International Journal of Environment and Climate Change

This review paper critically evaluates the role of ecosystem valuation and carbon metrics as tools for driving ecological sustainability in economic and policy decision-making. Based on a state-of-the-art synthesis of peer-reviewed articles, policy documents, and valuation databases like the Ecosystem Services Valuation Database (ESVD), the paper reviews economic quantification of ecosystem services in terms of provisioning, cultural, regulatory, and supporting values. It draws on such seminal publications as Robert Costanza’s 1997 global valuation of ecosystem services, reviewing methodological advances and findings for specific biomes, and identifies coral reefs and mangroves as among the most valued. It reviews economic frameworks like direct and indirect values, and Payment for Ecosystem Services (PES) schemes as drivers for promoting conservation. Case studies of India, such as the Ashtamudi Wetland and the Dal Lake, illustrate localized applications of these methods of valuation. The review also assesses carbon metrics, with attention paid to the carbon budget framework that computes allowable emissions necessary to limit global warming to 1.5°C or 2°C. According to the Global Carbon Project 2023, the remaining carbon budget to limit warming to 1.5°C with the 50% probability will be exhausted in approximately six years if current emission rates persist, the study considers the role of carbon credits—classified into avoided, decreased, and eliminated emissions—within compliance and voluntary markets. Through the combination of ecological and climate valuation tools, the review contributes to the debate by explaining their symbiotic potential for aiding biodiversity conservation, climate resiliency, and sustainable development. It provides policymakers, economists, and conservation practitioners with practical suggestions for equitable alignment of environmental integrity with socio-economic goals.