CHENNAI: The state economy is losing Rs 19,910.6 crore annually due to unrealised ecosystem services relating to 141 prioritised wetlands, according to a report submitted by the State Planning Commission.
The report highlighted that the combined ecosystem value of 141 wetlands at 2024 prices stands at Rs 8,303.8 crore, while their potential value is Rs 28,214.37 crore. Ecosystem services refer to the goods and life-support functions that natural ecosystems provide to humans, very often free of cost.
The report, Economic Valuation of Ecosystem Services – A study of 61 prioritised wetlands/waterbodies in Tamil Nadu, released by Chief Minister MK Stalin, is the second phase of the study on wetlands. The first phase covered 80 waterbodies
The report suggests community-based management as a long-term strategy for sustainable waterbody governance, as local communities possess traditional ecological knowledge accumulated over generations.
“This knowledge system enables communities to implement adaptive strategies against environmental changes while maintaining ecological balance. Effective wetland management must go beyond conservation to ensure equitable benefit-sharing,” the report added.
The study also highlighted the fact that unilateral water transfers to cities, without compensating traditional users, triggers a cycle of displacement, increased urban demand, and ecosystem degradation, undermining sustainability. “Prioritising urban water use over rural livelihoods is a false economy with hidden social and environmental costs,” it added.
The report reiterated the finding that current wetland loss rates – three times faster than forest loss – threaten the foundational resources necessary for sustainable development. “Every dollar invested in wetland restoration generates an estimated $7-$10 in the ecosystem,” the report added.
According to the report, the total restoration cost for all 61 inland wetlands is estimated at Rs 5.4 crore (2024 prices) – this spending could help avert losses up to Rs 13,081 crore per annum which arise due to wetland degradation. In the first phase of the study, the ecosystem value of 81 water bodies was assessed.
The report also pointed out that wetlands serve as an essential natural infrastructure for achieving multiple Sustainable Development Goals. Wetlands also contribute significantly to climate action, biodiversity conservation, and sustainable economic growth.
The report highlighted the fact that most waterbodies and wetlands in the study are owned and managed by the Public Works Department (PWD) and are mainly used for irrigation.
However, declining agricultural activities have reduced the demand for irrigation, shifting to diverse activities like recreational opportunities, local fisheries, biodiversity conservation, groundwater recharge and climate regulation. As a result, a multi-agency governance structure is needed – including local communities, environmental departments, tourism boards, and fisheries authorities, among others – to ensure equitable distribution of multiple benefits from the wetlands.
The study recommends leveraging G-RAM-G (MGNREGA) to fund labour-intensive wetland restoration, combining livelihood support with ecological recovery.