Many components of biodiversity have values that bear characteristics of “public goods”, including the key characteristic of public goods that nobody can be excluded from their use. As markets cannot develop for public goods, the value of these biodiversity components will not be reflected in a market price. Consequently, the prices of many marketed goods and services will not adequately reflect the essential role of biodiversity in their production.

Eliciting this “hidden” value of biodiversity through appropriate valuation tools is an important component of policies that aim to correct the incentives of societal actors. It is not only an important precondition to the internalization of this value in the decision-making of these actors, but can also act as an incentive measure in its own right, because it raises awareness among these actors of the hidden values of biodiversity.

Overview of CBD Activities

The importance of valuation was repeatedly underlined by the Conference of the Parties, and the assessment of the values of biodiversity, as appropriate and applicable to the circumstances of the Parties, is an activity under the programme of work on incentive measures adopted by the Conference of the Parties at its fifth meeting.

The proposals for the design and implementation of incentive measures, endorsed by the Conference of the Parties at its sixth meeting, recognize that, while full internalization is often not possible because of limitations to valuation methods, valuation is nevertheless an important step for better internalizing and raising awareness of the importance of biodiversity values.

Further guidance was developed under the Convention in form of Options for the Application of Tools for Valuation of Biodiversity and Biodiversity Resources and Functions.

Several technical background reports were also published:

• An exploration of tools and methodologies for valuation of biodiversity and biodiversity resources and functions. CBD Technical Series Number 28 (2007).

• Valuing wetlands. Guidance for valuing the benefits derived from wetlands ecosystem services. Ramsar Technical Report Number 3 and CBD Technical Series Number 27 (2006).

• The value of forest ecosystemes CBD Technical Series Number 4 (2002).