Wanglin YAN Keio University JAPAN

1. A Practical Framework for the Assessment and Management of Natural Capital in Qinghai-Tibet Plateau Wanglin YAN Keio University JAPAN

2. Contents • Background and Purposes • Natural Capital as a key concept for Qinghai-Tibet Plateau • Framework designing for assessing and managing Natural Capital • Issues and conditions for implementing the framework in Qinghai • Future works

3. 1. Background and Purposes

4. China’s National Goal • Constructing a somewhat all-out abundant society • National GDP: 4 times by 2020 • =4000US$ per capital • The Western Development Strategy brings a millennium chance for people in Western Regions • A chance which people in western regions have awaited for long. • A challenge which they have never before experienced .

5. Challenges in Western Development • Conflicts between environment conservation and economic development • “Forestation Program” does not insure improvement of peasants’ income and living conditions. • Conflicts between resource development and improvement of life to local people. • Without local industrial bases, resource development may not bring much benefits to local residents

6. Purposes of Our Project • Using Natural Capital as a key concept to build a sustainable development strategy for balancing environment conservation, economic development and improvement of human well-being. • Designing a framework for practicing the strategy. • Clarifying issues and conditions for applying the framework in Qinghai Province.

7. 2. Natural Capital as a key concept for Development

8. Natural Capital Clean air, pure water and fertilized soil etc Total value of ecosystem services supporting lives on the earth Natural Ecosystems must be a fundamental factor in market economy Social Capital Roads, Harbors and Airports etc. Industrial Capital Finance, Factories and Equipment etc. Human Capital Labors, Knowledge and skill etc. Economic Society Nature Clean air, pure water and fertilized soil etc

9. Value of Ecosystem services of the Earth Robert Costanza et al, The value of the world’s ecosystem services and natural capital, Nature, Vol. 387, 253-260, 1997

10. Part of Qinghai-Tibet Plateau as hotspot of Biodiversity of the Earth Source： Hilary French, 2000, Vanishing Borders, A Worldwatch book, Norton

11. The Qinghai-Tibet Plateau, the water tower of Asia Qinghai Qinghai-Tibet Plateau Sichuan Water Heads of Asian Rivers Tibet Yunnan Source: Microsoft Encarta 2003

12. Contrast of the environment in the Plateau

13. Using Natural Capital for conservation and development of the plateau • Huge ecosystem services in fountain regions: Water resources, highland ecosystems, traditional cultures • Natural Capital could be traded in market for fundraising: Trade of natural capital is not the trade of nature itself but natural ecosystem services. • It is a key issue for the plateau to draw out the potential of the ecosystems and make it to be a driving force for social development.

14. 3. Framework Designing for Assessing and Managing Natural Capital

15. Stages Understanding the Ecosystems Assessing the Ecosystem services Making Policies and Legislations Establishing Market Mechanisms Technologies (GIT, ICT) Factors Local Knowledge Scientific Methods (Models) Performance (Multi-Scale) Participation (Network) Basic Considerations Products

16. Ecosystems Services Ecotopes Capital Projections Inventorying Assessing Managing Marketing Processes Media Method Model Mechanism Sensing Overlaying Developing Applying Mapping Zoning Protecting Certifying Procedures Network Interviewing Sampling Restoring Exchanging Documenting Scaling Rebuilding Funding Fieldwork Monitoring Accounting Planning Reinvesting Involvement of Communities, Local and Central Governmental Sectors, World-wide NGOs and Academicians Participation Ecomaps Policies Well-being Spatial Data Products Framework for assessment and management of Natural Capital

17. Features of the framework: Integration • Integration of images, maps, documents, local knowledge by multi-media • Integration of multi-scale scientific methods by zoning, sampling and scaling • Integration of technologies, scientific methods, policy making procedures and market mechanism • Integration of fieldworks for practicing and networks for participating

18. 4. Issues for Implementing the Framework in Qinghai

19. Inventorying the information resources and monitoring the environment • Establishing an innovative inventorying and monitoring systems in the highland with low cost and high performance • modern satellite observation networks • Observing and monitoring the ecosystems in multi-resolution • reasonable ground observation networks • Automatically collecting in situ environment data • grassroots human networks • gathering local knowledge of natural ecosystems and cultures • Receiving contemporary scientific knowledge and information service

20. Integration of geographic information and local knowledge MODIS image SRTM DEM Data Ladnuse map by GRID Local knowledge In situ data

21. Assessing the ecosystem services of the highland • Production services (the highland specific goods) • peculiar plant and animal resources in the highland serving as healthy food and medicinal resources. • Regulation services (balance of water and atmosphere) • ecosystems of the highland control the climate of Asian and impose great impacts on the environment of the planet. • Habitat services (specific biological diversity) • there live a lot of valuable animals and plants which are irreplaceable as genome bank and biodiversity resources. • Information services (culture, religions and tourism) • beautiful natural landscape, various ethnic customs and traditional religious cultures in the plateau are worthy resources of human being and with potential for developing traveling industry.

22. Method for Assessing Ecosystem Services by GIS Study area selection Ecological and geographic information GIS-based operation Output Yokohama City Area: 300km2 Population: 3,000,000 With Green Master Plan Land cover classification Ecosystem services of trees in the city Latest Satellite Images City ecomap Expansion to the city Land use Eco-tope Definition & GIS overlay Vegetation Geology Tsuzuki Ward Area: 25km2 Population: 140,000 With well-designed green matrix Geomorphology Ecosystem services of trees in the ward District ecomap Thematic Maps Expansion to the ward High resolution aero- photograph Inventories of trees Impervious surfaces …. Tracing the canopies and inventorying trees Sample Site: Area: 40ha Population:100 Homogenous land use zone Value of trees in the site Ecosystem services of trees Aero photograph & Field Block ecomap

23. Making policies for conservation and development Ecological systems Information Systems Social Systems Natural Databases ・Satellite images ・In situ data ・Map data Social databases ・Population ・Industry ・Culture Digital Asia Network Ecosystems and Human interaction analysis ・global changes’ impact ・local activities’ impact Understanding the highland ecosystems Understanding the highland social systems Land use simulation Land use allocation ・developing ・urbanization Social renewing Urbanization Ecological Zoning Environment Planning Social Legislation Spatial Planning Public Involvement Restoration Social Development

24. Establishing the mechanism for trading ecosystem services (eg. CO2) Begins from 2005 in Japan Emission right seller Emission right buyer Real emission Goal Overload Emission right Cut Sale Real emission Sale Domestic company A Goal-> Goal Trade companies Cut Real emission Company B aboard Domestic company C

25. China Needs Ecosystem Services Trading Mechanism like CDM? • There exist public consciousness on ecosystem service trading in China. • Central government and eastern people don’t expect production of timber and pasture but ecosystem services of regulation and information. • Who should pay for the costs of afforest in western regions? Without any compensation, why do we ask the western peasants endure the poor living condition. • Ecosystem service trading mechanism will link the constructors of environment and the consumers of ecosystem services. This could increase incentive of people for environment restoration and conservation.

26. 5. Resources and conditions for implementing the framework in Qinghai at present

27. The Peculiar Geographic Location and the Highland Ecosystems • Qinghai has advantages to investigate, to evaluate, and to manage the Natural Capital prior to western provinces and districts. • Nearly half of Qinghai Province is enclosed in Sanjuangyuan Natural Protection Zone. • The vulnerable ecosystems in the highland are not suitable for large-scale industrial development. • Tibetans are not welcome any dramatic changes of lifestyles. • Therefore, searching for ecosystem services trading between the highland and other regions becomes the most reasonable choice for Qinghai, especial the southern Qinghai.

28. Research Resources • Qinghai University, supported by Chinese Ministry of Education, has equipped with basic education and research facilities, and has achieved a workable level in the investigation, management and assessment of the highland environment. • The scientific team of Chinese Academy of Science has investigated the highland for 50 years, and accumulated abundant findings and information on the ecosystems there. • Earth Observation Satellites, Information and Communication Technologies offer systems for investigating and monitoring the wild land in high speed and low cost.

29. Chinese Government’s Supports • A China, opening to the world more and more, secures basic condition for international collaborations. • The Great Western Development Strategy and the desire of Chinese people for having greenery national land promise the possibility for introducing the market mechanism of ecosystem service trading. • Chinese Government and Chinese scientists have engaged in "Millennium Assessment" project. Their experience is helpful for implementing the framework in Qinghai-Tibet Plateau.

30. International Collaboration Network • The international exchanges of Qinghai University are active in recent years • An international network with environmental experts who are willing to contribute to the development and conservation of the highland is established. • This network, correspondent to the calling from the Embassy of China in Tokyo and the auspices of Chinese Education Ministry, is working functionally as a node for assisting Qinghai with resources abroad.

31. Keio University’s COE Project • Keio University, one of the most famous university in Japan has started the project under the auspices of the Japanese Government's 21 Century Center of Excellence (COE) Program, "Policy Innovation Initiative: Human Security Research in Japan and Asia" since 2003, in which the collaboration of China and Japan on environment policy is a key issue in the coming five years. • Even before the COE project, Keio University has done many collaborative works with China such as afforest in Kangping County, Liaoning Province and Tongliao City in Inner Monglia Autonomous District. • These projects aim to assess the effect of absorption of CO2 by afforest and to explore the possibility to build the scheme for economic development by CDM.

32. Networks from Local to International • Counties in the heart of the Plateau • residents, local governments, NGOs • Xining City: • Provincial Government, Qinghai University • Beijing: • Central Government, Chinese Academy, Universities • Japan: • Embassy of China and Keio University • International society • Academic Organizations: UNU in Tokyo, MA • NGOs: ICRSE (USA), Plateau Perspective (Canada), International Experts for Assisting China Western (Japan)

33. Further Actions • Practicing the framework with the support of KEIO’s COE Project • Implementing the framework in local counties and Xining City • Setting up research center in Xining and sub-center in the upper highland, like Zhiduo County

34. You are welcome to join us to practice this new strategy for sustainable development at the unique site on the planet. The Water Head of Yellow River