Presented by Anthony Letsoalo CSIR Environmentek

1. The economic costs of conservation response options to climate change: the case of the Cape Floristic Region Presented by Anthony Letsoalo CSIR Environmentek

2. Outline • Aim and objectives of the economic analysis • Response options analyzed • Concept of cost-benefit analysis • Determinants of cost of PAN (Protected Area Network) • Types of cost incurred in conservation • Attractiveness of incentive to private landowners • Types of incentives to private landowners • Cape Floristic Region as the study area • Results on the cost of expanded PAN • The benefits of expanded PAN

3. Aim & objectives Aim • To evaluate cost and benefits of a range of adaptation options Objectives • To develop cost function for a range of adaptation options • To establish the benefits associated with different options

4. Response options to climate change • No response – loss of species might occur. • Land acquisition – for new reserve • Matrix management – conservation of private land. • Ex-situ conservation – preservation in gene/ seed banks, botanical gardens, zoo. • Translocation – assisted dispersal

5. Total cost (TC) versus total economic value (TEV) • Net cost of each option will be determined from estimated direct costs and direct benefits of the option. • Direct costs include cost of new land acquisition, translocation and ex-situ conservation • Total economic value include both use and non-use values of species resource

6. The components of total economic value

7. Determinants of cost of PAN 1. Size • An increase in PAN results in lower cost 2. Vegetation type and dominant habitat class • Open biomes are expensive to manage because of accessibility. 3. Extent of land transformation • Higher transformation on the land results in higher restoration cost, thereby making land expensive to acquire. 4. Surrounding land uses • Involvement of the surrounding communities in conservation is important (CBNRM)

8. Study Area

9. Habitat classes and associated management requirements

10. Methods • Literature review of national and international studies on adaptation costs • Interview experts in ex-situ conservation • Apply quantity times price approach to derive total cost • Identify the benefits – avoided ecological damage

11. Types of cost 1.Land acquisition • Involves buying of land • Cost of land differs according to land use 2. Operating cost • include salaries, field allowances, equipment, transport and maintenance costs and includes provisions for senior field and research staff (Martin, 2003) 3. Capital requirement This applies only to new-reserves • Include infrastructure, fencing, etc. 4. Cost of ex-situ conservation • Cost of gene banking • Cost of seed banking • NB: the costs depend on the response option chosen.

12. Once-off costs of acquiring different habitat types

13. Operating cost per various park sizes 120 000 100 000 80 000 60 000 Operating costs per km2 per year 40 000 20 000 - 200 1 2 5 10 20 50 62 100 500 1 000 2 000 2 415 2 476 5 000 10 000 20 000 50 000 100 000 Park Size (km2)

14. 600 000 500 000 400 000 Capital costs (US$/km2) 300 000 200 000 100 000 - 1 2 5 10 20 50 62 100 200 5 000 500 1 000 2 000 2 415 2 476 10 000 20 000 50 000 100 000 Park size (km2) Capital requirement per park size

15. Cost of gene/ seed banking Seed Banking costs Average recording & collecting costs (per species)R1 230 Cost to re-establish plants in plantation (per plant)R 10 The Cost of Gene Banking Consumable cost per DNA extraction (per species)R 150 Genetic fingerprinting for plants (per fingerprint)R 200 Start-up Cost R572 000 Ultracentrifuge R422 000 -80°C freezer R 80 000 DNA bank “manager” R 70 000

16. Providing incentives to private landowners Statement from questionnaireAgree Unsure Disagree Offering landowners incentives is a good idea92.52.55 for promoting conservation on private land. Protection of plants/animals outside reserves87.55 7.5 should be the responsibility of private landowners. CNC or another government organisation57.57.535 should bear the costs for the conservation of renosterveld on the property.

17. Types of incentives IncentivePercentage of Frequency respondents 1. Assistance with fencing and land management72.529 2. Assistance with alien vegetation clearing67.527 3. Rates relief for land conserved67.527 4. Grants or subsidies for conservation6526 5. Tax deductions47.519 6. Access to scientific advice4518 7. Tourism incentives4016 8. Law enforcement32.513 9. Access to farm planning and management support 32.513 10. Assistance with fire management3012 11. Free access to all WCNCB parks and reserves27.511 12. Discounts for accommodation at WCNCB resorts 27.511 13. Advice on legal compliance procedure17.5 7 14. Public/community recognition15 6

18. Land required in extended PAN DescriptionArea(ha) % of total area required Required to protect all proteas threatened by climate change 430 364100 Required area already protected in Type 2 reserves132 57830.81 Remaining area required297 78569.19 Area required that is already protected in conservancies 44 65114.99 Remaining area required253 13558.82 Required area already within the Kogelberg Biosphere Core 34200.08 Remaining area required252 79158.74 Required area protected within biosphere reserve buffer zones 5 15201.20 Remaining area required247 63957.54 OF THIS Area still to be protected that falls within state-owned land 6 18202.50 Area still to be protected that falls within private land241 45797.50

19. Total costs of expanding protected area network

20. Benefits associated with different adaptation options Proteaceae to be Number of conserved speciesMethod No hopers 36Gene/seed banks Persisters181Will adapt to climate change Partial dispersers 81New PA and matrix management Obligate dispersers 18?? Source: Greg Hughes, SANBI

21. Check your understanding of Chapter 9 PASS MARK 80% Please do not proceed further until you have PASSED Chapter 9: test yourself

22. Links to other chapters Chapter 1The evidence for anthropogenic climate change Chapter 2Global Climate Models Chapter 3Climate change scenarios for Africa Chapter 4Biodiversity response to past climates Chapter 5Adaptations of biodiversity to climate change Chapter 6Approaches to niche-based modelling Chapter 7Ecosystem change under climate change Chapter 8 Implications for strategic conservation planning Chapter 9Economic costs of conservation responses I hope that you enjoyed this course on climate change and conservation planning. If you have any queries or suggestions, please email James Reeler.