What are Ecosystem Services?
The Millennium Ecosystem Assessment defined Ecosystem Services as “the benefits people derive from ecosystems”. Besides provisioning services or goods like food, wood and other raw materials, plants, animals, fungi and micro-organisms provide essential regulating services such as pollination of crops, prevention of soil erosion and water purification, and a vast array of cultural services, like recreation and a sense of place.
In spite of the ecological, cultural and economic importance of these services, ecosystems and the biodiversity that underpins them are still being degraded and lost at an unprecedented scale. One major reason for this is that the value (importance) of ecosystems to human welfare is still underestimated and not fully recognized in everyday planning and decision-making, in other words, the benefits of their services are not, or only partly, captured in conventional market economics. Furthermore, the costs of externalities of economic development (e.g. pollution, deforestation) are usually not accounted for, while inappropriate tax and subsidy (incentive) systems encourage the over-exploitation and unsustainable use of natural resources and other ecosystem services at the expense of the poor and future generations.