Green Economy
Biodiversity and ecosystem services are at the core of the transition towards a green economy. A green economy requires a sustainable management of ecosystems, providing a range of goods and services which are all contributing to human wellbeing and which are fundamental for economic activities and growth.
The conservation and sustainable management of ecosystems and biodiversity should thus not be seen as a cost but rather as an opportunity to increase the profits from various economic activities, to mitigate risks and decrease costs due to degraded ecosystems, as well as to develop new products taking advantage of the benefits provided by nature in a sustainable manner.
The transition to a green economy, using an ecosystem-based approach, could be achieved through cooperation with different stakeholders, including public-private partnerships, in the sustainable management of protected areas and the development of new economic activities such as ecotourism or trade in biodiversity related goods. Development of Payment for Ecosystem Services schemes is another important tool, creating incentives to manage ecosystems in a more sustainable way.
Ecosystem services and other non-marketed natural goods account for 47 to 89% of the so-called GDP of the Poor, i.e. the effective GDP or total sources of livelihoods of poor, rural and forest-dwelling households in some large developing countries.
The real costs of the depletion or degradation of natural capital are felt most seriously at the micro-level, and particularly by the poor. However, they are rarely recorded or brought to the attention of policy-makers.
The European Commission, through various initiatives, calls for a wider recognition of nature’s contribution to human livelihoods, health, security and culture. It supports capacity development to enable the integration of pro-poor management of biodiversity and ecosystem services into development policies, plans, programmes and projects. This includes the capacity for making an inventory of biodiversity and for assessing the economic value of ecosystems, integrating environmental issues in national planning strategies for poverty reduction and macroeconomic policy instruments, and monitoring progress in turning policies into action.
The European Commission is the main donor contributing to the TEEB report (‘The Economics of Environment and Biodiversity’) and supports the Wealth Accounting and the Valuation of Ecosystem Services (WAVES) programme. The European Commission is also one of the partners of the Biodiversity Finance Initiative (BIOFIN) which is a joint programme with the United Nations Development Programme (UNDP) to help developing countries assess biodiversity financing needs and to address financing gaps.