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Wetland Futures Report 2013: The Value of Healthy Wetlands
Ripon City Quarry: a corporate ecosystem valuation
Delia Shannon, Biodiversity Manager at Aggregate Industries
Ecosystem change creates business risks and
opportunities; businesses impact but also rely and depend
on ecosystems and ecosystem services. Aggregate
Industries UK has a policy to restore ecosystems as
part of its quarrying operations. Ripon City Quarry prior
to abstraction of aggregate was an agricultural area
in a floodplain so wetland restoration was considered
appropriate and the company proposed to create a mix of
wetlands for wildlife habitat as well as an artificial lake for
recreation. Ecosystem valuation was undertaken to assess
the types and scale of economic benefits associated with
wetland restoration.
The
study
aimed to investigate the value of restoration
to wet meadows vs. reedbeds and the distribution of
benefits between stakeholders; to quantify and value
significant change in biodiversity and ecosystem services
following mineral extraction on the site; to be able to
negotiate appropriate levels of restoration and aftercare/
management costs; and to value the contribution of the
site to flood control.
The value of benefits that would be generated by the
proposed restoration would be around £2 million and
deliver net benefits to the local community of about
£1.1 million.
The value of carbon sequestration at this
site was found to be relatively small, while the marginal
benefits far exceeded the current benefits derived from
agricultural production.
The costs of ecosystem restoration and aftercare were
found to be tiny compared to the financial returns from
sand and gravel extraction and did not affect financial
bottom line. As such, compensation for adverse
environmental impacts is not only important for companies
to maintain their license to operate, but can deliver
improvements in ecosystem services at modest expense.
Benefits to the company
Although this pilot study has not been repeated it has
been valuable; enabling improved decision-making
through having a better idea of the costs and benefits
of company operations and to assess costs of legal
liabilities relative to the benefits produced. With a greater
knowledge of the economic costs and benefits the
company is in a better position to negotiate a restoration
package. Also by presenting the social benefits of
restoration to planning agencies and local communities in
future planning applications, access to minerals is more
likely to receive approval.
Placing monetary values on ecosystem services is not an
end in itself, it is a means to an end – to better and more
informed decisions.
An aggregates quarry
photo: Nigel Taylor
