Evaluation of Damage to Wetland Ecosystems in International Compensation: Compensability, Quantification and Equitable Considerations

Wetlands are among the most productive and sensitive ecosystems of particular importance and harm to this type of environment should be treated with a high degree of seriousness. The obligation to protect wetland ecosystems can be derived both from treaties and from general international law, and damage to wetland ecosystems entails an obligation to make reparation in an adequate form. Where appropriate, compensation should be provided in order to ensure full reparation. However, no specific method of valuation is prescribed by international law for the purpose of compensation for environmental damage, and the need to have operable guidelines for valuing environmental damage thus arises. This article aims to contemplate the approach for evaluating damages to wetland ecosystems, that is, how to decide on the amount of compensation due for damages to wetland ecosystem services. At the outset, the sources of an international obligation to protect wetland ecosystems and the compensability of damage to wetland ecosystems, notably ecosystem services, are analyzed. After explaining the difficulties concerning the quantification of wetland ecosystem services, the article introduces a range of valuation techniques relating to valuing wetland services. Then it outlines the key considerations that facilitate the choice among competing techniques and approaches in international judicial proceedings. In the end, it points out that under certain circumstances, equitable considerations may be drawn upon to determine the quantum of compensation. The ultimate goal is to facilitate the development of a legal framework for evaluating damages to wetland ecosystems.