POLICY BRIEFING The Natural Choice: Securing the Value of Nature - Government White Paper on the environment

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1 The Natural Choice: Securing the Value of Nature - Government White Paper on the environment Date: 14 June 2011 Author: Steven Bland, LGiU Associate Overview White paper at a glance Number of individual commitments made: 92 Financial commitments made 1m one off fund to support development of Local Nature Partnerships 7.5m to fund identification of 12 Nature Improvement Areas 1.2m for a national biodiversity network and biodiversity recording in the voluntary sector 210,000 for a series of case studies to apply TEEB principles to the development of national strategic biodiversity plans New partnerships, bodies, committees Local Nature Partnerships Creation of a network of 50 Natural Value Ambassadors Task force on the phasing out of domestic peat 10 catchment-level partnerships on maintaining healthy water bodies Natural Capital Committee reporting to Economic Affairs

2 Cabinet Committee Business-led Ecosystem Markets Task Force Green Infrastructure Partnership Love Where You Live initiative (litter, summer 2011) Ecosystems Knowledge Network Following a large consultation exercise in which over 15,000 submissions were received, the government has published its first environment white paper in 21 years. The paper was published to relatively little fanfare on the Defra website after an announcement in Parliament on Tuesday 7 June. Defra did not conduct a press conference or briefing for journalists to discuss the white paper. The Natural Choice: Securing the Value of Nature makes the case for the economic valuation of the services natural systems provide to our society, and for these values to be properly accounted for in economic decision making. It outlines a vision for the UK in which, by 2020, biodiversity loss will have been halted. It advocates a landscape scale ecosystems-based approach to restoring degraded habitats in rural and urban areas, creating a resilient national ecological network. The white paper could potentially make an important contribution - it recognises some major international trends and latest research in our understanding of the relationship between humans and nature. The financial valuation of natural capital, the links between a functioning natural environment and people s well-being, especially health, and landscape-scale interventions are all becoming well established priorities around the world. The white paper s policy approach is one of decentralisation to the local level, partnerships and voluntarism. As a result, the white paper provides some new opportunities for the involvement of proactive local government to drive a change in approach to planning, land-use and nature protection at the local level. The white paper sets out a bold vision but lacks a credible action plan to reach that vision. Announcements are not reinforced by new regulatory announcements or significant new financial commitments. There appears to be a lack of crossgovernmental inclusion for delivery. The White Paper focuses on three key themes: Protecting the natural environment, Growing a green economy, and Reconnecting people and nature. This briefing will analyse each theme, and three major new policy announcements: the creation of Local Area Partnerships, Nature Improvement Areas and a pilot

3 for a nationally coherent system of Biodiversity Offsets as part of wider planning reforms. The briefing will focus throughout on the role and opportunities for local government presented in the white paper. Key terms Ecosystems Services: The products of natural systems from which people derive benefits, including goods and services, some of which can be valued economically, and others which have a non-economic value. Examples include timber, soil, clean water and air and a regulated climate. Natural Capital: The stock of physical natural assets which provide flows of services that benefit people. Some have been financially known for centuries (timber), others are still only just being understood (pollination). Green Economy: An economy that results in improved human well-being and reduced inequalities over the long term, while not exposing future generations to significant environmental risks and ecological scarcities."unep, 2010, Green Economy Report: A Preview Briefing in full Introduction We will put natural capital at the centre of economic thinking and at the heart of the way we measure economic progress nationally (Pg 4) The White Paper responds to and is heavily influenced by two major recent research documents. The first is the National Ecosystems Assessment (NEA). After the publication of The Economics of Ecological Biodiversity (TEEB) study, the UK is the first country to publish a national account of the economic value of all the goods and services nature provides. The NEA reported that 30 per cent of these ecosystem services are in decline. One in six local authorities also reported to the NEA that their urban green space was in decline. The NEA valued the benefits nature brings to the UK economy, currently not accounted for in GDP and economic cost benefit analysis, at billions of pounds. It is argued that if nature is to be conserved, it must be valued financially. One example given is the market failure of a loss of green urban spaces. Between ,000 playing fields were lost in urban areas. The NEA suggested the amenity value of green urban space could be increased by 2-4 billion a year, yet this is currently not reflected in the land market. The Lawson report Making Space for Nature also heavily influences the white paper. This report highlighted the fragmented nature of the natural spaces across the country, and how ecosystems in the UK are not resilient to disruptions such as

4 climatic changes. A joined-up, integrated approach to ecosystems management and biodiversity conservation is required, summed up by the words: More, Bigger, Better, Joined. These two fundamental approaches, of the financial valuation of nature and a landscape-scale and ecosystems-based understanding, underlie the white paper s arguments. Three Key Themes 1. Protecting the natural environment In this section, the government outlines its vision for nature in the UK by 2020, arguing that: The NEA provides compelling new evidence on the need to value nature properly By 2020 biodiversity loss will have been halted, with 90% of priority wildlife habitats in recovering or favourable condition, covering an additional 200,000 hectares. The government announces three of its new initiatives (discussed below) and outlines its approach to conserving the various ecosystems of the country. Other significant new announcements include: The creation of ten catchment-level partnerships to develop plans for effective maintenance and restoration of water bodies. A target to eliminate peat use by 2030, through voluntary agreements with businesses and consumers. 2. Growing a green economy In this section, the government announces some key national policy drivers to help create a green economy, arguing that: There is no longer an inherent conflict between economic growth and environmental sustainability. Protecting the environment provides business with new opportunities for growth. That regulation should only be used where necessary and only where success cannot be achieved by other means. (Pg 38) The government announces a series of national commitments, including: An aim to include natural capital in the UK environment accounts by 2020, with changes by A new Natural Capital Committee reporting to the National Economic Cabinet Committee. A Green Economy Council led by businesses.

5 3. Reconnecting people and nature In this section the government highlights the synergies between nature conservation and wellbeing, arguing that: Less outdoor activity and reduced contact with nature have negative consequences for public health and society. (Pg 45). People lower down the social scale are more disadvantaged in their access to high quality natural environments. The Big Society will be important in protecting and improving the natural environment. The government focuses on health, education, access to green space and volunteering. Specific announcements include: An encouragement for Local Nature Partnerships to work together with Health and Wellbeing Boards set up in the Health White Paper. Directors of public health employed in upper tier and unitary local authorities from 2013 will be in a good position to join up action on access to the environment and public health. A removal of barriers to outdoor learning. 1.2 million to create a new national biodiversity network to boost volunteering. Three major new initiatives 1. Local Nature Partnerships (LNPs) The government has announced a voluntary partnership approach to tackling biodiversity loss. LNPs would work at a strategic scale - it is envisaged around 50 could be created across the country, spanning administrative boundaries. The partnerships would aim to bring together all relevant local actors, including local government, statutory authorities, businesses, civil society, land managers and community representatives. The role of the LNP would be to suggest measures to improve the local ecological network, co-ordinate action among representative organisations, and contribute to local development plans. A strong link up with Local Enterprise Partnerships is encouraged to drive green growth locally. LNPs fit with the government s Big Society vision: they are voluntary communities of non-state actors working locally. The LNPs are supported by 1m to initiate their development, but it is not yet clear in what form this money will be available or spent, and if local government will be able to use it to help cover set-up costs. For local government, the LNPs are an opportunity to take the lead in establishing a diverse partnership of local organisations to work strategically to create space for nature at a local to regional scale. The LNP initiative lacks detail, and a key question would be to what extent it builds on and complements existing biodiversity partnerships that include local government

6 and other local organisations created to enforce local Biodiversity Action Plans. A lack of priority and funding being given to BAPs has seen them become less able to join-up thinking on planning, land-use and biodiversity protection in some local governments. It remains to be seen if LNPs will successfully overcome the challenges faced by existing biodiversity partnerships. 2. Nature Improvement Areas (NIAs) Building on the Lawson report s call for a joined-up approach to nature conservation, the government s second major initiative aims to set-up ecological restoration zones over large areas. The government provides its biggest injection of new money for this initiative, with 7.5m promised over the current spending review period. Natural England will conduct a competition to identify 12 initial NIAs. Local government will have a big role to play in the designation and administration of NIAs, giving them a new policy handle to influence local land-use planning. The white paper envisages that local government would use local planning laws to identify NIAs while not deterring sustainable development. Planning reforms (discussed below) are designed to enable local government to plan strategically for nature conservation. However, funding for action will have to be found from existing sources of revenue, with government offering support where joint priorities have been agreed which meet national and local needs (Pg 21). 3. Biodiversity offsetting pilot The government aims to use planning reform to enable local government and communities to effectively protect nature. A significant new initiative is the invitation to local government to participate in a voluntary pilot of biodiversity offsetting. Offsetting would require developers to compensate for any biodiversity losses incurred through local development. Local authorities are invited to participate in a two year pilot from Those participating would work with developers to encourage them to meet their biodiversity planning policy requirements by using the offsetting mechanism. After 2014, a review will determine if biodiversity offsetting provides a viable method of generating synergy between local development processes and the maintenance of a natural network of connected ecosystems. 3.b Wider planning reforms The white paper makes few new planning reform announcements, but suggests ways in which existing reforms currently being included in the National Planning Policy Framework and Localism Bill could be used to enable local government and communities to better manage and protect the local environment: The Green Areas Designation in the localism bill would enable local people to protect green spaces which complement and do not undermine investment in homes, jobs and other essential services (Pg 50).

7 A green infrastructure partnership will be developed to work with local government and local people to support the development of green infrastructure ( the living network of green spaces ) in both urban and rural areas. The government will work together with local government to identify and protect urban quiet areas. Ones to watch future reports and publications planned New National Biodiversity Strategy (2011) Sustainable Lifestyles Framework (summer 2011) Change4Life campaign re-launch (summer 2011) Water White Paper (late 2011) Roadmap to a Green Economy (late 2011) Natural Capital Asset Check ( ) New guidance to businesses on environmental reporting and measuring (2012) Other relevant announcements There are a number of other announcements relevant to local government: New tools and guidance will be forthcoming for local government in order for them to understand their statutory duty to take account of the conservation of biodiversity. A consultation is planned on new measures to reduce the reporting burden for local government on local air quality management duties. The Environment Agency, Natural England and Forestry Commission will provide a unified and authoritative source of advice to local government. Analysis: The Role of Local government in nature conservation Local Government s role in the white paper could be summed up with three words. Partnerships Local authorities are not given any additional regulatory requirements, instead encouraged to play a key role in new partnerships and voluntary initiatives. Planning NIAs, biodiversity offsets, and new powers in the localism bill all point to the primacy of planning in local nature protection. Local government is clearly expected to use new powers and responsibilities to drive nature protection at the local level. Provision The role of green urban and rural space is highlighted and local authorities are encouraged to make the connection between people and nature by providing local people with the opportunity to engage in and experience nature, for the benefit of local health and well-being.

8 Comment Diagram source: White Paper 2011, page 18 Does the white paper do enough to realise this vision of a national network of connected ecological areas? The first underlying approach of the white paper - of properly valuing the contribution ecosystems provide to our economy and society - shows how far our understanding of environmental issues has come in the past 21 years, and should be welcomed. Though not without its moral and practical risks, environmental accounting is likely to become more advanced in the coming years, and represents the only viable way for the environment to be properly taken account of in decision making. The second underlying approach - of a systems-based, landscape-scale approach should also be welcomed. It recognises that isolated protection of biodiversity assets is not sufficient. Despite this strong theoretical underpinning, the white paper appears to be extremely policy light, and the meagre financial and policy options put forward seem at odds with the scale of the vision outlined by the white paper itself. The paper also fails to outline how the complex issues of short-term decision making, land-use change and conflicts between urban development and nature protection could be resolved.

9 Implementation of the more substantive policy goals, such as the creation of a green economy, will require significant cross-departmental collaboration. Yet there is little or no mention of the role different departments will play in implementation. The lack of a foreword by the Prime Minister or his Deputy, and no press release or public Q and A by Minister Caroline Spelman suggests a lack of strategic importance being placed on the white paper by the government as a whole. For local government, the white paper presents no new regulatory requirements. The decentralisation agenda once again provides some new opportunities to build a local response to biodiversity losses and to build local partnerships for action. However, without significant funds or incentives, the question remains if the LNPs and NIAs can really create the sea change that is required, and only time will tell how many local authorities will take up the opportunity to play a leading role in these new partnerships and planning mechanisms. Without a strong regulatory framework that deals with the substantive issue of natural resource governance, land-use change and the barriers to long-term decision-making that favour sustainability, the measures in the white paper are unlikely to enable the government to live up to its own expectations and vision for a connected network of resilient ecosystems across the UK, unless further innovations and incentives are developed. For more information about this, or any other LGiU member briefing, please contact Janet Sillett, Briefings Manager, on janet.sillett@lgiu.org.uk