Select Committee on Environmental Audit First Report


Conclusions and recommendations



Findings of the MA

1.  The conclusions of the UN Millennium Ecosystem Assessment (MA) are clear. Human activity is fundamentally and extensively changing the world around us, leading to extinction on a massive scale. The extent of this loss should not be underestimated. It points to a sixth great extinction, on a par with historic global extinction episodes caused by asteroid impacts. (Paragraph 11)

2.  The ways in which humans have altered the natural environment have led to significant benefits to society, but these benefits have been accompanied by rapidly increasing costs due to ecosystem degradation. These changes to the natural world have also increased the likelihood of dramatic and abrupt changes to ecosystems, which could have devastating and permanent impacts. Human activity is creating a world that is likely to be degraded substantially for future generations. (Paragraph 20)

3.  The MA established conclusively that efforts to eradicate poverty will not succeed where environmental degradation is allowed to continue. This is of particular concern as environmental degradation is set to significantly worsen over the next 50 years. It therefore seems unlikely that the international community will meet its Millennium Development Goal commitments to reduce poverty and increase development, at least in the long-term. These changes may also undermine the current progress that is being made, leading to a worsening of poverty. (Paragraph 25)

4.  If society wishes to avoid the devastating impact of continued ecosystem degradation on development and the economy it is clear that substantial changes will have to be made to the way in which it values and deals with ecosystem services. These often will be politically controversial, but the case for concerted and decisive action has now been made. (Paragraph 30)

The MA's Impact

5.  Although we concede that it is still early days for the MA, we are concerned that given the scale of the problems identified within it, its impact so far seems limited. Full and proper engagement with its findings from local to international levels will be vitally important if actions to deal with the challenges are to be successful. We hope that the recommendations made throughout this report will go someway to ensure that the findings of the MA are adopted far more widely than they have been so far. (Paragraph 33)

6.  Given that a functioning and healthy environment will be crucial for achieving long-term success on MDGs, and that the MA provides a framework for the successful bringing together of development, environment and economic policies, we are disappointed that governments and development agencies have been slow to grasp the importance of the MA and MDG7. Although we accept that developing countries must own and develop their own strategies for sustainable poverty reduction, the Government must face up to the fact that these countries do not have the capacity to adequately incorporate the environment into their strategies. The UK Government and other developed countries must seek to ensure, through a Millennium Ecosystem Fund, that all developing countries are equipped to incorporate the environment into their development strategies, otherwise the unsustainable actions that might result may jeopardise the long-term achievement of MDGs. (Paragraph 40)

7.  We are frankly disappointed that development NGOs have failed to engage more with the MA findings. Although we understand that these NGOs might focus on the immediate problems associated with poverty, such as access to clean water, their failure in the long term also to focus on the need to maintain ecosystem services will ultimately unravel their efforts. (Paragraph 43)

8.  More needs to be done to ensure that policy makers are fully aware of the ramifications of the MA, and what they can do to respond to these challenges. In order for this to occur, policy-makers need to see the direct benefits, primarily economic but also social and environmental, of sustainable ecosystem service management and the adoption of the MA conceptual framework. This must happen in such a way that effective national or local response options can be initiated. Therefore it should be a priority to carry out national assessments tailored to national needs. As developing countries do not have the resources needed to undertake such assessments, it is imperative that the UK Government galvanizes the international community to establish a Millennium Ecosystem Fund. Not only could this ensure that the MA findings are more widely communicated but also that developing countries are equipped to move themselves onto a sustainable development path. (Paragraph 48)

9.  The MA showed that degradation of ecosystem services is a threat to businesses' bottom line. The development of robust econometric models for ecosystem services must be developed with some urgency to enable the internalisation of the full costs of business' impact on the environment. The UK Government and international community must act to ensure that this happens. In line with our previous report Outflanked: The WTO, international trade and sustainable development, we recognise that ultimately the full environmental and social costs of products and services must be reflected in their final price. (Paragraph 52)

10.  We commend those responsible for the MA for producing the most complete and up to date study of the importance of the environment for human well-being and the current condition of the Earth. Although inevitably aspects of the MA were based on incomplete evidence, the assessment still provides a most robust analysis upon which to base action to tackle ecosystem degradation. Due to the serious conclusions drawn from the MA we call for urgent, concerted, research at all levels to fill the knowledge gaps identified. (Paragraph 58)

11.  To enable the MA knowledge gaps to be filled a new international interdisciplinary research strategy must be established to help coordinate research at a number of scales. This could be hosted by the ICSU, or ultimately within a new body to oversee a rolling programme of MA assessments. (Paragraph 61)

12.  There appears to have been a breakdown in the effective communication of the MA findings which has led, to some extent, to a slow take up of the MA by stakeholders. The lesson which should be learnt from this for future assessments of this nature is that inadequate provision for the communication of findings will ultimately hinder their integration by stakeholders. More funds will have to be provided by the MA funding organisations, including DEFRA and DFID. Failure to do this will negate much of the impact we would expect from an assessment of this calibre. (Paragraph 66)

13.  There is an important MA communication role for the UK Government, at both national and international levels. Nationally, departments must engage with the constituencies they deal with, such as the agricultural sector for DEFRA and development NGOs for DFID, to produce sectoral guides to the MA and assess its implications for their work. There is also the need for civil society and the private sector to be proactive in engaging with the MA, for their long-term success will depend on them coming to terms with its findings. This engagement should include the undertaking of audits of individual businesses or organisations against the issues identified in the MA. (Paragraph 67)

14.   At an international level, given the importance of the MA's findings for the development and environmental objectives of DFID and the Foreign and Commonwealth Office (FCO), country staff should be made fully aware of the implications of the MA. They should refer to the MA and frame their work with partner countries in light of it. The FCO should also undertake a seminar programme in partner countries in order to promote the sustainable use of ecosystem services, the MA conceptual framework, and the economic and development benefits that such effective management brings. (Paragraph 68)

15.  Given the existence of evidence demonstrating the substantial economic benefits of sustainable ecosystem service management we are gladdened to see that DEFRA is investing in research to quantify and take advantage of this. As the lack of empirical evidence of this value has made it difficult to motivate some quarters to engage with the MA, this research could have international consequences for its uptake. It is imperative that DEFRA's efforts in this field are adequately funded and lead to tools which will enable decision makers across Government to appreciate and account for these non-market benefits. (Paragraph 75)

16.  We consider that the logical conclusion of research to value ecosystem services and to identify those factors that actually improve human well-being, will be the development of an econometric that measures growth in a way that recognises environmental limits and more accurately describes human well-being. Growth is, after all, not an end in itself. The Government must introduce an indicator of economic growth which incorporates the principles of sustainability and well-being as early as possible. (Paragraph 79)

The Future of the MA

17.  We are concerned that the failure to establish an ongoing programme to undertake MA global assessments will result ultimately in the continued degradation of ecosystem services, which effective regular monitoring and assessment would help prevent. We strongly urge the Government to strive for the establishment of a rolling MA programme, the key features of which should include: (Paragraph 83)

  • Global assessments to be conducted at the least every 8-10 years
  • A multi-stakeholder bureau to govern the MA secretariat to ensure the full participation of scientists, civil society, the private sector and governments
  • A budget adequate to fund research to fill those gaps identified by the MA, as well as to provide effective monitoring of ecosystem services
  • A focus on the identification and promotion of effective response options to ecosystem service degradation, including the development of economic incentives to ensure the full consideration of non-market ecosystem service values
  • A continued focus on the value of sub-global assessments, between global assessment periods, in providing regional impetus and justification for better management of ecosystems

18.  Although we agree that there is a need to stem the continued devastating loss of biodiversity, we are not convinced that the current proposals to establish an IPCC-like body solely for biodiversity will be the answer. We argue that biodiversity loss is intricately linked to economic, development and other environmental factors and therefore a better solution must be to establish a body to consider these issues as a whole in a permanent MA body. In addition, the MA's focus on the benefits that humans receive from ecosystem services will also help to convince those countries that may be less willing to subscribe to a solely biodiversity-orientated body to engage with the more holistic MA approach. (Paragraph 87)

19.  In our report, Outflanked: The World Trade Organisation, international trade and sustainable development, we highlighted a lack of consideration of the environment and development in international trade. We concluded that the current system must be changed to ensure that environmental issues are adequately accounted for in international trade. Given the right level of support an MA rolling programme with secretariat could facilitate this, acting as an interface between the WTO, Multilateral Environmental Agreements and other international organisations, as well as providing policy recommendations on sustainability through trade. (Paragraph 88)

UK Government Response to the MA

20.  We commend the Government for being one of the main donors of this groundbreaking assessment. Nevertheless, the Government must now ensure that the findings are fully integrated into its work through the creation of a cross-departmental Ministerial group. The group should specifically manage inter-departmental coordination, implementation and monitoring of policies against the MA and coordination of MA-related research. (Paragraph 95)

21.  As the main tool for the long-term cross-departmental maintenance of ecosystem services in the UK is the Sustainable Development Strategy, we consider it obvious that it must be reviewed to ensure that it is in line with the MA findings. Such a review should reflect the need to maintain ecosystem services both in the UK and abroad and therefore include the adoption of sustainable development indicators and PSAs that reflect this. Amendment of the SDS, sustainable development indicators and PSAs will enable incorporation of the MA findings in a more top-down way. The ultimate goal of this would be to, in effect, 'MA-proof' all Government activities. (Paragraph 98)

22.  A failing of the global MA was its lack of focus on the economic valuation of ecosystem services, as well as a lack of policy proposals directly relevant to many decision makers. We are therefore very pleased to see that DEFRA is yet again funding important MA-related work that should lead to significant benefits to the environment, society and the economy. Nevertheless, due to the rate and extent of current ecosystem degradation, and the risk to society that such degradation causes, it is with some urgency that this research be completed. DEFRA must ensure that this research includes and takes note of independent research into policy options and has also led to concrete and robust policy outcomes, across Government, before the end of this Parliament. (Paragraph 102)

23.  Given that DFID officials seem to realise increasingly the importance of the environment in reaching poverty reduction goals, and that DFID is looking to commission a range of important MA-related research projects, we are baffled as to why recent DFID White Papers have failed adequately to account for the role of the environment in development. This failure indicates to us that knowledge of the importance of the environment to development objectives has not permeated all levels of DFID. In its response to our criticism of its insufficient consideration of the environment, DFID stated that it "fully recognise[s] the need for action now". Given this recognition, we expect all future policy documents to account fully for the MA's findings. (Paragraph 106)

24.  As the CSR is a fundamental and long-term review of Government funding we are concerned that failure to satisfactorily incorporate the MA's findings might, in effect, lock in unsustainable practices for that period. It is therefore extremely important that the CSR effectively reflect the need to address the MA findings, particularly in relation to ensuring that the full non-market value of ecosystems are fully accounted for across all policies. Therefore the research projects to identify the true value of different ecosystem services must be completed quickly and fed into the CSR, at least in an interim form, in order directly to influence its outcome. (Paragraph 109)

25.  We greatly welcome the analysis of long-term opportunities and challenges, commissioned by the Treasury, to feed into the CSR. The analysis relied greatly on the MA and highlights that long-term economic prosperity is dependant upon a healthy and functioning environment. However, we are concerned that the Treasury concludes that it would be "important" to manage these environmental pressures. We believe this understates the fact that it is essential that these challenges are met, for long-term prosperity to be achievable. (Paragraph 112)

26.  Given the interrelated nature of instability, terrorism, international poverty and climate change it is important that the Treasury accepts the need to create an environment in Government that enables action on these issues to be dealt with in concert, and provides the funding for this to occur. We would also like to point out that the UK can make a significant unilateral contribution to dealing with these issues such as though its procurement and taxation policies. Indeed, we have called on a number of occasions for more fiscal incentives and penalties to encourage more sustainable choices. (Paragraph 113)

27.  Although the Treasury is right to highlight climate change as being a major challenge in relation to its long-term goals, the importance of other ecosystem services, such as those provided by biodiversity, should not be underestimated or forgotten in the CSR. Given that the MA proved the importance of these other ecosystem services, resources for effective ecosystem management should not be squeezed in the CSR. The Treasury must ensure that the CSR reflect this need in the budgets decided for DEFRA, DFID and the relevant research councils. (Paragraph 114)

28.  Nevertheless, although we have these concerns, we are encouraged that the Treasury had the foresight to undertake the long-term trend and challenges review and the Stern Review, and hope that this reflects an increased awareness in the Treasury for the need for decisive action on these issues. We also hope that the Treasury's statement that it would "work to release resources" to meet the environmental challenges identified is reflected in the decisive action needed. (Paragraph 115)

29.  Without doubt the expansion of development into new areas will bring some economic benefits but, as we have seen earlier, economic growth without adequate consideration of the environment or social impacts is unlikely to translate into increased human welfare. Although we reluctantly accept that development may be required on certain green field sites, we are not confident that the Barker Review has attempted to balance economic, environmental and social considerations, or to consider the full range of policy options that might be available to reduce land pressure. It has therefore not followed all the principles espoused by the MA. We hope that the Government will seek to redress this imbalance upon implementation of the Review's recommendations. (Paragraph 119)

30.  We accept the Minister's point that integration of the MA findings must be undertaken in a systematic and coordinated manner and therefore we call for a Ministerial group to be established to oversee this process. This group must undertake to assess and evaluate the MA from a UK perspective, and coordinate the various stands of research that are being conducted and planned. Ultimately the Government should conduct a full MA-type assessment for the UK to enable the identification and development of effective policy responses to ecosystem service degradation. (Paragraph 125)

31.  Considering the UK Overseas Territories' (UKOTs) lack of capacity, both financial and human, we find it distasteful that FCO and DFID stated that if UKOTs are "sufficiently committed" they should support environmental positions "from their own resources". The continued threat of the extinction of around 240 species in the UKOTs is shameful. If the Government is to achieve the World Summit on Sustainable Development 2010 target to significantly reduce the rate of biodiversity loss within its entire territory, the Government must act decisively to prevent further loss of biodiversity in the UKOTs. (Paragraph 133)

32.  We welcome the DEFRA Minister's recognition of the problems facing the UKOTs, and their lack of capacity to deal with the environmental challenges that they face. Given this and our international, not to mention moral, obligation to prevent biodiversity loss in the UKOTs, the Government must now move towards increased and more appropriate funding for conservation and ecosystem management there. The amount of resources required to undertake this work is miniscule in comparison to the environmental and social gains that would be expected. Such funding must be more long-term and strategic to enable the environmental capacity in the UKOTs to reach the levels required. DEFRA must be given joint responsibility for delivery of this. (Paragraph 140)

33.  The range of environmental, social and economic challenges facing UKOTs will be better addressed by undertaking an MA-type assessment for each UKOT. The UK Government must work jointly with UKOT governments on an MA to ensure that their ecosystem services are not damaged further and preserved into the future. The Inter-departmental Ministerial Group on Biodiversity should seriously consider this as the route by which they can achieve their commitments to the UKOTs. (Paragraph 141)




 
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