Buying and Selling Ecological Services: A Proposal for the

Texas Gulf Coast

Jim BlackburnSSPEED CenterRice University

Work Supported by Grants From Houston Endowment and National Fish and Wildlife Foundation

2Hurricane Ike

Chinese FY1-D MVISRSeptember 12, 2008 at 6:18 PM CDT

Category 2$24 billion in damages4th costliest in U.S. History112 deaths2.6 million lost power

Hurricane Ike

3

CEQ’s Proposed National Objectives, Principles, and

Standards for Water and Related Resources Implementation

Studies

• Protect and restore natural ecosystems and the environment while encouraging sustainable economic development.

• Avoid unwise use of floodplains, flood-prone areas and other ecologically valuable areas.

• Give “full and equal treatment to nonstructural approaches.”

MS ALLA

Mississippi Coastal Improvements Program After Katrina

Dr. Susan Rees, Mobile District: “Unlikely to See a Totally Structural Hurricane Abatement Implemented in Today’s Funding and Evaluation Climate”

The Federal Debt Reaches Historical High

CBO forecast - end of 2010, federal debt will be 62% of GDP.

Original Landfall

GIS UT Dr. Clint Dawson

8

Ike Surge Flowing Back Into Gulf 4 Days After Landfall –

Excellent Flood Storage

Photo: Bryan Carlile

Galveston Bay Coastal Protection System

Possible Economic Concepts For Non-structural Mitigation

1. Recreation/Eco-Tourism

2. Natural Resource Value Trading Concept

11

Day Recreation Usage

Development of “Backside” of Peninsula

Proposed Lone Star Coastal National Recreation Area

Possible Economic Concepts For Non-structural Mitigation

1. Recreation/Eco-Tourism

2. Natural Resource Value Trading Concept

100-Year Storm Surge Levels

Slide Courtesy Hal Needham, Louisiana State University

Spartina Alterniflora and Other Coastal Wetland

Plants Define Resiliency –

Learn From ItEmbrace It Emulate It

Develop Resilient Economy

Natural Resource Value Trading System

• Based on Experience in Regulatory-Based Systems

• Corps of Engineers Wetland Mitigation Banks

• U.S.F.W.S. Endangered Species Offset Concepts

• 303(d) Water Quality Programs for Nutrients and Temperature in Chesapeake Bay and Willamette Valley

• Emerging Carbon Markets

Trading Platform Sellers Buyers

Conceptual Natural Resource Value Trading System

Flood StorageConservation of Existing Habitat

Neo-tropical Migrant Habitat CreationCoastal Wetland Creation/Migration

Migratory Waterfowl Habitat CreationPrairie Habitat Creation

Forest Lands Habitat CreationCarbon Sequestration

Endangered Species Habitat

$

Potential Buyers• Flood Control

– U.S. Army Corps Non Structural – FEMA “Value Proposition”

• Philanthropic – USFWF (BP $) – Private Foundations

• Corporate – Zero Footprint Initiatives – Carbon Offsets – Other Mitigation

• Ecological Gift Market

Potential Sellers• Private Landowner – Flood Storage At Key Elevations• Private Landowner – Carbon Farmer• Private Landowner – Wetland Habitat Owner and/or

Creator• Private Landowner – Prairie Habitat Owner and/or

Creator• Private Landowner – Neotropical Habitat Owner

and/or Creator• Private Landowner - Forest Habitat Owner and/or

Creator

Contact Me

• jbb@blackburncarter.com

• blackbur@rice.edu