Archives for category: ecosystem water markets
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5 lessons from the mitigation banking conference

May 21, 12 //
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Slightly over a week removed from the Mitigation Banking Conference, I’ve finally found time to reflect on the lessons I learned at this event. The top 5, in no particular order, are as follows:

1. Highly fragmented and localized markets. Wetland mitigation banking success in Florida doesn’t lead to mitigation banking success in California. Similar to the water market, ecosystem service markets vary from basin to basin, state to state, and regulatory office to regulatory office.

2. Face time matters. I sponsored last year’s event and strategically followed up with likely clients. An email and phone call will never replace interpersonal communication–at least for me.

3. Regulations drive mitigation markets.  It became obvious the majority of buyers for wetlands, streambank, and species credits, don’t do it because they like the product ( think iPhone or Car). They buy them because they have to. Similarly, simple supply and demand will eventually determine water allocations–and already does in certain markets– but regulatory closures are expediting many of the water quantity markets.

4. Regulators are also a target market. In most traditional markets, you direct your marketing efforts to the buyer. This is where mitigation markets differ. Because regulators are forcing the purchase, they play a critical role in the transaction. In some instances, they drive every deal.

5. I love water. I really enjoyed the conference and have tremendous respect for these markets and their players. I also greatly appreciate my  water work within these mitigation markets. Although, time and time again, I was thankful for working in water markets. As cumbersome and inefficient as they be, water rights are assets that have survived the test of time.

Mitigation Banking Conference Here I Come

May 3, 12 //
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I even splurged for an airport shoeshine on my way.

I’m on a 10-day California journey that will culminate with a water rights presentation at the National Mitigation and Ecosystem Banking Conference. The take home message for the presentation is this:

water rights will play a critical role in ecosystem service markets of the West, so understanding and managing these assets should remain a top priority.

This previous post expands on this vision and role of water rights in these ecosystem service markets. I hope to see you there or along the way. Safe travels.

Communicating Ecosystem Services

March 16, 12 //
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As you may or may not have noticed, I’m on a “marketing communications” kick. Continuing with this theme, I’d like to share a new thread from the Ecosytem Commons’ Soap Box: Good one! Communicating Ecosystem Services.  I posted a comment and wanted to take the time to encourage others to do so. Here were my initial thoughts:

I enjoyed the examples above.  Effectivley communicating these efforts is obviously a challenge. Not only are ecosystems complex, the means to measure and navigate regulatory frameworks further the confusion associated with these emerging markets.

Using  an example close to home, I think Big Sky Brewing Company did a good job communicating their  purchase of Water Restoration Certificates.  The complexity of this transaction is endless: water right source switching, change applications, lease agreements, credit registry, monitoring, etc. Rather than getting bogged down in the details, Big Sky Brewing told a simple story: water makes Montana… Montana and we’re putting water back where it matters most.

Thanks again for starting this discussion. I believe “marketing communications” is overlooked and vital for the success fo these markets.

a unique view from under the surface

March 14, 12 //
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I’ve always found water visually enjoyable. Two photo galleries, I’ve recently stumbled across, have reminded me of the beauty of this medium. These artists have chosen a view from under the surface as their blank canvas. The first gallery is “Underwater Dogs by  Seth Casteel”  and the second is Undewater Sculptures by Jason de Caires Taylor. These hyperlinks provide more examples of this work from the innovators themselves.  Below, I’ve  shared  3 of my favorites from each. Enjoy.

 

book review: where good ideas come from

January 9, 12 //
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I  just finished one of the better books I’ve ever read: Where Good Ideas Come From by Steven Johnson. The book presents 7 parameters that facilitate idea creation:

1. The adjacent possible. Ideas within communities thrive on each other.

2. Liquid networks. This medium makes innovation easier. Encourage social flow not solitude.

3. The Slow Hunch. Ideas develop slowly over time.

4. Serendipity. In what appears lost, ideas can be found.

5. Error. Failing fast leads to wins.

6. Exaption. Don’t recreate the wheel. Borrow.

7. Platforms.  Ideas are built and spread on foundations. These foundations are platforms.

Although I generally agree with these seven, there was one reoccurring notion throughout the book that I found especially thought provoking. Ecosystem Design.

Johnson applied ecosystem analogies for our societies, cultures, and markets. For example, the dynamics of a corral reef mimic our cities.  I’ve recently developed similar thoughts in relation to ecosystems and markets. I’d argue a market is an ecosystem. The same structure and dynamics of species and their environment present in ecosystems also exist with people, companies, brands, and their markets. I’m still flushing out the details of this idea. Call it a slow hunch.

Any thoughts?

Ecosystem Marketplace: WET News

January 4, 12 //
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Just consider this a repost of the Ecosystem Marketplace Water Environmental Trading News.  Why? Because Lotic was featured twice. Well, at least 1 and a 1/2.

1. Can his water bank help Montana solve its water problems?

1.5  Instream Flow Transactions are Big Deals in the West.

In addition to this greatly appreciated media, the newsletter is also full of other great reads on one of my favorite topics: water markets.  A recommended read worth reposting.

can new mexico turn blue into green?

November 7, 11 //
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Tomorrow morning, I will board a plane for the 2011 American Water Resources Association Conference in Albuquerque, New Mexico. At this event, I will present my vision for turning blue into green through water marketing to both the conference and the local Business Water Task Force.

An example of this vision, was highlighted in an Ecosystem Marketplace article published last week: Can his Water Bank help Montana Solve its Water Troubles?  Also, here’s the link.

While at this conference, I intend to tweet the highlights (in my eyes) from @loticwater with the hashtag #AWRA2011

It should be a fun one in the world of water; I hope to see you there.

dewatering on the lower 48′s longest free flowing river

September 29, 11 //
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Last month, I had the fortunate opportunity to join the crew of Where the Yellowstone Goes. The mission of this film is simple: float the longest free flowing river in the contiguous United States and capture the stories it tells along the way. In an effort to hear the voices of the river, I was invited to share my knowledge of instream flow markets (see above).  Here’s some additional detail on the topic mentioned in the video clip.

Dewatering. Dewatering refers to a water quantity assessment developed by Montana’s Fish Wildlife and Parks (agency responsible for managing the States’ fisheries). Dewatering is classified as:

  1. Chronic Dewatering–Streams where dewatering is a significant problem in virtually all years, and
  2. Periodic Dewatering–Streams where dewatering is a significant problem in only drought or water short years.

1995 Private Leasing Law. The greatest number of water transactions in the state of Montana are owed to this legislation. For the record, the “private” aspect of this law is critical to its success and discussed here. This legislation also provided me with my first job water job.  Most importantly, the law has produced over 50 leases, 390 CFS, and 8,000 AF instream since 2003.

Yellowstone River. The longest free flowing river is not exempt from the challenges and opportunities associated with dewatering. Fish Wildlife and Parks recognizes that over 439.5 miles of chronic dewatered and 485.3 miles of periodic dewatered streams exist in the Yellowstone River Basin. If you lined these streams up end to end they would cross the great state of Montana (East to West), nearly twice.

Mill Creek. The video was taken on the banks of Mill Creek. 4.2 miles of the creek are periodically dewatered and .7 miles of the creek are chronically dewatered. Interestingly, Fish Wildlife and Parks once held a lease on this stream that has since been terminated.  Does this disturb me? No. In my mind, this is the beauty of water markets. They’re voluntary. If you want water in Mill Creek, then engage in trade for these water rights.

Where the Yellowstone Goes.  You just heard my story. I entered the trip around mile 26 and am looking forward to hearing from the other 400+ miles. I supported this journey. If you feel inclined to do the same, here’s the link.

Thanks for listening.

#ecomarkets 2011

July 2, 11 //
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Yes, this blog title has a hash tag. I just returned for the 4th annual Ecosystem Markets Conference in Madison, WI. I wanted to provide some thoughts on this event in addition to my presentation. Since tweeting to #ecomakets2011 was encourage –yes this excites me– I’ve decided to provide my dialogue in response to conference tweets, including my own.  I also intend to differentiate these thoughts from my previous Ecosystem Markets Workshop review in Fort Collins.

 

For next year, #ecomarkets2011 would love to have more private landowners attend; important to have your input!
June 30, 2011 9:42 pm via webReplyRetweetFavorite
@AmForestFndn
AmForestFoundation

Sounds like a plan. Adding more participation from the demand side would be great too. I believe the supply will take care of itself when the demand is present. Take for example, cellphones. Fewer people lack access to cell phones than clean water.

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http://yfrog.com/h8hhgfdj #ecomarkets2011 saw this on way home. Thanks for great ppt-less conf.
July 1, 2011 1:58 am via TweetDeckReplyRetweetFavorite
@loticwater
chris corbin

The conference was refreshingly powerpoint free. This changed the tone from a monologue to a dialogue. Bold move, but great decision.

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Sustainable Solutions, LLC: We're dealing w/ natural systems which r completely dynamic; credit tools must b built 4 change #ecomarkets2011
June 29, 2011 10:17 pm via Twitter for iPhoneReplyRetweetFavorite
@AmForestFndn
AmForestFoundation

This is a concept that should not be overlooked. All of these ecosystem services are incredibly complex and thus defining the marketable products remains a challenge. Furthermore, as these systems evolve so should the tools used to manage them. Once again, why I believe markets are best; markets evolve or markets die.

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T. Wright Dickinson of @: Want 2 expand role of #conservation into market-based system tht benefits landowners #ecomarkets2011
June 30, 2011 8:42 pm via webReplyRetweetFavorite
@AmForestFndn
AmForestFoundation

I first met T. Wright at the Colorado workshop and liked him instantly. As with many ranchers, T. Wright gets it. T. Wright knows the value of his cattle. The market reaffirms this value every time he sells cows. T. Wright now wants to quantify and market the ecosystem service values he provides and rightly so.

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Rob Olszewski, forester & hydrologist w/ http://t.co/DZ7ikD6 It takes champions like those at #ecomarkets2011 to make this happen
June 30, 2011 8:37 pm via webReplyRetweetFavorite
@AmForestFndn
AmForestFoundation

In what I considered the greatest session of the entire conference–including my own, T.Wright Dickinson (Colorado Cattlemen) and Rob Olszewski (Plum Creek) clearly defined fair market value of ecosystem services as the price someone is willing to pay for these services. Amen. For example, Plum Creek generates approximately $21,000,000 from hunting leases. This recreation driven ecosystem service possesses a clear and quantifiable fair market value.

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We're talking about the connection between the health of our landscapes and tools needed to protect them #ecomarkets2011
June 29, 2011 1:27 pm via webReplyRetweetFavorite
@AmForestFndn
AmForestFoundation

Yes we are and as many of you know, I feel strongly these tools are best structured in markets. Markets aren’t a silver bullet, but they are the most efficient allocation of resources.

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#Ecosystem Services in Aldo Leopold’s Landscape http://t.co/e6rSLO1 #ecomarkets2011
June 29, 2011 12:13 pm via webReplyRetweetFavorite
@worldresources
World Resources Inst

A big thank you to Aldo Leopold. I’m a fan of the Sand County Foundation’s Water as a Crop program and enjoyed the “land ethic” energy that remains alive and well today.  If you haven’t watched Green Fire or read The Sand County Almanac, do so.

 

 

12 thoughts on the ecosystem markets workshop

May 27, 11 //
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My initial intention was to express 10 lessons I learned from participation in the Center for Collaborative Conservation Ecosystem Markets Workshop. I soon realized the list below evolved into a summary of “thoughts” developed or reinforced by the conference, rather than lessons.

1. Simplify, Simplify. The meeting rooms were full of experts from respective ecosystem markets. Although each individual understood their own market, comprehending the other markets (including mine) was difficult at best. If professionals in this industry have trouble grasping these projects, how will the public fare?

2. Language is key. In continuance of #1, applying clear and consistent language is critical to the future of these markets. Buyers don’t purchase products they don’t understand.

3. Can we scale? Each of these markets are highly localized and fragmented. As a result, scalability remains a challenge. For broader success, these market solutions must become scaleable.

4. Demand drives markets. Supply and demand are critical components to market emergence. Of the two, I believe demand is the most important. If an individual or entity is willing to purchase a product, the supply will take care of itself.

5. Cash is King (and queen and prince too). In a similar vein to demand, these markets will flourish when they are profitable. Because of their social values and passionate leadership, they will most likely exist and survive without profitability, but they will flourish with it. Take for example the “internet”, once it became profitable, the creativity and growth exploded.

6. Iron fist or fluffy bunny? There were some great discussions around regulatory vs. voluntary markets. I see a combination of the two in the future ecosystem markets. For voluntary markets to survive, they need clearly defined  “products” that potential buyers can easily identify as adding real value. Otherwise, the most robust ecosystem markets will remain under regulatory caps and government funds.

7. Trust me… The Ecosystem marketplace trades “Eco assets”, and in this developing market trades are personal.  They require a good deal of trust and relationship building. Developing and respecting the trust of landowners is critical…actually, essential.

8. The Bundle. Just as diversifying a portfolio is considered a sound investment strategy, bundling ecosystem assets decreases investment risk. Furthermore, leveraging multiple private, public, and non-profit partners diversifies stakeholders and increases the likely hood of overall success.

9. It takes time. Rome wasn’t built in a day, and this wasn’t the first ecosystem markets conference (surely won’t be the last). These markets take time and are still in their infancy.

10. Start. Right now. One of my favorite quotes is: “It’s better to vigorously execute than perfectly plan.” I find this especially true in these emerging ecosystem markets. Rather than discuss the potential, execute and evaluate. Then do it again, and again, and again.

11. I like Fort Collins. I’m a big fan of college towns and Fort Collins is no exception. With the Rockies in the back yard, a vibrant downtown, and no shortage of craft breweries, what’s not to like?

12. Thank you. On a final note, I’d like to express another thanks to the Center for Collaborative Conservation and all the attendees for the opportunity to participate. It was fun, engaging, and educational. I hope to see you all soon.

 

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