Archive for the ‘Offsets’ Category

The principle of habitat substitutability

Monday, November 14th, 2011

Biodiversity offsets, whether they focus on species (and their habitat requirements), habitat types, ecosystem properties or ecosystem services, are all based on the idea that the elements they target are – to a degree – substitutable: e.g. the breeding habitat of a particular bird species here can be substituted by an “equivalent” habitat somewhere else.

In an interesting article*, recently in-press in Biodiversity & Conservation, Kate Sherren and her former colleagues at ANU present survey results on how land-holders in rural Australia view the substitutability of different arrangements of trees and woodlands on their properties. This can be very important for aligning conservation policy such as offset schemes with the values and experience of the people they target.

The rationale for the survey is that at the farm level, substitutions between these elements are made daily, albeit at a small scale: a patch is planted, scattered trees are cut-down etc. These decisions could reveal farmer’s views on their value and their substitutability. The survey found that farmers could be divided into three groups:

  • Farmers, mainly older and less educated, who valued a “tidy” farm but did not care for the specific arrangements of trees and woodlands
  • Farmers who strongly supported the need for a diversity of tree cover arrangements on their land. Because of limited financial or time resources, these views were only rarely translated into concrete action.
  • Farmers who preferred woodlands and connective strips over scattered trees. This group included those that also crop their land using machinery.
  • What can be done with this knowledge? Well, the authors argue that the main risk with widespread offsetting schemes is that tree cover arrangements will homogenize, towards wooded paddocks that are easier to create, maintain, monitor etc. This could have unintended consequences in terms of landscape-level heterogeneity in habitat for species or ecosystem services, especially those related to scattered trees.

    Scattered trees in Australia

    To avoid this homogenization, specific policies could be devised that target the first two types of land-holders, to get them to increase heterogeneity on their land.

    This could be done by allowing land-holders to actively suggest measures in favour of tree cover (and bid for funding) such as “crash grazing”, adding coarse woody debris, weed control or planting of under-storey species… These different measures are conducive to improving the “quality” of existing woodland rather than focusing on area-based measures such as grazing exclusion which could tend to homogenize the landscape and have the major caveat of taking land out of production which could be called into question in the long-term.

    Measures targeting the management of existing trees and woodlands also have drawbacks. The main one is how long-lasting they can be made, and thus how long the binding contracts have to be made. The USDA’s Conservation Reserve Program is one long-lasting program that can provide inspiration for such renewable management-based contracts with land-holders.

    The Conservation Reserve Program - a long-lasting contract-based PES scheme

    Another difficulty with management based measures such as those outlined above is measuring the actual “gain” they generate, so that they can be sized adequately to offset impacts elsewhere. This probably requires a conservative approach – i.e. over-sizing of offsets – as well as further research on baseline trends and short- and long-term effects of these management changes.

    * Sherren K., Yoon H-J., Clayton H. & Schirmer J. (2011): Do Australian graziers have an offset mindset about their farm trees? Biodiversity & Conservation, in press.

    Key issues and solutions for designing and sizing biodiversity offsets

    Friday, October 14th, 2011

    Habitat loss through development is one of the major causes of biodiversity loss. The increasingly common legal requirement to first avoid, then reduce and, if necessary, offset impacts of plans and projects on biodiversity has however not always been appropriately enforced. The blame lies mainly in bad governance such as patchy monitoring or poorly defined liabilities. Biodiversity offsets also suffer from the lack of formal methods for designing and sizing offset requirements.

    In a paper recently published in Biological Conservation, Fabien Quétier (who is involved in this blog) and Sandra Lavorel address this gap by reviewing the different tools, methods and guidelines that have been developed in different regulatory contexts to design and size biodiversity offsets.

    They formulated a typology of approaches that variously combine the methods and guidelines reviewed and then discuss how these relate to the objectives of offset policies, the components of biodiversity and ecosystems to which they apply, and the key issues for ecological equivalence.

    One of the key messages from the paper might be that when gains are not realistic, e.g. because we do not know how to enhance or restore a habitat or ecosystem function (i.e. they are non renewable), then protection of as-yet unprotected habitats or ecosystems is the only realistic offset option.

    This has several consequences, the most notable being that, in effect, using protection as offset means we assign a ratio of acceptable loss to the remaining unprotected habitat or ecosystem. For example, protecting 3 hectares for every unprotected hectare lost actually means that we accept to loose a quarter of the unprotected area. This then means we must think strategically about what we want to do with that quarter… which is then a non renewable resource too!

    On time-lags and location selection in offsets

    Monday, October 10th, 2011

    Ascelin Gordon and his colleagues from Melbourne recently went through an interesting modelling exercise. They modelled the long-term effects, in both space and time, of different offset policies concerning urban development impacts on native grasslands around the city.

    Their modelling explicitly included uncertainties , following the approach described by Langford et al. (2009). These uncertainties were both ecological (edge effects on conservation value, grassland response to management and offsetting, etc.) and political: which offset policy?

    They compared five different offset policies:

  • No change
  • Development without offsets
  • Non strategic offsets (wherever, whenever)
  • Strategic offsets (offsets are located together, in designated areas)
  • Strategic immediate offsets (offsets are effective at the start of simulations, a.k.a. habitat banking)
  • Their conclusions are that offset policies that include spatial and temporal constraints on offsets give the best conservation outcomes. They also point out the obvious: the selection of the baseline is central to any assessment of policy outcomes.

    whether (or when) [policies] achieve the objective of a “net gain” completely depends on the choice of baseline.

    It might be obvious but it is certainly tricky when looking at policies that involve long-term ecological dynamics…

    To find out more, check out their paper in Environmental Modelling & Software*. A pdf can be downloaded here.

    * Gordon A., Langford W.T., Todd J.A., White M.D., Mullerworth D.W. & Bekessy S.A. (in press): Assessing the impacts of biodiversity offset policies. Environmental Modelling & Software, in press.

    New books on the shelves

    Friday, September 23rd, 2011

    Several new books on the topic of market-based instruments for nature conservation were recently published (or will soon be). Expect so see reviews here soon.

    The first book is by Royal Gardner, a law specialist, who has worked on wetland mitigation in the USA. Entitled Lawyers, Swamps, and Money: U.S. Wetland Law, Policy, and Politics the book provides an in-depth look into the inner workings of the wetland mitigation “industry” and especially its governance. You can take a look on Amazon.

    The second book is by Ece Ozdemioglu of the British consultancy EFTEC. It will provide guidance on ecological equivalency methods that can be applied to biodiversity offsets and payment for ecosystem service schemes. Here is what her personal page on the EFTEC website says:

    Her next book (with Josh Lipton and David Chapman, forthcoming in 2011 by Springer) will be on the use of resource equivalency (including economic valuation) methods for assessing environmental damage and liability and selecting the appropriate compensation measures. This will help implement European Directives of Habitats, Wild Birds and Environmental Liability as well as input to new policy instruments like biodiversity offsetting, payments for ecosystem services and habitat banking.

    According to Open Trolley, the expected publication date is September 29th, with the title “Equivalency Methods for Environmental Liability in the European Union: Assessing Damage and Compensation Under the Environmental Liability Directive”. Most of the contents probably reflect EFTEC’s work as part of the EU funded REMEDE project which provides lots of interesting insights.

    If you haven’t read it yet, you can still have a look at Carroll, Fox and Bayon’s book on conservation and biodiversity banking published by EarthScan.

    Principles, criteria and indicators for biodiversity offsets

    Sunday, July 10th, 2011

    The Business and Biodiversity Offsets Program (BBOP) has launched a consultative process on several documents it drafted:

  • Guidance on the BBOP standards for biodiversity offsets, under a Principles, Criteria and Indicators (PCI) format
  • Guidance on assessing how an offset actually contributes to No-Net-Loss (NNL)
  • Guidance on assessing which components of biodiversity can and cannot be offset.
  • These are important documents which may become standard best practice, especially for firms operating in countries with no established procedures or official guidance on designing, sizing and implementing offsets. Voluntary offset initiatives by private firms are particularly targeted by BBOP.

    The PCI document give a useful overview of the many requirements of offsets, and thus reveals the various specialized knowledge and know-how required to design or assess them.

    Offsetting is hard and BBOP is providing excellent and timely guidance! Don’t hesitate to contribute!

    Habitat banking on trial in France

    Wednesday, June 22nd, 2011

    Yesterday, the French environment ministry officially expanded the on-going “experiment” with habitat banking which started three years ago in the Crau area, between Arles and Marseilles in Provence (southern France). There, a subsidiary of the French Sovereign Fund (a for profit public organization) called CDC Biodiversité transformed an industrial orchard into habitat for steppe-land birds such as the Little Bustard or the Lesser Kestrel.

    The Ministry called a tender for three more such experiments, in order to further test the potential of habitat banks to cater for the offset needs of future infrastructure development plans (e.g. high speed train lines and the like). This requirement has been in place in France since 1976 but it has been rarely enforced (and if so, ill-applied). Only recently, under pressure from the EU for the transposition of the 1992 habitats directive, have developers and public authorities started to take it seriously.

    Three areas and issues are favoured by the Ministry for setting up such habitat banks:

  • Alsace (Strasbourg), with a specific focus on the European Hamster,
  • Nord-Pas-de-Calais (Lille), with a focus on connecting calcareous grasslands
  • Poitou-Charentes (Poitiers), with a focus on birds that use extensive cereal crop-land, and in particular the little bustard (again!)
  • The call to tender is on-line on the Ministry’s website.

    To be continued…

    The nature of ecosystem service risks for business

    Wednesday, June 15th, 2011

    KMPG, a consultancy, recently published a report on ecosystem service related risks to business. The 20-pages report is available for free on the web (pdf here) and it provides some interesting insights into the business point of view.

    A complex issue that needs to be made more palatable
    The report mentions the need to demystify biodiversity and ecosystem services for business. This is probably central to any further consideration of these issues in the corporate world yet the report starts by mingling the complex and varied issues of biodiversity and ecosystem services into a single handy acronym “BES”. This is certainly helpful but such over-simplification could also generate confusion. Business leaders and decision-makers will be tempted to look for all-in-one solutions to all their “BES issues”, with little regard to differences in the specific issues they have to consider: land degradation, dynamics of species and natural habitats, natural resources (water, timber etc.), access to land…

    Risks : exposure x preparedness
    The report offers a nice summary of BES-related risks for businesses. These 5 risks are the same as those of the TEEB report but they come in handy:

  • Reputational risk, especially concerning access to funding
  • Regulatory risk, such as the expansion of protected areas or the strengthening of protected species legislation
  • Operational risk, concerning the sustained provision of key inputs (e.g. clean water) or ecosystem services
  • Legal liability risk, for example in the case of accidental damage to ecosystems or protected species
  • Systemic risk, when a business is overly dependent on a particular ecosystem service
  • The authors reviewed 11 published reports (which they claim to be “authoritative”) and consulted 5 experts to make a cross-sectoral analysis of business exposure to BES risks (exposure to each of the 5 risks above was rated on a scale of 1 to 3 and an average calculated) and their preparedness (which is a weighted average of scores given on a scale of 1 to 3 for the role of BES in a business’s competitive advantage, governance, policy/strategy and management/implementation). The report identifies three sectors as facing particularly high risk: food & beverages, mining and oil & gas. They also mention the banking sector because it is very unprepared.

    The report concludes by identifying three main areas for companies to focus on:

  • Their dependence on water
  • Their reputational risk, especially if their operations are associated with land conversion (= habitat destruction) or carbon (= green-house gas emissions)
  • Their dependence and impacts on BES throughout their value chain – why dependence on water was singled out as distinct from this broader issue is not explained.
  • Recommended actions and new opportunities (?)
    The report does not provide a new set of suggested actions for increasing a business preparedness regarding BES but instead lists those of the TEEB report. Among these is the recommendation to take action to “avoid, minimize and mitigate BES risks, including in-kind compensation (‘offsets’) where appropriate”. In this regard, it is interesting to note that the report mentions environmental markets as an opportunity for land intensive industries (i.e. extractive industries), if they make the effort to value ecosystem services within their land holdings to “identify potential assets as well as risk”.

    This recommendation, together with a widespread push in favour of payment for ecosystem services schemes and “conservation banking” (the latter is also mentioned in the report) is bound to stir concern in the nature conservation community : should a business be rewarded for owning land that harbours biodiversity or provides ecosystem services or should it be rewarded for actually acting in favour of BES, e.g. through proactive restoration or enhancement efforts?

    Biodiversity offsets and more in the UK’s white paper on the value of nature

    Thursday, June 9th, 2011

    The UK government’s white paper on the “value of nature” has been published (pdf here).

    Biodiversity offsets are mentioned as a good idea to be tested on a voluntary basis by local governments and developers. For the time being, there is thus no expansion of the mitigation hierarchy (of avoiding, reducing and offsetting impacts) beyond that required under the EU “birds” and “habitats” directives.

    We will establish a new, voluntary approach to biodiversity offsets and test our approach in pilot areas

    As well as testing offsets, the white paper also mentions the designation of nature improvement areas to be restored. This must be set against the goals mentioned in the recent European biodiversity strategy (also discussed here). The government also plans to set up an (ecological network.

    The ecosystem valuation debate

    Tuesday, June 7th, 2011

    The Lancaster Environment Centre recently organized an on-line debate on ecosystem valuation. You can check out a summary of the debate on this page. Participants plan to produce a policy guidance document for future UK policy concerning market based instruments for biodiversity conservation and ecosystem services.

    The same debate on ecosystem valuation will take place tomorrow in Paris (France), under the auspices of the IDDRI, a think-tank. In preparation to the symposium, Emma Broughton and Romain Pirard wrote a short piece on market-based instruments for biodiversity (pdf).

    Their article proposes a typology of instruments which distinguishes:

  • Regulations changing relative prices
  • Coasean type agreements
  • Reverse auctions
  • Tradable permits
  • Specific markets for environmental products
  • Premium capture on existing markets
  • The authors discuss the pros and cons of each one of these instruments.

    Learn more in the paper and participate in the on-going debate!

    Species banking goes global!

    Monday, March 21st, 2011

    Dont’ worry! I don’t mean that you can now trade species like you would apples and oranges.

    As well as an up-and-coming approach (maybe) to limiting our impacts on wild plants and animals, Species Banking is also a dedicated website managed by Forest Trends that aims to be the entry point for all those interested in the issue or that actually need to sell or buy species credits.

    This month, the website extended its focus beyond US Conservation Banking. It went global! You can now find a list of biodiversity offset programs across the globe. Although the list is still incomplete, it contains a wealth of information.

    Enjoy it!