Putting an economic value on the Kaimai Mamaku diverse ecosystems
Bay of Plenty Regional Council, in collaboration with Waikato Regional Council and Manaaki Kaimai Mamaku Trust (MKMT), has released a report on the economic value of ecosystem services provided by the Kaimai Mamaku Forest.
Bay of Plenty Regional Council CEO Fiona McTavish says this report emphasises the importance of maintaining and enhancing these services, which are crucial for environmental health and economic wellbeing.
“This report provides an understanding of the economic value of the Kaimai Mamaku environment. This is yet another indicator of the benefit of natural capital, in a language that businesses can understand.”
What is the report about?
Building on a 2010 Department of Conservation (DOC) publication that valued the ecosystem services of areas within the Tauranga Harbour catchments, this newly released report estimates the economic value of ecosystem services provided by a 260,000-hectare area, particularly within the Kaimai Mamaku conservation park.
MKMT CEO Louise Saunders says, “This report paints a clear picture of why businesses need to invest in the ecosystems they rely on.”
Why is this report important?
Natural capital is the stock of natural assets which includes geology, soil, air, water and all living things. The variety within and between these is known as biodiversity.
Like other forms of capital (such as buildings or skills), natural capital can depreciate over time if we use it without taking care of it. Therefore, we need to invest in it to keep getting the benefits.
A simple analogy is to think of natural capital like a house: Once established or restored, it requires investment to maintain its value.
Ms McTavish says this report highlights the need for ongoing financial support to ensure natural capital and regional biodiversity is not lost.
“Failure to invest in these ecosystems can lead to irreparable degradation of critical services (such as water purification, pollination and climate regulation), which can have significant impacts to business and communities (such as loss of resources or higher costs for alternatives).”
Ms Saunders adds, “We often speak about the cultural, social and environmental benefits of natural capital, but these benefits are often discounted or excluded in financial decisions. This report provides a tool for including nature in business decisions.”
It also provides estimated values of the non-market benefits readily comparable to those of market goods.
Key findings from the report
- The Kaimai Mamaku Restoration Project area, which spans nearly 260,000 hectares, is diverse and dominated by three ecosystems – indigenous forest, exotic forest and pasture.
- The annual value of ecosystem services provided by the project area is estimated at about $568M (about $2,180 per hectare).
- Ecosystems generate a range of benefits, which are known as ‘ecosystem services’ and broadly fit into four different categories: supporting services (e.g. pollination), provisioning services (e.g. water supply), regulating services (e.g. flood regulation, water purification), and cultural services (e.g. recreation, cultural practices).
Regional Council is committed to supporting biodiversity and achieving its community outcome of ‘a healthy environment’. This involves ensuring that the region's diverse physical environments and natural ecosystems are in a healthy state.
The report is part of a broader effort to support conversations and actions that enhance and restore biodiversity.
Find out more about biodiversity in the region.
Note: This valuation, like other non-market valuations, has limitations. The results should be viewed as a partial estimate of the total economic value of the ecosystem services in the Kaimai Mamaku Restoration Project area.
Image credit: Cam Neate, supplied by Manaaki Kaimai Mamaku Trust
Image credit: Cam Neate, supplied by Manaaki Kaimai Mamaku Trust