Presentation at RICS on 15 November 2012 launching the RICS Thinkpiece on Challenges to International Professional Practice: from Market Value to Natural Value. This paper reviews the emerging markets and policy emphasis on nature's services and their valuation (ecosystem services) and highlights the implications for estate management, property development and professional valuation practice. The opportunities and implications are wide ranging, and herald a new paradigm in land management.

1. Challenges for international
professional practice:
From Market Value
to Natural Value
Charles Cowap
RICS, London, UK
15 November 2012
Charles Cowap
MBA MRICS FAAV

2. New land management
Requirements are emerging
New markets
New challenges to
professional practice
Charles Cowap
MBA MRICS FAAV

3. Peat’s Story
Charles Cowap
MBA MRICS FAAV

4. Charles Cowap
MBA MRICS FAAV

5. Wimbleball Resr &
Context: Exmoor example R Haddeo
R Exe
Exmoor
R Barle
Replenishment
Exebridge Pumping
Pumping Approx 5 miles,
Station lifting water from
120 to 240 m
CO 2 AOD
Charles Cowap
MBA MRICS FAAV

6. Top 10 Business Opportunities
1= Biodiversity Offsetting (BDO) and
Conservation Banking
• Estimated size of market £50 – 300 million
pa from housing, plus other sectors
• Brokerage, certification and registration
• Additional costs to builders/developers
deducted from land value
1= Peatland Carbon Code and Carbon Credits
• Peat restoration for carbon storage
• Management schemes and incentives
• Certification and brokerage
Charles Cowap
MBA MRICS FAAV

7. 2. Woodfuel and Woodburning Stoves
3. UK ecosystem knowledge economy
4. Layered PES
– Different Environmental Services
to different buyers
– Eg 
Charles Cowap
MBA MRICS FAAV

8. 6. Carbon sequestration
7. Sustainability certification
– Opportunities for
intermediaries
8. Sustainable tourism
Charles Cowap
MBA MRICS FAAV

9. 9= Global centre of excellence in
ESS certification
9= Water re-use technology
11 Reducing insurance risk
through green infrastructure
12 Environmental bonds
http://www.valuing-nature.net/opportunities-uk-business-
protect-and-value-natures-services-report-published-
today [accessed 19 July 2012]
Charles Cowap
MBA MRICS FAAV

10. NEW VALUATION
REQUIREMENTS ARE
EMERGING
Charles Cowap
MBA MRICS FAAV

11. Charles Cowap
MBA MRICS FAAV

12. Charles Cowap
MBA MRICS FAAV

13. SOME WORK HAS BEEN
DONE ALREADY
Charles Cowap
MBA MRICS FAAV

14. Charles Cowap
MBA MRICS FAAV

15. Charles Cowap
MBA MRICS FAAV

16. Charles Cowap
MBA MRICS FAAV

17. We face challenges to valuation
ECONOMIC APPRAISAL
Charles Cowap
MBA MRICS FAAV

18. Charles Cowap
MBA MRICS FAAV

19. And Now
ECOSYSTEM SERVICES
Charles Cowap
MBA MRICS FAAV

20. Charles Cowap
MBA MRICS FAAV

21. Charles Cowap
MBA MRICS FAAV

22. ECOSYSTEM
SERVICES
Charles Cowap
MBA MRICS FAAV

23. From TEEB Foundations, Chapter 5
APPROACHES FOR THE
ESTIMATION OF NATURE’S
VALUES
Charles Cowap
MBA MRICS FAAV

24. Market Contingent Cost
Analysis Valuation Methods
Deliberative
Avoided
Valuation
Group Replacement Cost
Valuation Cost Methods
Regime Shift
Methods Analysis
Insurance
Resilience Ecological Value
Value Risk
Footprint
Analysis Joint
Mitigation Analysis
Input/Output Production Cost
Analysis Function Method
Charles Cowap
MBA MRICS FAAV

25. Valuation
WHERE DOES IT FIT?
Charles Cowap
MBA MRICS FAAV

26. Foresight Land Use Futures 2010
Charles Cowap
MBA MRICS FAAV

27. Key Questions for RICS
• Is this anything to do with us?
• Our Public Interest Function
in this area?
• Our Member Services
Function in this area?
• Our Global Positioning?
• What, if anything, needs to be
done?
Charles Cowap
MBA MRICS FAAV

28. Thinkpiece
• Royal Charter
– Promote the usefulness
of the profession to public
advantage
• New opportunities in land
management
• New ways of working in
development
• New points to reflect in
conventional valuations
• New types of valuation
Charles Cowap
MBA MRICS FAAV

29. And we should offer:
• Our expertise
• In Land Tenure and its
relationship to land
management and
development
• Our experience of valuation in
challenging commercial
markets
• Our expertise in brokerage
Charles Cowap
MBA MRICS FAAV

30. Questions?
Charles Cowap
MBA MRICS FAAV

31. Contact Details
Translating new knowledge for rural professional practice
 cdcowap@gmail.com
 07947 706505
Twitter: @charlescowap
Blog: http://charlescowap.wordpress.com/
Slideshare: http://www.slideshare.net/cdcowap
Charles Cowap
MBA MRICS FAAV