Natural Ecosystem Goods and Services

Introduction

Let’s start with a simple question:
👉 Why should we conserve nature?

Many people say, “Because it’s beautiful.” True — but beauty doesn’t make policy.
The real reason is that nature continuously works for us — free of cost.

From purifying air and water to pollinating crops, stabilising climate, and even providing medicines — ecosystems are our invisible life-support systems.
These are called Ecosystem Services.
And the tangible materials we directly obtain — like fruits, timber, or fish — are called Ecosystem Goods.

🌱 What Are Ecosystem Goods and Services?

Ecosystem Goods:
Natural products we harvest —
🌰 wild fruits, 🍂 nuts, 🌾 timber, 🐟 fish, 🪵 fibre, 💊 medicinal herbs, etc.
Ecosystem Services:
The functions and benefits that natural systems provide to sustain life —
e.g., air purification, pollination, flood control, climate regulation, etc.

🌍 Classification of Ecosystem Services

To make it easier to study and measure, scientists and economists classify them into five broad categories:

Type	Meaning	Examples
Cultural Services	Non-material benefits enriching human life	Tourism, recreation, spiritual value, education
Provisioning Services	Tangible goods provided by nature	Food, water, timber, biomass energy, medicinal herbs
Economic Services	Basis of income and raw materials	Crops, fisheries, minerals, industrial raw materials
Regulating Services	Processes that maintain balance	Carbon sequestration, flood control, decomposition, biodiversity, climate stability
Ecological Services	Natural ecosystem functions	Nutrient cycling, soil formation, breakdown of pollutants, flood protection

Think of it this way —

🌾 Provisioning gives you the products,
🌧️ Regulating maintains stability,
💰 Economic gives value,
🧘 Cultural provides meaning, and
🌱 Ecological sustains life.

💰 Ecosystem Valuation — Putting a Price on Nature

One major problem with modern economics is that nature’s services are free, so we undervalue them.
Ecosystem valuation tries to fix that.

💡 Definition:

Ecosystem valuation is a method to assign a monetary value to the goods and services that ecosystems provide.

📊 Why is it important?

Because it helps policymakers perform a cost-benefit analysis before making decisions.

👉 Example:
If a forest is cleared for industry — it gives employment and income.
But if you calculate the value of the same forest —

It prevents floods and soil erosion
Absorbs carbon dioxide
Provides habitat for species
Filters pollutants
— the net gain may actually be negative.

Hence, ecosystem valuation ensures environmental costs are visible in economic planning.

🌏 The Economics of Ecosystems and Biodiversity (TEEB)

🧠 Background:

Initiated by UNEP
Led by Indian economist Pavan Sukhdev
Aim: To make nature’s value visible in policy and economy.

🎯 Objectives:

Create global standards for natural capital accounting.
Integrate ecosystem values into decision-making at all levels.
Highlight the cost of biodiversity loss.

💎 Key Concept: Natural Capital

Just like financial capital (money), nature is also capital —
because it provides ongoing returns in the form of ecosystem services.

Example:
🌊 Mangroves protect coasts from floods → this is a natural capital asset worth billion.

💸 Payment for Ecosystem Services (PES)

Let’s simplify this concept.
Imagine someone protects a forest instead of cutting it. They are providing a service to society — clean air, water, and carbon sequestration.
Shouldn’t they be paid for it?

That’s the principle of Payment for Ecosystem Services (PES).

🇮🇳 Indian Example: The Himalayan States

Himalayan states (like Uttarakhand, Himachal Pradesh, Sikkim) maintain vast forests that act as carbon sinks and water towers for India.
They’ve demanded a “Green Bonus” for conserving these ecosystems.

💰 Finance Commission Initiatives

13th Finance Commission: ₹5,000 crore allocated to states based on forest cover and canopy density.
14th Finance Commission (2015–20): Forest cover given 7.5% weight in tax devolution formula.
15^th Finance Commission (2021-26): “Forest & Ecology” given 10% weight
- Replaced “forest cover” with broader “forest & ecology” criterion — recognizing multiple ecosystem services, not just area under forest.

🌲 Key Ecosystem Contributions of Himalayas

Forests cover 41.5% of their area (⅓ of India’s total forest cover).
Provide ecosystem services worth ₹94,300 crore per year.
Store 5.4 billion tonnes of carbon.
Prevent soil erosion and regulate water flow — 1,200 billion cubic metres of water flows annually through Himalayan rivers.

So, Himalayan states act as India’s ecological backbone, yet get limited financial recognition — hence the call for PES.

🌐 Global Initiatives

🏦 Nagoya COP 2010 (CBD)

Recognised ecosystem goods as part of national economic accounts — integrating environment into GDP.

🌳 Amazon Fund

Backed by Norway and Germany (under REDD+ mechanism).
Aim: To fund projects preventing deforestation and promoting sustainable development in Brazil.
Managed by the Brazilian Development Bank.

📗 Gross Environment Product (GEP) and Green GDP

💰 Gross Environment Product (GEP)

Measures the value of ecosystem services (in biophysical and monetary terms) in a region.
Example: Uttarakhand government has initiated valuation of its natural resources as GEP.

🌱 Green GDP

Incorporates environmental costs into traditional GDP.

🧮 Formula:

Green GDP = GDP – Net Natural Capital Consumption
(where consumption = resource depletion + environmental degradation)

It’s basically the “true GDP” after subtracting ecological damage.

Example:
A country that grows economically by polluting rivers is not truly developing — Green GDP corrects that illusion.

🇧🇹 Global Inspiration: Bhutan’s GNH

Bhutan uses Gross National Happiness (GNH) — integrating culture, society, economy, and environment in development.
It inspired India’s move toward GEP and Green GDP.

🌊 Ecosystem Services by Seagrass

Let’s now look at a beautiful but lesser-known ecosystem — Seagrass meadows.

🌾 What is Seagrass?

Contrary to the name, it’s not grass — it’s an aquatic flowering plant (angiosperm).
Found in shallow salty and brackish waters worldwide.
In India, found along entire coastline, especially in Palk Strait and Gulf of Mannar.

🌍 Importance of Seagrass Ecosystems

Function	Explanation
🌿 Ecosystem Engineers	Modify and stabilize their surroundings; support life.
🐄 Habitat for Dugongs (Sea Cows)	Dugongs, a Vulnerable species, depend on seagrass for food.
🌬️ Carbon Storage	Stores 3× more carbon than rainforests per acre! Contributes 10% of oceanic carbon burial.
🐟 Biodiversity Hotspot	Acts as nursery grounds for fish and marine life.
🌊 Coastal Protection	Dissipates wave energy → prevents erosion and protects seawalls.
💧 Water Purification	Traps pollutants, heavy metals, and nutrients → prevents eutrophication.
🚜 Human Utility	Collected as fertiliser in sandy soils.

⚠️ Threats to Seagrass

Cause	Effect
🌪️ Natural Disturbances	Storms, grazing, drying (desiccation).
🧍 Human Activities	Overfishing, habitat destruction, nutrient pollution (eutrophication 👇).

🧪 Eutrophication Explained

Occurs due to excess nitrogen and phosphorus from fertilizers and sewage.
Encourages algal blooms that block sunlight.
Leads to low oxygen (anoxic) conditions → seagrass and marine life die.

🌿 Ecosystem Services by Seaweed

Let’s now understand the difference —
🌾 Seagrass = flowering plant (has roots, stems, leaves)
🌊 Seaweed = primitive plant-like algae (no roots or vascular system)

🌱 What Is Seaweed?

Includes both microalgae (like phytoplankton) and macroalgae (like kelp).
Found in shallow intertidal waters, estuaries, and backwaters.
Some, like giant kelp, form underwater forests.

🧬 Importance and Uses of Seaweed

Category	Contribution
🍽️ Nutritional	Rich in vitamins, minerals, and fibre; contains anti-inflammatory and anti-cancer compounds.
🧴 Industrial	Used in toothpaste, ice cream, jellies, cosmetics (as emulsifiers and softeners).
🌊 Environmental	Absorbs excess nutrients and heavy metals; prevents algal blooms.
🪸 Ecological	Supplies oxygen, creates kelp forests that serve as marine nurseries.
🌍 Climate Role (OMA)	Seaweed farming under Ocean Macroalgal Afforestation (OMA) absorbs CO₂ efficiently and can produce biomethane.
🐄 Agriculture & Livestock	Used as fertiliser and reduces methane emissions from cattle.
🏖️ Coastal Protection	Helps combat beach erosion.

🇮🇳 Seaweed Potential in India

India is a mega-biodiversity nation with a 7,500 km coastline and 2.17 million km² EEZ.
Around 844 seaweed species found.
Major regions:
- Tamil Nadu (Gulf of Mannar, Pulicat)
- Gujarat coast
- Lakshadweep
- Andaman & Nicobar Islands
- Lake Chilka (Odisha)

⚠️ Challenges in Seaweed Cultivation (India)

Challenge	Impact
👷 Labour shortage	Especially during paddy season
💸 Low wages	Livelihood insecurity
🌊 Weather dependence	Storms and tides disrupt harvesting
🧪 Technological gap	Limited value-added processing
📚 Lack of awareness	Market and health benefits poorly known
⚠️ Over-exploitation	Excessive harvesting, little cultivation
🪙 Low market demand	Nutrition and industrial uses underappreciated