Transcript Ecosystem goods and services valuation for BCLME

Oceans – the lifeline of Humanity
Ecosystem goods and
services valuation for
BCLME
Nico E. Willemse
Sr. Project Manager
BCLME SAP Implementation Project
2nd African Regional Targeted Workshop GEF IW Projects and Partners,
12-14 Nov 2012, UN ECA, Addis Ababa
Background
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Interim Agreement of 2007 –
establishment of BCC in Aug 2008,
www.benguelacc.org;
BCLME SAP Implementation
commenced in Jun 2009;
BCLME SAP endorsed in 2001 – calls for
improved understanding of the value of
the ecosystem to improve decision
making;
BCLME Programme was fisheries heavy
so need to learn more about nonfishery sectors to better integrate in
work of BCC
Increased interest in use of the
ecosystem – esp. minerals exploration
and production, increased transport
and port expansion, increase in tourism
and increase in coastal populations.
New structures –
to be established
in 2012
From Management
Board to…
CHIEF FINANCE
OFFICER
BCLME goods and service valuation
• Partial Cost-Benefit Analysis (CBA) completed for formal sectors where
economic data is collected regularly by authorities and industry – does not look
at informal sectors which are data deficient;
• Focus on direct use values or provisioning services given the time and
resources for the assignment;
• Initial valuation based primarily on data accessible via national, regional and
international databases with little data from governments;
• Sectors/ activities included 1) biodiversity, 2) fisheries, 3) marine recreational
activities, 4) mariculture, 5) oil and gas, 6) coastal marine mining, 7)
desalination and 8) ports; (next slide)
• All activities take place in Namibia; for South Africa all except desalination and
for Angola all except desalination and coastal marine mining.
Process and Results
• Inception meeting where stakeholders agreed on what to value;
• Consultant compiled info on specific data needs for each country;
• Project and consultant embarked on data collection – very poor responses from
countries given they asked for it!!!
• Consultant accessed some data via databases and compiled a draft report;
• Valuation output was presented in Jun 2012 especially to demonstrate data
needs;
• Consultant revising the initial valuation as data is received from the countries
• Partial economic values;
• direct output of US$54,3 billion/ year;
• wage income of US$39 billion/ year.
• Accurate data may provide a higher estimated value – available in Q1 of 2013
Fisheries (1)
Commercial, Subsistence and Artisanal
Country
Description
ANG
• Important commercial, subsistence/ artisanal and recreational – 3rd largest
after oil and diamond mining
• 50% - total protein, of total revenue from prawns, of total revenue from fish
exports
• Food and employment – main source of livelihood for coastal people
NAM
• Industrial with not small-scale – lobster fishery reduce to SSF scale – no policy
• 90% - exported
• Employs >14,000 people and 3rd largest i.t.o. GDP
SA
• >90% of total fish taken from BCLME; employs >26,000 people
• Coastal people depend directly and indirectly on fish
• Demersal fishery most important – 80% of total fishery value
Fisheries (2)
Commercial, Subsistence and Artisanal
Total economic value of US$2.2 billion per annum
Marine aquaculture (1)
Country
Description
ANG
• Tilapia (from Brazil) and torpedo-shaped catfish main species
• Two main companies employ total of 64 people; 1 manager, 34 labourers and
29 field workers
• Priority development activity for Angola with lot of potential
NAM
• Blue mussel, European flat oyster, Gracilaria seaweed, Mediterranean mussel,
Pacific cupped oyster and abalone
• Eight companies that employ close to 500 people – sector growth has been
slow and limited bays to expand mariculture
SA
• Abalone, black mussel, oyster, prawn, finfish and seaweed with abalone the
most important of these in terms of volume and employment
• No figures reported on employment
Marine aquaculture (2)
Total economic value of US$49.9 million per annum
Oil and Gas (1)
Country
Description
ANG
• Sonangol is the sole concessionaire for exploration and production
• Crude oil refining capacity of 40,000 barrels per day and plans to increase to
200,000 bpd by 2013 – 80% of products to be exported
• 2nd largest producer in sub-Saharan Africa with majority exported
• Significant volumes of liquefied natural gas (LNG) - 690 million m3in 2009
• 2 km of gas pipelines and 87 km of oil pipelines, installations to fuel offshore, 4
main terminals for exports and for domestic supply
NAM
• No crude oil and natural gas production
• Increased interest for exploration by major foreign nationals
SA
• No significant crude oil production – 191,100 barrels per calendar day (bbl/day)
in 2010
• Largest natural gas-to-liquids plant in the world with capacity of 45,000 bbl/day
• 4 refineries and 3 synfuels plants on BCLME side
• 400,000 bbl/day plant under development to operationalise in 2012
Oil and Gas (2)
BCLME
Country
Quantity (m.
bbl/day)
Angola
Namibia
South Africa
Total
1.8
0
0.2
2
Direct output
impacts (b.
US$)
47.7
0
5.3
53
Total
Wage
economic
impacts (b.
impact (b.
US$)
US$)
239
34.7
0
0
26.6
3.5
265.6
38.2
Total economic value of US$303 billion per annum
Coastal marine mining (1)
Country
Description
NAM
• Diamond mining is largest economic contributor in Namibia
• Main companies: DeBeers Marine, Sakawe Mining Ltd., Ridgeback Global
Resources Plc., and Diamond Fields Namibia
• Two marine mining sites in southern Namibia
• Value addition to give Namibians more ownership and majority exported
• Marine diamonds 56% of total production
• 1.2 million carats produced in 2010
SA
• Main diamond mining company is De Beers’ South Africa Sea Areas operation
(SASA)and De Beers’ Namaqualand diamond mines are coastal and alluvial,
along the Atlantic
• coast. De Beers owns 74% of the SASA and Namaqualand diamond mines.
• 33,000 carats 2010 and exploring for gold and other minerals on the seabed
Coastal marine mining (2)
BCLME
Country
Angola
Namibia
South Africa
Total
Quantity (thsd
carats)
0
689
33
722
Direct output
impacts (m.
US$)
0
153
7
160
Total
economic
impact (m.
US$)
0
766
37
803
Total economic value of US$942 million per annum
Wage
impacts
(US$)
0
134
5
139
Summary of results (1)
• Values were not estimated for biodiversity, ports and desalination due
to the lack of data
• Coastal and marine resources contribute almost US$269 billion a year of
economic impact to the countries of the region;
• Crude oil contributes the lion’ share with US$266 billion a year;
• Fisheries of estimated to generate impact of over US$2.1 billion per
year;
• Coastal and marine mining contributes some US$942 million a year;
• Recreational fisheries and mariculture sectors generate economic
impacts of US$16 million and US$ 50 billion, respectively;
Summary of results (2)
• Valuation demonstrates the importance of joint management of the
economic activities the sustainable use of the ecosystems into
perpetuity.
• Countries of the BCLME are advanced in building a permanent
institution for joint management with sectorial working groups
• Also demonstrates the need for the BCC to be strengthened and given
the resources and authority to be effective and efficient in executing its
mandate.
Challenges and Lessons
• Highly data dependent - while stakeholders selected the activities/ sectors to
be valued – little support with data and information;
• BCC Info and Data Policy and Protocol not yet endorsed so adds to the difficulty
of “chasing” data;
• Limited time for in-depth valuation and thorough consultations at national
levels to further the understanding of valuation the use of outcomes for
planning, management and decision making;
• Target transboundary living marine resources first – fish stocks migrate and if
not jointly managed, one country can affect the economic rent and social
impacts from fisheries.
• Identify data sources at inception of the assignment!
• Ensure that valuations address planning, management and policy needs
Thank you!
Muito Obrigado!
BCC Vision: A BCLME that is sustainably used and managed, protected, conserved
and contributes to the wellbeing of the people of the region