SMAP III Final WorkshopSMAP III Final WorkshopMarseillesMarseilles

IICZM Policy NoteCZM Policy NoteMaking the Case for Protecting Making the Case for Protecting

Cheikh Zennad Cheikh Zennad LebanonLebanon

June 29, 2009

World Bank/METAP and EC/SMAP III

BackgroundBackground The Mediterranean coastal fringe is host to a wealth

of important wildlife and natural and still pristine areas.

e.g., Mediterranean Migrating Birds Flyways

2. European Siberia/Black Sea-Mediterranean population

3. West Siberian/Caspian/ Nile population

BackgroundBackgroundHowever, these areas are under increasing

pressure from several drivers: population, the economic growth-trade-globalization nexus, urban sprawl, tourism, modal transports, industrial development, etc.

Background Background

Policy makers need to make informed trade-offs between:– the tangible benefits associated with economic

development and growth economic theory in terms of growth, market prices and income

and job creation.– the intangible benefits (such as biodiversity and nature

protection) that are derived from natural resources especially in pristine areas.

economic markets tend to fail

Why Environmental Valuation?Why Environmental Valuation?

Although there is often market failure (and therefore no market price) for natural resources

… people derive pleasure or a satisfaction (attaining a utility value in economic terms) from natural resources, e.g. people like to watch wildlife, or benefit from ecosystem services.

It is important that we account for these values when we make decisions about natural resources.

Lebanon CoastLebanon Coast

Mediterranean Coastal Urban Population and Sprawl Trends, 1995-2025 Coastal Urban Population 1960-2025

(Million)

0

10

20

30

40

50

60

70

80

90

100

1960 1970 1980 1990 2000 2010 2020 2025

Year

(Mill

ion)

North

South and East

Total

Coastal Urban Sprawl Trend 1995-2025(as percentage of Total Coastal Area)

0

20

40

60

80

100

Greece France Italy Spain Egypt Lebanon

Selected Mediterranean Countries

(%)

1995

2025

The coastal zone is under tremendous pressure with a foreseen total artificialization by 2025 if nothing is done to preserve the remaining coastal pristine areas of lebanon especially North of Tripoli in Akkar and South of Tyre.The rate of artificialization is about +2% p.a. (MoE)

Cheikh Zennad as a Protected AreaCheikh Zennad as a Protected AreaCheikh Zennad is a coastal salty wetland close to the

northern border rich in salt marshes (cultural assets) and mudflats. Since 1998, it became a migratory bird stopover where birds feed, rest, breed, roost and/or nest hence creating a wealth of bird watching opportunities.

Cheikh Zennad as a Protected AreaCheikh Zennad as a Protected Area170 kind of birds were reported with hundred

thousands making a stopover over 2 seasons. However, their number has been dwindling due to illegal hunting and poaching

Conservation vs. Ribbon Development Conservation vs. Ribbon Development Valuation Test 1Valuation Test 1Akkar Coast including Cheikh Zennad

Lido di Dante Coast

Italy

Conservation vs. Ribbon Development, 2005 (US$ Million)

-

0.5

1.0

1.5

2.0

2.5

Forgone Welfare Averted Cost Remedial Cost

Category

US

$ m

illio

n

Real Estate

Hotel

Real Estate and Hotel

Revealed Preference of >400,000 people living on the northern coast40 years investment

Revealed Preference to Visit a Protected Area Valuation Test 2

10 years investmentRevealed Preference of 5,500 people bird watchers over 2 seasons (spring and autumn) living in Lebanon visiting Cheikh Zennad

Cheikh Zennad Forgone Welfare and Remedial Costs, 2009 (US$ million)

0.00

0.02

0.04

0.06

0.08

0.10

0.12

Forgone Welfare Averted Cost Remedial Cost

Category

US

$ m

illi

on

O&M costInvestment costs over 5 yearWillingness to spend additional moneyAverage WTP to visit the reserve

Even if you combine Test 1 and 2, they are easily defeated!

Policy Option

NPMPLT Natural and Cultural Sites

The 2004 Schema Directeur de l’Amenagement du Territoire (Land Use Strategy) was endorsed early 2009. The coast of Akkar is considered as a natural asset to be preserved. However, the Land Use Strategy does not have force of law: it only recommends to preserve this area.

Policy Option Coastal presrvation valuation are easily defeated by rent

seekers (development estate projects along the coast). If the Government of Lebanon is serious at preserving

Cheikh Zennad and other ‘preservable’ areas on the CZ, a number of instrument alternatives is suggested, e.g.,- The assertion of a non aedificandi 100-200 meter setback coastal zoning in Akkar as suggested in the draft ICZM law and recommended by the Schema Directeur

- The buyback of CZ private property: either by expropriation or by land swap and assess the possibility of setting up a conservatoire du littoral-like entity to preserve and manege the land

Policy Option The introduction of economic instruments such as: - perequazione urbanistica (a way of compensating

non aedificandi areas where construction rights could be sold to developers interested in increasing their coefficient of exploitation in other designated areas.

- involving commercial banks in preservation by considering non aedificandi coastal property bought by banks as part of their obligation reserve (The Central Bank should play a key role).

Thank You for Your Valuable TimeThank You for Your Valuable Time