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PA R T I I I · T H E P R A C T I C E
Lead authors:
ECOSYSTEM SERVICES IN CITIES
AND PUBLIC MANAGEMENT
Holger Robrecht (ICLEI), Leonora Lorena (ICLEI)
Contributing authors: Andre Mader, Elisa Calcaterra, Johan Nel, Marion Hammerl, Faisal Moola, David Ludlow,
Mathis Wackernagel, Anne Teller
Reviewers:
Francisco Alarcon, Marion Biermans, Karin Buhren, Giovanni Fini, Birgit Georgi, Oliver
Hillel, Tilman Jaeger, Wairimu Mwangi, Dominique Richard, Sara Wilson, Karin Zaunberger
Acknowledgements: Nigel Dudley, Alice Ruhweza
Editor:
Heidi Wittmer
Language editor:
Judy Longbottom
Content of this chapter
4.1 Benefits of Including Ecosystem Services in Public Management........................................................66
4.2 Pressure and Potential of Urban Areas................................................................................................69
4.3 Options for Local Managers................................................................................................................72
4.4 Integrated Management for responsible public management...............................................................75
The Integrated Management System (IMS)..........................................................................................75
eco BUDGET .......................................................................................................................................77
4.5 Action Points for Local Governments ..................................................................................................79
For further information.................................................................................................................................80
Key Messages
• Cities depend on nature. Many essential services provided by local governments depend on and
impact the ecosystems around them, either nearby or further afield.
• Nature is good for your budget. Local authorities oversee many crucial public management
processes. Using an ecosystem services approach can provide cost-effective solutions to municipal
service provisioning, such as land use, water and waste management.
• Take less, get more. Increasing urbanization puts pressure on ecosystems and biodiversity. City
managers have the potential to shift to a resource-efficient and low-carbon future by influencing modes
of production, procurement and incentive policies, and consumption patterns.
• There are many ways to make a difference. Local government can act as a role model. It can
promote and set incentives and it can improve regulation. They can take initiative in many key areas –
urban greening, housing, land-use, urban sprawl, solid waste and waste-water treatment, water supply,
energy supply and transport.
• Integration is key. Using an integrated management approach to deliver ecosystem-dependent
services is likely to be most effective. The eco BUDGET tool has been designed to enable the integration
of ecosystem services into decision-making.
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C H A P T E R 4 · E C O S Y S T E M S E R V I C E S I N C I T I E S A N D P U B L I C M A N A G E M E N T
“For too long, we have been of the opinion that there were only two types of capital
for development – financial and human capital, the latter being knowledge, skills,
creativity and education. We have been living in the illusion that there is nothing
like environmental or natural capital, and that we could use the environment, the
environmental capital free of charge. Only now, we can clearly see that this idea is no
longer carrying and not allowing for development processes, too. We have overspent
more than 60 percent of the ecosystem services available, as we luxuriously live
based on economic growth without reinvesting in the natural capital stock.”
Klaus Töpfer, Immediate past Executive Director UNEP, cited in UN-HABITAT et al. 2008
→ Public management is defined as the processes and
procedures used to ensure that public and govern-
mental institutions providing public services fulfill all
their goals and obligations to promote citizens’ well-
being and to manage the → resources available (UNEP
et al. 2001).
This chapter provides an overview of how local
governments can improve their performance, service
delivery and citizens’ well-being by taking into account
→ ecosystem services in public management. It high-
lights the benefits of the ecosystem services
approach (4.1); describes the increasing pressures
on ecosystems in a rapidly urbanizing world whilst
exploring the potential of urban areas to more
efficiently manage resources (4.2). Local govern-
ments’ options to act as linked to ecosystem services
are discussed (4.3) and tools for integrating ecosystem
services into public management through an integra-
ted management approach using eco BUDGET as
an example are presented (4.4).
For the purpose of this chapter, focus will be put on
local governments, although in many countries, a
higher level of government (province or state) has more
influence on certain areas of public management.
Political parties may differ in the way they address local
governance, with some mandates resting at Ministry
level, but overall, there is a clear trend towards growing
decentralization and local capacity building (‘localiza-
tion’ of mandates).
4.1 BENEFITS OF INCLUDING ECOSYSTEM
SERVICES IN PUBLIC MANAGEMENT
Local government leaders and city managers all
around the world are constantly working to improve
their citizens’ quality of life . In so doing, they face
the ongoing challenge of how to provide municipal ser-
vices with increasingly scarce resources (human, finan-
cial and natural) and to address issues of → poverty ,
unemployment, and inadequate living conditions.
housing uses natural resources in construction. There
are also costs to the ecosystem: → biodiversity and
natural habitats are separated or lost; additional
inhabitants convert more fresh water into sewage and
increase air pollution. Clearly, municipal action always
has implications both on ecosystems and their
services. Policy makers often neglect that implemen-
tation of their decisions not only requires skilled human
and financial resources, but also natural resources and
ecosystem services (UN-HABITAT et al. 2008). Parti-
cularly during economic and financial crises, local
governments try to reduce costs of their service
Whether nearby or further afield, the natural capital
from → ecosystems contributes to delivering muni-
cipal services . A new road requires raw materials and
land; a new well provides drinking water; and new
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C H A P T E R 4 · E C O S Y S T E M S E R V I C E S I N C I T I E S A N D P U B L I C M A N A G E M E N T
delivery, and foster economic prosperity in the area –
often without reinvesting in nature.
Biodiversity Index (Box 4.7).
• Reducing public management costs – local
governments work with limited budgets and need
to find the most cost effective solutions to provide
their municipal services. Some services (see
section 4.2), such as water supply and water
treatment, are highly dependent on healthy eco-
systems. Investment in natural capital and ecosys-
tem-based approaches, for example, green infra-
structure, can be cost-effective, when compared
with man-made solutions. Water treatment (Box 4.1
and TEEBcase Water fund for catchment manage-
ment, Ecuador) flood protection, climate regulation
are some obvious examples.
Through public management interventions, local
governments can diminish, maintain, or increase the
provision of ecosystem services in their administrative
area. Assessing ecosystem services and the bene-
fits they provide in public management is an im-
portant step to identify cost-effective management
options. Such assessments can help to identify inter-
ventions aiming at (re-)investing, maintaining and
restoring natural capital and the ecosystem services it
provides that will pay off and help decision makers
improve local wellbeing. Ideally, a municipality should
base its development and the wellbeing of its citizens’
on its own, local resources, hence decreasing its
dependence on those further away. Benefits of an eco-
system services based approach to public manage-
ment include:
• Fostering economic growth in the area – by
emphasizing local ecosystem services and devel-
oping policies to support them, local governments
can sustainably enhance these services and foster
economic prosperity. A healthy and safe envi-
ronment is likely to attract business and industry with
its commensurate job opportunities and wealth
creation. The beverage industry, for example,
depends on the supply of freshwater. Agribusiness
relies on nature’s pollination, pest control, and
erosion control services while the tourism industry
benefits from this ecosystem’s recreational value.
→ Ecotourism is a fast-growing sector which gene-
rates significant employment and opportunities for
local development (see Chapter 5 Section 4).
Building green infrastructure (green roofs, green
spaces) will provide jobs as well as improve air
filtration, CO 2 sequestration and energy saving.
Växjö, Sweden has been successful in sustainably
managing its ecosystems and fostering growth
(see Box 4.9).
• Enhancing citizens’ quality of life in urban areas
– a city with a healthy environment provides a higher
quality of life for its citizens. Locally generated
ecosystem services, such as air filtration, micro-
climate regulation, noise reduction, rainwater
drainage, sewage treatment, and recreational and
cultural services, have a substantial impact on
→ human well-being in urban areas (Bolund and
Hunhammar 1999). By developing strategies (in
urban planning, housing, transport) for maintaining
or enhancing local ecosystems to provide services
in urban areas, local governments can also safeguard
the environment for future generations, and profile
their city as a sustainable one. Examples include
the Toronto Green Belt (TEEBcase Economic value
of Toronto’s Greenbelt, Canada), a whole variety of
green planting initiatives (Box 4.5) or Singapore
Box 4.1 Natural vs man-made? Wastewater treatment in Uganda
The Nakivubo Swamp in Uganda provides not only wastewater purification of Kampala’s sewage but also
nutrient retention. The results of an economic evaluation comparing this natural effect with manmade
solutions showed a high economic value between US$ 1 million and US$ 1.75 million a year, depending
on the economic analysis method used. Furthermore, the Wetlands Inspectorate Division and IUCN
showed that a sewage treatment plant would cost over US$ 2 million to maintain each year. Not only
was the cost of expanding the sewage treatment plant greater than the value of the wetland, there were
associated costs to livelihoods.
Source: Protected wetland for securing wastewater treatment, Uganda. TEEBcase based mainly on Lucy Emerton et al. (see TEEBweb.org)
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C H A P T E R 4 · E C O S Y S T E M S E R V I C E S I N C I T I E S A N D P U B L I C M A N A G E M E N T
• Reducing poverty – there is a clear connection
between livelihoods and ecosystems, which in the
case of the poor is even more direct. Natural
resources are a basic source of their income
generation. Enhancing local ecosystem services can
help reduce poverty and provide the basic needs of
citizens. In rural areas the poor rely directly on
ecosystems for food, water and fuel. Though less
pronounced, the same holds true for many cities.
Moshi in Tanzania, is introducing energy efficient
stoves to save the forest on the slopes of Mount
Kilimanjaro. Nature in cities can also offer income
opportunities: local people in South Africa have
been trained to manage Pilanesburg National Park,
which, with its unique wild-life, is also a tourist
attraction.
areas. Examples exist from the timber industry and
forest management in Brazil: in order to deal with
its ecological footprint, the city of Sao Paulo has
adopted a policy about using certified timber which
is having an immediate positive impact on the
Amazonas. Aichi Prefecture, Japan, has established
a tap water fee in order to pay for sustainable forest
management practices (TEEBcase Water fee for
forest management, Japan).
• Becoming a political frontrunner – local gov-
ernment pioneers get recognition. Cities that have
been proactive in protecting their ecosystems and
halting biodiversity loss are internationally
renowned (Boxes 4.3 and 4.6).
Box 4.3 Cities taking part in Local Action
for Biodiversity (LAB) initiative
• Protecting against environmental disasters – a
range of ecosystems act as important buffers for
natural hazards, mitigating the damage caused by
extreme events such as floods, droughts and land-
slides. These events are increasing in intensity, as
well as frequency, due to climate change (see
Chapter 5.5 and Box 6.5). There is an increasing
number of examples. Kumamoto City, Japan, for
instance, has established a payment scheme for
returning ‘used’ groundwater by flooding agricultural
land between crop cultivation periods (TEEBcase
Payments for ground water recharge, Japan). Another
interesting example of ecosystem based climate
adaptation comes from Mumbai, India (Box 4.2).
With the aim of strengthening biodiversity ma-
nagement 21 pioneering local governments from
around the world piloted LAB. Between 2006 and
2009, they took part in a coordinated process
of biodiversity assessment, planning and imple-
mentation. This was underpinned by political
commitment through the signing of the internatio-
nally-recognized Durban Commitment. The LAB
initiative represents a partnership between ICLEI –
Local Governments for Sustainability and IUCN –
the International Union for Conservation of
Nature.
Source: Local Action for Biodiversity, www.iclei.org/lab
Box 4.2 Flood mitigation in Mumbai, India
During an unprecedented monsoon rainstorm in
July 2005, almost a meter of rain fell on Mumbai,
India, a city with a population of 19.8 million. Severe
flooding resulted, and over a thousand people lost
their lives. But loss of life and property damage
could have been much greater had it not been for
104 km 2 Sanjay Gandhi National Park, which lies
entirely within the city limits. The heavily forested
park absorbed much of the rainfall.
Source: Trzyna 2007
• Alleviation of pressures on the resource base of
other regions, ensuring the future provision of
services from areas beyond city administrative
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C H A P T E R 4 · E C O S Y S T E M S E R V I C E S I N C I T I E S A N D P U B L I C M A N A G E M E N T
4.2 PRESSURE AND POTENTIAL
OF URBAN AREAS
“The global effort for sustainability will be won, or lost, in the world’s cities, where
urban design may influence over 70 percent of people’s Ecological Footprint. High-
Footprint cities can reduce this demand on ecosystem services and natural capital
greatly with existing technology. Many of these savings also cut costs and make
cities more liveable.”
Wackernagel et al. 2006
Cities are growing in size, population and economic
power. More than half of humanity lives in cities,
which occupy only 2% of the world’s land
surface, yet are responsible for 75% of the
world’s natural resources consumed, and waste
produced (Klein Goldewijk and Van Drecht 2006 in
OECD 2008). This trend of global urbanization is
increasing and within the next two decades, 60% of
the world’s population will reside in urban areas
(UN-DESA 2007; UN-DESA 2008).
patterns into the surface area needed to sustain the
urban consumption, strives to present an indication
of this phenomenon. Many cities’ Ecological Footprint
greatly exceeds their territory. In Greater London,
the Ecological Footprint was 49 million ha at the
Millennium, which is 42 times its biocapacity and 293
times its geographical area (IWM 2002). Cities in
developing countries will increasingly face similar
challenges: Lagos, Bangkok, Guayaquil are following
this trend already.
In this scenario, decision makers in developing
countries may play an even more critical role than their
counterparts in developed ones, when it comes to
sustainable use of ecosystem services and biodiversity
for development. There are two reasons for this: a)
93% of urbanization is expected to occur in devel-
oping countries (UNFPA 2007) and b) although often
aware of biodiversity issues, municipalities in the South
may be more constrained than their Northern coun-
terparts to manage biodiversity and ecosystem issues,
both in terms of their capacity and support from their
national authorities. This is highly relevant considering
that the majority of the world’s biodiversity is con-
trolled by developing countries.
Cities deplete natural resources such as forests,
agricultural land, water, air to provide for con-
sumption needs of their inhabitants, as well as
demands for municipal infrastructure developments,
purchasing decisions and service delivery. According
to OECD and IEA (2008), cities globally consume
67% of energy and at the same time emit 70% of
greenhouse gases (Figure 4.1). Waste, pollution, and
emissions produced affect not only city surroundings
but are transported to other regions and can cause
global impacts.
This concentrated demand makes cities ripe for a
global paradigm shift to a resource efficient and low
carbon future (Uhel and Georgi 2009). Cities have the
potential to manage resources more efficiently and
protect ecosystem services. They could delink urban
development from resource consumption (less living
space and less energy for housing and transport per
person). For instance, increasing green spaces in cities
would increase quality of life, while contributing also to
CO 2 sequestration and thus climate change mitigation.
At the same time, urban development and the urban
environment cannot be seen in isolation from each
other. Growing cities and changing lifestyles require
an increasing quantity of natural resources for their
production and consumption needs, which are sup-
plied from rural and remote areas. The ‘Ecological
Footprint’ – an → indicator that translates consumption
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