Ecosystem valuation is an economic process which assigns a value to an ecosystem and/or its ecosystem services. By quantifying, for example, the human welfare benefits of a forest to reduce flooding and erosion while sequestering carbon, providing habitat for endangered species, and absorbing harmful chemicals, such monetization ideally provides a tool for policy-makers and conservationists to evaluate management impacts and compare a cost-benefit analysis of potential policies. However, such valuations are estimates, and involve the inherent quantitative uncertainty and philosophical debate of evaluating a range non-market costs and benefits.
Ecosystem services are the many and varied benefits to humans provided by the natural environment and from healthy ecosystems. Such ecosystems include, for example, agroecosystems, forest ecosystems, grassland ecosystems and aquatic ecosystems. These ecosystems, functioning in healthy relationship, offer such things like natural pollination of crops, clean air, extreme weather mitigation, and human mental and physical well-being. Collectively, these benefits are becoming known as 'ecosystem services', and are often integral to the provisioning of clean drinking water, the decomposition of wastes, and resilience and productivity of food ecosystems.
A carbon offset is a reduction in emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere. Offsets are measured in tonnes of carbon dioxide-equivalent (CO2e). One tonne of carbon offset represents the reduction of one tonne of carbon dioxide or its equivalent in other greenhouse gases.
Ecological goods and services (EG&S) are the economical benefits arising from the ecological functions of ecosystems. Such benefits accrue to all living organisms, including animals and plants, rather than to humans alone. However, there is a growing recognition of the importance to society that ecological goods and services provide for health, social, cultural, and economic needs.
Voluntary Emission Reductions or Verified Emission Reductions (VERs) are a type of carbon offset exchanged in the voluntary or over-the-counter market for carbon credits. Verified Emission Reductions are usually certified through a voluntary certification process.
Payments for ecosystem services (PES), also known as payments for environmental services, are incentives offered to farmers or landowners in exchange for managing their land to provide some sort of ecological service. They have been defined as "a transparent system for the additional provision of environmental services through conditional payments to voluntary providers". These programmes promote the conservation of natural resources in the marketplace.
Mitigation banking is the preservation, enhancement, restoration or creation (PERC) of a wetland, stream, or habitat conservation area which offsets, or compensates for, expected adverse impacts to similar nearby ecosystems. The goal is to replace the exact function and value of specific habitats that would be adversely affected by a proposed activity or project. The public interest is served when enforcement agencies require more habitat as mitigation, often referred to as a mitigation ratio, than is adversely impacted by management or development of nearby acreage.
Conservation Finance is the practice of raising and managing capital to support land, water, and resource conservation. Conservation financing options vary by source from public, private, and nonprofit funders; by type from loans, to grants, to tax incentives, to market mechanisms; and by scale ranging from federal to state, national to local.
Biodiversity banking, also known as biodiversity trading or conservation banking, biodiversity mitigation banks, compensatory habitat, set-asides, biodiversity offsets, are conservation activities that compensate for the loss of biodiversity with the goal of biodiversity maintenance through a framework which allows biodiversity to be reliably measured, and market based solutions applied to improving biodiversity. Biodiversity banking provides a means to place a monetary value on ecosystem services. Typically this involves land protection, restoration, an/or enhancement. Biodiversity banking is often applied so that there is no "net loss of a particular biodiversity feature." According to the International Union for Conservation of Nature, by 2004, interest in voluntary biodiversity offsets was growing in the United States, Brazil, Australia, Canada and the EU. Experience suggested that industry, governments, local communities and conservation groups all benefit from biodiversity offsets or biodiversity banking.
The Garcia River Forest is a 24,000-acre (97 km2) forest located in Mendocino County, California, about 100 miles (160 km) north of San Francisco. It is owned and managed by The Conservation Fund. The fund generates CO
2 credits by logging a portion of the forest less intensely than is allowed under California law. These credits are sold to PG&E which retires them on behalf of customers enrolled in its ClimateSmart program. PG&E's ClimateSmart program is a program where customers voluntarily pay more on their utility bill to offset a percentage of their GHG emissions.
Personal carbon credits are carbon credits created and owned by individuals who reduce their green house gas (GHG) emissions by a real and verifiable amount. Individuals cause GHG emissions from a variety of direct and indirect activities including transportation use, electrical use and home heating and cooling. Verifiable reductions in GHG emissions are aggregated into 1 metric ton increments and they become personal Carbon Credits.
The CarbonFix Standard (CFS) was an initiative to certify climate forestation projects to sequester carbon from the atmosphere. The CarbonFix Standard was administered by CarbonFix, a non-profit association based in Germany. In 2012, it was acquired by and integrated into the Gold Standard.
Reducing emissions from deforestation and forest degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries (REDD+) was first negotiated under the United Nations Framework Convention on Climate Change (UNFCCC) in 2005, with the objective of mitigating climate change through reducing net emissions of greenhouse gases through enhanced forest management in developing countries. Most of the key REDD+ decisions were completed by 2013, with the final pieces of the rulebook finished in 2015.
Forest Trends is a non-profit organization founded in 1998 and based in Washington, DC that connects with economic tools and incentives for maintaining ecosystems. Its mission is four-fold: to expand the value of forests to society, to promote sustainable forest management and conservation by creating and capturing market values for ecosystem services, to support innovative projects and companies that are developing these markets and to enhance the livelihoods of local communities living in and around those forests.
Pedro Moura Costa is an entrepreneur involved in environmental finance with a focus on the international efforts for greenhouse gas (GHG) emission reductions. Of particular relevance, he was the founder and President of EcoSecurities Group Plc., one of the leading project developers for the international carbon markets, and has written widely about the policy and science of climate change mitigation, including contributions to the Intergovernmental Panel on Climate Change (IPCC) reports.
The Verified Carbon Standard, Verra or VCS, formerly the Voluntary Carbon Standard, is a standard for certifying carbon emissions reductions. VCS is administered by Verra, a 501(c)(3) not-for-profit organization.
Desarrollo Forestal Montreal S.A. is a nature reserve and cloud forest adjacent to Braulio Carrillo National Park in the central area of Costa Rica, about 30 miles (48 km) north of San José. The area is located between 1600–1800 meters (5,249–5,905 ft.) above sea level and extends throughout the mountain range.
Forest restoration is defined as “actions to re-instate ecological processes, which accelerate recovery of forest structure, ecological functioning and biodiversity levels towards those typical of climax forest” i.e. the end-stage of natural forest succession. Climax forests are relatively stable ecosystems that have developed the maximum biomass, structural complexity and species diversity that are possible within the limits imposed by climate and soil and without continued disturbance from humans. Climax forest is therefore the target ecosystem, which defines the ultimate aim of forest restoration. Since climate is a major factor that determines climax forest composition, global climate change may result in changing restoration aims.
Gonzalo Castro de la Mata is a Peruvian ecologist born in Lima, Peru. He is recognized as a global leader in the promotion of sustainability with emphasis on innovative free market solutions to environmental issues.
Biodiversity offsetting is a system used predominantly by planning authorities and developers to fully compensate for biodiversity impacts associated with economic development, through the planning process. In some circumstances, biodiversity offsets are designed to result in an overall biodiversity gain. Offsetting is generally considered the final stage in a mitigation hierarchy, whereby predicted biodiversity impacts must first be avoided, minimised and reversed by developers, before any remaining impacts are offset. The mitigation hierarchy serves to meet the environmental policy principle of "No Net Loss" of biodiversity alongside development.
