Economics of Land Degradation Initiative

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The Economics of Land Degradation (ELD) Initiative is a global initiative which aims to increase awareness of the benefits of sustainable land management and economic consequences of land degradation. [1]

Contents

The ELD Initiative was co-founded in 2011 by the Secretariat of the United Nations Convention to Combat Desertification (UNCCD), the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Commission (EC) and is hosted by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. [2] The ELD Secretariat is based in Bonn, Germany. [3]

The ELD Initiative is focused on developing globally relevant data and methodology on the economic benefits of land and land based ecosystems for decision-makers. This way, the Initiative highlights the benefits of adopting sustainable land management practices and seeks to establish a global approach to conducting economic analyses of land management. [4] Moreover, the ELD Initiative provides a platform for discussion between stakeholders from the policy, science and private sectors, as well as a Knowledge Hub providing a database of educational materials, related knowledge and access to a broad range of scientific and policy publications. [5]

Background

Land degradation

Land degradation and desertification threaten people’s livelihood on a global scale. Every year, 20 million hectares of fertile land become degraded and within the last 40 years, around one third of the total agricultural land on earth has become unproductive through degradation processes. [6] Less developed countries are more vulnerable to desertification and land degradation, as they lack the infrastructure and capital to deal with this threat and implement long-term sustainable land management. [7] Soil on degraded land is less resilient and crops grown on degraded soil produce lower yields. Land degradation also negatively influences global food security: in the next 25 years, global food production might drop by up to 12%. [8] This will lead to an increase in average food prices of up to 30%. [9] Estimates show that the annual costs of land degradation are up to €3.4 trillion. [10] Paired with the growing world population and an increasing demand for alternative land management products such as biofuels land degradation causes poverty, food insecurity, reduced availability of clean water, and increased vulnerability towards climate change and extreme weather conditions. [7]

Land is covered by different ecosystems, which can be valued to include all the services they provide to society: supporting, regulating, provisioning and cultural services. These ecosystem services were estimated in 2011 to have a global worth of USD 125 trillion/yr. This shows a decrease of USD 20.2 trillion/yr since 1997, caused by land use and management changes .[6] Sustainable land management practices are not usually costly to take up, and could deliver up to USD 1.4 trillion, merely in crop production, if adopted .[7]

Economic valuation of land degradation

Economics of land degradation look at the true costs of degrading land and land-based ecosystems as well as the benefits that derive from sustainable management of land and land-based ecosystems. The ELD Initiative provides ground-truthed tools and assessments that allow other parties to undertake cost-benefit analyses of land and land use through total economic valuation. [11] This approach helps to shine a light on the hidden values of land that are very often not considered when taking decisions about its management (e.g., nutrient cycling, water retention, storm protection).

The ELD Initiative also recognises that some aspects of land are invaluable in that the very existence of humanity depends on the land and thus has infinite value. Nevertheless, economic information is used by decision makers for land use, land use change and management. [12] Fully informed economic valuations are a central component of these decision-making processes, especially as economics provide a common language for different stakeholders to discuss their needs, costs, and gains, and come to optimal, mutually beneficial sustainable land management strategies. [13]

Structure

Formation

In 2010, a scientific foundation was created to promote the issues of sustainable land management and food security on a scientifically sound basis and increase public awareness for the importance of productive soils. [14]

The Initiative is guided by a Steering Group consisting of  the German Federal Ministry of Economic Cooperation and Development, the European Commission, and the permanent Secretariat to the UNCCD, and coordinated by the ELD Secretariat. The Initiative produces reports for decision makers and practitioners, case studies, policy briefs and education materials. These outputs are distributed to and applied by its policy, private sector and scientific partners. The ELD Secretariat is responsible for the coordination of processes within the Initiative and serves as the first contact point for all existing and potential partners. [15]

ELD Ambassadors

The Initiative is also represented by ELD Ambassadors, who play a crucial role in the coordination of ELD activities on the national level and represent the Initiative in their respective countries. In their function as ambassadors, they help:

Partners

The ELD Initiative has a global network of partners including CGIAR Research Program on Dryland Systems, United Nations University Institute for Water, Environment and Health (UNU-INWEH), Stockholm Environment Institute, World Agroforestry Centre (ICRAF), UNDP, UNEP, Australian National University, University of Leeds, AMURE, ICARDA, Global Mechanism and IUCN. [17]

ELD Initiative further focuses on collaborating with the Private Sector as one of the main drivers for land degradation processes, [9] to help businesses identify eco-investment opportunities and incentives linked to the preservation and sustainable management of soils. [2]

Outputs

Publications

The ELD Initiative has an database of publications targeted at a variety of stakeholders. These include the 'Scientific Interim Report’, which details the general approach and methods considered by the Initiative and the 'Business Brief' outlines a methodology for risk assessment. In 2015, ELD published reports tailored for policymakers and the private sector. [18]

In September 2015, ELD produced a ‘main’ report, The Value of Land. This publication details the monetary worth of land, the steps and methods that can be used to effectively conduct economic assessments of land values, and actions for the successful management and use thereof. Additionally, it provides global scenarios with information on important ecosystems and the potential future impacts based on the various possible economic conditions governing its management. The significance of stakeholder engagement is outlined with country-level examples. The report was launched at the 70th United Nations General Assembly in Brussels. [19]

Capacity building courses

The ELD Initiative further offers Capacity building activities for decision-makers through MOOCs, trainings and national level learning and teaching materials to engage researchers and current and future decision-makers. [20]

ELD Campus

In 2019, the ELD Initiative launched the ELD Campus, which offers a learning and teaching toolkit for the valuation of ecosystem services. It can be used at different levels – from policymakers and researchers, to students and aspiring ELD practitioners – in all fields of scientific background.

The campus provides a comprehensive education toolkit to gain:

Activities

The ELD Initiative is focused on stakeholder dialogues, capacity building and technical expertise and development of solutions. Specifically, the Initiative works in the following five activity areas:

Current activities - Regreening Africa Project

The Regreening Africa Project, co-funded by the German Federal Ministry of Economic Cooperation and Development, the European Commission’s Directorate-General for International Cooperation and Development (DG DEVCO) and carried out jointly by the Economics of Land Degradation (ELD) Initiative and ICRAF started in 2017. It aims to improve livelihoods, food security and climate change resilience by restoring ecosystem services. The project target countries are Ethiopia, Ghana, Kenya, Mali, Niger, Rwanda, Senegal, and Somalia.

The ELD Initiative led the first phase of the project from 2017 - 2020 by conducting case study cost-benefit analyses in each target country. These case studies are aimed at raising awareness of the threats and opportunities of different land use options, and extending the capacity of national experts to assess the economic benefits of investments in sustainable land management in consideration of the costs of land degradation. Based on these assessments, decision-makers and administrators will have access to scientific information on the economic consequences of land degradation and optional pathways to rural growth.

The results of the Initiative's work facilitate the initiation of policy dialogues, aiming to create additional awareness for the issue of land degradation and raising additional investments into sustainable land management measures, notably into Farmer-Managed Natural Regeneration (FMNR).

The project is financed by the European Commission and co-financed by the German Federal Ministry for Economic Cooperation and Development (BMZ) and is carried out jointly by the Economics of Land Degradation (ELD) Initiative and ICRAF. [22]

Publications

ELD reports

Case studies

Policy briefs

Related Research Articles

<span class="mw-page-title-main">Desertification</span> Process by which fertile areas of land become increasingly arid

Desertification is a type of land degradation in drylands in which biological productivity is lost due to natural processes or induced by human activities whereby fertile areas become arid. The concept of 'desertification' typically evokes mental imagery of the progressive expansion of arid regions, encroaching sand dunes, and an overall transformation of once fertile landscapes into barren and inhospitable terrain. It is the spread of arid areas caused by a variety of factors, such as overexploitation of soil as a result of human activity and the effects of climate change. Geographic areas most affected include the Sahel region in Africa, the Gobi Desert and Mongolia in Asia as well as parts of South America. Drylands occupy approximately 40–41% of Earth's land area and are home to more than 2 billion people. Desertification stands as a pressing environmental issue, with the potential to impact approximately 35% of Earth's land surface and affect around 32% of the global human population. This phenomenon pertains to the deterioration of land in arid, semi-arid, and dry sub-humid regions, encompassing the degradation of vegetation cover, soil quality, and nutrient depletion.

The United Nations Convention to Combat Desertification in Those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa (UNCCD) is a Convention to combat desertification and mitigate the effects of drought through national action programs that incorporate long-term strategies supported by international cooperation and partnership arrangements.

<span class="mw-page-title-main">Natural capital</span> Worlds stock of natural resources

Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called ecosystem services. All of these underpin our economy and society, and thus make human life possible.

Rio Convention relates to the following three conventions, which were agreed at the Earth Summit held in Rio de Janeiro in June 1992.

<span class="mw-page-title-main">Global Environment Facility</span> A multilateral environmental Foundation that protects the climate

The Global Environment Facility (GEF) is a multilateral environmental fund that provides grants and blended finance for projects related to biodiversity, climate change, international waters, land degradation, persistent organic pollutants (POPs), mercury, sustainable forest management, food security, and sustainable cities in developing countries. It is the largest source of multilateral funding for biodiversity globally, and distributes more than $1 billion a year on average to address inter-related environmental challenges.

<span class="mw-page-title-main">Land degradation</span> Gradual destruction of land

Land degradation is a process in which the value of the biophysical environment is affected by a combination of human-induced processes acting upon the land. It is viewed as any change or disturbance to the land perceived to be deleterious or undesirable. Natural hazards are excluded as a cause; however human activities can indirectly affect phenomena such as floods and bush fires.

<span class="mw-page-title-main">Ecosystem service</span> Benefits provided by healthy nature, forests and environmental systems

Ecosystem services are the many and varied benefits to humans provided by the natural environment and healthy ecosystems. Such ecosystems include, for example, agroecosystems, forest ecosystem, grassland ecosystems, and aquatic ecosystems. These ecosystems, functioning in healthy relationships, offer such things as 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 provision of food, the provisioning of clean drinking water, the decomposition of wastes, and the resilience and productivity of food ecosystems.

<span class="mw-page-title-main">Luc Gnacadja</span>

Luc-Marie Constant Gnacadja or simply Luc Gnacadja is a Beninese politician and architect. He was Executive Secretary of the United Nations Convention to Combat Desertification from 2007 to 2013.

<span class="mw-page-title-main">DPSIR</span>

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<i>The Economics of Ecosystems and Biodiversity</i>

The Economics of Ecosystems and Biodiversity (TEEB) was a study led by Pavan Sukhdev from 2007 to 2011. It is an international initiative to draw attention to the global economic benefits of biodiversity. Its objective is to highlight the growing cost of biodiversity loss and ecosystem degradation and to draw together expertise from the fields of science, economics and policy to enable practical actions. TEEB aims to assess, communicate and mainstream the urgency of actions through its five deliverables—D0: science and economic foundations, policy costs and costs of inaction, D1: policy opportunities for national and international policy-makers, D2: decision support for local administrators, D3: business risks, opportunities and metrics and D4: citizen and consumer ownership.

Environmental governance (EG) consist of a system of laws, norms, rules, policies and practices that dictate how the board members of an environment related regulatory body should manage and oversee the affairs of any environment related regulatory body which is responsible for ensuring sustainability (sustainable development) and manage all human activities—political, social and economic. Environmental governance includes government, business and civil society, and emphasizes whole system management. To capture this diverse range of elements, environmental governance often employs alternative systems of governance, for example watershed-based management.

Earth Economics is a 501(c)(3) non-profit formally established in 2006 and headquartered in Tacoma, Washington, United States. The organization uses natural capital valuation to help decision makers and local stakeholders to understand the value of natural capital assets. By identifying, monetizing, and valuing natural capital and ecosystem services.

Sustainable land management (SLM) refers to practices and technologies that aim to integrate the management of land, water, and other environmental resources to meet human needs while ensuring long-term sustainability, ecosystem services, biodiversity, and livelihoods. The term is used, for example, in regional planning and soil or environmental protection, as well as in property and estate management.

Soil governance refers to the policies, strategies, and the processes of decision-making employed by nation states and local governments regarding the use of soil. Globally, governance of the soil has been limited to an agricultural perspective due to increased food insecurity from the most populated regions on earth. The Global Soil Partnership, GSP, was initiated by the Food and Agriculture Organization (FAO) and its members with the hope to improve governance of the limited soil resources of the planet in order to guarantee healthy and productive soils for a food-secure world, as well as support other essential ecosystem services.

<span class="mw-page-title-main">Pavan Sukhdev</span> Indian environmental economist (born 1960)

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<span class="mw-page-title-main">UN Decade on Ecosystem Restoration</span>

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<span class="mw-page-title-main">Special Report on Climate Change and Land</span> IPCC report

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<span class="mw-page-title-main">Sustainable Development Goal 15</span> 15th of 17 Sustainable Development Goals to protect life on land

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  21. "ELD Campus". ELD Initiative. Retrieved 2021-01-09.
  22. 1 2 "Regreening Africa". ELD Initiative. Retrieved 2021-01-09.