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This chapter examines the conceptual framework boxes and fluxes on "Institutions and governance and other indirect drivers" (Ch. 1, Fig. 1). International and EU governance of relevance for ecosystem services, biodiversity and water is presented. Policy integration, policy coherence, management regimes and stakeholder involvement is reflected upon. The chapter contributes to further understanding of the current and future challenges for sustainable use and conservation of biodiversity and ecosystem services. It provides insights in options for integrating biodiversity and ecosystem services into sustainable development strategies and provides examples of current policy conflicts, along with trade-offs and innovative governance strategies for management of natural resources. Policy-makers need to find ways to handle policy conflicts, improve integration of different stakeholders' perspectives and value dimensions including ILK in policymaking, develop new data collection methods for linking biodiversity and ecosystem services, and develop governance systems that enhance transparency, sustainability and human well-being.

This chapter provides an overview of the status and trends in biodiversity and ecosystem function through assessment of key species and habitats, and summarizes the ecological status of selected Nordic regions. Important habitats across the Nordic coastal region include sea grass beds, kelp forests, blue mussel beds and soft sediments. Declines in sea grass have occurred since the 1970's, most likely due to eutrophication and overfishing. Norwegian kelp forests are recovering following severe losses in the 1960–1970's, most likely due to increased water temperature and changes in grazing pressure. Seabird populations have declined significantly during the last decades, reaching historical lows. Knowledge gaps are identified and a common biodiversity indicator system across the Nordic region is suggested. An indigenous local knowledge perspective is also presented.

The purpose of IPBES assessments is to depict how the natural world and human societies interact with each other on a conceptual level. Habitat degradataion, eutrophication, fishing and climate change are examples of drivers of change that affect Nordic coastal habitats. Policy and governance are principal indirect drivers that both could lead to decline and deteriorations, as well as improvements and recoveries environments. Climate change will affect Nordic marine biodiversity profoundly in the future by changes in, for example, bio-chemical cycles and in the distribution of biodiversity. Such changes might lead to increased oxygen depletion in many areas, leakage of nutrients, changed thropic structures and spread of pathogens. It is therefore of paramount importance that effective governance is developed to mitigate impacts on nature's contributions to people (NCP) and to build sustainability and strategies for sustainability. Less overfishing, less euthropication, fewer pollutants and better land-use and nature protection are measures that will improve the overall resilience of Nordic coastal environments.