Laure Ledoux Deputy Head of Unit Biodiversity Unit, DG Environment, European Commission
  • 2. Financing biodiversity in the EU budget  Mainstreaming climate and biodiversity in the EU budget: integral part of all main instruments. • Focus on Natura 2000 network and green infrastructure  LIFE instrument: limited in size but key role for biodiversity • Traditional projects for nature and biodiversity • Integrated Projects for implementing EU legislation – integrating different sources of funding • Financial instruments: Natural Capital Financing Facility to leverage funding from the private sector  Biodiversity tracking
  • 3. Tracking  Climate and biodiversity mainstreaming in the 2014- 2020 budget • 20% climate target • International commitments under CBD  Tracking methodology, based on rio markers • Implementing act on climate tracking • Internal process for biodiversity tracking  Annual budget statements and communication on EU draft budget
  • 6. Natural Capital Financing Facility (NCFF) Objectives: address market failures and demonstrate to private investors the attractiveness of revenue-generating or cost-saving natural capital projects; leverage funding from private investors for investments in ecosystems and ecosystem-based solutions to climate change adaptation. € 100-125 million Investment facility for 9-12 operations by 2021 Executed by EIB; EU contribution: € 50 million as guarantee, €10 million for Support Facility to help develop projects Project categories: Payments for ecosystem services, Green infrastructure projects, Pro-biodiversity and pro-adaptation businesses, Projects involving biodiversity offsets EU Business and Biodiversity Platform Including Community of Practice on Financing and Biodiversity
  • 7. Thank you for your attention! For more details on Biodiversity Strategy and related actions: http://ec.europa.eu/environment/nature/index_en.htm Ecosystem Assessment Platfom: http://biodiversity.europa.eu/ecosystem-assessments
  • 8. EU biodiversity mid-term review (1)  Policy frameworks in place and progress under each target  A wealth of positive experience to build on  Insufficient scale and timelag for measurable improvement in the state of biodiversity Targets can only be reached if implementation and enforcement efforts become considerably bolder and more ambitious, and integration effective. At the current rate of implementation, biodiversity loss will continue in the EU and globally, with significant implications for the capacity of ecosystems to meet human needs in the future.
  • 9. EU biodiversity mid-term review (2)  Strong partnerships and full engagement of key actors: 1. Complete and manage effectively Natura 2000 2. Implement Invasive Alien Species Regulation 3. Recognize natural capital throughout the EU  Effective integration with a wide range of policies: • Coherent priorities and adequate funding • Agriculture and forestry • Marine and fisheries • Regional development Achieving biodiversity objectives can contribute to the growth and jobs agenda, food and water security and quality of life, as well as to the SDG implementation.
  • 11. EurostatEurostat What do we need for ecosystem accounting in the EU? • We need biophysical accounts • for direct use and as a basis for valuation studies, upscaling • We need an EU data layer of accounts • reference frame for countries • data foundation for responding to EU policies • Key Policy issue: • measure changes in our natural capital stock and what impacts it has on our economy and society. • assess the extent and condition of ecosystems that is needed so that they can carry on delivering essential services to our economy and society
  • 12. Potential policy uses of NCA Make better decisions by accounting for range of ecosystem benefits and values in decision-making; Determine synergies/trade-offs At macro-level: •Develop macro-indicators, both physical and monetary •Raise awareness; Identify limits and thresholds (sustainability dimension) Sectoral and environmental policies: •Show how sectors benefit from and impact on natural capital •Synergies and trade-off across policies •Common reference frame for assessing progress towards targets (eg 15% restoration target) •Streamlined reporting across policies Other dimensions: international (WAVES, UNSD) and corporate (EU B@B; Natural Capital Protocol)

Editor's Notes

  1. On February 16th the Commission officially launched the Natural Capital Financing Facility together with the Commissioners for the Environment, Climate and the head of the European Investment Bank. The NCFF is the Commission's instrument to finance private-sector projects on preserving natural capital and on combatting climate change. Typical projects include Green Infrastructure (green roofs, green walls, water collection systems, flood prevention), Payments for Ecosystem services (innovative business models and public-private partnerships to protect biodiversity, water and forests), Biodiversity offsets (compensating for developments that are harmful to biodiversity) and pro-biodiversity businesses like sustainable agriculture and eco-tourism. The fund is set up for 3-4 years for 100m Euros. Typical projects are between 5-15m Euros and we will aim to finance about 10 operations in this first phase. Projects must have a sector and geographic balance. It is expected that leverage from private financial institutions like banks could help increase the funding substantially if interest is high. It would also lead to much more significant funds being set up at EU and Member State level. NEXT SLIDE
  2. First output of the MAES working group Sets a conceptual framework for mapping and assessment linking human well-being to bio diversity Makes proposals for a typology of ecosystems and ecosystem services EU input to IPBES conceptual model and UN Natural Capital Accounting work Importantly, MAES recognises the multiple roles of biodiversity in underpinning the supply of ecosystem services, e.g.: Ecological processes: Biodiversity enhances the efficiency of ecological processes. Functional traits: Diversity in body size of pollinator species results in different flight distances to reach crops. Biophysical structures: Forest diversity creates more microhabitats for insects. State: River and lake fish diversity is used to assess ecological status. Biotic interactions: Wasps and beetles prey on pest species that harm crops. Species richness: People like bird and game watching, or enjoy indentifying different species of butterflies. Genetic diversity: Wild crop and livestock relatives increase resilence against environmental change.
  3. EU macro-economic policies (green economy, greening of European semester…): Highlight values of natural capital alongside other socio-economic information Trade-offs and opportunities at EU-level between: economic, social and environmental priorities Develop macro-indicators (both physical and monetary) alongside GDP e.g. value of trees in UK EU Sectoral policies: Explicitly account for range of ecosystem services Demonstrate how sectors depend on and impact natural capital Synergies/trade-offs amongst ecosystem services for better management, targeting of funds Common reference frame for assessing progress towards targets (eg target 2 of biodiversity strategy) Eg: EU marine policies (MFSD, CFP, Ocean Governance) EU Agricultural and regional polices (CAP, regional funds) EU Forest Management (EU Forest Strategy)… e.g. France: Gulf St Malo, France: Valuation of cultural/leisure services International: EU input to UN-SEEA EEA Supporting non EU countries (WAVES, Partnership Inst.) CBD; SDGs Corporate accounting: Natural Capital Protocol, EU B@B Platform – need for consistency with national accounts Policy Applications: testing and piloting Across EU policies – ecosystem-based approaches With EU MS Statistical grants H2020 demonstration