The WAVES Partnership: processes and
emerging results
Transformative Initiatives in Biodiversity Mainstreaming and Financing
Rio Conventions Pavilion Event
16 October 2014
Valerie Hickey
Environment and Natural Resources Global Practice, The World Bank
Outline of the presentation
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Background on Natural Capital Accounting (NCA)
Where has NCA been most useful?
What is the role of WAVES?
WAVES progress and some lessons
1. Background on NCA
“What we measure affects what we do;
and if our measurements are flawed, decisions may be distorted.”
Stiglitz, Sen and Fitoussi (2009)
GDP does not measure…
Towards better measures of wealth
We don’t judge a company solely on the
basis of its income statement, we look at
both income and balance sheet.
 Increasing assets (wealth) support
long-term growth.
 In the short term, income can
appear to grow by liquidating
assets, but this undermines longterm growth.
Economic development is a process of
building wealth and managing a
portfolio of assets
Why is natural capital important?
Shares of comprehensive wealth, by income class, 2005
Low Income
Countries
36%

Natural capital is most important in low
income countries—more than twice as large
as produced capital

In middle income countries natural capital
and produced capital are roughly equal

Intangible wealth dominates in all countries,
especially in high income countries
50%
14%
21%
Middle Income
Countries
High Income
Countries
20%
17%
59%
3%
80%
Intangible Capital
Produced Capital
Natural Capital
What is the methodology for NCA?
2. Where has NCA been most useful?
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Indicators: for monitoring sustainable development
Water accounting: managing a scarce resource
Energy and air pollution: cleaner, more efficient production
Stocks of minerals & energy: managing resource rents for long term
growth
Land and ecosystems: balancing the needs of tourism, agriculture
and other uses
What are the main uses of NCA?
Scorekeeping
Management
Better indicators for monitoring sustainable
development: Wealth and Adjusted Net Savings
Better tools for managing natural capital to
promote growth and poverty reduction
• Weighing tradeoffs of land use
• Prioritizing investments in forest resources
management, protected areas
Indicators of sustainability: A negative result
Contribution of marine ecosystem
services to the economy of Zanzibar
(thousand US$)
% Share of GDP
Number of Jobs
Tourism
23.6%
9,351 +
Seaweed farming
0.4%
16,422
Fishing
6.2%
37,203
Mangrove harvesting
<0.1%
unknown
Total
30.2%
62,976 +
3. What is the role of WAVES?
WAVES is a global partnership that aims to
mainstream Natural Capital in development
planning and national economic accounts in support
of sustainable development.
WAVES aims to…
1) Help countries adopt and implement accounts that
are relevant for policies and compile a body of
experience;
2) Develop ecosystem accounting methodologies;
3) Establish a global platform for training and
knowledge sharing; and
4) Build international consensus around natural capital
accounting.
The number of countries are growing
First results
What causes forest depletion in Guatemala?
First results
Botswana: Are scarce water resources allocated efficiently?
Ecosystem accounts in WAVES core implementing countries
Botswana
• Ecosystem accounts to inform the National Development Planning
• Support the implementation of ecosystem management plans for areas
like Okawangu, Chobe and Makgadikgadi
• Discussing to include ecosystem services like livestock grazing, tourism,
wildlife habitat and carbon sequestration
Colombia
• Land and forest accounts for selected watersheds
• Potentially ecosystem accounts for the Magdalena river basin
The Philippines
• Ecosystem accounts for Southern Palawan to inform policy on
competing land uses
- Ecosystem services included are e.g. water regulation, crop
production, soil erosion prevention, wildlife habitat
• Ecosystem and water accounts for Laguna lake to inform land use
planning and water pricing – soil erosion prevention, reduced
sedimentation, water provisioning, flood regulation
Ecosystem accounts informing land use management in
the Philippines
• National Mineral Accounts: What is the mineral wealth of the
Philippines & how could it be shared equitably & sustainably?
• Ecosystem account in mineral & biodiversity rich land: What
are the social, economic & environmental trade-offs of different
resource use scenarios & what are the implications for
sustainable management?
Context of Ecosystem Accounts
Drivers of Ecosystem Change in Southern Palawan
Global demand for
minerals
High demand for cash
crops
Population growth
Accounts
Land
Water
Ecosystem
Biodiversity
Biodiversity Account
Palawan Fruit Bat
Crab-Eating Macaque
Acerodon leucotis
Macaca fasicularis
Pollination & Dispersal
Global engagement
• Post-2015
Development Agenda
• Working with partners
• Communities of
Practice
• Regional trainings and
technical meetings
• Working with the
private sector
Progress on developing methodologies
• Field testing ecosystem
accounting
• Compiling policy applications
• Training and capacity
development in forest
ecosystem accounting
Communicating NCA