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The annual economic value of Odisha derived from its various ecosystem services is estimated to be at Rs 36,890 crore or $5 billion.
The new estimate jointly tabled by Foundation for Ecological Security (FES), International Food Policy Research Institute (IFPRI), Federation University, Australia and Common Grounds considered nearly five million hectares of land commons that offer various ecosystem services.
These land commons include forests, pastures and uncultivated lands that offer key socio-ecological value and provide livelihood for millions around the world.
In India, these natural resources play a crucial role in the rural economy and environment.
However, the land commons are under serious threats including land degradation, overuse, inadequate management and encroachments.
These threats make these resources vulnerable resulting in loss of ecosystem services and directly impacting the lives of people directly dependent on them.
This degradation also results in shrinking of biodiversity, accelerating soil erosion, shortage of water quality and worsening environment issues.
The report noted that Odisha relies heavily on agricultural and natural resources and is also one of the eight states in India specifically vulnerable to the impacts of climate change.
It observed that the state’s economy and society with a population of almost 36 million people are closely linked to its forests, agriculture and natural resources that are vulnerable to extreme weather events such as cyclones, floods and droughts.
Thus, making it imperative to understand the economic significance of the ecosystem services, to chalk out policies for better management and protection of these natural resources.
“The value transfer method, which estimates the economic benefits of ecosystem services by transferring existing valuation estimates from one context to another, highlights the income derived from commons and the socio-economic impact,” the report noted.
Further, the key findings of the ecosystem breakdown for India revealed that tangible products such as food, water and raw materials valued to be Rs 65,411 per hectare per annum.
The climate regulating services such as soil fertility and water purification were estimated to value at Rs 60,698 per hectare per annum.
It also noted the supporting services that include soil formation, habitat provision and cultural services consisting of spiritual enrichment and cognitive development at Rs 24,078 and Rs 4,456 per hectare per annum.
The report draws on data and insights from the paper published in Environmental Research Letters in 2023.
“It underscores the importance of legal and institutional reforms, sustainable management practices, and community-based management to safeguard these lands,” a press statement from Common Ground stated
It added that the valuation serves a quantitative basis for recognising the contributions of land commons to Odisha’s economy and society.
“It calls for the urgent need to incorporate the economic value of land commons into policy-making and land acquisition processes to ensure sustainable management and protection of these crucial resources,” it added.