Q. With reference to an initiative called The Economics of Ecosystems and Biodiversity (TEEB), which of the following statements is/are correct?
- It is an initiative hosted by UNEP, IMF and World Economic Forum.
- It is a global initiative that focuses on drawing attention to the economic benefits of biodiversity.
- It presents an approach that can help decision-makers recognize, demonstrate and capture the value of ecosystems and biodiversity.
Select the correct answer using the code given below. (UPSC Prelims 2016)
Answer:
2 and 3 only
Notes: The correct answer is
[C] 2 and 3 only. The Economics of Ecosystems and Biodiversity (TEEB) is a global initiative focused on "making nature's values visible."
- Hosting and Origin (Statement 1 – Incorrect): TEEB was launched by Germany and the European Commission in 2007, following a proposal by the G8+5 Environment Ministers. While it is hosted by the United Nations Environment Programme (UNEP), it is not an initiative of the IMF or the World Economic Forum. It was led by Pavan Sukhdev, an Indian banker and environmental economist.
- Economic Focus (Statement 2 – Correct): The primary goal of TEEB is to draw attention to the global economic benefits of biodiversity. It highlights the growing costs of biodiversity loss and ecosystem degradation, shifting the narrative from purely ecological conservation to economic necessity.
- Decision-Making Framework (Statement 3 – Correct): TEEB follows a structured "tier" approach to help decision-makers at all levels (local, national, and business) integrate the value of nature into their choices:
- Recognizing value in ecosystems and landscapes.
- Demonstrating value in economic terms (valuation).
- Capturing value by introducing mechanisms that incorporate these values into policy and markets (e.g., Payments for Ecosystem Services).
By internalizing the "invisible" benefits provided by nature—such as water purification by wetlands or pollination by insects—TEEB aims to prevent the continued loss of natural capital.