We have been happy to read the recent news about the recovery of white-tailed eagle. This very large sea-eagle underwent dramatic declines and became extinct in many regions of western, central and southern Europe by the 1970s. After decades of intensive conservation action, the white-tailed eagle population has recovered steadily and it has today re-colonized several traditional breeding areas in Europe. The increase of the population is notable especially in the shores of Gulf of Finland, Gulf of Bothnia, Scotland and Ireland.
Although a story of ultimate success, the rollercoaster type of history of the white-tailed eagle population provides a typical example of the failure of our economic system to internalize changes in natural capital and biological habitat. The history has been frequently repeated. Some 150 years ago, the trend of rapid deforestation and forest degradation was widespread in Europe whereas over the past decades the European forest resources have grown substantially. Currently, it is understood that wood prices form a strong incentive for sustainable forest management and investment. Flourishing silviculture operations only appear in the context of dynamic and transparent markets for wood. Robust market expectations allow forest management decision making based on discounting periods and time horizons ranging over decades to the future. In contrast, the causes for deforestation and forest degradation are frequently found in market and/or policy failures resulting in reduced stumpage values, and effectively in poor return on forestry investments, especially when compared to some alternative land uses.
This report reviews the nature of biological habitat and proposes means to encourage and incentivize the production of a wider portfolio of ecosystem services. The focus is in the attributes facilitating biological habitat and biodiversity as an investable asset class. Ultimately, we need instruments to invest in the conservation of such species as white-tailed eagle.
Dasos report Investing in Biological Habitat and Biodiversity 2017
