Showing posts with label carbon sequestration. Show all posts
Showing posts with label carbon sequestration. Show all posts

Tuesday, December 12, 2017

Confused indeed



Comments to the report Grazed and confused from the Food Climate Research Network.

I had high expectations on the report Grazed and confused, developed under the lead of Tara Garnett from the Food Climate Research Network. I have been impressed by her previous research on many aspects of the food system and her capacity to go further than using lifecycle analyses to provide the Truth. Unfortunately this report doesn’t live up to my expectations. At all.

By and large, the conditions differ so much in different parts of the world, that the kind of generalisation this reports tries to make is rather pointless. It is like making a global report for “arable farming” and drawing general conclusions that farming is good or bad.

The introduction of the report is quite promising and balanced, but that balance is unfortunately lost in what follows. The authors state in the introduction that the report will only focus on the effects on the climate and not other aspects, good or bad, of livestock or grazing. Fair enough, but they mostly forget this when they report something slightly positive about grazing animals. That is often dismissed or relativized with other arguments about alternative land use or something else.

In the report one can read statements such as “while well-managed systems that are not implicated in deforestation certainly exist….” giving the impression that deforestation would be the norm. Such statements must be considered extremely biased since most grasslands are not the result of deforestation at least for hundred years.  

Admittedly definitions are difficult, and the report tries to clarify some things reasonably well in the start. But later on, the report is not helping with a clear line, but mixes discussions which are relevant for grass grown in croplands or dramatically altered pastures with native grasslands. They are very different and what is correct for one is not necessarily correct for the other. Grasslands in crop rotations (with grains etc.) can only meaningfully be discussed as part of such a cropping system.

The nature of grasslands differ enormously. By and large, most grasslands are located in places where the natural conditions are harsh. And a lot of the grasslands of the planet are not even grazed by domestic livestock. The alternative use of this grassland is not obvious. A recent assessment found that 2 billion hectares, i.e. less than 60% of the world’s grasslands, are grazed by domesticated livestock. Meanwhile there are certainly examples of very productive and very intensively used grasslands.

While this report has already been used by advocates as a support for that carbon sequestration in grassland is negligible, it is worth noting that the report clearly states that carbon sequestration can be significant, that grazing can increase sequestration and that under certain conditions grazed lands may sequester more carbon than forests.

*

Now to the more disturbing “facts” in the report.

The methane calculations don't consider the research of the Oxford colleague Myles Allen (2016)[i] which shows very clearly that the calculations for expressing methane in carbon dioxide equivalents hides a lot of information. For short-lived greenhouse gases the comparison with carbon dioxide based on a pulse of emissions gives a reasonably correct result only in a time span of a few decades. In the longer term (which this is all about), the more correct comparison is between a pulse of carbon dioxide and a constant rate in methane emissions. This means that “to achieve a balance between sources and sinks of greenhouse gases in the very long term, net emissions of cumulative pollutants such as CO2 need to be reduced to zero, while emissions of SLCPs [of which methane is one, my comment] simply need to be stabilised.“ (quote from the research of Myles Allen and colleagues).  The authors do acknowledge this in the report, but they don’t seem to consider it in most parts of the report where they just use the extremely simplified ways of expressing methane in carbon equivalents.

This should be combined with

- that pastures are not expanding on the planet, as a matter of fact they have decreased last fifteen years (FAOSTAT).

- the number of grazing cattle have most likely also not increased. 

- the carbon sequestration In grasslands have most likely taken place over hundreds of years and even much longer. For example the prairies was converted from mineral gravel to thick fertile soils over a period of 10 000 years.  A lot of the stable carbon in grasslands is many thousand years old.[ii]

The analysis in the report of the balance between carbon sequestration and methane emissions is based on that there is a (ungrazed) grassland and now let us put a cow that didn't exist before on that grassland. Then we add methane emissions into the calculation and now we start to measure carbon sequestration. But the reality is that the cow was there before and its "pulse" of methane emissions already has happened; the same number of cows over a period of several decades don’t add methane to the atmosphere as equal amounts are released and broken down every year. And the carbon sequestration has been ongoing for hundreds of years.  Those things together makes the calculations in Grazed and confused -- just confused.   



In addition, the discussion on carbon sequestration is based on two other dubious and unsubstantiated assumptions.

A central argument in the report, and the basis for a most of the subsequent calculations, is that over time carbon sequestration will diminish and reach an equilibrium after “perhaps 30-70 years”. It does seems like a plausible assumption that sequestration will diminish over time, but the hard evidence of this is lacking (only one example is cited and this example has not even measured the actual carbon content), and even more so that the decline in the rate of sequestration would be so rapid as claimed. The report also contradicts itself by claiming that observed rates of carbon sequestration could be legacy effects of the lands much earlier conversion from arable to grassland. “Much earlier” must be a lot more than “perhaps 30-70 years”.

The report makes a big issue of the fact that carbon can be lost from the system if exposed to draught, fire or flooding. Of course it can, but this can happen regardless of if there are cows grazing or not. As a matter of fact, grazing animals can very often reduce the incidence of wildfires in dry landscapes. Many (also this report) suggest that grasslands can and should be converted to forests, but forests are certainly exposed to even more such events with fires and storm felling (75 million M3 of trees fell in the storm Gudrun in Sweden 2005). The fact that grasslands today have such great pool of carbon, more or less the same as forests[iii], shows that this objection carries little weight.



The calculations of carbon sequestration in the report are based on several weaknesses.

- Measurements of “carbon” are mostly only in the upper layer of soil, often the top 30 centimetres and sometimes as little as the top 10 cm. Most studies which have supplied the data for the report have been interested in changes in soil organic matter as a measure of soil fertility and not the potential for carbon sequestration. For that purpose the shallow measurements are quite OK. But the stable carbon fractions which can be stored over a long time are found deeper down. Admittedly the carbon content deeper down is lower, but it is a lot more stable. Grassland has a very high proportion of belowground biomass and deep roots, therefore the carbon stored by grasslands is likely to be distributed deeper than in arable land. According to Jackson et al 2017[iv], native grasslands allocate around 60 % of primary production to roots, croplands 10 % and forests 20 %.  

- Measuring carbon content in a specific layer of the soil and using that as a measure of carbon sequestration, omits what happens with the soil in total. Soil can grow “deeper”, by root activity and “higher” by accumulation of litter and dust on the top. This is how “soil” is made in the first place. One can very well sequester a lot of carbon in a soil while the carbon content 0-30 cm remains constant.  

- Measurements are mostly on “carbon” not differentiating between different forms of carbon the soil, while it is well known that there are only some fractions of carbon (humic acids) which are stable.

- The authors claim that carbon sequestration is most likely to take place in degraded soils, but the evidence for this is not at all conclusive. Many of the best soils in the world have been accumulating carbon for a very long term, and many of the poor soils have been poor for a very long time. From a practical farming perspective the experience is rather the opposite. A good soil can go on accumulating carbon for ages, while it is a lot harder, but not impossible, to increase soil organic matter in poor soils in poor climates. 

- Carbon sequestration is often, and by the authors, seen as having a direct relationship to nitrogen (N) availability. For instance, the data in figure 7 is calculated from N values and not from actual measurements of carbon. This assumption of some kind of simple relationship between N and C fluxes is unsubstantiated. For example, in analysing total N and C fluxes over 75 year Sochorova et al (2016) found that C content in soil in unfertilized hayfields was significantly higher than in plots where N fertilizer had been used.[v] In general, while N stimulate growth, it also stimulate above ground growth at the expense of below ground growth, and carbon below ground is much more likely to be stable in the long run. Increased N availability can also stimulate decomposition of carbon rich materials, something everybody making composts can easily witness.

*

The report deals very lightly with the topic of ruminant/grass interactions and gives the impression that the existence of ruminants in grasslands has little significance compared to non-grazed grasslands. The role of the manure falling on the field is mostly seen as a potential source of pollution. But this is a far too simplistic view of the very complex interactions in nature. For example, dung beetles and mycorrhiza play an important role, “In pastured livestock operations, particularly in the tropics, dung beetles help mitigate greenhouse gas emissions and aid carbon sequestration in part by increasing grass growth, aerating soil, and delivering manure carbon to mineral surfaces (Slade et al. 2016)”[vi].

The figure 10 shows the theoretical relationships between stocking rates, methane emission and carbon sequestration. It shows that with a stocking rate of 0,5 cows long term net sequestration is possible (also with all the limitations discussed above), while it is impossible for higher stocking rates of 1 and 2 animals per hectare. If we divide the global grazing livestock (say of half a billion livestock units, which is probably a big exaggeration) with global grasslands of say 2.6 billion hectares, we get a stocking rate in the range of 0.2. Such low stocking rate would, with the authors own calculation, have the potential to sequester more carbon than the methane emissions. The authors include no such graph but instead shows the result for 0.5, 1 and 2 livestock units per hectare. But 2 livestock units per hectare is a density ten times higher than even a high estimate of average global grazing intensity.

The report claims that most extensive grazing systems are important sources of fossil fuel derived CO2 emissions. There are pastoralist systems that use no fossil fuel derived inputs whatsoever, apart from the odd veterinary medicine. Of course there are others which use fences and motorcycles. But it is hard to imagine that this could have any significance compared the massive amounts of fossil fuel used in agriculture for machinery, pumps, fertilizers, dryers etc.

*

We live in a world where the whole agriculture system is unsustainable, including the production of staple foods such as wheat and potatoes. By and large the whole system is driven by global markets and competition, massive use of chemical fertilizers, fossil fuels and pesticides, which in turn has created an enormous overproduction of agriculture crops. This unsustainable system is driving deforestation for palm oil, cattle grazing, cocoa, coffee or soybean cultivation. This unsustainable system is driving enormous waste, a rapid increase in chicken and pork consumption and obesity. This unsustainable system leads to massive emissions of greenhouse gases, massive pollution and loss of bio-diversity.

Grazing animals are not the big problem in the food system. As a matter of fact, grazing and other forms of traditional livestock management are endangered forms of agriculture in many parts of the world, simply because they can’t compete with industrial farming practices.  

A sustainable agriculture and food system will look different in different locations; after all, local adaptation is a key characteristic of any sustainable system. Therefore, the number of livestock and the ways they are integrated in the food system (and how much animals products that can be consumed) will differ enormously in the same way as it has done historically. Trying to conclude that pasturing is “bad” or that eating meat is “not sustainable” is pointless on a ´global level.

Both grasslands and forests can play an important role for carbon sequestration. Even arable land can sequester carbon, but currently they are mostly doing the opposite. There are big knowledge gaps about which methods work under which conditions, even if there are many pointers as to which processes are most efficient. There are also most likely trade-offs where carbon sequestration in the soil will be in conflict with carbon for use as food, paper, timber, feed. I wish the Food Climate Research Network would direct its energy into looking into how to improve carbon sequestration while enhancing bio-diversity without reducing the carbon available for use by human kind.  







[i] Allen MR, Fuglestvedt JS, Shine KP, Reisinger A, Pierrehumbert RT, Forster PM 2016:
New use of global warming potentials to compare cumulative and short-lived climate pollutants. Nature Climate Change  doi: 10.1038/nclimate2998


[iii] Harden, Jennifer W. et al. Networking our science to characterize the state, vulnerabilities, and management opportunities of soil organic matter, Glob Change Biol. 2017;1–14.

[iv] Jackson B. Jackson et al, The Ecology of Soil Carbon: Pools, Vulnerabilities, and Biotic and Abiotic Controls Annu. Rev. Ecol. Evol. Syst. 2017. 48:419–45

[v] Sochorova et al,  Long-term agricultural management maximizing hay production can significantly reduce belowground C storage, Agriculture, Ecosystems and Environment 220 (2016) 104–114


[vi] Jackson B. Jackson et al, The Ecology of Soil Carbon: Pools, Vulnerabilities, and Biotic and Abiotic ControlsAnnu. Rev. Ecol. Evol. Syst. 2017. 48:419–45


Thursday, November 3, 2011

Carbon Markets - a corporate Trojan Horse?


Carbon farmers

Both the United Nations Food and Agriculture Organisation, FAO (2003), and the World Bank promote that carbon emission trading should encompass also carbon sequestration (sinks) in soils, i.e. that farmers could get paid for increasing soil organic matter. The carbon sink capacity of the world's agriculture and degraded soils is said to be 50% to 66% of the historic carbon loss from soils or some 42-78 Gt of carbon (FAO 2009). Measures in the farm sector for mitigation of climate change are among the cheapest measure to take, and in many cases, they also lead to other environmental improvements (reduced water pollution). Increased soil organic matter also leads to richer soils; to soils that can keep water and resist erosion longer. A major hurdle is that there are so many farmers and their conditions are very diverse;  it is very hard to determine exactly how much carbon a farmer will capture if he or she does this or that. To measure it on an individual level will be very costly. A new scenario emerges where farmers in developing countries can sell their services as carbon farmers to governments and companies in the developed countries. This could become a business replacement for aid, or a way to compensate developing countries farmers for absurd subsidies to their competitors in developed countries. 

But it also means that a larger part of their activities are integrated into the world economy, in the market economy. It can also be seen as a new frontier of exploitation, where the rich countries will use the land in developing countries as "dumping" ground for their waste, which is what this eventually amounts to. 

I recently wrote a report for UNEP where I had drawn this graph: 
Carbon changes in the soil
download report



It is important to keep in mind that once farmers have got compensation for the carbon stored in their sold through the means of carbon credits, they are forced to maintain practices that keeps the carbon there. One could say that they actually don't own their soil organic matter no more.They don't control how they manage their own soils.

Australia has already a Carbon Rights Act: 
The Carbon Rights Act 2003 establishes a statutory basis for the ownership and protection of carbon rights, in order to facilitate trading. It enables a carbon right to be registered on the land title as a separate interest in that land. The Act provides that a carbon right may be registered with the consent of all parties having an interest in the relevant land.....Owning a carbon right is like owning land. The title guarantees who owns the land (or carbon right). The market will determine what the land (or carbon right) is worth, based on a wide range of factors including how the land is used.

In this way, carbon payments can become a Trojan horse for large scale corporate take over of the land. 

Farmers question what they’ll get out of cap-and-trade
Pay farmers 'to deposit carbon' says businessman
Africa’s pollution and land grab threat from UN carbon market
Biofuel demand and CO2 quotas drive violent land grabs in Honduras
Land grabbing in the neocolonial order
Land grabbing, corporate farming to deepen hunger, poverty, and unemployment: Moot

There are similar issues around carbon credits for forests, for instance read: 
Beyond Carbon: Rights-based Safeguard Principles in Law
Forest carbon rights for poor at risk – study
It is your forest but my carbon

Thursday, October 20, 2011

Organic Agriculture A step towards the Green Economy in the Eastern Europe, Caucasus and Central Asia region

 I wrote this report for UNEP: Below you can read the "Key messages".
Download report


• In the Eastern Europe, Caucasus and Central Asia (EECCA) region organic agriculture could play a catalyst role in green economy transformation by re-vitalizing the farm and food sector and creating employment that provides better returns on per unit of labour input all along the value chain. It could increase income and food security for rural communities; create business opportunities for investors and increase the contribution of
agriculture to the national economies by, inter alia, reducing import bills for farm inputs, boosting exports of organic products and reducing costs to society that result from the negative externalities of industrial farming.
• Conventional industrial agriculture produces high yields per hectare by using external inputs such as fossil fuel, synthetic fertilizers and pesticides that result in higher levels of greenhouse gas emissions, land degradation and depletion of natural capital. When externalities – such as soil erosion; reduced natural resistance of crops to pests; loss of human health and life (caused by pesticides and other chemicals); loss of biodiversity,
ecosystems and ecosystems services; contamination of water; and costs associated with climate change – are accounted for, the cost inflicted by intensive industrial farming on a country and its population outweigh its benefits.
• In contrast, organic agriculture offers the EECCA region the opportunity to maintain and enhance its natural capital stock by reducing emissions, creating carbon sinks, preserving soil organic matter and increasing biodiversity. The value of public benefits and services from organic production has been estimated at US$40 per hectare per year for carbon sequestration; and a further US$30 per hectare per year for other biodiversity services. In addition, by avoiding negative externalities, including soil erosion and pesticide contamination, organic agriculture saves in the range of US$150-200 per hectare per year compared to conventional production. In total, organic agriculture yields environmental advantages valued at US$220-270 per hectare per year. In addition, land value can increase substantially from better soil management.
• Organic agriculture requires significant investments in capacity and skills development of farmers and the whole value chain as well as institutional strengthening and infrastructure development. These investments provide good economic, social and environmental returns.
• The organic sector merits public sector support in terms of policy reforms and investment as many of the benefits of organic agriculture are passed on to society as a whole rather than staying with just the farmers and private investors.
• A mix of regulations and incentives can drive the growth of organic production. This can be seen in countries such as Moldova, which experienced a three-fold increase in the number of organic farmers between 2006 and 2009, and now 11 per cent of its agricultural export is organic produce.


• This report suggests that attaining an organically managed area in the range of 5 to 10 per cent of the region’s whole agriculture area is desirable and possible within a decade. EECCA governments can gradually stimulate organic production by setting ambitious growth targets, making organic action plans, adapting policies to support organic agriculture and facilitating public and private investments in the sector.
• Economic incentives to reward supply chains for responsible and green behaviour need to be put in place, including linking them with relevant international mechanisms such as international payments for ecosystem services, Reduced Emissions from Deforestation and Forest Degradation (REDD) and REDD+.
• Finally, governments need to implement “polluter pays” (e.g. for nutrient runoff) and “user pays” (e.g. for water) principles in agriculture. The first priority should be to remove distorting policies, such as subsidies for agrochemicals or policies that hinder long-term land tenure by farmers or farming communities.

Monday, April 25, 2011

carbon projects drives land grabbing and GMOs?

Carbon credits rarely deliver money to projects and communities on the ground. Out of a total carbon market volume of $144 billion in 2010, only 3,370 million (0.2%) was for project-based transactions, with only a very small proportion of that likely to reach the community level. Most of the money stays in the global North, even though projects themselves are in the South. Those that benefit most from carbon trading are financial speculators such as J.P.Morgan, Goldman Sachs and Merryl Lynch, who buy and sell carbon credits like they do any other internationally tradable commodity.
Says a briefing from the Gaia Foundation. They claim that there private companies will draw all benefits from carbon offsetting projects. I am inclined to agree with them that there are big risks for that, and that ultimately, carbon credits, mitigation banks, payment for environmental services (TEBB) represent a giant leap towards privatization of our common nature resources. I have written about it many times. 
Ecosystems: Invaluable and worthless

I can also recommend a paper by Sian Sullivan:
The environmentality of ‘Earth Incorporated’: on contemporary primitive accumulation and the financialisation of environmental conservation

Having said that, I don't really agree with some other analysis in their briefing. Two other points are that 1) it is very hard to measure the real offsets in soils, 2) GMO crops and land-grabbing are likely to be strong features in carbon offset projects. There is a certain merit in both point, but rather limited in my view. There is no indication that carbon offset farm projects will use more GMOs than food production. And the same land grabbing are explained by increased food prices, meat production, production of export crops and bio fuel. I don't defend land grabbing, but it is essentially a function of inequality and power relations regardless of the purpose for which land will be used. Huge land grabbing has taken place in most parts of the world in stages.  Just look at the Americas, earlier colonial land grabbing and even massive land grabbing of forests some hundred and fifty years ago in my native Sweden - or even the classic enclosures in England some five hundred years ago. With increased pressure on land, we will see more in the future, if local communities power over their resources are not asserted. I do realize that it is very hard to measure actual carbon sequestration in soils, but don't think it is a valid argument against agriculture carbon sequestration projects. It is difficult to measure most effect from farming, because it relies on local eco systems and because it is carried out by half a billion people, each one doing a bit differently. But with that logic you could also not make statements on effects of farming on environment, biodiversity, the nitrogen cycle or almost anything else as they are all site specific and hard to measure.

Gaia contradicts itself somewhat, when calling for "the use of agro-ecological farming systems to minimise agricultural GHG emissions, and to restore soil carbon. These approaches also provide numerous “multi-functionality” benefits for adaptation, ecosystems, human health, equitable access to resources, and long-term food security." This is a clear example on where it is really hard to measure carbon offset, compared to large-scale carbon offset programs. Don't misunderstand me, I support the use of organic and agro-ecological farming, but if you argue about its benefits for carbon sequestration, people will compare those with other farming systems. 
"Agriculture, with its intensive use of fossil fuels, synthetic agro-chemicals, machinery, transport and intensive livestock rearing, is clearly a significant contributor to climate change. But done properly, the right kind of agriculture can also be a major part of the climate solution.", says Gaia. I couldn't agree more.

Wednesday, April 6, 2011

Carbon prices will not drive innovations

Cap and trade or carbon taxes may be useful to make us save energy but it will not drive the kinds of innovations that are needed according to a new study.

It is commonly argued that a high carbon price will drive innovations. e.g the EU Climate Commissioner said that last year and famed Harvard University professor Michael Porter says "A carbon tax would lead to a rethinking of energy use, drive innovation in the green economy and yield profits for "first movers," 

This conventional wisdom is now contradicted:
A carbon price can be a useful tool to nudge the adoption of mature technologies, but it does little to pull forth disruptive new technology or stimulate the advance of basic knowledge upon which new technology is built."
Says a recent report from the ITIF . The report shows by many examples that innovations of the kind and scale we need to cope with climate change, are beyond what markets can sort out.
In the current energy and climate debate, most advocates argue that putting a price on carbon emissions through either a carbon tax or a cap-and-trade program is the key to spurring breakthrough energy innovation. This conventional wisdom is based on the notion that higher dirty energy prices will provide the right market signals to entrepreneurs, who will then develop breakthrough clean alternatives. But advocates of the price approach provide little to no evidence for this notion, for the simple reason that there is little to no evidence for it. In fact, over the past century, in major innovation after major innovation, the pursuit of research and public support for early-stage technology and markets, and not price signals, have driven breakthrough innovation.
Real break-through innovations originate in research-driven technological development. Markets drives innovations in mature technologies where market barriers apart from price are minimal. Apart from being valuable in developing strategies for climate change, and play down the value of carbon pricing for driving innovation, I think the research is also challenging the frequent claims of how superior markets are to drive innovations. Antibiotics, internet, most progress in aviation and nuclear industries have been results of public funded research, and certainly not by entrepreneurs.

The study does recognize that carbon pricing, whether cap and trade or tax or something else, can encourage saving by consumers and drive technologies oriented to that. Also uptake of existing technologies that are close to being competitive can be speed up by carbon pricing. Critically, the authors note that a carbon price could also be used to generate needed revenue for targeted investments in clean energy innovation.

Other articles on similar topic: the Greens in Australia

Australia should be spending $2.5 billion a year on new low-emissions technologies by 2017, a doubling of current expected expenditure, climate change adviser Ross Garnaut says.  Prof Garnaut argues there's a case for "exceptionally large fiscal support for firms that invest in research, development and commercialisation of new low-emissions technologies" over the next decade. He says pricing carbon will drive innovation but "on its own it will not increase it by enough". reports thewest in Australia
Putting a price on carbon emissions will have limited environmental benefits and will not drive the level of technical innovation required to tackle climate change.That was the message for delegates at the close of the Tyndall Centre's inaugural conference on financing green technology earlier this week as Dr Jonathan "Jack" Frost of Johnson Matthey Fuel Cells argued that, regardless of more recent difficulties with emission trading schemes, carbon pricing initiatives had a history of failing to deliver environmental benefits.writes Businessgreen.
A recent report about the EU carbon trading scheme confirms that the scheme is not sufficient to drive innovations.

But what of complimentary instruments such as performance or regulatory standards and carbon finance mechanisms which aim to create economic incentives? These instruments, while they have been shown to be effective at producing favorable environmental outcomes, do not necessarily drive innovation in the marketplace. For example, as in the prior cases of sulphur dioxide emissions and leaded gasoline, emitters were simply able to invest in “off-the-shelf” technologies to deal with the externalities. It is important to remember that regulatory certainty around these environmental pollutants did not result in new innovation because the technological alternatives were already in existence. Furthermore, the cost of removing sulfur or lead as an environmental practice was virtually invisible to consumers; a move that seems unlikely in the case of CO2 and manmade greenhouse gas. For greenhouse gas emissions, which can conceptually be treated as an environmental pollutant, the required off-the-shelf alternatives (for existing infrastructure) arguably do not yet exist or are not yet cost competitive ! Case in point: it is not yet possible to retrofit a coal burning power plant with a carbon capture and storage unit. writes carboninsights.

Putting a price on carbon dioxide emissions will not be enough to drive the innovation needed to clean up dirty energy systems, according to Bruegel, a think tank based in Brussels, and Harvard economists.Reinhilde Veugelers, a senior research fellow at Bruegel, warned on Monday that a “private green innovation machine has not yet taken off” and that private companies still were not making environmental innovations their core goal.Ms. Veugelers cited figures from the World Intellectual Property Organization showing that just 2.2 percent of all patent applications between 2000 and 2006 were for environmental applications. She said the global electricity sector “was almost absent” in terms of green innovation. Reported The New York Times in 2009.




Monday, March 28, 2011

Ecosystems: Invaluable and worthless

(another extract from Garden Earth, the book)

In the middle of the 1990s, a study estimated the value of ecosystem services to some US$ 33 trillion, double the size of the world Gross Domestic Product, GDP (Hall and Klitgaard 2006). MEA doesn’t try to assign values to ecosystems and ecosystem services, but it shows with numerous examples that if we did calculate such values, many things we consider to the profitable today would not be profitable and vice versa. This is because profit is calculated by the entrepreneurs running a company and as long as they can use ecosystem services for free and as long as the degradation of the services are not paid for, this will not appear in any economic calculations. Some examples of estimated values of ecosystem services are:

- In Belize, mangrove and corral reefs produce fisheries, tourism and coastal protection for a value between 395 million and 559 million dollars annually, according to studies of World Resource Institute and World Wildlife Fund. This can be contrasted to the whole Gross Domestic Product of Belize of 1.3 billion dollars (WRI 2008)

- The value of biodiversity in New Zealand was estimated 1997 to 152 billion dollars, which can be compared to the GDP of 56 billion dollars. The valuation didn’t include theoretically potential services but only those that are known (OECD 2001).

- ‘Business as usual’ deforestation and land-use changes cause annual losses of natural capital valued at between EUR 1.3 trillion and EUR 3.1 trillion, a sum exceeding the total financial losses of Wall Street and London City during 2008, their worst year ever (Arborvitae 2010).


Let it be

In October 1999, the state of Orissa in India was battered by a super cyclone that killed almost 10,000 people and caused a massive loss of livestock and property. A researcher found that mangroves do provide important storm protection to people, livestock, and buildings. Had the mangrove forests been intact, more than 90% of the deaths due to the 1999 cyclone would have been avoided. A hectare of mangrove forest land stopped damage worth $43,000 in the district during the super cyclone. Of course, such severe storms do not occur every year. But even allowing for the fact that mangroves have no storm protection value during non-storm years, the long-term protection value of about $8,700. At the time, a hectare of cleared land was fetching $5,000. Thus, leaving mangroves as storm buffers generates more value to society than clearing them for development (Glover 2010).


How Mexican farmers get paid by American blue chips to bind carbon

To an increasing extent, systems are developed for payment of maintenance or new production of ecosystem services. Already 1996, Costa Rica introduced a system where land owners could get compensation for carbon sequestration, biodiversity, water regulation and aesthetic values. Year 2001, the payments in this program had reached 30 million dollars for a total of 280,000 hectares. Farmers in the EU and the USA are paid for all kinds of environmental services to protect landscapes, water sources, maintain or re-create biodiversity[1]. The USA pays 1.4 billion dollars annually for 13 million hectares (FAO 2007).

The possibly best know market for environmental services is the market for reduction of emissions of green house gases. There are two markets. One is government controlled and is regulated under the Kyoto Protocol, the other is a voluntary market for companies, organizations or individuals wanting to reduce their environmental footprint or making themselves “carbon neutral”. The Clean Development Mechanism under the Kyoto protocol, the EU system for emission rights and the voluntary so called “carbon[2] market” was worth some US$ 143 billion market in 2009, an increase of US$48 billion just three years earlier, so this is now one of the fastest growing markets in the world (World Bank 2010b). In Brazil’s first so called REDD (Reducing Emissions from Deforestation and forest Degradation) project each family in the Juma Sustainable Development Reserve in the Amazon, each family receives US$ 28 per month if the forest remains uncut (UNEP 2010b). Farmers in the Scoltel Té-project in Chiapas (Mexico) sell carbon sequestration, in the soil and in the vegetation, for 3.30 dollar per ton. Of this 60 percent goes directly to the farmers, representing an increase of their income with between 300 dollars and 1,800 dollars, big sums for households where the average income is about 1000 dollars (World Bank 2007).

The city of New York gets the majority of its water from an area stretching 200 km north and west of the city. The authorities came to the conclusion that is was more efficient to manage the catchment area for good water quality instead of investing in a purification plant. Such a plant would cost between 6 and 8 billion dollars. The implementation of a catchment management program cost 1.5 billion. It includes measures such as purchase of some critical lands; education, support to farmers for reducing use of chemical fertilizers and synthetic pesticides according to FAO, the United National Food and Agriculture Organization (FAO 2007). Insurance and shipping companies are financing the reforestation of the Panama Canal Zone to restore freshwater flows and avoid increased costs caused by canal closures (TEEB 2010).

Global extortion or fair compensation?

The United States Treasury and Brazil have signed an agreement converting $21m of Brazilian debt into a fund to protect three tropical ecosystems. Brazil will use the money for activities to conserve protected areas, improve natural resource management and develop sustainable livelihoods for communities that rely on forests. The agreement comes under the Tropical Forest Conservation Act (TFCA) of 1998, which to date has generated $239 million to protect tropical forests in Bangladesh, Belize, Botswana, Colombia, Costa Rica, El Salvador, Guatemala, Indonesia, Jamaica, Panama, Paraguay, Peru, and the Philippines (ISEAL 2010).

Taking the idea of getting paid for not using a resource to new levels, the President of Ecuador, Rafael Correa, has said that his government is prepared not to extract nearly a billion barrels of oil from Yasuní National Park, a part of the Amazon rainforest of extraordinary but fragile ecological and cultural richness. To do so, however, Ecuador will need to be compensated by the international community for its loss of oil revenue – to the tune of US$350 million per annum for the next 10 years. A conservative estimate is that exploiting the oil would bring in US$5.7 billion in present value terms, or 10% of Ecuador's GDP. With abatement[3] cost for carbon dioxide at US$14 to US$20 per ton, the cost to the world to abate these emissions will be between US$1.7 billion and US$2.4 billion for the extraction and burning, and US$909 million for deforestation, for a total between US$2.6 billion and US$3.7 billion (The Guardian 2009b).

Like with other new programs, especially when they involve money, there are potential problems and side effects, some of which are not seen initially. There are examples from India, where poor landless people have been harmed of community forest management plans, because the plans limit their access to resources to which they before had unrestricted access. Other examples when communal land has been appropriated by private owners who suddenly see a commercial interest in these environmental services. In Guyana, a private equity firm has bought the rights to 20 percent of the value of environmental services from a 370,000 hectare rainforest reserve anticipating that its carbon storage, water storage, biodiversity maintenance and rainfall regulation services will become a valuable asset in the future (Arborvitae 2010).

Should the have a price or are they invaluable?

We have seen how important ecosystems and the services they can supply are. Mostly we are not aware of the services that are provided by nature to our benefit. Their composed value is very high, notwithstanding many of them are of such a character and importance for our survival that their value simply can’t be calculated; such as supply of oxygen. We can’t even imagine how to organize the same service if the current ecosystems collapse. Ecosystem services can be more efficient, we influence them all the time. Agriculture is of course the most prominent example where we over millennia has increased the value (for us, that is), the yield, from a certain area. But the example also highlights the dangers of looking at only one ecosystem service, in this case the supply of food. It is exactly that narrow perspective that has led us to degeneration of the agriculture landscape, to erosion, to pollution in the same time as it has given us the possibility to tenfold population.

Surprisingly, there is not a very strong critique against the privatization that payment of ecosystem services actually entail, not even from normally anti-capitalist groups. On the contrary, many of them express sympathy and support programs for programs to pay farmers for ecosystem services. Probably they don’t realize that payment of ecosystem services from taxes represents a giant privatization and a transformation of nature resources and commons into commodities. As we discussed the total value of the ecosystem services probably exceed the total value of the current economy. And as more and more services are threatened, their prices will increase, fully in line with the principles of market economy. This also means that the GDP will increase and increase more, the more we deplete our resources, until they ultimately collapse.


[1] The link between the payments and the supplied service is rather weak, in particular in the EU. The levels of compensation are not calculated in any scientific or economic way, but are rather just the results of horse-trading between farmer organizations and the EU member states.

[2] The real ”carbon market” is of course the coal, gas and oil market and not the carbon dioxide green house gas emission reduction market

[3] Abatement and mitigation are used interchangeably to describe the processes by which greenhouse gases emissions can be reduced or compensated for by some other mechanism, such as carbon sequestration, carbon sinks. Adaptation refers to the process of adapting to climate change, i.e. not change it or do anything about it, but learn how to live with it.