An ecosystem is a collection of living and non-living objects as well as their interactions with one another. It is a dynamic complex made up of both biotic and abiotic elements. The ecosystem's equilibrium is preserved through these biotic and abiotic interactions. Its human component is essential to it. The term "ecosystem services" refers to the many advantages we receive from the ecosystem.
Why in News ?
The Ministry of Statistics and Programme Implementation (MoSPI) is organizing the Natural Capital Accounting and Valuation of the Ecosystem Services (NCAVES) India Forum-2021 in virtual mode.
Under the project "Natural Capital Accounting and Valuation of Ecosystem Services (NCAVES)," the MoSPI has launched a number of initiatives with the goal of advancing ecosystem accounting theory and practice in India.
Services of Ecosystems
There are millions of species on Earth. For energy, survival, and other life functions, every organism depends on at least one other organism. Because of an organism’s reliance on itself and its environment, ecosystems are dynamic systems that interact. A clearly defined environment is largely dependent on the interactions between the many ecosystem components.
Humans benefit greatly from both the biotic and abiotic elements of an ecosystem. All of these advantages are referred to as ecosystem services. These services are essential to earthly life and biodiversity.
The process of Natural Capital Accounting typically involves:
1. Inventory and Classification: Identifying and categorizing natural assets, including forests, water bodies, biodiversity, and other ecosystems.
2. Valuation: Assigning monetary values to these natural assets, considering the benefits they provide to society.
3. Recording Changes: Monitoring and recording changes in the stock of natural capital over time, including depletion or enhancement.
4. Integration with Economic Accounts: Integrating natural capital accounts with economic accounts to provide a more comprehensive understanding of the economy's relationship with the environment.
Significance of Natural Capital Accounting for UPSC Aspirants:
1. Policy Formulation: Governments and international organizations use Natural Capital Accounting to formulate policies that balance economic development with environmental sustainability. As future administrators, understanding this tool is crucial for effective policy formulation and implementation.
2. Sustainable Development Goals (SDGs): Natural Capital Accounting aligns with several SDGs, emphasizing the need to integrate environmental sustainability into economic planning. Familiarity with these concepts will empower aspirants to contribute to the achievement of SDGs.
Valuation of Ecosystem Services:
Ecosystem services are the benefits humans derive from ecosystems. These include provisioning services (food, water, raw materials), regulating services (climate control, water purification), cultural services (recreation, aesthetic value), and supporting services (soil formation, nutrient cycling). Valuation of Ecosystem Services involves assigning economic values to these diverse services.
Methods of Valuation:
1. Market-based Methods: Assessing the market value of goods and services derived from ecosystems, such as timber or agricultural products.
2. Cost-based Methods: Evaluating the cost of replacing or restoring a particular ecosystem service.
3. Benefit Transfer: Applying values from similar studies to assess the economic worth of ecosystem services in a specific context.
Important Points
Concerning the Project:
The United Nations Environment Programme (UNEP), the Secretariat of the Convention on Biological Diversity (CBD), and the United Nations Statistics Division (UNSD) have collaborated to conduct the NCAVES Project, which has been financially supported by the European Union.
Along with Brazil, China, South Africa, and Mexico, India is one of the five nations involved in this project.
The Ministry of Environment, Forests and Climate Change (MoEF&CC), the Department of Space's National Remote Sensing Centre (NRSC), and the MoSPI are working together to implement the NCAVES project in India.
Natural Capital Accounting (NCA):
The term "natural capital accounting" (NCA) refers to a broad range of approaches that use an accounting framework to offer a methodical manner to quantify and report on natural capital movements and stocks.
The pool of non-renewable and renewable resources that work together to provide benefits to people is often referred to as natural capital.
In addition to accounting for ecosystem assets (such as forests and wetlands), biodiversity, and ecosystem services in both monetary and physical terms, NCA also encompasses accounting for specific environmental assets or resources, both biotic and abiotic (such as water, minerals, energy, lumber, fish).
The System of Environmental-Economic Accounting (SEEA) is used for natural capital accounting, much as the System of National Accounts (SNA) guides the production of national accounts of a nation.
There is a system for quantifying the relationship between the environment and the economy called the System of Environmental-Economic Accounting (SEEA).
The UN statistics Commission approved the SEEA-Central Framework as an international statistics standard in February 2012.
The relationship between the environment and the economy—which is hidden by conventional measurements of economic activity like GDP—is brought into sharp relief by the SEEA accounting.
Ecosystem Services:
Humans benefit greatly from both the biotic and abiotic elements of an ecosystem. All of these advantages are referred to as ecosystem services.
Ecosystem services fall into four categories:
Provisioning Services: These comprise the goods/raw materials or energy outputs that come from ecosystems, such as food, water, medications, and other resources.
Regulating Services: Services that maintain the ecological balance are included in this category. For instance, trees stop soil erosion, manage greenhouse gas emissions, and clean and regulate the quality of the air.
Supporting Services: They serve as the cornerstone for other offerings. They preserve biodiversity, aid in the cycling of nutrients, offer habitat to many living forms, and perform other functions that keep life on Earth going.
Cultural Services: These encompass artistic, recreational, cultural, and spiritual services, among other things. The majority of natural features, including mountains, caverns, and landscapes, are utilized for cultural and creative endeavors.
Advantages:
By taking part in the project, MoSPI was able to start compiling the Environment Accounts in accordance with the UN-SEEA framework and disseminate the environmental accounts annually starting in 2018 in its magazine "EnviStats India."
These accounts are a helpful tool for the Policy because many of them are directly tied to the social and economic characteristics.
The creation of the India-EVL Tool, which functions as a look-up tool providing the values of various ecosystem services in the nation's several States, is another tool under the NCAVES project.
Information on the size of ecosystems, their state according to particular indicators, and the flow of ecosystem services can all be obtained through ecosystem accounting.
Illustrations of Ecosystems
Here are a few instances of the ecosystems that are being discussed:
Ecosystem of a deciduous forest:
Deciduous forest ecosystem:Trees in a deciduous forest lose their leaves every year and sprout new ones at the start of the next growing season. As a means of adjusting to the dry seasons in subtropical and tropical regions and the cold season in temperate areas, they shed their leaves.
Savannah ecosystem: Savannah ecosystems include features of both grasslands and forests. With the canopy trees spread and widely separated, light may permeate and reach the ground. Consequently, abundant development is also possible for herbaceous strata and shrubs with a grass dominance.
Coral reef ecosystem:Reef-building corals generate the ecosystem that is known as the coral reef. Colonies of coral polyps, like stony corals, dwell together in groupings called coral reefs. They belong to one of the most diverse ecosystems on the planet. They are therefore referred to as the "rainforests of the sea."
Hot spring ecosystem: A hot spring is defined as a body of water that is warmer than the surrounding air. The earth's mantle heats the spring's water because it is geothermally heated.
Micro-ecosystems: These are ecosystems that are limited to tiny, microscopic areas and are shaped by particular environmental factors. Think on the surroundings of a tree. A tree creates a tiny ecosystem that is home to many different kinds of animals. For instance, lichens and other epiphytes (arboreal plants) can grow on trees.
Why is Valuation Important for UPSC Aspirants?
1. Informed Decision-Making: Valuing ecosystem services enables policymakers to make informed decisions by considering the full range of benefits and trade-offs associated with different options.
2. Resource Allocation: As future administrators, UPSC aspirants can contribute to efficient resource allocation by understanding the economic importance of various ecosystem services.
Conclusion:
In the era of environmental challenges and sustainable development, Natural Capital Accounting and Valuation of Ecosystem Services are indispensable tools for policymakers and administrators. a grasp of these concepts not only enhances academic knowledge but also equips them to address the complex interplay between economic development and environmental conservation. As future leaders, the ability to integrate environmental considerations into policy decisions will be a valuable skill, ensuring a balanced and sustainable future for our planet.
source:pib.gov.in
Note for UPSC Aspirants:
For UPSC aspirants interested in exploring further, here are some keywords to guide your research: NCAVES project, ecosystem accounting theory, ecosystem services, provisioning services, regulating services, cultural services, supporting services, SEEA, SEEA-Central Framework, UN statistics Commission, GDP, MoSPI
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