As the basic life support system for human well-being, biodiversity and ecosystems may seem invaluable, priceless. They provide us with the air we breathe, the water we drink, the food we eat, and countless other goods and services upon which our livelihoods depend. However, the tremendous value of nature is rarely captured or taken into account when important political and economic decisions are being made. As a result, ecosystems and biodiversity are often undervalued and, consequently, too easily degraded or lost. It has been estimated that, every year, we are losing ecosystem services that are worth some €50 billion from the degradation of terrestrial ecosystems alone (TEEB, 2009). Meanwhile, the world’s fisheries continue to shrink, and given current rates of overfishing, are expected to collapse completely by the year 2050.
A critical step towards the effective conservation of biodiversity therefore means ensuring that its full value is more widely recognized and integrated into relevant policies and decisions, in both the private and public sectors. For governments, it is particularly critical that biodiversity values are accurately reflected in national accounts and associated fiscal and economic policies, as well as in decisions relating to land-use infrastructure development and industry. Private companies will also benefit from valuation efforts, notably in helping them to assess the potential risks and opportunities that biodiversity might present for their operations. Overall, valuation plays a critical role in demonstrating how conservation affects, and in many cases supports, economic development.
The release of the comprehensive study on The Economics of Ecosystems and Biodiversity (TEEB) represents a major step forward in the challenging endeavour to raise awareness of the economic significance of nature. At more local scales, there are several initiatives aiming at demonstrating the economic value of various ecosystems. Specifically tailored for business, the Ecosystem Valuation Initiative (EVI) is designed to help companies account for the costs of environmental degradation as well as the benefits of ecosystem services.
