Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures A sourcebook of methods for decision-making Lucy Emerton Published by on behalf of Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook a Acknowledgements This document was produced under the leadership and oversight of Andrea Bender, Mathias Bertram and Arno Sckeyde of the Global Project “Mainstreaming EbA — Strengthening Ecosystem-based Adaptation in planning and decision making pro- cesses“ of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. The project is funded by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) under the International Climate Initiative. Great thanks are also due to the other experts who shared their experiences and insights on valuing EbA benefits, and provided substantive technical inputs into the development of the sourcebook. These include: Martin Becher (GIZ Technical Advisor, Biodiversity and Climate Change in the Atlantic Forest/Brazil Project), Gem Castillo (Resources, Environment and Economics Center for Studies — REECS), Manishka De Mel (Research Staff Associate, Center for Climate Sysems Research, Earth Institute, Columbia Univer- sity), Marian Delos Angeles (Resources, Environment and Economics Center for Studies — REECS), Hannes Etter (Science Desk Officer, GIZ Economics of Land Degradation Initiative), Willy Kakuru (Independent Consultant/Makerere University Institute of En- vironment and Natural Resources), Valerie Kapos (UNEP-WCMC), Michel Köhler (inde- pendent climate policy consultant and Founding Partner, the greenwerk), Shaun Martin (Senior Director, Climate Change Adaptation and Resilience, WWF), Celia Pigueron Wirz (Asesora Principal, GIZ/EcoValor Mx: Valoración de Servicios Ecosistémicos en Areas Naturales Protegidas), Ali Raza Rizvi (Programme Manager, Ecosystem-based Adapta- tion, IUCN), Mark Schauer (Coordinator, GIZ Economics of Land Degradation Initia- tive), Katherine Snyder (Director, Master’s Program in Development Practice, University of Arizona), Karen Sudmeier-Rieux (Senior Researcher, University of Lausanne), Roland Treitler (Project Director, GIZ-ECOSWat), Pieter van Eijk (Head of Disaster Risk and Cli- mate Adaptation Programme, Wetlands International), Hugo Van Zyl (Director and Lead Consultant, Independent Economic Researchers), Sylvia Wicander (UNEP-WCMC), and Stephen Woroniecki (University of Lund). Valuable feedback on the text was contribut- ed by Paulina Campos Monteros (GIZ), Silke Schwedes (GIZ) and Felix Ries (Programme Office of the International Climate Initiative on behalf of BMUB). Note This sourcebook appears together with a set of 40 case studies on EbA-relevant valua- tions that have been implemented globally, over recent years. They are referred to in boxes throughout the text and in Chapter 7, and are directly accessible as PDF files, through links. Table of contents 1 Introduction: about the sourcebook 1 1.1 Why focus on valuation? 2 1.2 What does the sourcebook seek to deliver? 3 1.3 How and by whom is the sourcebook intended to be used? 4 1.4 What is the content of the sourcebook? 5 2 The basics: understanding EbA values and valuation 7 2.1 Thinking through what is to be valued 8 2.2 The concept of multiple values 15 2.3 Why under-valuation is often a problem 18 2.4 Valuation as a means to an end 18 3 Defining the purpose: why and when to value EbA benefits 21 3.1 Stating the practical purpose and decision questions to be addressed 23 3.2 Identifying EbA opportunities 24 3.3 Choosing between adaptation alternatives 24 3.4 Justifying and making the case for EbA measures 25 3.5 Highlighting needs for additional instruments to sustain EbA delivery 25 3.6 Monitoring and evaluating EbA implementation 25 4 Selecting the methods: how to value EbA benefits 27 4.1 Biophysical effects 29 4.2 Risk exposure and vulnerability 33 4.3 Economic costs and benefits 33 4.4 Livelihood and wellbeing impacts 40 4.5 Social and institutional outcomes 44 4.6 Cross cutting considerations: risk, uncertainty and the selection of methods 46 5 Enhancing the strategic impact: leveraging decision change and influence 55 5.1 Understanding valuation as ‘knowledge brokerage’ 56 5.2 Embedding valuation in decision processes 57 5.3 Defining and engaging the target audience 60 5.4 Communicating interesting, appropriate and useful information 63 5.5 Building long-term capacity and expertise 66 6 Delivering the assessment: commissioning, designing and implementing valuation 69 6.1 Technical steps and reporting outputs 74 6.2 Process steps 76 6.3 Coordination needs 77 7 Learning from experience: case studies of EbA-relevant valuations 79 8 References: key sources on EbA valuation techniques and applications 89 8.1 Documents referred to in the text 90 8.2 Further reading on the case studies 97 List of Boxes Box 1: Valuing the costs and benefits of coastal adaptation options in the USA 10 Box 2: Measuring farmers’ preferences for sustainable land management and climate-smart agriculture in Malawi and Tanzania 16 Box 3: Commonly-used biophysical valuation methods 29 Box 4: Substantiating the links between grassland and wetland restoration and the generation of eco-hydrological services in Peru 31 Box 5: Integrated analysis of physical effectiveness, cost-effectiveness and economic efficiency of flood risk management measures in Germany 32 Box 6: Commonly-used economic valuation methods 34 Box 7: Least cost analysis and cost-benefit analysis of watershed adaptation options in Thailand 35 Box 8: Cost-effectiveness analysis of water-saving irrigation technologies in China 36 Box 9: Factoring the value of ecosystem service co-benefits into coastal adaptation planning in Belize 37 Box 10: Assessing non-monetary economic indicators of adaptation impact in South Africa 38 Box 11: Commonly-used livelihood and wellbeing assessment methods 40 Box 12: Using extended social cost-benefit analysis to evaluate the livelihood impacts of community-based adaptation measures in Niger 42 Box 13: Commonly-used social and institutional assessment methods 44 Box 14: Measuring changes in climate change-related knowledge, attitudes and practices in Guyana 46 Box 15: Commonly-used methods for dealing with risk and uncertainty 47 Box 16: Using sensitivity analysis to deal with uncertainty when assessing adaptation options for Albania’s power sector 48 Box 17: Integrated biophysical, social and economic assessment of ecosystem-based disaster risk reduction approaches to road construction in Nepal 50 Box 18: Combining cost-benefit analysis and multi-criteria analysis to assess mangrove management options and trade-offs in the Philippines 52 Box 19: Cost-benefit analysis of flood mitigation interventions in Canada as part of the appraisal process for public sector investment projects 54 Box 20: Benefits from engaging the target audience in the valuation exercise 60 Box 21: The importance of stakeholder engagement in evaluating the effectiveness and impact of hybrid “building with nature” coastal adaptation measures in Indonesia 61 Box 22: Targeting valuation metrics and messages by using a saved health, saved wealth approach to communicate the benefits of coastal adaptation options in Viet Nam 64 Box 23: Using the valuation process to build capacity among protected area managers in Mexico 67 IV Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook List of Figures Figure 1: Content of the sourcebook 5 Figure 2: EbA benefits, costs and impacts 9 Figure 3: Assessment and valuation in the EbA mainstreaming cycle 22 Figure 4: EbA valuation practical purposes and decision questions 23 Figure 5: Categories of EbA valuation methods and examples 28 Figure 6: Key tools and considerations for enhancing the strategic impact of valuation 57 Figure 7: Practical steps in putting together an EbA valuation study: things to think about and do 72 Figure 8: Map of valuation case studies 80 List of Tables Table 1: Comparison of appraisal and evaluation procedures 58 Table 2: Key elements and tools in the communication process 66 Table 3: List of EbA-relevant valuation case studies 80 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook V Summary: EbA valuation is the process of describ- ity to EbA valuation which may not be ing, measuring and analysing how the present in more conventional appraisals best practices benefits, costs and impacts arising from and analyses. the implementation of ecosystem-based and lessons approaches to adaptation are generated, The sourcebook covers a range of differ- received and perceived. While the term ent approaches to valuing EbA benefits, learned about valuation is variously understood, there is and describes experiences, lessons general consensus that it should be taken learned and best practices in how valu‑ EbA valuation to refer to a process of expressing and ation has been applied and used in the communicating information about how real world. much something is worth. There are three basic elements of EbA value: benefits, costs and impacts. Benefits are the advan- tages or positive effects of EbA measures; Valuation can provide powerful – and costs are the resources required to deliver much-needed – arguments for invest- EbA measures, and the disadvantages ing in Ecosystem-based Adaptation. or negative effects caused by them; and Ecosystem-based approaches are now impacts are the effects or changes in recognised to hold considerable potential situations or circumstances that arise as to strengthen climate adaption (as well as a consequence of EbA measures having other, closely related, processes such as been undertaken. Basically, EbA benefits disaster risk reduction and nature-based and costs interact to result in particular solutions). However, they are still yet to impacts. be fully mainstreamed into development policy and practice. One important bar- This sourcebook addresses the topic rier to uptake is the lack of demonstrable of EbA valuation. It offers a resource to evidence of their effectiveness either in guide the design, delivery and use of EbA meeting adaptation goals or in delivering valuation studies to inform and influence the other ecosystem service co-benefits decision-making. that are claimed for them. Another con- straint is that, despite a variety of methods being available (and long been used) to assess the costs and benefits associated EbA valuation does not only refer to with both adaptation infrastructure and monetary measurements, but also the ecosystem services, these have as yet seen assessment of biophysical effects, eco- little application to EbA. A recent review nomic and livelihood impacts, social and carried out by GIZ found that, despite a institutional outcomes and even changes growing body of experience and applica- in people’s knowledge, attitudes and tions, EbA valuation is still yet to reach its practices. A wide array of methods are full potential. available with which to value EbA. These deal with different types of benefits, costs As outlined in Chapter 1, the sourcebook and impacts, have varying data needs, addresses these methodological and and express their results according to an informational gaps, and looks at how assortment of metrics. On the one hand, valuation can be used to improve the the toolbox of valuation methods that can mainstreaming of EbA into adaptation potentially be applied to EbA is a fairly policies, strategies and plans. standard one, and differs little from that which is routinely used to assess other types of adaptation infrastructure (or, indeed, public investments and develop- Valuation is not an end in itself, but ment projects more generally). However, a means to an end – better-informed at the same time, ecosystem-based ap- decision-making which results in the de- proaches have a number of special char- livery of more effective, sustainable and acteristics. These add a level of complex- inclusive climate adaptation solutions. VI Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Summary However academically interesting it is to of the valuation purpose: identifying estimate the value of ecosystem services adaptation needs and opportunities, or the costs and benefits of EbA, these choosing between adaptation alterna- data mean little unless they actually affect tives, justifying and making the case for how adaptation is planned and delivered EbA measures, and highlighting needs for in the real world. Valuation should be instruments to support EbA delivery. understood as a ‘knowledge brokerage’ process between the science and policy domains. It seeks to inform, influence or otherwise support decision-making, by There is no such thing as the ‘best’ EbA transforming data on benefits, costs and valuation method. Methods generate impacts into information that can be used varying results because they represent to support adaptation policy, planning different perspectives or focus on differ- and management in the real world. ent factors. Choosing between methods based on technical considerations alone Chapter 2 presents the fundamental is unlikely to be sufficient to identify the principles and cross-cutting consider- most appropriate design. An important ations that underlie EbA valuation, and guiding principle in EbA valuation is that which shape the sourcebook’s focus on one method is rarely enough: focusing on the design, delivery and use of EbA valu- only a single aspect of values (for ex- ation studies to facilitate more inclusive, ample biophysical, economic or social) is effective and sustainable adaptation unlikely to provide an accurate or useful planning and implementation. picture. Adaptation typically has multiple goals (which require different methods to assess them), and involves a diverse range of beneficiaries, costs-bearers and other It is very important to be clear about the stakeholders (who have different needs, purpose and intended outcome of EbA priorities and perceptions of value). In valuation, and ensure that it is fit to pur- almost all cases, EbA valuation requires pose in decision-making terms. The range taking a multidimensional, multisectoral of possible applications of EbA valuation and multidisciplinary approach, which is potentially very broad and context combines different methods, perspec- specific. It spans awareness-raising and tives and types of expertise. Valuation is a priority-setting, through project planning process of considering, synthesising and and implementation, monitoring and communicating different people’s under- valuation, to the design of broader policy standing and perceptions of EbA benefits, instruments and incentive mechanisms costs and impacts. to be used in support of EbA. Good stud- ies do not only require sound technical Chapter 4 lays out the different ap- methods, but also demand intelligent and proaches and techniques that can be used strategic management, and ‘joined-up’ to value EbA benefits, and presents case thinking. EbA valuation must be designed studies of how they have been applied. It and conducted in ways that are appropri- deals with five main categories of valu- ate to the adaptation decision-making ation methods: biophysical effects, risk context that it seeks to inform and influ- exposure and vulnerability, economic ence, as well as to the social, economic, costs and benefits, livelihoods and well- institutional and cultural setting in which being impacts, social and institutional it is being carried out. outcomes. Guidance is also provided on dealing with risk and uncertainty, Chapter 3 looks at how to define the and identifying the appropriate mix of practical purpose of an EbA valuation methods. study, as well as the decision questions that it will seek to answer and address. It deals with the five main categories Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook VII Summary Valuation studies are most likely to be Chapter 6 presents suggestions on effective and have strategic impact when four types of ‘things to think about’ and they manage information generation ‘things to do’ when commissioning, and dissemination in ways that simul- designing and implementing valuation taneously enhance the studies‘ relevance, studies: the reporting outputs, techni- credibility, and legitimacy to decision cal steps, process steps and coordination makers. Relevance refers to the applica- needs. bility of valuation findings to the needs of adaptation planners, managers and policy-makers. Credibility deals with the technical adequacy and believability of There is a growing body of literature on the evidence and arguments presented the benefits, costs and impacts of both about the effectiveness of ecosystem- ecosystem-based and grey adaptation based approaches. Legitimacy reflects the measures. These cover a wide range of perceived validity and trustworthiness of methods, countries, sectors and adapta- both the EbA valuation process and its re- tion measures, and offer important ex- sults as being fair, unbiased, and respect- amples, lessons learned and best practices ful of stakeholders’ divergent values and in the use and application of valuation in beliefs. real-world decision-making contexts. Chapter 5 elaborates the four most Chapter 7 provides a list of case studies important considerations in managing of how EbA-relevant valuation methods the valuation process so as to enhance its have been applied in practice in adapta- strategic impact: embedding the valua- tion decision-making and elsewhere. tion study in real decision processes, de- These 4-6 page case studies are directly fining and engaging the target audience, accessible as PDF files, through links. communicating interesting, appropriate and useful information, and building long-term capacity. Most valuation studies follow a logical progression through seven main stages. After framing the need for EbA valuation in the first place, the practical purpose and envisaged outcome of the study should be clearly defined. This also involves clearly specifying the questions that the study aims to answer, the stakeholders it seeks to engage with and the target audience that it intends to communicate with. The next step is to scope the values to be assessed, and identify the benefits, costs and impacts that will be considered in the study, as well as the beneficiaries and cost-bearers. Designing the valuation approach involves elaborating the specific methods and metrics that will be applied to measure EbA values. After collecting the data and analysing the information, the findings can be documented and dis- seminated. VIII Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 1.1 Why focus on valuation? 1.2 What does the sourcebook seek to deliver? 1.3 How and by whom is the sourcebook intended to be used? 1.4 What is the content of the sourcebook? 1 Introduction: about the sourcebook Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 1 1.1 Why focus on Few people would dispute that there is disaster risk reduction and nature-based an urgent need to find effective, afford- solutions), it is still yet to be fully main- valuation? able and equitable measures to cope with streamed into development policy and changing climate conditions, which can practice. ‘Green’ approaches continue to enhance the resilience of both human and be considered a low priority as compared natural systems in the face of climate- to more conventional ‘sector-based’ or induced risks and stresses. One way of ‘grey’ measures. doing this is to draw on the services of the natural environment. Natural forests and One important barrier to uptake is the wetlands, for example, often play a key lack of demonstrable evidence of either role in maintaining dry season waterflow the effectiveness of EbA approaches in and mitigating flood events, while man- meeting adaptation goals, or their deliv- groves help to protect coastal settlements ery of other ecosystem service co-benefits and infrastructure against the effects of that are claimed for them. Another storms, tidal surges and sea-level rise. As constraint is that, even though a variety farming systems become more risky due of methods are available (and have long to unpredictable temperature and rainfall been used) to assess the costs and benefits patterns, maintaining the genetic diver- associated with both adaptation infra- EbA sity of crops and livestock at the same structure and ecosystem services, these time as investing in sustainable land and have as yet seen little application in the soil management practices can make a context of EbA. Given these informational substantial contribution towards helping and methodological gaps, it is perhaps farmers to stabilise, sustain and secure unsurprising that decision makers often their livelihoods into the future. remain unconvinced — or even unaware — about the potential advantages of inte- Ecosystem-based adaptation (EbA) is de- grating ecosystem-based measures into fined by the United Nations Convention adaptation strategies. At the same time, valuation on Biological Diversity as an approach it makes it hard to show that EbA yields a that “uses biodiversity and ecosystem worthwhile return on investment, either services … to help people to adapt to in itself, as compared to or in combina- the adverse effects of climate change”, tion with hard engineering options. and may include “sustainable manage- ment, conservation and restoration of Efforts to measure, compare and com- ecosystems, as part of an overall adapta- municate EbA benefits, costs and impacts tion strategy that takes into account the (together referred to as “EbA values” in the multiple social, economic and cultural sourcebook) are key to support better- co-benefits for local communities” (SCBD informed planning and decision-making. 2009, 2010). Even though EbA is now In particular, they help to identify where recognised to have considerable potential ecosystem-based approaches can contrib- methods to strengthen climate adaption as well as ute towards more effective, inclusive or other, closely related, processes (such as sustainable adaptation solutions. 2 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 1.2 What does This sourcebook addresses the topic of efits and costs, but also the assessment of EbA valuation. It offers a resource to many other different types of impacts and the source- guide the design, delivery and use of EbA effects, both quantitative and qualita- valuation studies to inform and influ- tive. EbA valuation extends far beyond book seek to ence decision-making. The focus is on only looking at economic impacts that facilitating more inclusive, effective and are expressed in the market, and is also deliver? sustainable adaptation planning and concerned with non-market economic implementation. It should be emphasised values, as well as biophysical effects, that the sourcebook does not seek to risk exposure and vulnerability, liveli- provide an inventory or toolkit of all the hood and wellbeing impacts, social and valuation methods that might be used to institutional outcomes. The emphasis of assess, measure, evaluate or make the case the sourcebook is however primarily on for EbA, or to lay out guidelines or a series methods to assess socio-economic values. of steps for carrying out a valuation study. It deals with biophysical assessment This kind of detailed technical guidance is methods only as a component or comple- available elsewhere, and need not be repli- ment in valuing the impacts of EbA on cated. For this, the sourcebook includes a human systems and does not contain collection of case studies of how valuation detailed guidance on their application. methods have been applied in practice, as well as a comprehensive reference list (see Chapters 7 and 8). Rather, the sourcebook deals with the process of thinking through how to undertake the process of EbA valuation, and how to use the results effectively and convincingly to strengthen adaptation planning. A recurrent theme is that this does not only require sound technical methods, but also demands intelligent and strategic management, and ‘joined- up’ thinking. EbA valuation must be designed and conducted in ways that are appropriate for the adaptation decision- making context that it is intended to inform and influence, as well as to the so- cial, economic, institutional and cultural setting in which it is being carried out. The sourcebook defines valuation not only as the estimation of monetary ben- Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 3 1.3 How and by The sourcebook offers a guidance docu- The primary audience for the source- ment that can be consulted during the book is therefore the staff of government whom is the course of designing and delivering EbA institutions, development agencies and valuation studies. The intended purpose non-government organisations that are sourcebook is to provide information and direction responsible for planning, appraising and about when and why it might be useful implementing adaptation measures, and intended to assess and measure EbA benefits, costs those from environment and develop- and impacts at different stages of the ad- ment sectors who have an interest to be used? aptation planning and implementation in promoting ecosystem-based cycle. approaches. Readers are assumed to already be familiar with the principles As such, the sourcebook is targeted at the of ecosystem services and climate change people that are responsible for commis- adaptation: the sourcebook does not sioning, supervising and using the results provide a general background to EbA, of such studies to inform and influence only to its valuation. decision-making. It is not aimed at the technical experts or practitioners that are The sourcebook deals mainly with climate engaged to carry out EbA valuation. The change adaptation activities that are being application of valuation methods requires carried out in support of public interest specialised training and experience, and or triple bottom-line goals. Corporate detailed technical guidance. and private sector planners and managers are not the main intended audience. This is because assessing and measuring EbA benefits from a purely financial or private EbA viewpoint requires a slightly different ap- proach, conceptual basis and logic, even though it may use similar methods to those laid out in the sourcebook. valuation methods 4 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Figure 1: Content of the sourcebook applying valuation to inform and influence decision-making Chapters 1 2 3 4 5 6 7 8 introduction understand- selecting defining the enhancing delivering learning references ing EbA the purpose of the strategic the from the values and valuation the valuation impact assessment experience valuation methods what the sourcebook real-world seeks to deliver, how how to design, deliver, manage experiences, lessons EbA values can be learned and best and use EbA valuation studies defined, understood practices in EbA and applied valuation 1.4 What is the The sourcebook contains three main sessment or study). Chapter 6 combines sections, organised into eight chapters the insights of the previous chapters into content of the EbA (Figure 1). a series of checklists for the design and planning of EbA valuation studies. sourcebook? The first section (Chapters 1 and 2) covers the background and introduction to what The third section (Chapters 7 and 8) the sourcebook seeks to deliver, why valu- lays out real-world experiences, lessons ation can be useful, and how EbA values learned and best practices in EbA valua- (i.e. benefits, costs and impacts) should be tion and assessment. These feed into the defined and understood. topics covered in other chapters of the sourcebook. As well as a reference list, this valuation The second section (Chapters 3 - 6) pro- comprises a series of case studies of how vides guidance on how to design, deliver, valuation has been used to measure EbA manage and use valuation studies. Chap- costs, benefits and impacts in practice, ter 5 (which deals with tools to enhance using different methods, for various the strategic impact of valuation) provide purposes, and across a range of sectors, information which cross-cuts other chap- biomes and countries. ters (on designing and delivering the as- methods Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 5 Summary of Chapter 2 Key points to bear in mind when designing and delivering EbA valuation studies The following chapter presents the fundamental prin- stances that arise as a consequence of ciples and cross-cutting considerations that underlie EbA measures having been undertaken. EbA valuation, and which shape the sourcebook’s focus on the design, delivery and use of EbA valuation studies It is not necessary to always assess or value to facilitate more inclusive, effective and sustainable each and every type of cost, benefit and im- adaptation planning and implementation. To these ends, pact. What is included in any given valuation it emphasises the following points: study will vary, depending on its purpose and context. EbA valuation can be defined as the process of describing, measuring and analysing how the EbA valuation almost always involves dealing benefits, costs and impacts arising from the with multiple, often divergent and sometimes implementation of ecosystem-based adap- conflicting values that cannot be reduced to a tation approaches are generated, received and single metric or numeraire. Wherever possible, perceived. valuation studies should attempt to adopt the concept of multiple values. There are three basic elements of EbA value: benefits, costs and impacts. Benefits are the EbA valuation is not an end in itself, but a advantages or positive effects of EbA mea- means to an end — better-informed decision- sures; costs are the resources required to deliv- making which results in the delivery of more er EbA measures, and the disadvantages or effective, sustainable and inclusive climate negative effects caused by them; and impacts adaptation actions. are the effects or changes in situations or circum- 6 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 2.1 Thinking through what is to be valued 2.2 The concept of multiple values 2.3 Why under-valuation is often a problem 2.4 Valuation as a means to an end The basics: 2 understanding EbA values and valuation Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 7 While the term valuation is variously un- lihood impacts, social and institutional derstood, there is general consensus that outcomes and even changes in people’s it should be taken to refer to a process of knowledge, attitudes and practices. expressing and communicating infor- mation about how much something is Before planning or conducting EbA valua- worth, and is usually carried out to inform tion, it is important to be clear about what decision-making in some way (see, for is to be assessed or valued. While this will example Berghöfer et al. 2015, 2016, GIZ of course depend on the intended purpo- 2012, Gómez-Baggethun and Martín-Ló- se and target of the study (see Chapter 3) pez 2015, Millennium Ecosystem Assess- as well as the decision-making context, ment 2005, TEEB 2008, 2010). project planning or investment apprai- sal procedures it is being fitted into (see The sourcebook therefore takes a working Chapter 5), it is useful to think through definition of EbA valuation as the process the scope of the valuation exercise and be of describing, measuring and analysing aware of the possible range of items to be how the benefits, costs and impacts aris­­­­­­­­ included. This will have an important in- ing from the implementation of eco­ fluence on the selection of methods to be system-based adaptation approaches used (Chapter 4) as well as the processes are generated, received and perceived. of stakeholder engagement to be follo- Valuation may take a variety of forms and wed during the valuation exercise (see areas of focus. It does not only refer to the Chapter 5). It will, of course, also need to estimation of monetary benefits and costs, be reflected in the terms of reference that but also incorporates the assessment of are prepared to guide the delivery of the biophysical effects, economic and live- study (see Chapter 6). 2.1 Thinking There are three basic elements of EbA of EbA valuation or assessment usually value: benefits, costs and impacts. seeks to describe, measure and analyse through Benefits are the advantages or positive all three elements of this equation: the ‘pluses’, the ‘minuses’ and the ‘so what?’ or what is to effects of EbA measures; costs are the resources required to deliver EbA mea- the consequences of the action in terms of how it affects different components of be valued sures, and the disadvantages or negative effects caused by them; and impacts are socio-ecological systems. the effects or changes in situations or Each element of EbA value has a range of circumstances that arise as a consequence possible components (Figure 2). These are of EbA measures having been undertaken. described in more detail in the paragraphs Basically, EbA benefits and costs interact below. to result in particular impacts. The process 8 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Figure 2: EbA benefits, costs and impacts “pluses” “minuses” “so what?“ BENEFITS COSTS IMPACTS main adaptation goal benefits direct implementation expenses temporal impacts e.g. staff, equipment, transport, e.g. rate at which habitat reco- other adaptation benefits infrastructure, maintenance, etc. very restores ecosystem ser- vices, when intervention costs e.g. mitigation of storms and are incurred, interests of future flood damages, year-round water core institutional & enabling costs generations, etc. supplies, sustained farmland productivity in the face of e.g. training, development of spatial impacts drought, maintenance of species plans, laws, policies, habitat, etc. incentives, etc. e.g. gains and losses for upstream and downstream communities, non-adaptation benefits opportunity costs costs and benefits to ecosys- tem providers and users, effects e.g. foregone income and output across borders, etc. ecosystem service co-benefits due to land use restrictions, etc. e.g. improved health, better food distributional impacts supplies, new and diversified in- social and environmental losses come opportunities, disaster risk e.g. changes in resource access or reduction, watershed protection, income opportunities between e.g. negative impacts on women, women and men, rich and poor, enhanced biodiversity, etc. downstream communities, etc. urban and rural, regions, sectors, communities, etc. It should however be noted that not all Benefit and cost items are also not always of these items are relevant to every situa- additive. For instance, core institutional tion: it is not necessary to always assess costs may be included alongside direct or value each and every type of cost, be- implementation expenses in the budget nefit and impact. What is included in any for implementing the EbA measures (for given valuation study will vary, depen- example technical training and capacity- ding on its purpose and context. Conven- building), or the main adaptation goal tionally, and at a minimum, most studies benefits may actually be those associated would consider the main adaptation goal with a particular ecosystem service (for benefits, direct implementation expenses example flood protection or maintaining and/or temporal impacts. The inclusion of soil fertility and moisture). additional costs, benefits and impacts will depend largely on the study purpose, the Many EbA-related benefits are actually decision-making process that it seeks to merely the inverse of climate losses or inform or influence, and on the interests damages, and so to value both as separate and mandates of the organisation that is items might result in double-counting. carrying it out. Items may also be expressed in terms of metrics that cannot be compared. Some For example, adaptation projects that values may be able to be monetised (such have an overriding concern with targeting as the dollar value of project costs), others the poorest groups or with fostering green quantified only in physical terms (such as economy and growth outcomes would square kilometres of flood-impact zone), typically consider a far broader range and others only described qualitatively of costs and benefits than those which (such as improvements in social empo- are focused strictly on achieving a single werment and wellbeing or changes in climate adaptation goal. Incorporating policy and institutional settings). Indeed, ecosystem service values alongside adap- this is one of the reasons that a range of tation benefits is almost always a core part different methods and technical approa- of EbA studies (see Box 1). ches are required to value EbA benefits. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 9 Box 1: One of the features of EbA is that it frequently offers an Several different coastal protec- tion measures were identified, opportunity to not just secure both structural and non-structural Valuing the climate adaptation outcomes, (land use based), including beach but to also generate a range of nourishment, shoreline armour- costs and other ecosystem service-related ing, elevating infrastructure, pro- social, economic and biophysical perty acquisition and conservation benefits of benefits. It is therefore particu- easements. The physical costs coastal larly important to make sure that valuation studies are as compre- of implementing different adap- tion options were estimated using adaptation hensive as possible in describing benefits, whether in monetary market prices and budgets from actual projects. This incorporated options in the or non-monetary, quantitative or qualitative. a number of elements. USA A study to investigate the effec- Costs for engineering measures and property purchase tiveness of alternative adapta- For structural interventions, con- tion options in addressing coastal struction and maintenance, costs erosion, flooding hazards and sea were included for new engineer- level-rise in southern Monterey ing measures, as well as the costs Bay, USA, identified a wide range of structural modification of roads of benefits associated with EbA. and buildings and replacement Transgress conventional costs for any infrastructure (such models for an accurate picture as sewer lines and pump sta- tions) that would be damaged or It explicitly aimed to go beyond have to be moved. For the land conventional appraisal and evalu- use-based alternatives, the costs ation models which consider only associated with the purchase of a very narrow range of direct, property or a right to that prop- physical costs and benefits and erty were used. which therefore may not give an accurate picture of the relative Benefits were calculated by look­ viability and profitability of differ- ing at damage costs avoid­ed, ent adaptation options. based on an economic an­‑ ­­­alys­is of the private and public An integrated methodology was property, infrastructure, recrea‑ applied, which combined hazard tional and ecosystem service projections with biophysical mod- values associated with the coastal elling and economic analysis, with and inland resources that would See case study 39: the intention of allowing decision be affected by coastal hazards. Integrated biophysical and makers to compare how differ- An asset register was compiled, economic valuation to weigh up ent adaptation strategies would and GIS was used to evaluate coastal adaptation options impact their jurisdiction economi- the exposure of assets to coastal in the USA cally as well as physically. hazards. The economic damages 10 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook from storm events were estimat- the most significant benefits was ecological conditions which would ed using depth-damage curves, beach and coastal recreation, result from each adaptation strat- coastal erosion damages were es- which was measured using a egy. This used several metrics timated by relating the landward benefits transfer model which to score the physical, biotic, and extent of erosion to the market showed the change in value that human impacts conditions of one value of the land and/or structure would occur as beach width de- square kilometre beach blocks. at each exposed parcel. Losses to creases or increases due to ero- beach ecological index score physical property and infrastruc- sion. In addition, a range of other ture (such as buildings, roads and market and non-market ecosys- The resulting beach ecological water supplies) were valued at tem services were considered. index score was then combined replacement cost, applying actual A replacement cost analysis was with estimates of beach restora- market prices. carried out, based on reported tion (replacement) costs to pro- costs of nearby coastal restora- vide a monetised ecological value. Recreation value assessed tion. This assumed a 3:1 replacement The study also valued key eco- A relative ranking of ecological cost for a beach with a ‘perfect’ system services that would be value for each beach within the ecological index score of 100, and secured by ecosystem-based study area was then developed, scaled beaches with lower scores (although not necessarily grey) scored for present conditions and proportionately. adaptation measures. One of then calculated for the changes in Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 11 Benefits Benefits are the advantages or positive it is necessary to have a clear idea of the effects of EbA measures. There are four adaptation goal that the EbA measure basic benefit components that might seeks to contribute to, as well as of the be addressed in an EbA valuation study: indicators that are being used to measure the main adaptation goal benefits, other progress towards this goal. adaptation benefits, non-adaptation bene- fits, and ecosystem service co-benefits. In addition, the EbA measure may gener­ ate other adaptation benefits, over and The primary concern is usually to value above its direct target or goal. For ex­ the main adaptation goal benefits. These ample, climate-smart agriculture inter- are the adaptation effects that the mea- ventions that aim to enhance crop yields sure or intervention is concerned with may be based around sustainable land generating in the first place. For example: management, and also result in better wa- improvements in farm production from ter conservation practices which improve climate-smart agricultural practices, or farmers’ resilience to cope with the effects the reduction in damage to property, loss of drought. In a similar vein, flood control of human life and incidence of disease systems may also serve to enhance water that is achieved by urban flood mitigation storage and thus stabilise dry season “pluses” measures. In order to assess these benefits, water supplies. BENEFITS “minuses” “so what?“ COSTS IMPACTS main adaptation goal benefits direct implementation expenses temporal impacts e.g. staff, equipment, transport, e.g. rate at which habitat recove- other adaptation benefits infrastructure, maintenance, etc. ry restores ecosystem services, when intervention costs are incurred, interests of future e.g. mitigation of storms and core institutional & enabling costs generations, etc. flood damages, year-round water e.g. training, development of supplies, sustained farmland plans, laws, policies, spatial impacts incentives, etc. productivity in the face of e.g. gains and losses for upstream and downstream communities, drought, maintenance of species opportunity costs costs and benefits to ecosystem habitat, etc. e.g. foregone income and output providers and users, effects across borders, etc. due to land use restrictions, etc. non-adaptation benefits distributional impacts social and environmental losses e.g. changes in resource access or e.g. negative impacts on women, income opportunities between ecosystem service co-benefits downstream communities, etc. women and men, rich and poor, urban and rural, regions, sectors, communities, etc. e.g. improved health, better food supplies, new and diversified in- come opportunities, disaster risk reduction, watershed protection, enhanced biodiversity, etc. A third item to consider is the non-adapt­ defined as the benefits people obtain from ation benefits that result from the EbA ecosystems (Millennium Ecosystem As- action. For example, by changing crop sessment 2005), and include a wide range mix and income, climate-smart agricul- of valuable services which contribute ture may also result in improved child towards human wellbeing. For example, nutrition and reduced illness. Urban flood climate-smart agricultural practices based mitigation measures may lead to better on sustainable land management may year-round income security and transport also help to reduce erosion in watersheds links because of the reduced disruption to and thereby stabilise downstream water­ people’s mobility. flow and quality. Wetland-based flood mitigation measures might also support One important – and often unique – fishing and recreational activities, store feature of EbA measures is that they and sequester carbon, or provide habitat typically generate a range of ecosystem for rare or endangered bird and animal service co-benefits. Ecosystem services are species. 12 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook “minuses” “pluses” “so what?“ COSTS BENEFITS IMPACTS main adaptation goal benefits direct implementation expenses temporal impacts e.g. rate at which habitat recove- other adaptation benefits e.g. staff, equipment, transport, ry restores ecosystem services, e.g. mitigation of storms and infrastructure, maintenance, etc. when intervention costs are incurred, interests of future flood damages, year-round water generations, etc. supplies, sustained farmland productivity in the face of core institutional & enabling costs drought, maintenance of species spatial impacts habitat, etc. e.g. gains and losses for upstream e.g. training, development of and downstream communities, non-adaptation benefits plans, laws, policies, costs and benefits to ecosystem providers and users, effects incentives, etc. across borders, etc. ecosystem service co-benefits distributional impacts e.g. improved health, better food opportunity costs supplies, new and diversified in- come opportunities, disaster risk e.g. changes in resource access or income opportunities between reduction, watershed protection, e.g. foregone income and output women and men, rich and poor, enhanced biodiversity, etc. due to land use restrictions, etc. urban and rural, regions, sectors, communities, etc. social and environmental losses e.g. negative impacts on women, downstream communities, etc. Costs Costs are the resources required to deliver incentive systems. These costs are often EbA measures, and the disadvantages or not included in the direct budget for the negative effects caused by them. There are adaptation measure or action, because four basic cost components that might they are not being financed by the main be addressed in an EbA valuation study: project proponent, donor or investor. The direct implementation expenses, core in­ introduction of climate-smart agricult­ stitutional and enabling costs, opportuni- ure may, for example, also require that ty costs and social/environmental losses. local extension agents are trained in new techniques and that farm subsidies The direct implementation expenses are are reoriented. The establishment of a the immediate physical costs of carrying wetland reserve might also necessitate the out the EbA measure, including both development of new legal instruments ca­pi­tal and recurrent costs. They will and management plans, and the deploy- usually be calculated based on the budget ment of additional field staff. that has been prepared for the action or project under consideration. For example, Opportunity costs are the potential gains cli­mate-smart agriculture interventions from other, alternative, activities that are might involve the purchase of tractors, foregone or diminished by choosing to hoes and seeds, as well as farmer training implement an EbA measure. This may and the establishment of model farms. be felt as a loss in output, income, jobs, Wetland-based flood mitigation measures food, fuel or any other product or service. could include the restoration and reha- Opportunity costs are often particularly bilitation of degraded marshes, labour to relevant to EbA, because many ecosys- carry out the removal of invasive alien tem-based approaches involve restoring, species, as well as investments in basic conserving or setting aside a natural area in­frastructure and spending on conser- which is being used for other purposes (or vation management activities that are might have the possibility of being used required to establish and run a wetland in the future). As many EbA measures are reserve. also implemented as community-based projects or collaborative actions, they may Core institutional and enabling costs are also incur substantial time costs on the the outlays that must be made on estab­ part of project participants (these costs lishing broader support structures for are sometimes distinguished as ‘tran- the EbA activity. These can be significant, sactions costs’, but are grouped together because EbA (and adaptation more gene- with opportunity costs in this sourcebook rally) often requires the establishment of because they primarily relate to the real- new agencies, capacities, laws, policies and location of time required to participate in Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 13 EbA, or the diminution of time available as knock-on effects from the EbA action for other productive activities). that is being valued (or from the other adaptation options that are being consid- For example, the opportunity cost of ered alongside it). Like ecosystem service climate-smart agriculture may be the pro- co-benefits, these effects are often remote duction and income losses arising from a from the EbA measure that is being shift away from the intensive production assess­ed in terms of where, by whom and of cash crops, as well as the additional when they are experienced – but, none- time required for farmers to engage in theless, should be considered as part of village-level planning and information the costs of undertaking it. For example, exchange. Wetland-based flood mitiga- climate-smart agriculture may entail tion measures would typically preclude a shift to non-food cash crops which draining and conversion of the wetland favours male farmers and traders, thereby for settlement and industry. They might impacting on women’s income as well also be accompanied by the introduction as children’s nutritional status. Wetland- of restrictions on land and resource uses based flood mitigation measures may, by in the wetland reserve, as well as requir- changing regional inundation patterns, ing the participation of local community result in reduced groundwater recharge members in wetland patrols, tree planting, and the drying-up of downstream flood- awareness events and joint management dependent pasture, riverbank farms and committees. fishing lakes. A wide variety of social and environ- mental losses may result indirectly or Impacts Impacts are the effects or changes in on the restoration of these natural habi- situation or circumstances that arise as tats and the species that inhabit them. a consequence of EbA measures. There are three basic impact components that Spatial impacts refer to where benefits might be addressed in an EbA valuation and costs accrue in the landscape. One study: temporal, spatial and distributional. of the key features of ecosystem services (and many other adaptation benefits) is Temporal impacts refer to how benefits that there is a mismatch between where and costs accrue over time. They are often an action is undertaken or where a service particularly important in relation to EbA is generated, and where its effects are felt because, while the adaptation effects of (see Fisher et al. 2009). For example, while ecosystem-based approaches may often climate-smart agriculture involves a series take a relatively long-time to become of actions that are implemented on farms, apparent, they can typically be sustain­ the watershed protection benefits arising ed in perpetuity. For example, it might from more sustainable land management take several years for soil fertility and practices are felt in downstream areas. crop productivity to be restored after the Meanwhile, the primary impact zone of introduction of climate-smart agriculture, flood mitigation services may comprise but, once accomplished, these effects will settlements and infrastructure that is continue (and even increase) as long as located at some physical distance from these farming practices are maintained. the wetland itself. Similarly, wetlands flood control, and fisheries services will likely re-emerge Distributional impacts refer to how dif- gradually, only after revegetated areas ferent groups incur costs and receive ben- have become sufficiently established to efits. They are closely linked to the issue of enable the resumption of these functions. spatial impacts, because EbA beneficiaries In turn, other services such as the return and cost-bearers are often also physi- of migratory birds and the development cally remote from each other or scattered of a viable eco-tourism industry, depend across the landscape. Distributional im- 14 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook “so what?“ “pluses” “minuses” BENEFITS COSTS IMPACTS main adaptation goal benefits direct implementation expenses temporal impacts e.g. staff, equipment, transport, other adaptation benefits infrastructure, maintenance, etc. e.g. rate at which habitat recove- e.g. mitiagtion of storms and ry restores ecosystem services, core institutional & enabling costs flood damages, year-round water when intervention costs are supplies, sustained farmland productivity in the face of e.g. training, development of incurred, interests of future plans, laws, policies, drought, maintenance of species incentives, etc. generations, etc. habitat, etc. opportunity costs non-adaptation benefits spatial impacts e.g. foregone income and output ecosystem service co-benefits due to land use restrictions, etc. e.g. gains and losses for upstream e.g. improved health, better food and downstream communities, supplies, new and diversified in- social and environmental losses costs and benefits to ecosystem come opportunities, disaster risk providers and users, effects e.g. negative impacts on women, reduction, watershed protection, enhanced biodiversity, etc. downstream communities, etc. across borders, etc. distributional impacts e.g. changes in resource access or income opportunities between women and men, rich and poor, urban and rural, regions, sectors, communities, etc. EbA pacts are particularly important to con­ power facilities and irrigation schemes. sider in instances where EbA measures Yet downstream water users rarely pay are being implemented as part of broader for these services, or contribute funding poverty alleviation or social inclusion to sustainable land management activi- strategies, where a project has an explicit ties in the watersheds they depend on. equity focus, or in instances where there Similarly, neither the government parks may be additional mechanisms need to authority that manages a wetland reserve valuation set in place to redistribute funding or in- nor the local communities who must centives in order to enable or sustain the restrict their land and resource activities EbA measures over the long-term. in the adjacent area may benefit directly from flood mitigation measures – rather, For example, while it is local farmers that it is more distant urban residents, their bear the on-site costs (as well as some of property and infrastructure that reap the gains) from climate-smart agriculture, the main advantages in terms of reduced many of the ecosystem service co-benefits flood-related damages. accrue to far-off water users, hydro- methods 2.2 The concept One of the defining characteristics of EbA is that it positions people at the centre of A first and very basic aspect to be consi- dered is that value should be understood of multiple the adaptation process, and involves com- munity-based and participatory approa- to refer to importance, rather than just monetary price (Gómez-Baggethun and values ches (IIED 2016, SCBD 2009, 2010). For this reason, the concept of value pluralism or Martín-López 2015). This is a key point in relation to EbA, because many of the be- multiple values has emerged as a key issue nefits extend beyond goods and services in EbA valuation (and in ecosystem assess- that are traded in formal markets. Most of ment more generally). Wherever possible, the appraisal and analysis processes that efforts at EbA assessment and valuation have traditionally been used to inform should attempt to adopt the concept of adaptation decision-making are based on multiple values. monetary or – to a slightly lesser extent – biophysical valuation techniques and Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 15 metrics, and thus automatically under- EbA assessment thus almost always value ecosystem-based approaches (this involves dealing with multiple, often issue will be considered further below, divergent and sometimes conflicting in Section 2.3). Not only does this kind values that cannot be reduced to a single of one-dimensional view of value reflect metric or numeraire. Referring back to a particular economic paradigm which the definition presented at the beginning assumes that the market can accurately of this chapter, it is important to remem- (and universally) assign values to all goods ber that valuation is a process of consid- and services, but it also cannot present ering, synthesising and communicating a balanced or comprehensive picture of different people’s understanding and EbA costs, benefits and impacts to deci- perceptions of benefits, costs and impacts. sion makers. Rather, value should be seen The concept of multiple values reflects on as referring to a principle associated with how differently people value ecosystem a given worldview or cultural context, a services and other benefits, depending on preference someone has for a particular the natural space they live, their cultural state, the importance of something for and institutional backgrounds, as well as itself or for others, or simply a measure their worldviews, principles and prefer- (Pascual et al. 2017). ences. In turn, a pluralistic or multi- Participatory resource mapping Box 2: Measuring farmers’ Adaptation projects are often A more participatory, locally- designed based on what scien- driven approach was used to as- preferences for tists and external experts con- sess community perceptions and sustain­able land sidered to be the ‘best’ technical and technological solutions. For preferences for sustainable land management (SLM) and climate- manage­ment and example, many of the socio- smart agriculture (CSA) practices economic and biophysical studies in Malawi and Tanzania. First of climate-smart that are carried out to inform the all, focus group discussions were agriculture in design of agricultural adaptation interventions assess the benefits held at the village level, in order to build up a picture of the social, Malawi and of different land management Participatory resource mapping options according to externally- Tanzania driven indicators of value, not in economic, institutional and bio- the light of what farmers them- physical context in which farmers selves perceive as the main costs operate and to identify key land and benefits. It is perhaps hardly management needs and challeng- surprising that there are often es. Next, a participatory resource See case study 19: contradictions between what mapping exercise was carried out, research recommends, projects where different groups such as Participatory mapping and valu- promote and donors invest in as men, women and youth showed ation of farmers’ land management being the most effective adapta- how and by whom land was used costs, benefits and preferences tion measures, and those which and managed, and which resourc- in Malawi and Tanzania farmers actually carry out. es were the most important to 16 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook dimensional approach to valuation involves recognising, mak­ing visible and respecting these diverse percept­ions (IPBES 2016). It also typically requires a broad suite of methods to be employed to capture these multiple values, and a high level of stakeholder engagement to ensure that no perspective is misrepresented, marginalised or ignored (see Box 2). different groups at different times by more conventional socio-eco- Meanwhile, ELMO made it clear and in different places. nomic and biophysical survey that many of the CSA or SLM Building on this information about techniques. One key finding was techniques that are most com- how farmers differentially man- that local perceptions of ecosys- monly practised and which farm- age, use and depend on land, re- tem service benefits, and how ers express the greatest prefer- sources and ecosystem services ence for are not those which yield Structural issues at stake in the face of climate change, the the highest production gains, next stage of the study focused these change over time, vary generate the greatest income, on establishing how farmers val- widely between different stake- or entail the lowest costs. This ued different land management holders. The implication is that, stands in stark contrast to the alternatives. This used the Evalu- if CSA or SLM interventions are types of adaptation measures ating Land Management Options being evaluated or planned, then and land management measures (ELMO) tool, a novel method that they need to address the specific that conventional agronomic, soil had been developed to investi- constraints that different types of science and economic analysis gate farmers’ own perceptions farmers face, so that measures would point to as being the most and explanations of the costs and can be better targeted. These go desirable intervention options. inputs, benefits and outcomes, far beyond just technical, tech- Farmers make decisions based on advantages, disadvantages asso‑ nological or knowledge issues, a wide range of on-farm and off- ciated with different land man- and extend to structural issues in farm monetary and non-monetary agement choices. The study yield‑ the laws, policies, markets and costs, benefits, risks and opportu- ed a number of interesting in- institutions that govern people’s nities which are not captured well sights, which would have been access to land, resources and by traditional survey techniques unlikely to have been revealed livelihoods. and analytical models. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 17 2.3 Why As mentioned above, there is no fixed formula to determine which benefits, goals. Thus, failing to count the full range of (direct and indirect, monetary and non- under-­ costs and impacts should be included in EbA assessment or valuation. This monetary) benefits, costs and impacts automatically prejudices against EbA in valuation depends largely on the reasons for the study, and the context in which it is being adaptation decision-making processes. It also typically marginalises the needs is often a carried out. However, traditionally, the appraisals and assessments that are used and interests of the groups that stand to benefit from the provision of these wider problem to guide adaptation planning (or project planning and investment appraisal more goods and services (or will be negatively impacted by their loss) – often the poorest generally) have tended to conceptualise and most vulnerable groups who are una- intervention costs as comprising just the ble to access or afford them elsewhere. direct physical expenditures required to implement adaptation activities, and As is the case for many environmental have measured benefits only in terms of and social projects, the more compre- the extent to which the main adaptation hensive a valuation or assessment is, goal is delivered and impacts on direct, the better it is likely to represent the easily-measurable monetary benefits and advantages of EbA. Thus, in most cases, physical impacts. EbA assessment and valuation studies should explicitly seek to be as inclusive In this respect, the problem of under- as possible in terms of their scope and valuation poses a recurrent problem for coverage. The intention is to demonstrate EbA. The main advantage of EbA measu- the wide-ranging advantages that can be res tends to lie in their ability to simul- gained from adopting and ecosystem- taneously generate multiple adaptation based approach, which will simultaneous- benefits and co-benefits (including those ly benefit a diversity of groups and sites, associated with ecosystem services), and contribute towards several different deliver cost-effective long-term solutions, adaptation and development goals. and maximise distributional and equity 2.4 Valuation However academically interesting it is to estimate the value of ecosystem services, intention is to provide a basic reference on the issues that need to be considered in as a means or the costs and benefits of EbA, these data mean little unless they actually affect the design and delivery of a practical and policy-relevant study: how to undertake to an end how adaptation is planned and delivered in the real world. EbA valuation is not the process of EbA valuation, and to use the results effectively and convincingly. It an end in itself, but a means to an end – is also the reason that the sourcebook em- better-informed decision-making which phasises topics such as defining the pur- results in the delivery of more effective, pose of the valuation study (Chapter 3), sustainable and inclusive climate adap- enhancing its impact on decision-making, tation actions. and managing the process in terms of stakeholder engagement, participation The fact that EbA valuation will almost and capacity (Chapter 5). In many re- always be carried out in a decision-making spects, these aspects of valuation planning context (and in support of a particular are as – or even more – important than goal or desired outcome) provides much the question of which is the ‘best’ techni- of the motivation for this sourcebook. The cal method or data source to use. 18 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook EbA valuation methods Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 19 Summary of Chapter 3 Key points to bear in mind when designing and delivering EbA valuation studies The following chapter looks at how to define the practi- Five broad categories of purpose can be identi- cal purpose of an EbA valuation study, as well as the de- fied, based on the stage of the EbA mainstreaming cision questions that it will seek to answer and address. cycle at which valuation are being applied and its It deals with the five main categories of valuation pur- intended area of decision-making influence. These pose: identifying adaptation needs and opportunities, are: choosing between adaptation alternatives, justifying ­ identifying adaptation needs and opportuni- and making the case for EbA measures, and highlighting ties, needs for instruments to support EbA delivery. To these ends, it emphasises the following points: ­ choosing between adaptation alternatives, ­ justifying and making the case for EbA mea­- It is very important to be clear about the purpose sures, and envisaged outcome of EbA valuation from ­ highlighting needs for instruments to support the start, before the study has been designed or its EbA delivery, and methods selected, so as to be able to align it with the intended use (and users) of its results, and to ­ monitoring and evaluating EbA implementa- ensure that it is fit to purpose. tion. Having defined the purpose of carrying out EbA valuation, it is also necessary to articulate the ques- tions that it will address and attempt to answer. 20 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 3.1 Stating the practical purpose and decision questions to be addressed 3.2 Identifying EbA opportunities 3.5 Highlighting needs for 3.3 Choosing between additional instruments adaptation alternatives to sustain EbA delivery 3.4 Justifying and making 3.6 Monitoring and evaluating the case for EbA measures EbA implementation Defining the purpose: 3 why and when to value EbA benefits Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 21 As mentioned at the beginning of Chap- 2009, IFRC 2006, Kosmus et al. 2012, ULI ter 2, valuation involves describing, mea- 2015, UNFCCC 2005). suring and analysing EbA costs, benefits and impacts so as to inform, influence or For example, being able to determine how otherwise support adaptation decision- effective and efficient EbA is in reduc- making. As such, it feeds into several ing vulnerability and protecting socio- stages of the EbA mainstreaming cycle ecological systems in the face of climate (Figure 3) – a systematic approach which change helps to identify the most suitable explains how to integrate ecosystem- adaptation options, and can be used to based approaches into a project, policy or make a convincing case for the inclusion planning process (GIZ 2013, 2016). of ecosystem-based approaches. Weighing up the costs and benefits of EbA along- It is self-evident that EbA valuation side other adaptation options permits it primarily relates to the stages of the to be considered on equal terms when mainstreaming cycle that involve the interventions are prioritised and selected. identification, selection, design and Analysing the way in which EbA costs and implementation of actual adaptation in- benefits are distributed between different terventions. This is because it is concerned groups or locations can help to highlight with looking at the costs, benefits and instances where additional incentives, impacts of EbA measures. Other valuation financing or other instruments might and assessment tools might be used to be required to support and sustain the help to employ a climate and ecosystem adaptation implementation. Last but not lens or to assess vulnerability, but these least, valuation typically plays a key role in are not the focus of the sourcebook (see establishing a baseline and then in moni- for example GIZ 2012, 2013, 2014. IIED toring and evaluating adaptation efforts. Figure 3: Assessment and valuation in the EbA mainstreaming cycle Step 1 Apply climate & ecosystem lens Step 6 Step 2 Evaluation of Assess adaptation vulnerability results What is the baseline situation How effective and efficient and how have EbA-related costs, are EbA measures in helping benefits & impacts actually reduce vulnerability, enhance accrued in reality? resilience, maintain & protect Step 3 socio-ecological systems in the Step 5 Identify face of climate change? Implementation adaptation options Step 4 Prioritize and select adaptation What are the relative costs, How does the distribution of options EbA values point to needs and benefits & impacts of EbA opportunities for instruments measures in comparison or to enable, encourage & sustain combination with other the adaptation interventions? adaptation options? Adapted from GIZ (2016) 22 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 3.1 Stating the The range of possible applications of EbA valuation is thus potentially very broad. It lored to its practical purpose (Berghöfer et al. 2015). It is of course also important to practical spans awareness-raising and priority-set- ting, through project planning and imple- ensure that both the process of EbA valu- ation and its results are clearly embedded purpose and mentation, monitoring and valuation, to the design of broader policy instruments in (and relevant to) actual adaptation planning, policy and decision-making decision and incentive mechanisms to be used in support of EbA. It is very important to be frameworks – this is closely linked to the issues of relevance, credibility and questions to clear about the purpose and envisaged outcome of EbA valuation from the start, legitimacy (dealt with further below, in Chapter 5). be addressed before the study has been designed or its methods selected, so as to be able to Five broad categories of purpose can be align it with the intended use (and users) identified, based on the stage of the EbA of its results, and to ensure that it is fit to mainstreaming cycle at which valuation purpose. are being applied and its intended area of decision-making influence (Figure 4). As mentioned at the end of Chapter 2, These are: identifying adaptation needs there is little merit in conducting a valu- and opportunities, choosing between ad- ation study just ‘for valuation’s sake’, and aptation alternatives, justifying and mak- in practice there is no one-size-fits-all ing the case for EbA measures, highlight- assessment approach. The study design ing needs for instruments to support EbA must be matched to the context in which delivery and monitoring and evaluating the valuation is being carried out, and tai- EbA implementation. Figure 4: EbA valuation practical purposes and decision questions identifying choosing justifying & highlighting needs monitoring & purposes practical EbA between adaptation making the case for instruments to evaluating EbA opportunities alternatives for EbA measures sustain EbA delivery implementation would EbA be an how do EbA benefits, why and how is EbA where are there needs how (and to whom) questions decision effective & efficient costs & impacts weigh a good alternative, and opportunities to have EbA benefits, means of delivering up against other and what advantages redistribute & capture costs & impacts adaptation outcomes? adaptation options? does it hold? values to support EbA? accrued in reality? In turn, each of these purposes is associ- the specific decision-making topics and ated with a different set of questions challenges that the valuation exercise relating to EbA decision-making. Having seeks to inform or influence. Doing this defined the purpose of carrying out EbA ensures that the valuation exercise has a valuation, it is also necessary to articu- clear focus and objective, which is rooted late the questions that it will address in real-world adaptation planning and and attempt to answer. These elaborate implementation. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 23 For example, if the purpose of the EbA houses, roads, bridges and other infra- valuation is to compare green options structure assets stand to be affected, and with other adaptation alternatives so as to what extent would they be protected? to make the case to urban planners for What would be the annual damage costs investing in mangrove restoration as part avoided? What other co-benefits would be of a coastal protection strategy, then the generated by mangrove restoration? How decision questions might include: What long would it take before these benefits level of storm protection and erosion would be realised? What would be the control will the given area and quality of costs of restoring the mangroves? How mangroves provide? What is the likely do these costs, benefits and effects stack future trajectory of coastal erosion, storm up, and how do they compare to those severity and incidence under climate associated with the other, grey adaptation change? How many people, hectares of options that are being considered? crops, units of industrial production, 3.2 Identifying Valuation can play an important role in helping to identify opportunities to use focus primarily on the potential benefits and impacts of EbA in addressing the EbA EbA in support of a given adaptation goal. Specifically, it offers a framework for selected climate issue or risk, as the inten- tion is to identify whether (and/or which) opportunities assessing how effective and/or efficient ecosystem-based measures are in redu- ecosystem-based options might be worth considering as part of an adaptation stra- cing vulnerability, enhancing resilience, tegy. It would typically be carried out as or maintaining and protecting human part of a scoping exercise, pre-feasibility and natural systems in the face of climate study or project identification mission. change. In this context, valuation would 3.3 Choosing Most externally-funded projects and pu- blic investments are required to undergo comparison or combination with other adaptation options, and identifying and between some kind of a formal assessment process which compares various intervention evaluating potential trade-offs between them. It would typically be carried out as adaptation alternatives, in order to select the ‘best’ option (see Section 5.2). The criteria for part of a project analysis or investment appraisal process, or to generate informa- alternatives selecting the ‘best’ option will, of course, vary in different situations. Valuation tion to feed into social, environmental or other impact assessments. offers a means of measuring the relative costs, benefits and impacts of EbA, in 24 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 3.4 Justifying and The generally low knowledge and aware- ness of EbA among both decision makers advantages it holds over other adaptation options. Information on benefits, cost- making the and adaptation beneficiaries means that it is often necessary to provide some kind effectiveness and potential returns can provide a powerful – and often much- case for EbA of justification in order to get ecosystem- based approaches onto the agenda in needed – argument for EbA. It may be carried out in a wide variety of contexts: measures the first place, before any more detailed appraisal or analysis is carried out. Even for example, as part of a general public awareness campaign, in order to convince when EbA emerges as the ‘best’ interven- specific decision makers, project part- tion choice, it is often still necessary to ners or stakeholders, as part of a funding explain further why it is a good alter- proposal, or alongside the submission of a native and to articulate the additional budget request. 3.5 Highlighting As with any intervention, it may be neces- sary to set in place additional incentives, of adaptation costs and benefits which may need to be addressed, or which may needs for financing mechanisms or other instru- ments (such as training, co-management afford an opportunity to better capture or reallocate values between groups. In additional arrangements or supplementary liveli- hood activities) in support of EbA. For particular, analysis of the distribution of EbA benefits, costs and impacts identifies instruments example, there may be a lack of long-term resources with which to sustain the EbA where (and for whom) there may be un- compensated costs, unrewarded benefits, to sustain EbA measures after project funding ends, lo- cal communities may require additional unpenalized damages or uncaptured eco- system opportunities (TEEB 2008, 2010). It delivery livelihood support to offset the opportu- nity costs of taking land or resources out shows where there may be a need for ad- ditional actions to enable, encourage and of use, or it may be necessary to introduce sustain the EbA interventions that have fines, penalties, user fees or payments for been set in place. For example, if sustain- ecosystem services to regulate people’s able land management interventions are activities or transfer payments between being proposed as a means of securing different groups. water supply benefits, valuation can show what kinds of costs upland farmers are Valuation offers a tool with which to incurring, what kinds of damages avoided highlight needs, niches and opportunities or value-added are being received by for these additional enabling instruments. downstream water users, and thus what While it will not identify which instru- levels of transfer payments could (or ments will be the most useful or success- would need to) be captured from water ful, valuation will suggest where there are users in order to finance and incentivise substantial imbalances in the distribution watershed protection measures. 3.6 Monitoring Valuation is a key tool for monitoring and evaluating the results or outcomes of EbA further in Chapter 4, a wide range of valuation methods and indicators, poten- and evaluat­ing interventions. It provides a consistent way of tracking how (and to whom) benefits, tially reflecting diverse perspectives, are available which can be used to describe EbA imple­- costs and impacts have actually accrued in reality, in relation to the baseline or the baseline situation and then to track changes over time. ­ment­a­tion without-project situation. As laid out Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 25 Summary of Chapter 4 Key points to bear in mind when designing and delivering EbA valuation studies The following chapter lays out the different approaches Risk exposure and vulnerability – changes in and techniques that can be used to value EbA benefits, the extent to which people are affected by cli- and presents case studies of how they have been applied. mate change and are resilient and able to adapt It deals with five main categories of valuation methods: to it. biophysical effects, risk exposure and vulnerability, Economic costs and benefits – changes in economic costs and benefits, livelihoods and wellbeing the constraints and opportunities that influ- impacts, social and institutional outcomes. Guidance is ence people’s ability to produce, consume, also provided on dealing with risk and uncertainty, and trade and invest. identifying the appropriate mix of methods. To these ends, it emphasises the following points: Livelihood and wellbeing impacts – changes in the constraints and opportunities for people The toolbox of valuation methods that can po- achieve an adequate quality or standard of liv- tentially be applied to EbA is a fairly standard one, ing. and differs little from that which is routinely used to assess other types of adaptation infrastructure ­ ocial and institutional outcomes – changes S actions. in people’s rules, relations, conduct and cir- cumstances. At the same time, ecosystem-based approaches have a number of special characteristics. These add In addition, integrated analysis methods combine a level of complexity to EbA valuation which may information from a number of different sources, not be present in more conventional appraisals and and it is also often necessary to overlay valuation analyses. with the use of tools to deal with risk and uncer- tainty. EbA valuation methods can be clustered into five broad categories, based on their thematic and tech- There is no such thing as the ‘best’ method with nical focus. These comprise: which to value EbA benefits, costs or impacts. The purpose of the EbA valuation and the specific ques- Biophysical effects – changes in the levels or tions that it seeks to address or answer should drive types of services that are available and used the selection of methods. to assist human and natural systems to adapt to climate change. 26 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 4.1 Biophysical effects 4.2 Risk exposure and vulnerability 4.3 Economic costs and benefits 4.5 Social and institutional outcomes 4.4 Livelihood and wellbeing impacts 4.6 Cross cutting considerations: risk, uncertainty and the selection of methods 4 Selecting the methods: how to value EbA benefits Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 27 A wide array of methods are available a result of changes in ecosystem area or with which to value EbA. These deal status, or to deal with the issue of thres- with different types of benefits, costs and holds and non-linearities in ecosystem impacts, have varying data needs, and functioning. For example, many factors express their results according to an as- and relationships affect the generation of sortment of metrics. On the one hand, the adaptation-related (and other) ecosystem toolbox of valuation methods that can services. In common with other types of potentially be applied to EbA is a fairly adaptation measures, EbA also addresses standard one, and differs little from that climate effects and responses about which which is routinely used to assess other there is a high degree of uncertainty, are types of adaptation infrastructure (or, widely distributed across space and time, indeed, public investments and develop- display high degrees of functional and ment projects more generally). However, spatial interdependence and involve vast at the same time, ecosystem-based ap- and sometimes irreconcilable knowledge proaches have a number of special char- gaps and ambiguities. acteristics. These add a level of complex- ity to EbA valuation which may not be EbA valuation methods can be clustered present in more conventional appraisals into five broad categories, based on their and analyses. thematic and technical focus (Figure 5). These comprise methods to value One of the key features of EbA is the non- biophysical effects, risk exposure and vul- market nature of many of the benefits nerability, economic costs and benefits, and co-benefits it generates. Ecosystem livelihood and wellbeing impacts, social services often cannot be measured eas- and institutional outcomes. In addition, ily, accrue indirectly, or are produced as integrated analysis methods combine externalities to other sites, groups and information from a number of different sectors. It can also be difficult to attribute sources, and it is also often also necessary a particular quality or quantity of services to overlay valuation with the use of tools to a given ecosystem, to establish how to deal with risk and uncertainty. these services will increase or decrease as Figure 5: Categories of EbA valuation methods and examples changes in the stocks, flows and quality of resources, species, biophysical integrated methods, tools to deal with risk & uncertainty habitats and associated processes, functions and services (e.g. ecological, effects quantitative measures tend to yield more biological, hydrological, atmospheric, hydraulic, agronomic, etc.) changes in the likelihood, incidence, reach and impact of hazards on people, risk exposure ecosystems, infrastructure, property, production and other elements on socio- & vulnerability ecological systems (e.g. via disease, drought, floods, rainfall, temperatures, etc.) economic costs monetary or non-monetary changes in economic activity and performance (e.g. & benefits national, household, corporate or individual purchases, sales, production, con- sumption, savings, investment, trade, income, employment, etc.) qualtitative measures tend to yield more changes in means and access to the material and non-material requirements livelihood & for a stable, secure and acceptable quality of life (e.g. food, fuel, shelter, cash, wellbeing impacts health, education, happiness, prosperity, safety, freedom, etc.) changes in the ways that people behave, interact and are represented in formal social & institutional and informal, organised and unstructured settings (e.g. power, status, roles, outcomes responsibilities, relationships, participation, governance, sanctions, etc.) 28 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 4.1 Biophysical Valuing biophysical effects basically involves looking at changes in the levels physical effectiveness of ecosystem-based measures in addressing key climate haz- effects or types of services that are available and used to assist human and natural ards and adaptation goals (ECO Consult 2017). There was also found to be very systems to adapt to climate change. It little information available about the pro- requires identifying physical linkages cesses by which EbA approaches generate and impacts, and measuring how the EbA ecosystem service co-benefits. Most stud- measures under consideration will affect ies just look very generally at conserving the stocks, flows and quality of resources, or restoring a particular natural habitat, species, habitats and associated processes, and assume that certain benefits will be functions and services (e.g. ecological, secured. Since the logic and argument for biological, hydrological, atmospheric, investing in ecosystem-based measures hydraulic, agronomic, etc.). rests on the assertion that they can gener- ate particular benefits, this potentially A recent review of EbA-relevant valuation undermines the credibility of efforts to methods carried out by GIZ pointed to demonstrate the advantages of EbA, and the critical lack of ‘hard’ evidence of the to make the business case for it. Box 3: Commonly- Just as adaptation goals and rela- sion and sedimentation inter- ted ecosystem services vary (e.g. acting with seafloor topography, used bio- flood mitigation, storm protection, waves, tides, currents on shore- physical erosion control, crop production line profile and beach extent) under stress, etc.), so a wide range of valuation methods may be required to assess Meteorological (e.g. assessment of the effects of river erosion methods the biophysical effects of EbA, for and sedimentation interacting example: with seafloor topography, Ecological (e.g. study of forest waves, tides, currents on shore- habitat composition, dynamics line profile and beach extent) and human pressures over time) Epidemiological (e.g. study of Biological (e.g. survey of aquatic the incidence, spread and im- flora and fauna) pact of water-borne disease) Hydrological (e.g. modelling Nutrition (e.g. surveys of dietary of catchment runoff, infiltra-­ habits, food intake and vitamin tion, groundwater recharge, deficiencies among rural vil- surface water flow and quality) lages) Hydraulic (e.g. assessment of Agronomic (e.g. study of crop- river depth, velocity and flood ping patterns, productivity and dynamics) yield gaps) Morphodynamic (e.g. assess- ment of the effects of river ero- Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 29 While biophysical methods are not the provide evidence that these biophysical main focus of this sourcebook, it is im- linkages and causality actually exist, and portant to note that it is almost always the benefits being claimed for EbA really necessary to have an idea of the quantity can be attributed to a given area, quality and quality of adaptation outcomes and or type of ecosystem. ecosystem services generated by EbA in order to value its socio-economic benefits A variety of methods need to be used to (Box 4). Some level of biophysical assess- assess and measure these linkages, as well ment and evidence of ecosystem functio- as to model and project the changes in ning and chains of causality will almost ecosystem services that will arise as a re- always be required in EbA valuation. This sult of undertaking EbA measures (Box 3, is because the basic rationale for under- also see Carpenter et al. 2009, Haines- taking EbA rests on the claim that main- Young and Potschin 2009, Hooper et al. taining (or restoring) natural ecosystems 2005, Maes et al. 2014, Walpole et al. 2011). will generate particular adaptation-relat- These may, depending on the adaptation ed services and, usually, other social and context and goals under consideration, economic co-benefits. Ecosystem services include ecological, biological, hydrologi- originate from spatially-structured eco- cal, hydraulic, morphodynamic, meteo- systems and land/seascapes, and depend rological, epidemiological, nutritional, on how their status is maintained over agronomic or many other methods. It is time (Lavorel et al. 2017). In general terms, important to emphasise that specialised the capacity of an ecosystem to provide technical expertise is almost always adaptation-related ecosystem services de- necessary to undertake a biophysical pends on the area covered (its extent) and assessment of EbA or ecosystem services condition (its quality), and so the flow of (Box 5). With few exceptions, these types services produced will vary depending on of studies lie well beyond the scope and the condition and extent of the ecosystem capacity of socio-economic valuation (Hein 2014). It is necessary to be able to experts. 30 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Box 4: Substantiating ing community engagement and the upper watershed. The study the links be­tween was prompted by the need to quality assurance). The cost-ef- fectiveness analysis brought these grassland and gen­erate evidence on the effect­ iveness of ecosystem-based ap- two measures together. In order wetland restoration proaches. While substantial built to calculate the marginal cost of each intervention, the annualised or ‘grey’ infrastructure projects and the gener­ation had been planned and imple- cost of the project was divided by the baseflow benefit, and of eco-hydrological mented to address the water crisis in Lima, green interventions presented as USD cost per cubic services in were still not yet routinely consid- metre of waterflow. ered as a part of the solution. The Peru study therefore aimed to make Green interventions turned out the case for investing in ecosys- effective and competitive tem-based water infrastruct­ure These indicators of cost-effective‑ solutions, and provide the infor- ness were compared with 11 pro‑ mation that would be required to jects that are underway or planned integrate them into project plan- See case study 25: for increasing water supply to ning and selection frameworks. Physical impact assessment and Lima. The main finding of the stu- cost-effectiveness analysis of Baseflow as core criterion dy was that green interventions could substantially contribute to green water interventions in Peru Baseflow was selected as the cri- addressing Lima’s dry season wa- terion against which performance terflow deficits, at costs that are would be assessed (the lowest competitive with the grey infra- rate of surface water flow in the All too often, the delivery of given structure options considered. year, expressed in cubic metres adaptation and ecosystem service per second). The potential hydro- In addition, although not quanti- co-benefits is assumed rather logical perform­ance of different fied in the study, it was pointed than demonstrated when EbA interventions was based on causal out that implementing these ty- measures are appraised and eva- relationships recorded for agricul- pes of ecosystem-based interven- luated. This can act to undermine tural programmes and credited tions in Lima’s upper watershed the credibility of the resulting watershed services markets in can result in additional social, cul- findings and recommendations, the United States, as well as local tural, and environmental benefits. especially where efforts have projects where possible. A vari- These are particularly important been made to model and quantify ety of watershed mass equations in remote, underprivileged areas the biophysical impacts arising and simple mass balance equa- such as the upper watersheds, from alternative, grey adaptation tions were applied to estimate where local communities face measures. improved baseflow for specific limited and insecure livelihood The challenge: water shortages site-level sub-projects. The po- op-portunities. Ecosystem-based tential impact of each intervention options (unlike grey measures) A study was carried out to de- was then estimated by projecting also offer possibilities to increase monstrate the desirability of site-level baseflow benefits across local income, environmental con‑ various ecosystem-based in­ the entire area of the watershed ditions and water security, to frastructure options to ameliorate that each inter­vention would engage upstream communities in and overcome Lima’s dry-season cover. Cost calculations were then supporting management efforts water shortages. The interven- undertaken, looking at expendi- and even to investigate new mar- tions centred around improving tures made on materials, labour kets and payments for ecosystem land and resource management in and project management (includ- services. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 31 Box 5: Integrated an­­­al­ys­is of For example, three different damages that would be achieved physical effect­ approaches were applied to evalu‑ by each of the different adapta- iveness, cost- ate flood risk management mea‑ sures on the Mulde River, Ger- tion measures. effective­ness and many. These were physical ef- The cost-effectiveness analysis compared the relative physical fectiveness, cost-effectiveness economic and economic efficiency. The aim expenditures made on establish- ing and maintaining each option efficiency of flood was to demonstrate a method- ology that could capture more (costs) and outcomes (effects) risk management fully the value of non-structural of actions in terms of achieving flood-protection targets. These measures that are better in terms measures in of effectiveness related to hydro­ were expressed as absolute amounts as well as the costs per Germany logical protection standards, and better make the case for these percentage of achieving the tar- ‘soft’ techniques. The aim was to get (in other words the expendi- provide information which could tures required to avoid 1% of the help to overcome the barriers to damages caused by a flood event implementation of non-structural each year). The cost-benefit See case study 13: analysis then drew these data to- techniques, and guide decision Physical effectiveness, gether, and considered both cost makers on the most appropriate cost-effectiveness and cost-benefit methods to use when evaluating and benefits in monetary terms analysis of flood risk management different measures in a consis- as a measure of efficiency. It measures in Germany tent, comparative and compre- yielded measures of benefit:cost hensive way. ratios and net present values. ‘do-nothing’ option was taken Results may depend on criteria as baseline for the evaluation Subjecting adaptation measures Overall, the case study results to only one type of appraisal or The physical effectiveness an- showed that, when weighing up evaluation technique, according alysis measured the degree to different flood control options, the to just one set of metrics, pres- which the measures achieved the choice of evaluation criteria can ents an in­complete (and some- specified adaptation target of no have a major impact on assess- times incorrect) picture of their damages up to a 1:100 event. ment results. In this regard, ef- relative worth. Different measures Average annual damages for dif- ficiency as an evaluation criterion perform more or less well, de- ferent land use categories and was shown to be superior to cost- pending on the criteria they are inundation depths were computed effect­iveness and effectiveness. measured against. For this reason compared to a baseline ‘do-noth- This is because cost-effectiveness it is best to combine a range of ing’ option, using a meso-scale and effectiveness are un­able to valuation techniques and met- damage evaluation approach to consider all benefits in terms rics, to build up a more complete construct relative depth/dam- of damage reduction and might picture of the relative costs and age curves. Monetary valuation therefore favour structural over benefits of alternative adaptation then showed reductions in the non-structural measures. options. monetary costs of average annual 32 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 4.2 Risk Valuing risk exposure and vulnerability basically involves looking at changes in Figure 3), one of the main goals of EbA is almost always to reduce the vulnerability exposure and the extent to which people are affected by climate change and are resilient and of human and natural systems to the ef- fects of climate change. This means that vulnerability able to adapt to it. It requires identifying when, how and to what extent certain it is necessary to measure the changes in risk exposure and vulnerability that have physical or socio-economic impacts may occurred as a result of EbA. occur and be felt by different people and places, and measuring how the EbA A wide range of guidance is available on measures under consideration will affect measuring climate risk exposure and vul- changes in the likelihood, incidence, reach nerability, at various levels of scale and for and impact of hazards on people, ecosys- different sectors and stakeholder groups tems, infrastructure, property, production (see, for example IFRC 2006, GIZ 2014, ULI and other elements in socio-ecological 2015, UNFCCC 2005). While there are sig- systems (e.g. via disease, drought, floods, nificant challenges in integrating ecosys- rainfall, temperatures, etc.). tem services and capturing the complex- ity of social-ecological systems and their Although vulnerability assessment usu- vulnerabilities, efforts have been made ally comes at an earlier stage of the EbA to develop approaches which specifically mainstreaming cycle, prior to valuing and seek to address these factors in relation to comparing effectiveness and impacts of EbA (see, for example, Munroe et al. 2015). adaptation alternatives (see Chapter 3, 4.3 Economic Valuing economic costs and benefits basically involves looking at changes in case for EbA or justify public investments in ecosystem-based approaches. costs and the constraints and opportunities that influence people’s ability to produce, A wide variety of economic tools and benefits consume, trade and invest. It requires identifying economic linkages and tech­niques can be used to evaluate, rank or prioritise EbA measures in monetary im­pacts, and measuring how the EbA terms, or compare them with other measures under consideration will result adaptation options (see Box 6). Most are in monetary or non-monetary changes concerned with measuring financial or in economic activity and performance economic profitability, via a range of (usu- (e.g. national, household, corporate or ally monetary) indicators such as net pres- individual purchases, sales, production, ent value (NPV), internal rate of return consumption, savings, investment, trade, (IRR), benefit-cost ratio (BCR), return on income, employment, etc.). investment (ROI) or cost-effectiveness ratio (CER). Economic analysis typically forms a core component of adaptation valuation, and The most commonly used approaches is often a required component of proj- (which have long been used in public ect appraisal and investment planning and private decision-making processes processes (see Chapter 5). There is now a to assess project alternatives or appraise relatively large number of studies which investment options) are cost-benefit, attempt to value the economic costs and cost-effectiveness and least cost analy- benefits of EbA, especially ecosystem ser- sis. Cost-benefit analysis weighs up the vice values. These mainly seek to make the monetary costs and benefits over time Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 33 Box 6: A variety of methods are commonly Commonly-used used to measure, value and analyse the economic costs and benefits of economic EbA, in monetary and non-moneta- valuation ry terms, for example: methods Cost-benefit analysis Cost-effectiveness analysis Least cost analysis Value for money approaches Input-output analysis General/partial equilibrium models National income/ ecosystem accounting Ecosystem valuation etc. EbA of different courses of action, cost-effec- tiveness analysis compares the relative (monetary) costs and (non-monetary, but quantified) outcomes or effects, while least-cost analysis determines the lowest cost alternative for generating a specified options, and combine analysis of “the 4Es” of economy, efficiency, effectiveness and equity (see ICAI 2011, Jackson 2012). A large number of reviews, guidelines and toolkits can be found which outline how to apply these methods to climate change valuation level of benefits (see Box 7 and Box 8). and adaptation issues (see, for example, Value for money approaches have become ADB 2015, Lunduka et al. 2013, Shreve increasingly popular over recent years as and Kelman 2014, Tröltzsch et al. 2013, a way of assessing the relative desirability UNFCCC 2011, UNDP 2015, Wise and and performance of public investment Capon 2016). methods 34 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Box 7: Both biophysical and economic evaluations were carried out discount rate of 3 per cent. First the direct investment and recur- of alternative climate adapta- rent costs of each implementing Least cost tion measures at the water- measure were calculated, using analysis and shed level in two of Thailand’s key river basins. The proposed actual market prices. This enabled a least-cost analysis to be carried cost-benefit interventions aimed to minimise out at each site, showing which of the effects of extreme weather the adaptation options would be analysis of events such as floods, low river the cheapest to implement. watershed flows and droughts. Various EbA options were considered, includ- Next, benefit data was computed, adaptation ing the management of natural using a combination of mar- ket prices, effect on production floodplains and wetlands as silt options in traps, living weirs, riparian zone and damages avoided valuation techniques. This looked at the Thailand conservation as well as erosion control and forest rehabilitation benefits (or avoided damages) in upstream areas. These were associated with each adaption op- compared with the grey measures tion in terms of changes in water specified in existing river basin quality and supply, crop yields and infrastructure plans, such as and income. Ecosystem service physical control structures and co-benefits were also estimated dredging. for the EbA options, using benefit transfer techniques expressed per Direct costs calculated first hectare of wetlands or forest. The studies had three, itera- Combinations of EbA and grey tive, components: biophysical measures as model scenarios vulnerability analysis, scoping of engineering design options and Various scenarios were developed economic appraisal of costs and representing different combina- benefits. Economic evaluations tions of ecosystem-based and took up the identified EbA mea- grey engineering measures. sures as well as the ‘business as Cost-benefit analysis was carried See case study 35: usual’ grey engineering options out to indicate net present values Biophysical and economic and cost-benefit ratios, as well as that were already being imple- evaluation of climate mented in the pilot river basins. to show annual and overall costs adaptation options in The analyses considered a time avoided, and cost advantage per Thailand’s watersheds horizon of 25 years, and used a cubic metre of water. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 35 Box 8: While adaptation intervent­ions often seek to contribute towards cation of balanced responses to climate change and sustainable non-monetary objectives, eco- economic development. Cost-effective­- nomic arguments still provide a Four of the most widely-used ness analysis of strong justification both to deci- sion makers and to the intended water-saving irrigation techniques in China (sprin kler irrigation, water-saving beneficiaries of adaptation mea- micro-irrigation, low-pressure sures. Being able to demonstrate irrigation va­lue for money or cost-effect­ pipe irrigation and channel lining) were each compared with a base- technologies in iveness can provide an effective and convincing set of indicators line scenario in which traditional irrigation was employed. Adapta- China with which to make the case for tion effectiveness was measured investing in EbA options. Assessing all types of cost In China, the economic viability of water-saving irrigation technolo- in two ways, based on the main gies as climate adaptation mea- effects of water-saving irriga- sures was measured by looking tion techniques on reducing the at the cost-effectiveness of four adverse effects of climate change: commonly-used technologies, as increased crop yield and reduced compared to traditional irrigation, water consumption (and hence in reducing the adverse effects of improved drought resilience). climate change. The reason for Costs included the initial invest- the study was that, although a ment in capital and equipment, large body of research indicated annual operations and mainte- nance, water fees and energy Effectiveness yet to be valued fees. that certain irrigation techniques By comparing water-saving ir- can contribute to water saving, rigation techniques against the the cost and effectiveness of us- baseline, the analysis yielded es- ing water-saving irrigation to cope timates of the cost-effectiveness with climate change remained ratios of annual average increase unknown. It was observed that in grain yield and average volume there have been few comparisons of reduced water use per unit with other adaptation measures area of farmland irrigated. These in the agricultural water sector. A were expressed as the additional See case study 9: clear picture of the cost-effective- cost of increasing each ton of Cost-effectiveness analysis of wa- ness of water-saving techniques grain yield (USD per tonne) and ter-saving irrigation technologies for adaptation was thus seen as of reducing each cubic meter of for climate adaptation in China a way of supporting the identifi- water (USD per cubic metre). Ecosystem valuation is often a core com- example Barbier et al. 1997, CBD 2007, De- ponent of the economic analysis of EbA fra 2007, ELD Initiative 2015, Emerton and (see Box 9). While the question of how to Bos 2004, Kumar et al. 2010, OECD 2002, place a monetary value on ecosystem ser- TEEB 2008, 2010, UNEP-WCMC 2011). vices has long posed something of a chal- These are now relatively well-known lenge to economists, a suite of methods and commonly-used, and are accepted has been developed over recent years with by both conservation and development which to value ecosystem services (see, for planners. 36 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Box 9: Traditional economic appraisal techniques are not well equipp­ values and trade-offs that uses maps as information sources and ed to deal with indirect and produces maps as outputs. Three Factoring the non-market values, or to trace adaptation scenarios were com- value of ecosystem the broader effects of adaptation actions beyond the immediate pared: integrated adaptation (EbA and some grey infrastructure in service co-benefits project site or adaptation goal. developed areas without high- This means that it is often difficult value beachfront property), re‑ into coastal to demonstrate the advantages of active adaptation (grey infrastruc- adaptation EbA as compared to other adap- tation options. ture is the primary emphasis and sea walls are built to protect in- planning in Defence against sea level rise vestments in tourism and private property), and no action. Belize The use of techniques to value The cost-benefit analysis then and account for the economic looked at the monetary impacts of effects of ecosystem services is the different adaptation measures becoming more common, in ad- in terms of their physical estab- aptation planning and elsewhere. lishment and maintenance costs In Belize, ecosystem valuation as well as the value of the ecosys- was incorporated into efforts to tem services they would gener- assess and compare the relative ate. The value of lobster fisheries costs and benefits of alternative was calculated by looking at catch adaptation options to defend the values, coastal protection values coastline around Placencia against were estimated through avoided sea level rise and coastal storms. damages to property and infra- The study compared various structure, tourism and recreation packages of ecosystem-based values were based on revenues options (including conservation and earnings, and carbon storage and restoration of coral reefs and and sequestration was valued mangroves, forest restoration and at the social cost of carbon. rehabilitation) and grey infra- structure (such as sea walls). Spill-over effect: potential negative impact on tourism Three co-benefits identified Benefit calculations also factor­ The study included ecosystem ed in spill-over effects (such as services assessment, scenario the potential negative impacts on development and cost-benefit tourism from seawall construc- aspects. Three ecosystem service tion). The cost-benefit model also co-benefits were considered in accounted for the expected costs addition to the main adaptation that would arise from sea level goal (coastal protection): lobster rise and increasing temperatures fisheries, tourism and recreation, in the future, including changes carbon storage and sequestration. in lobster catch and expected First, ecosystem service locations property damage from erosion and levels of provision were mod- and storms. For each of the three elled using InvEST (integrated adaptation scenarios under con- See case study 5: sideration, future cost and benefit valuation of ecosystem services Use of InVEST to weigh up coastal and trade-offs). This is a spatial- streams were calculated, and dis- adaptation options and trade-offs ly-explicit, software-based tool counted in order to yield a single in Placencia, Belize for modelling ecosystem service measure of net present value. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 37 Numerous other quantitative (but not economic modelling approaches (such as necessarily monetary) indicators can be national income accounting, ecosystem used to measure the economic impacts accounting, input-output analysis, general and effects of EbA (see Box 10). These or partial equilibrium models), but more involve tracking changes in economic ac- commonly just involve a simpler analysis tivity and performance in related markets of trends in the activity or indicator under (for example via purchases, sales, produc- question. These types of economic analy- tion, consumption, savings, investment, sis can potentially be carried out at many trade, income, employment and so on), different levels of scale, from the micro- or by looking at broader measures and economic (at the level of the individual statistics such as inflation, unemployment person, household, farm, company, etc.), and interest rates, incidence of pov- through sectors, to the macroeconomic (at erty, per capita GDP or Gini coefficients. the aggregated level of the overall village, Sometimes they are based on formal province, country, region, etc.) analysis. Box 10: Assessing non-monetary Looking at changes in monetary adaptation measures contribute values is not the only way of to generating job-related bene­ economic tracing the economic impact of fits. This represents an innovative indicators adaptation measures, and may not always be the best one. For approach which attempts to move beyond the conventional em- of adaptation example, employment effects are phasis on monetary measures of a particular priority in South Af- costs and benefits, and instead to impact in rica’s development and economic look at broader indicators of eco- South Africa policy, and are considered to be nomic impact and performance which both have a significance a particularly critical vulnerability that could be severely worsened influence on people’s social and by climate change. One of the economic wellbeing, and will reso- key goals of the National Climate nate with development decision Change Response is to reduce the makers. impact of job losses and promote job creation, for example through Farmers’ jobs under threat? using adaptation actions to create new jobs to which workers can A national employment vulnera- migrate from affected sectors. Job bility assessment was carried out. creation and loss is also one of This looked at the likely impact the core indicators in the national of climate change on jobs in key climate change monitoring and sectors of the economy and at the evaluation system. national level. It considered both direct and indirect, positive and A study was recently carried out negative effects – for example See case study 31: to measure how climate change how projected contractions in Assessment of the employment will affect employment in key farming possibilities or declines benefits of climate adaptation in sectors of the South African in coal mining and steel produc- South Africa economy, and to identify how tion might lead to job losses, as 38 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook EbA valuation methods well as how adaptation actions different sectors and at the na- study generated indices of vulner- could result in new employment tional level as a result of climate ability which measured the sever- creation. The main output was change (and climate adaptation ity of these different effects, and estimates of the numbers and measures), as well as analysis of showed which kinds of jobs would types of jobs lost and created in linkages within the economy. The be affected and for whom. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 39 4.4 Livelihood Valuing livelihood and wellbeing impacts basically involves looking at (ECO Consult 2017). On the one hand, this means that the full impacts and benefits and wellbeing changes in the constraints and oppor- tunities for people achieve an adequate of EbA are often under-estimated. At the same time, it leads to the danger of liveli- impacts quality or standard of living. It requires identifying linkages and impacts on peo- hood and wellbeing goals being margin- alised in favour of easily-measurable or ple’s means of livelihood and perceptions monetizable ‘hard’ impacts. The relative of wellbeing, and measuring how the EbA neglect of livelihood and wellbeing in measures under consideration will result EbA valuation also has implications for in changes in means and access to the distribution, equity and representation material and non-material requirements of the interests of particular groups. The for a stable, secure and acceptable quality review found a general failure to con- of life or standard of living (e.g. food, fuel, sider the perspectives and preferences shelter, cash, health, education, happiness, of different groups. Most commonly the prosperity, safety, freedom, etc.). metrics and indicators used to measure (and judge) EbA benefits are determined The GIZ review of EbA valuation methods by government policy-makers, technical discovered very few studies or common- ‘experts’ or development donors. Very few ly-applied methods which seek to value studies explicitly incorporate a diversity the non-monetary livelihood and well­ of alternative definitions of ‘benefits’, or being outcomes of adaptation measures articulate values in these broader terms. Box 11: Commonly- A key concern in valuing EbA im- Participatory ecosystem pacts on livelihoods and wellbeing is used liveli- to find methods that can allow EbA valuation hood and benefits to be measured in terms Stakeholder-focused or of stakeholders’ own perceptions, locally-driven cost-benefit wellbeing preferences and priorities, and ex- analysis assessment pressed through locally meaningful Participatory rural appraisal metrics and indicators, for example: methods — PRA (informant interviews, focus groups, ranking, Sustainable livelihood weighting, mapping, season- analysis nal calendars, etc.) Household livelihood security assessment Participatory risk and vulnerability assessment 40 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook The key concern in assessing or valuing and is closely linked to cultural consid- the local livelihood and wellbeing impacts erations (Adger et al. 2012). In response, of EbA (or other types of adaptation ap- participatory assessment techniques proaches) is to be able to identify, and which are based on communities’ own then measure, changes in people’s means definition of climate risks and effects, as and access to the material and non-mate- well as the values and impacts of different rial requirements for a stable, secure and adaptation options on local livelihoods acceptable quality of life. Conventional and economic opportunities, are starting economic techniques (as described above) to emerge and be applied to EbA valuation are often not well-equipped to do this, (see Box 11, Box 12). These commonly take because they are heavily dependent on the sustainable livelihoods framework as monetary metrics, and are usually based their basic entry point (see, for example, on external views of what are the most CARE 2002, FAO and ILO 2009, Lax and ‘important’ costs and benefits. Krug 2013). The way in which affected parties value and experience livelihood and wellbeing impacts is however not fixed or universal, Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 41 Box 12: The need to find valuation tech- niques which can satisfactorily re- value of savings (both monetary and in-kind). Various indicators flect a range of livelihood impacts were used to quantify social capi- Using extended is particularly important when as- tal outcomes. These include quali- social cost-benefit sessing the effectiveness, efficien- cy and desirability of community- ty-adjusted life years (for health), school attendance and length of analysis to level adaptation options. schooling (education) and number of persons in household solidarity evaluate the To these ends, extended social networks (social capital), as well cost-benefit techniques were used livelihood impacts to compare and contrasts the as ranked scales of women’s influ- ence and participation in decision- of community- benefits and costs of a package a variety of ‘hard’ solutions (includ- making (gender) and perceptions of capacity and knowledge to based adaptation ing small-scale infrastructure and establish resilience strategies physical measures) and ‘soft’ measures in approaches (such as livelihood (community empowerment and adaptive capacity). Niger interventions, environmental measures, capacity-building and Environmental capital outcomes empowerment) to community- were evaluated according to two based adaptation interventions variables relating to desertifica- in Niger. These did not only take tion: sustainable land manage- account of physical expendi- ment and restoration of degraded tures and income (where a more lands, and avoided deforestation conventional cost-benefit analysis and reforestation. These were would stop), but also measured measured in terms of trees the broader evolution of commu- planted or maintained, and hect- nity economic, social and environ- ares of land restored. The ex- mental capital. tended social cost-benefit analysis yielded a range of non-monetary Analyse principles that under- indicators, as well as three main pin social return on investment monetary measures: net present The methodology merged tradi- value, benefit:cost ratio and value tional cost-benefit analysis with for money (benefits generated the principles that underpin social per unit of spending). return on investment. This fol- High returns from lowed a three pronged approach: community-based measures building theories of change; measuring quantitative social and The results of the study suggest‑ economic capital outcomes; and ed that the community-based assessing quantitative environ- climate adaptation interventions mental capital evolutions and had yielded high returns. They climate variability. It had a strong had managed to increase the focus on community engagement economic capital of communities and participation, reflecting the in terms of revenue and sav- principles of the community- ings, as well as ‘soft’ social and based adaptation measures that environmental capital measured it was evaluating. in terms of health, education, See case study 24: empowerment, reforestation and Social capital: quality of life Extended social cost-benefit avoided land degradation. Many analysis to evaluate ‘hard’ and The economic capital outcomes of these effects would have been ‘soft’ community-based measured included crop and excluded had conventional, mon- livestock cash income and subsis- etary evaluation techniques been adaptation measures in Niger tence consumption, as well as the used. 42 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Many of the tools that are used to foster praisal towards locally-defined livelihood participatory or community-based and socio-economic wellbeing outcomes climate adaptation planning have equal (Chambwera et al. 2012, Chadburn et application to identifying and tracking al. 2013, LFP 2010, Vardakoulias 2014, EbA costs, benefits and values (Nay et al. WorldFish 2013b), including participatory 2014). These include methods designed ecosystem valuation (see ValuES 2014). In to explicitly consider stakeholder percep- addition, a range of other participatory tions and preferences of climate risks methods which have long been in usage and vulnerabilities in relation to their in development planning are starting to own livelihoods and wellbeing (see, for be applied to both identify and measure example, Aalst et al. 2008, ActionAid 2005, changes in climate adaptation costs, CARE 2009, Oxfam Australia 2012, Reed benefits and impacts in terms of local et al. 2013, Rizvi et al. 2016). A number livelihood and socio-economic wellbeing of approaches have also been developed outcomes (see, for example, IIED 2009, which shift the focus of economic ap- Macchi 2011, WorldFish 2013a). Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 43 4.5 Social and Valuing social and institutional out- comes basically involves looking at enabling condition (for example build- ing capacity and awareness, enhancing institutional changes in people’s rules, relations, con- duct and circumstances. It requires iden- governance, equity and participation, or seeking to effect changes in people’s outcomes tifying linkages and impacts on individual and group behaviour and relationships, behaviour and practices). and measuring how the EbA measures Many of the participatory assessment under consideration will result in changes methods mentioned above can also be in the ways that people behave, interact applied to assess social and institutional and are represented in formal and infor- impacts (Box 13). These are particularly mal, organized and unstructured settings relevant in situations where it is necessary (e.g. power, status, roles, responsibilities, to uncover more personal or sensitive relationships, participation, governance, information about people’s behaviour sanctions, etc.). changes, or to address the unintended or indirect consequences of EbA. Agent- The EbA valuation method review also based models, too, are increasingly being found very few examples of studies to used to assess people’s behavioural assess the social and institutional costs, responses, interactions and capacities as benefits and impacts of EbA. This is a regards climate adaptation measures (see, notable gap, given that many adaptation for example, Balbi and Giupponi 2010, efforts are concerned with ‘soft’ measures Patt and Siebenhüner 2005). and outcomes as either a primary goal or Box 13: Commonly- Various different methods can be used to measure the social and in- used social and stitutional outcomes of EbA, many institutional of which are based on participatory techniques and direct consultation assessment with stakeholders, for example: methods Participatory techniques Agent-based models Stakeholder mapping and assessment Social network analysis Institutional and context analysis Knowledge-attitude- practices surveys 44 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook In addition, several tools are available ment is a tool that has long been used in which are geared specifically towards un- development and conservation planning derstanding and tracing changes in social to examine and display the relative influ- and institutional processes in relation to ence that different individuals and groups different adaptation outcomes. For ex- have over decision-making and how EbA ample social network analysis (WorldFish influence and cooperation change over 2013c, Bharwani et al. 2013) generates an time. It also has wide application to track- understanding of social and institutional ing the impact of EbA and other adapta- structures, actors and linkages, while tion measures (see Mayers and Vermeulen mapping and measuring relationships 2005, Sova et al. 2013). Knowledge, at- and flows of information between people, titudes and practices surveys offer a very groups and organisations. Institutional direct way of investigating the changes in and context analysis also provides a way people’s perceptions and behaviour that valuation of tracing political and institutional fact­ may have resulted from EbA (Box 14, also ors, as well as changes in power, interests see Fontenard 2016, Hope 2016, Ojomo et and decision-making structures (UNDP al. 2015). 2012). Stakeholder mapping and assess- methods Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 45 Box 14: Measuring changes A study was recently carried out ine people’s levels of knowledge, in Guyana, to assess and measure attitudes and practices towards in climate people’s knowledge, attitude and climate change. This commenced change-related behavioural practices relating to climate change, including adapta- with demographic questions, followed by questions pertaining knowledge, tion, mitigation and disaster risk to knowledge of climate change, reduction factors. This had five attitudes toward climate change attitudes and main aims: to explore know‑ and practices related to climate practices in ledge and perceptions of climate change, identify how the causes change. The survey ended with questions about media usage. Guyana of changing weather patterns are explained, investigate barriers Study enabled understanding to responding to climate change, of attitudes and practises assess media consumption pat- The qualitative research was terns and preferences, and inform conducted to introduce contex- recommendations on the best tual information to the study to methods of communicating on enable a deeper understanding of climate change. It also provides ‘how’ and ‘why’ certain attitudes a baseline from which future and practices exist. Qualitative changes in knowledge, attitude information was collected via fo- and behaviour can be measured. cus groups and key stakeholder/ Household and student survey informant interviews with local community members, the media, The study used both quantita- national government, local lead- See case study 15: ers and non-governmental organ- tive and qualitative methods. Measuring changes in climate A questionnaire-based national isations, as well as national-level change-related knowledge, household survey and a student government and international attitudes and practices in Guyana survey were conducted to exam- donor agencies. 4.6 Cross cutting Dealing with risk and uncertainty consider­ As mentioned at the beginning of the that have been generated (Box 15). Most ations: risk, chapter, there is often a great deal of uncertainty about possible future climate of these methods actually deal with risk, in the sense that they generate probabi- uncertainty outcomes, as well as substantial gaps in information and data about adaptation listic data which combines likelihood and consequence components of both current and the costs, benefits and impacts. For this rea- son, EbA valuation and assessment studies and anticipated impacts (see Tröltzsch et al. 2013). Uncertainty cannot be assigned a selection of usually incorporate tools to deal with risk and uncertainty, and apply these as quantitative probability. methods an additional layer of analysis to further interpret and test the valuation estimates At the most basic level, a weight or index can be assigned which enables risk-adjust- 46 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook ed costs and benefits to be calculated and techniques can also be used which build compared. This is usually computed by on this simple principle. Most focus on looking at the statistical likelihood of a modifying the results of monetary value certain set of circumstances or events estimates. For example, Monte Carlo si‑ occurring. Various more sophisticated mulation involves replacing single figures Box 15: Commonly- A variety of methods can be used to deal with risk and uncertainty, used methods of varying detail and complexity. for dealing Commonly-used methods include: with risk and Allocation of weights Acceptable risks uncertainty Probability analysis Robust decision-making Monte Carlo simulation Delphi method Risk-benefit analysis Sensitivity analysis Decision analysis Scenario analysis Real option analysis Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 47 with probability distributions of possible difficult to deal with. Analysis usually values for key inputs (see Mainelli and involves showing how value estimates Palmer 2007). Risk-benefit analysis can in would change under different hypotheti- a way be considered the inversion of nor- cal circumstances or conditions. For ex- mal cost-benefit analysis, because it starts ample, robust decision making is used in by presuming no action and then assesses situations of deep uncertainty (where no the costs of inaction as the likelihood of probabilistic data are available) to model the specified risk occurring. Decision an‑ ‘good enough’ or ‘no regret’ outcomes alysis weights the expected values of a (Werners et al. 2013). given course of action (in other words, the sum of possible values weighted by their The Delphi method is another tool that probability of occurring) by attitudes to can be applied to deal with a scenario risk, to give expected utilities. It draws where insufficient information is avail- up and assesses decision makers’ prefer- able on the costs and benefits of adapta- ences, judgements and trade-offs in order tion alternatives. It involves conducting to obtain weights that are attached to a structured iterative group communi- outcomes carrying different levels of risk. cation to collect opinions and feedback Real option analysis and acceptable risks from selected stakeholders or experts on analysis are economic decision support costs and benefits (see UNFCCC 2011). tools that quantifies the investment risk Scenario and sensitivity analysis are per- associated with uncertain future out- haps the most commonly-applied tools comes (see Tröltzsch et al. 2013). to deal with uncertainty, and provide an additional overlay to other valuation Uncertainty, which refers to situations methods to enable analysis to incorporate where little is known about future im- a variety of different assumptions, or to pacts and no probability can be assigned express a variety of alternative courses of to certain outcomes, is much more action and possible outcomes (see Box 16). Box 16: An extended cost-benefit an­ alysis was carried out to examine ergy sector investment planning and decision-making. alternative adaptation options Using sensitivi- in Albania’s power generation Electricity may be affected ty analysis to deal sector. This analysis looked at their economic desirability to Once the cost-benefit analysis with uncertainty groups across the economy, and had been run, a sensitivity an‑ alysis was carried out, because of included, as well as direct costs when assessing and revenues, the cost of carbon the high levels of uncertainty sur- rounding future climate and eco- adaptation options dioxide emissions, ecosystem ser- vice values, disturbance to people nomic parameters. The sensitivity for Albania’s and property and vulnerability to of the results of the cost-benefit an­alysis was assessed relative to natural disasters. power sector changes in the cost of carbon and The intention was to examine air pollution, the value of water, options to manage the risks and ecosystem service values, dis- See case study 1: vulnerabilities to energy security turbances to society, electricity Cost-benefit analysis of in the face of climate change, and revenues, fuel cost and the social adaptation options for Albania’s to provide information that could discount rate. Another set of pa- power sector be used to inform and support en- rameters was designed to explore 48 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Identifying the appropriate mix of methods Not all methods are suited to examine all particular stakeholder groups). These top- types of EbA values, or can be used to ad- ics are dealt with further in Chapter 5. dress every valuation purpose or decision question. However, there is no such thing An important guiding principle in EbA as the ‘best’ method with which to value valuation is that one method is rarely EbA benefits, costs or impacts. Methods enough: focusing on only a single aspect generate varying results because they of values (for example biophysical, eco- represent different perspectives or focus nomic or social) is unlikely to provide on different factors (Berghöfer et al. 2015). an accurate or useful picture. In almost Choosing between methods based on all cases, EbA valuation requires taking technical considerations alone is unlikely a multidimensional, multidisciplinary to be sufficient to identify the most ap- approach which combines different propriate study design. methods, perspectives and types of expertise. This involves assessing and As we have already noted in Chapter 3, evaluating benefits, costs and impacts the purpose of the EbA valuation and the from several technical viewpoints, and specific questions that it seeks to address in terms of a number of different metrics or answer should drive the selection of and indicators of effectiveness, efficiency methods. In practical terms, it will of and impact. The review of EbA-relevant course also be necessary to bear in mind valuation methods identifies a common- the budget, time and other resources that ly-applied minimum requirement for are able to be allocated to the study, the most adaptation assessments or valua- technical capacities that can be drawn on, tion studies is physical effectiveness, cost as well as other considerations that may effectiveness and economic efficiency. shape which are the most appropriate val- Best practice would also suggest that non- uation methods to use (for example data monetary economic and social benefits availability, the feasibility of field surveys, are included in the valuation exercise or the need to ensure the participation of wherever possible (see Box 17). the effect that increasing frequen- cy of extreme events may have on the availability of electricity from various sources. The prim­ary source of risk is the vulnerability of power transmission assets to wind and lightning strikes. To set up this scenario, a penalty was placed on long-distance trans- mission assets, which are more vulner­able to these risks. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 49 Box 17: Ecosystem-based approaches typically deliver a wide range rates of soil loss both before and after the monsoon. Surveys were of benefits to different groups. also carried out to assess plant Integrated Different valuation methods and survival and root structure. The biophysical, metrics are required, to ensure that this diversity of costs and social component used a combi- nation of methods. social and eco- benefits (and the interactions A social vulnerability assessment between them) is captured. nomic assessment These principles were applied in was carried out by means of a household survey, and a variety of ecosystem- an integrated valuation of differ- ent road engineering options in of participatory techniques were based disaster three districts of Nepal’s Western used to elicit community opinions and knowledge on road-related Development Region. The study risk reduction had a particular focus on the use costs and benefits. These included focus group discussions, partici- approaches of bio-engineering techniques to deliver ecosystem-based disaster patory mapping, problem and to road risk reduction outcomes. This is solution analysis. because roads are one of the ma- Erosion construction in jor causes of shallow landslides control and protection against landslides are valued Nepal in rural Nepal. The study com- pared ‘grey’ engineering options The economic component looked (earthen or unmanaged roads) at the direct costs and benefits with ‘green’ roads (eco-safe infra- of road construction and mainte- structure which involves soil bio- nance, as well as valuing eco- engineering along the roadsides system services such as erosion and makes use of natural vegeta- control and protection against tion to stabilise soils and slopes). landslides. Unlike the other two components of the study, it was Modelling soil loss based mainly on secondary data before and after the monsoon gathered through a desk study, supplemented by focus group The study aimed to show how discussions. The economic an‑ bio-engineering techniques could alysis compared grey and green be adapted to the local environ- roads over a 40 year time frame, ment and serve to reduce land- modelling five scenarios based on slide instabilities. It followed an different patterns of rainfall, la- integrated methodology that bour costs, benefit generation and brought together biophysical discount rates. The main compo- measurements, assessment of See case study 23: nents in the cost-benefit analysis social impacts and economic valu- Integrated biophysical, social were road establishment and ation. maintenance, income from the and economic assessment of The biophysical component sale of products derived from soil- ecosystem-based disaster risk involved assessing the erosion oc- stabilising plants and enhanced reduction approaches to road curring around different types of access to markets, other facilities construction in Nepal road. LIDAR was used to measure and services. 50 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook One reason why there is a need to com- seek to help people to adapt to the adverse bine methods is that effective, equitable effects of climate change, merely describ- and sustainable climate adaptation must ing biophysical impacts is unlikely to be typically meet various goals and dem- sufficient to assess, evaluate or justify a onstrate progress towards a number of particular measure. It is also usually nec- different targets, both biophysical and essary to demonstrate how these effects socio-economic, qualitative and quantita- link to changes in vulnerability and risk tive. This is especially the case for EbA, exposure, or result in shifts in the social which usually seeks to generate multiple and economic status of affected groups. adaptation benefits and ecosystem service co-benefits. It is therefore almost always In some instances, a multidimensional or necessary to value a range of different im- pluralistic approach to EbA valuation can pacts, and to investigate how they interact be achieved by synthesising and compar- and trade-off with each other. In contrast, ing the results of different study compo- failing to adequately account for the full nents. In other cases, integrated analysis range of EbA values runs the risk of pre- methods can be applied which have the senting an incomplete (and at the worst capacity to deal simultaneously with a incorrect) picture, which underestimates number of different metrics and mea- its worth and advantages from develop- sures, so as to present combined or com- ment and adaptation viewpoints. posite pictures of relative values and per- formance. A variety of frameworks have The importance of adopting the concept been developed that attempt to combine of multiple values in EbA valuation has the assessment of both biophysical and already been emphasised in Chapter 2. economic impacts of different adaptation This pluralism of benefits and beneficia- options (see, for example, AECOM 2012, ries, costs and cost-bearers also demands Sharp et al. 2016). Multi-criteria analysis is that a range of valuation methods are often recommended in situations where used. A third important reason for com- the environmental or social impacts of bining valuation methods is the fact that adaptation cannot be assigned a monetary different approaches are often additive or value, to reflect multiple value concepts complementary. For example, in order to or incorporate the perspectives of differ- value EbA measures or ecosystem services ent groups, or to provide a framework for in economic or monetary terms, clear evi- considering the synergies and trade-offs dence of (and quantitative data on) their between a variety of EbA factors or values biophysical effects is also required (Box 5). (Box 18). By the same token, as EbA interventions Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 51 Box 18: In the Philippines, as in many other countries, mangrove deg- cost-benefit analysis was carried out. This suggested that semi-in- radation has resulted in the loss tensive aquaculture was the most Combining of important environmental and preferred alternative followed by economic products and services intensive aquaculture. Preserva- cost-benefit including forest products, flood tion and forestry alternatives mitigation and nursery grounds were found to generate substan- analysis and for fish. A valuation study was tially less value in terms of goods. multi-criteria carried out in Pagbilao munici‑ pality, Luzon, prompted by pres- Decision problem: competing objectives analysis to sures to overturn a ban that had been enacted on mangrove clear- The cost-benefit analysis could assess man- ance and conversion for aquacul- ture. The study used a combina- not however fully capture distri- butional effects, which is a central grove manage- tion of cost-benefit analysis and multi-criteria analysis to evaluate political issue. Also, environmen- tal effects (such as carbon emis- ment options mangrove management alterna- sions, soil accretion, shore protec- tives. and trade-offs Use scenarios of single tion, ecotourism and biodiversity) could not be valued in monetary in the versus combined management terms. Because decision makers also consider equity and environ- Philippines Eight management alternatives were defined. These described mental objectives in their deci- sions, the valuation was redefined a variety of scenarios, including into a multi-objective decision the use of the entire mangrove problem with the following three forest by one interest group (for objectives: maximise efficiency example environmental agency, (i.e. maximise monetary benefits community or fishpond operators) over costs), maximise equity (i.e. as well combined uses by com- maximise income to local popula- peting users (for example subsis- tion) and maximise environmental tence and commercial forestry, quality (i.e. maximise the balance aqua-silviculture, semi-intensive of positive and negative effects and intensive aquaculture, strict to the environment). Whereas preservation). the first two objectives could be expressed in monetary metrics, Field surveys were undertaken to expert judgement was used to assess production and prices of create an index of relative envi- forest products, capture fisheries ronmental performance. and aquaculture. Based on the Source: monetary value of goods pro- This multi-criteria ranking of Janssen and Padilla (1999) duced and management costs, a alternatives yielded interesting 52 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook conclusions, which were differ- ment objectives and the efficiency in the management of the man- ent from those of the cost-benefit objective. Alternatives perform- grove forest. Because each type analysis. No alternative per- ing well on efficiency performed of decision maker has his/her own formed best on all three objec- badly on equity and environment objectives, each decision maker tives. Also clear was the conflict and vice versa. Different types will use the information on the between the equity and environ- of decision makers are involved alternatives in a different way. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 53 Summary of Chapter 5 Key points to bear in mind when designing and delivering EbA valuation studies The following chapter elaborates the four most impor- ­ embedding the valuation study in real decision tant considerations in managing the valuation process processes, so as to enhance its strategic impact: embedding the ­ defining and engaging the target audience, valuation study in real decision processes, defining and engaging the target audience, communicating interest- ­ communicating interesting, appropriate and ing, appropriate and useful information, and building useful information, and long-term capacity. To these ends, it emphasises the following points: ­ building long-term capacity EbA valuation should be understood as a ‘know­ Fitting EbA valuation into the appraisal and evalu- ledge brokerage’ process between science and ation procedures that are already required to be policy domains. applied to inform decision-making, rather than carrying it out as a separate exercise, is always If EbA valuation is to succeed in meeting its policy desirable. purpose and have strategic impact, active steps should be taken to foster relevance, credibility and legitimacy. There are four particularly important considerations to bear in mind: 54 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 5.1 Understanding valuation as ‘knowledge brokerage’ 5.2 Embedding valuation in decision processes 5.3 Defining and engaging the target audience 5.4 Communicating interesting, appropriate and useful information 5.5 Building long-term capacity and expertise Enhancing the 5 strategic impact: leveraging decision change and influence Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 55 5.1 Understand- As described in Chapters 1 and 2, an over- arching reason for undertaking EbA valu- It is now widely accepted that efforts to close the knowledge-policy-practice loop ing valuation ation is the need to overcome the gaps in knowledge and awareness which serve as in relation to biodiversity and ecosystem services are more likely to be successful as ‘knowledge barriers to the uptake and mainstream- ing of ecosystem-based approaches. The when they manage information genera- tion and dissemination in ways that si- brokerage’ ultimate goal is to inform and influence decision-making, so as to encourage multaneously enhance its relevance, cred- ibility, and legitimacy to decision makers more effective, sustainable and equitable (Cash et al. 2003). These three character- climate adaptation. In this sense, valuati- istics seem to be the most important in on should be understood as a ‘knowledge distinguishing effective assessments and brokerage’ process between science and valuations (Carmen et al. 2015, Cash and policy domains (see Reinecke et al. 2013a, Clark 2001). Reinecke 2015). In other words, it is a way of bridging the boundary between scien- In the context of EbA, relevance refers to tists and decision makers, by transforming the applicability of valuation findings to data on benefits, costs and impacts into the needs of adaptation planners, manag- information that can be used to support ers and policy-makers. Credibility deals adaptation policy, planning and manage- with the technical adequacy and believ- ment in the real world. ability of the evidence and arguments presented on the effectiveness of ecosys- The principle of knowledge brokerage tem-based approaches. Legitimacy reflects implies that some kind of handover takes the perceived validity and trustworthiness place whereby both the information on of both the EbA valuation process and EbA values and the methods that have its results as being fair, unbiased, and re- been used to generate it will become spectful of stakeholders’ divergent values accepted, absorbed and institutionalised and beliefs. within adaptation decision-making. Yet this kind of mainstreaming is usually not If EbA valuation is to succeed in meeting straightforward in practice. Decision its policy purpose and have strategic makers are not always ready to accept or impact, active steps should be taken to act on the results of valuation. However foster relevance, credibility and legitima- good the study has been in technical cy. There are four particularly important terms, and however convincing the case considerations to bear in mind: embed- it makes for ecosystem-based approaches, ding the valuation study in real decision this does not necessarily mean that it will processes, defining and engaging the tar- be effective. get audience, communicating interesting, appropriate and useful information, and The GIZ review of EbA valuation methods building long-term capacity (Figure 6). found that, all too often, EbA valuation It is worth noting that these aspects are has no discernible impact on on-the- not just strategic in terms of increasing ground adaptation policy, planning and the likelihood of decision makers’ buy-in practice (ECO Consult 2017). The fact that and on-the-ground impact, but also typi- scientific information is rarely integrated cally serve to strengthen the technical into mainstream development efforts quality, practical usefulness and policy and that knowledge is not used as it relevance of EbA valuation. This is because ‘should’ be to consistently inform policy they allow for a continuous dialogue and and practice has also been noted to be a feedback loop to be established between longstanding issue as regards information the study team and decision makers. At on biodiversity and ecosystem services the same time, they reflect best research more generally (see Rodela et al. 2015), practice and good conduct in the sense including assessment and valuation (see that of helping to ensure that valuation Berghöfer et al. 2016, Cash and Clark is carried out in as inclusive, transparent 2001). and participatory a way as possible. 56 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook embedding valuation in decision Figure 6: Key tools and processes considerations for enhancing the strategic impact of valuation relevance, building credibility defining long-term and and capacity legitimacy engaging and the target expertise audience communicat- ing interest- ing, appropri- ate and useful information 5.2 Embedding As long as EbA valuation remains ex- ternal to the decision-making process In nearly all cases, adaptation investments (whether being carried out at the policy, valuation in that it seeks to guide or inform, then it is unlikely to exert much influence. For programme or project level) are rou- tinely subjected to scrutiny before funds decision example, an assessment of the economic value of mangroves for shoreline protec- can be committed, and then reviewed to check whether the funds were well- processes tion that is carried out as an occasional technical study by a conservation NGO spent. Intervention at each stage of the project cycle are typically required to pass will probably not do much to encourage fairly standardised appraisal and evalua- decision makers to invest in green, rather tion procedures (Table 1) – although the than grey, coastal adaptation options as exact approaches and requirements will compared to one that is conducted as of course depend on the country, sector, part of the economic appraisal of a public agency or organisation and specific deci- sector investment programme. Unfortu- sion-making context in which the action nately, this is all too often the case. One of is being implemented. Public investments the key findings of the GIZ review of EbA and donor-funded development projects, valuation was that most studies are car- for example, almost always undergo a ried out on a rather ad-hoc basis, outside cost-benefit analysis or similar economic the more systematized and structured ap- appraisal process in order to be approved, praisal and evaluation procedures used by so as to demonstrate that they generate the governments or companies that they a particular rate of return or value for seek to influence (ECO Consult 2017). In money (see Box 19). Likewise some form addition, it was found that EbA valuation of environmental impact assessment and is often conducted only after adaptation other screening exercise (such as social, options have been selected, with the aim health, risk safety impact assessments) are of modifying a decision that had already usually required for all major infrastruc- been made, rather than trying to influ- ture investments. ence how the project, programme or poli­- cy options were selected and designed in the first place. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 57 Table 1: Comparison of appraisal and evaluation procedures Appraisal Evaluation Whether an EbA proposal or a particular option What the actual performance and impact of the Aim of assessment is worthwhile, and whether to proceed with it EbA option was, and whether it was worthwhile Justify and make the case for EbA, select ad- Justify and make the case for EbA, judge the Use of output aptation options, design and plan adaptation performance of adaptation measures, share actions, assess feasibility of measures actual evidence, feedback lessons learned Timing Ex ante prior to implementation Ex post during or after implementation Comparison of options against each other, or Comparison of results against each other, ‘do ‘do nothing’ option nothing’ option, baseline and target outcomes Method Estimated assessment of future risk Assessment of risks and impacts that did or did not materialise Scope Predict the benefits, costs and impacts that will Review actual outcomes that have occurred as arise if the EbA measures are implemented a result of the EbA measures Adapted from HM Treasury (2013) 58 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Box 19: The Government of Alberta in Canada has certain regulatory that the project was economically viable and could be considered requirements regarding the ap- to be a justifiable use of public Cost-benefit praisal of public sector investment funds. analysis of flood projects, in order to determine whether they are technically, In line with government guid- ance and appraisal procedures, mitigation inter- financially and economically vi- the analysis followed a relatively able. Cost-benefit analyses are ventions in Canada routinely used by the Canadian simple process, as it looked only at direct costs and benefits and as part of the Government as part of the busi- ness case for projects at Federal, did not take broader social envi- ronmental impacts into account. appraisal process Provincial and Municipal levels. In line with these requirements, the Comparison for public sector with other options Resilience and Mitigation Branch On the benefit side, the analysis investment projects of the Government of Alberta’s Environment and Sustainable considered avoided flood-related Resources Department must often damages, while the costs incor- commission valuation studies in porated the capital and recurrent order to justify and choose be- expenditures associated with tween different public infrastruc- establishing and maintaining the ture investment options, including physical structures and associated those relating to adaptation. engineering measures. Benefits were restricted to economic Aim: ameliorate flood damages benefits accruing in the flood risk area within the City of Calgary The Springbank Off-Stream Flood boundaries. Storage Mitigation Project was intended to ameliorate flood The Springbank Off-Stream Flood damages in the city of Calgary. Storage Mitigation Project was In order to fulfil appraisal require- compared with two other flood ments, different intervention control options: McLean Creek options were subjected to a cost- Flood Storage Project and Glen- benefit analysis. This provided more Reservoir Diversion. The See case study 8: a comparison of project benefits benefit:cost ratios of each were Cost-benefit analysis of (in terms of damages averted) compared for each of 1:100 and flood mitigation interventions to project costs (including capital 1:200 year protection, under high in Canada and operating costs), to verify and low damage scenarios. Fitting EbA valuation into the apprai- standardised measures and procedures sal and evaluation procedures that are that are routinely applied to inform deci- already required to be applied to inform sion choices, rather than always leaving decision-making, rather than carrying it it as a special case or an exception to the out as a separate exercise, is always desi- rule. This is an important step towards rable. This is the case even when it means mainstreaming. that some level of modification in their methodology and approach is required Obviously, EbA valuation will not always (such as incorporating ecosystem services be tied clearly to a particular step in the into cost-benefit analysis or environmen- project cycle, or be able to be carried out tal impact assessments). It permits EbA alongside formal appraisal and evalua- to be considered on the same footing as tion procedures. For example, valuation is other adaptation alternatives and public often used by conservation organisations investment options, according to the to make the case for ecosystem-based Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 59 approaches or for general advocacy and to, and is closely connected with, the awareness purposes. In such instances, broader decision-making processes and a key concern will be to ensure that the decision makers that it seeks to influence. study is carried out in a way that responds 5.3 Defining and It is perhaps self-evident that unless the target audience is clearly defined, and ation is as important in leveraging deci- sion change and influence as the results engaging the actively engaged in the valuation process from start to finish, then it is unlikely that of the study are. Decision makers them- selves are usually far better positioned target decision makers will buy into its findings or be interested in taking them up (see to influence the policy processes which they contribute towards and form a audience Box 21). Participation is a crucial factor in making the results of the valuation part of than are external organisations or ‘experts’. Yet, although the need for relevant, credible and legitimate. There stakeholder engagement may seem obvi- are also many other benefits to be gained ous, many EbA valuation exercises are from stakeholder engagement, which ex- carried out by teams of experts as pure tend beyond merely motivating support academic research ex­­ercises, with little or and buy-in (Box 20). Often the process of no recourse to the audience that they seek experiencing or being involved in valu- to influence. Box 20: Benefits from A well-managed collaboration makers to become familiar between the potential users and with the concept and advant- engaging the providers of EbA valuation can have ages of EbA, and engenders target audience spin-off effects at several levels: a feeling that decision makers’ needs and priorities are being in the valuation Improving the quality of the adequately reflected and exercise information collected: regular interaction and dialogue al- addressed. lows for additional data and Strengthening buy-in and expert opinion to be contribut- influence over decision-mak- ed, and for the quality of data ing: participation helps deci- and its interpretation to be sion makers to take owner- validated. ship over the valuation pro- cess and product, and increas- Enhancing awareness and sup- es the likelihood that it will be port for ecosystem-based ap- managed within (or perceived proaches: regular exchange as being part of) their own permits a shared specification mandates, ways of working of the problem or questions and management structures. to be tackled, contributes to- wards enhanced awareness and knowledge, helps decision Adapted from Berghöfer et al. (2015) 60 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Box 21: An innovative ‘Building with Na- ture’ (BwN) model has been used rehabilitation and the recovery of pond fisheries. Communities are to undertake coastal res­toration actively engaged in collecting and The importance of and adaptation measures along recording monitoring information stakeholder the severely erod­ed coastline of Demak Regen­cy, Central Java. (for example through taking part in regular dialogues, helping with engagement in This uses a hybrid, grey-green the collection of field measure- approach which combines the ments, keeping logbooks and evaluating the construct­ion of permeable brush- other records). effectiveness and wood dams and mud nourish- ments with mangrove rehabilita- A strong principle of stakeholder impact of hybrid tion, sustainable aquaculture and engagement has also been adopted for sharing monitoring other livelihood diversification “building with measures. and evaluation results. A regular cycle has been established which nature” coastal Evaluate pilot and scale it up brings together the various differ- adaptation The project has so far passed ent agencies and groups that are involved in the project. Every six measures in through two stages, both of which have involved studies to measure months, information is presented, analysed and discussed, and the Indonesia biophysical and socioeconomic design and delivery of interven- impacts. The first focused on tions are updated as necessary. evaluating the effects of a small- scale pilot activity, aiming to Approach became influential demonstrate that the novel BwN in other parts of indonesia approach could indeed work, and to make the case for scaling it up The evidence of intervention more widely. The second involves impact has generally been well- developing a monitoring protocol received by the target audience for a larger follow-on initiative. (coastal planners and managers, Stakeholder engagement and including local community mem- participation in evaluating effec- bers). The participatory, ‘learn- tiveness and impact (as well as in ing by doing’ approach that was the actual implementation of the employed, as well as the strong measures) has played a key role emphasis on stakeholder partici- in the acceptance, uptake and pation and communication, was subsequent upscaling of these instrumental in securing the buy- BwN approaches. in and support that is required to sustain and scale-up the eco-en- For example, local-level inter- gineering models that have been views and focus group discussions developed in Demak. provide a major source of data about changes in local livelihood The BwN approach has proved See case study 17: status and ecological conditions. to be influential in shaping how Evaluating the biophysical and This is supplemented by sampling coastal adaptation and disaster socioeconomic effectiveness of hy- surveys and direct observations risk reduct­ion policy and planning brid “building with nature” coastal made by community members is carried out in other parts of adaptation measures in Indonesia themselves about mangrove Java, and Indonesia more widely. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 61 Even when the valuation purpose has These overlap closely with the methods been clearly identified (see Chapter 3) and that used to assess the social and institu- the study has been closely embedded or tional outcomes of EbA (see Chapter 4) aligned with the project cycle or decision- – such as stakeholder and social network making process (see Section 5.2 above) it assessments, institutional and context may not be immediately obvious who the analysis, and agent-based modelling. target audience or end-users of informa- tion should be, or at which level (and to A particularly key concern is to under- what extent) they should be engaged. stand, early on, the relative power and These issues need to be tackled early on in interest of different groups as well as the valuation process. At a minimum this the other factors that shape how (and by involves thinking through the political whom) adaptation decisions are actually and policy context to the valuation, the made and how the valuation results might needs for evidence, and the stakeholder be used and taken up. Power interest interests, influences and linkages as grids, for example, provide a simple tool regards adaptation decision-making (Start that can help to identify and prioritise and Hovland 2004). For example, if valua- levels of stakeholder engagement and tion is being used to compare the rela- strategies for fostering participation dur- tive merits of reforestation and reservoir ing the valuation process (see GTZ 2007). construction as a means of improving dry season water flows to strengthen climate Then, the most appropriate and effective resilience, then a thorough analysis will means of engaging with the target audi- probably need to be made of different ence will vary, depending on the study land uses and land users, tenure and re- context, but will likely need to incor- source management regimes in the upper porate a variety of tools, including both watershed as well as competing and possi- formal and informal meetings, sharing bly conflicting water demands and access of updates and other communications rights on the part of downstream water (see below). Making the target audience a consumers. In this case, the main target part of the technical study team, engag- audience, and ultimate users, of the valua- ing key stakeholders as advisors, steering tion information may lie well outside the committee members or peer reviewers, or climate adaptation sector. A wide variety providing them with another role in the of tools can be used to assist in defining valuation exercise itself is often one of the the target audience for EbA valuation. most successful forms of engagement. 62 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 5.4 Communi- Communicating an EbA valuation study involves far more than just disseminating The key need is to focus on managing these social processes and stakeholder cating its findings. It is about fostering awareness and dialogue, and shifting the paradigms interactions so as to convey information on EbA values in forms and ways that interesting, that drive adaptation planning. As such, it is rarely possible to export the writ- make it interesting, appropriate and use- ful to those concerned (Box 22). If this is appropriate ten results of a technical valuation study directly to decision makers, and expect not the case, decision makers are unlikely to be convinced by EbA valuation, or to and useful them to be accepted, understood, sanc- tioned and acted on. Rather, the process act on its findings. For example, the key factor in whether reforestation is deemed information of building decision-support informa- tion and policy advice is more of a social to be the most appropriate investment option for strengthening adaptation in process which reveals itself through the water sector may not be the ability to repeated exchanges and joint actions be- demonstrate that it will offer the lowest- tween scientists, decision makers, various cost investment option for securing a interest groups and the media (Reinecke given dry season base flow, but rather et al. 2013a) – and thus involves a con- whether it can help to avoid a given level tinuous renegotiation and shifting of the of hydropower generation outages or boundaries of the ‘knowledge brokerage’ maintain year-round irrigated food crop domain mentioned at the beginning of production. this chapter. EbA valuation methods Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 63 Box 22: Different audiences have varying proaches to investment appraisal Targeting valua- mandates, interests and levels and project analysis. The aim of understanding – and there- is to measure the benefits and tion metrics fore respond to diverse triggers, impacts of adaptation activities in and messages messages and indicators about the value of EbA, in itself or as terms that are both standardised and universally comparable, and by using a compared to other adaptation reflect issues that are of primary alternatives. A targeted approach concern to decision makers. saved health, is often required when designing Target audience were coastal saved wealth a valuation study, so as to en- sure that the data presented and planners and decision makers approach to metrics used will succeed in com- This standardisation and com- municating interesting, appropri- communicate the ate and useful information to the parability, as well as the use of wealth and health indicators, benefits of coastal intended users of the study. resonated with coastal plan- ners and decision makers in Viet Move adaptation options beyond mere monetary-based measures Nam (the target audience for the in Viet Nam In Viet Nam a ‘saved health, valuation study). It also helped to ensure that they considered saved wealth’ approach was used the study findings to be inter- to communicate the benefits and esting, useful and credible. The impacts of EbA as compared to methodology compared economic grey coastal adaptation options in assets and life expectancy under See case study 40: Soc Trang Province of the Me- a baseline business-as-usual sce- Saved health, saved wealth kong Delta. The choice of a saved nario with the economic damages, approach to compare the health, saved wealth approach illnesses and mortality that would benefits of coastal adaptation deliberately intended to move be avoided through undertaking beyond the reliance on monetary- adaptation measures. Both mon- options in Viet Nam based measures that character- etary and non-monetary metrics ises conventional economic ap- were used to measure these It is also apparent that the causal links be- results of the valuation study, but also tween the communication of information to continuously communicate what it is and policy change are not always straight- about, how it is progressing and how it is forward. Theories of knowledge utilisa- being conducted. This is intimately tied tion suggest that the ‘use’ of research to the processes of stakeholder engage- findings does not happen through a direct ment and participation that have been and instrumental transfer of informa- set up for the valuation study: meetings, tion to decision makers, but rather as a dialogues, lobbying and other interactions more diffuse process of ‘knowledge creep’ are all a critical component of communi- (Reinecke et al. 2013b). This reinforces the cation. importance of treating communication as a continuous process, not one that just There is no ‘one size fits all’ solution to comes in at the end of the valuation study. communicating interesting, appropriate It is not only important to share the final and useful information on EbA values. 64 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook impacts. Saved health looked at rating damages to private prop- co-benefits were described (but avoided disease, disability and erty, public infrastructure, agri- not quantified) via a checklist life loss, measured through DALYs of indicators such as air qual- What costs of salinisation? or disability-adjusted life years. ity, water quality, soil conditions, Saved wealth was measured in cultural and fisheries income, as biodiversity, quality of employ- terms of economic benefits and well as the costs of erosion and ment, livelihoods of the poor and (avoided) expenditures, incorpo- land salinisation. Environmental cultural heritage. Various tools are required to plan, pack- robust findings. It is important to tailor age, target and monitor information both the messages that are shared and (Table 2). Just as the target audience and the means of communication to the stakeholders in EbA are not homogenous target audience and the cultural, social, and may have contrasting (and even institutional and decision-making milieu conflicting) needs, interests, mandates and in which they are embedded, through power to influence adaptation decision- following a careful process of planning, making, so the information that is re- packaging, targeting and monitoring quired to influence their decisions varies. (Hovland 2005). Good communication does not occur automatically, and will not happen just because a valuation study has been well- designed and targeted, or has generated practical, policy-relevant and technically- Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 65 Table 2: Key elements and tools in the communication process Elements Area of focus Examples of tools Why, how and to whom communication Communications strategy, stakeholder analysis, Planning takes place social network analysis, problem tree analysis, force field analysis, etc. How and in what terms messages are Visioning future scenarios, telling a story, providing Packaging formulated and positioned a solution, using surprise, being persuasive, appeal- ing to emotions, tying into news story, etc. How communications will be delivered Writing technical reports and policy papers, building to the intended target audience a community of practice, lobbying, websites, blogging, Targeting social media, print, TV and radio and visual media engagement, etc. Whether valuation made any difference Interviews, observations, surveys, checklists, active Monitoring to adaptation or other outcomes learning, most significant change, outcome mapping, etc. Adapted from Hovland (2005) 5.5 Building A final, and yet crucial, condition for fos- tering relevance, credibility and legitima- Capacity needs do not relate only to the technical knowhow and training required long-term cy and enhancing the strategic impact of EbA valuation is the development of long- to undertake valuation. They also involve building an understanding among adapt­ capacity and term capacity. Biophysical, economic and social assessment techniques all require ation planners and managers of the need and usefulness of commissioning EbA val- expertise specialist technical training and expertise, and their application to climate adapta- uation in the first place, and creating the expertise that is required to commission, tion – and especially ecosystem-based design and coordinate the studies, and to approaches – is a relatively new field. One interpret and apply their results. Although response to these capacity limitations formal training needs assessments offer a is not to be overambitious, and to select useful tool with which to plan for creating methods which can be easily imple- appropriate expertise, and investigate mented using existing skillsets. More where skills development efforts will have commonly, low valuation capacity means the most impact, efforts should always be that expertise is sought outside the agen- made to build capacity development into cies that are responsible for adaptation EbA valuation exercises as they take place planning and implementation – or even (see Box 23). The very process of carrying externally to the country in which valu- out EbA valuation provides an opportuni- ation is being carried out. This is rarely a ty to learn through doing, and to integrate sustainable solution. It also makes it much expertise from partner institutions and more difficult to embed valuation in on- local stakeholders. the-ground decision-making processes, or to mainstream it as a tool that is routinely used to inform adaptation planning. 66 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Box 23: Using the valuation process to build capacity among protected area managers Economic valuation was used to sion of Protected Natural Areas communicate the high value of (CONANP) were then closely in Mexico three protected areas (PAs) in involved in carrying out the valu- Mexico: Cabo Pulmo National ation, and in presenting the re- Park, Cozumel Reefs National Park sults to others. / Cozumel Island Flora & Fauna While the valuation studies gener- Protection Area and Iztaccíhuatl- ated important information for Popocatépetl National Park. This PA conservation and local devel- aimed to demonstrate the con- opment planning, their main im- tribution of PAs to local, national pact was to raise awareness and and sectoral development pro- capacity on the use of economic cesses, as well as generating valuation to make the case for information that could be used integrating PA ecosystem services to address key conservation into development planning. The threats and management issues. studies provided new skillsets The valuation exercise formed a and tools to assist CONANP to step in applying an “Integrating better represent their interests Ecosystem Services into Develop- as regards the mainstreaming of ment Planning” (IES) approach, ecosystem values into sectoral which works through a series policy and planning. of participatory steps to define and address ecosystem service- Not just a training exercise related threats, opportunities and trade-offs. Yet, while capacity-building was a key goal and output of the valu- How do development goals ation process, it is important to impact on ecosystem services? note that the intention was not to A variety of participatory tools create a body of staff that were were used to identify the key technically trained to conduct management issues and chal- ecosystem valuation. Rather, it lenges that valuation might help was to provide conservation man- to address, and to assess the agers and decision makers with ways in which development goals the knowledge and understanding depend and impact on PA eco- that would enable them to iden- system services. This served to tify, commission and supervise bring conservation managers and valuation studies to assist them other local stakeholders directly in their work in the future. Estab- See case study 20: into the process of identifying the lishing long-term valuation capac- main purposes and targets of the ity and awareness at the institu- Integrating Ecosystem Services valuation studies. Based on these tional level also helped to secure into Development Planning priorities and purposes, on-the- the sustainability of the study valuation of the economic ground valuation studies were results, and ensure that they contribution of protected area designed and carried out. Staff were accepted, taken up, and ecosystem services in Mexico from Mexico’s National Commis- will likely have a lasting impact. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 67 Summary of Chapter 6 Key points to bear in mind when designing and delivering EbA valuation studies The following chapter combines the insights of the documented. The results will typically continue to previous sections of the sourcebook into a series of be applied, used and updated through dissemina- checklists to assist in planning and carrying out EbA tion, communication, dialogue and policy advice. valuation. It explains the most important ‘things to This also requires continuing engagement with think about’ and ‘things to do’ when commissioning, adaptation stakeholders and decision-makers. designing and implementing valuation studies. To these ends, it emphasises the following points: It is crucial to ensure that the valuation process is managed well, in the sense of applying best- EbA valuation almost always requires engaging practice research principles such as inclusivity, external technical experts, and closely interacting transparency and accountability, as well as set- and communicating with key stakeholders. ting in place the broader enabling conditions that are required to ensure relevance, credibility and Most valuation studies follow a logical progression legitimacy. through seven main stages: (1) framing the need for EbA valuation, (2) defining the study purpose The success of EbA valuation does not just rest on and focus, (3) scoping the values to be assessed, (4) selecting the ‘best’ purpose, methods and data or designing the valuation approach, (5) collecting the with carrying out the ‘right’ technical and process data, (6) analysing the information and (7) docu- steps. It also depends on effective coordination. It menting the findings. is necessary to be mindful of the logistical, admin- istrative and other management requirements for However, the process of EbA valuation rarely ensuring that the valuation study runs smoothly comes to a complete end once the findings are and according to plan. 68 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 6.1 Technical steps and reporting outputs 6.2 Process steps 6.3 Coordination needs 6 Delivering the assessment: commissioning, designing and implementing valuation Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 69 Drawing on the insights, experiences and cess will of course vary, depending on its best practices described up to here, it is purpose, the context in which it is being possible to identify a number of practical carried out, and the resources available to steps and elements that should be incor- it. Most valuation exercises will however porated into EbA valuation. The exact involve four types of ‘things to think nature, scope and length of the study pro- about’ and ‘things to do’ (see Figure 7): usually led by agency that commissions the study REPORTING OUTPUTS B engagement strategy and communications plan A statement of C objectives and intent questions 1 2 3 4 Technical steps framing the defining the scoping the designing need for EbA study purpose values to be the valuation valuation and focus included approach understanding decision process building capacit y and procedural re q uirements PROCESS steps defining the audience transforming technical outputs into engaging and COORDINATION NEEDS initia - recrui - managing , trac k ing and ting ting dialogue e x perts monitoring and responding to changes drawing up a budget and delivering logistical and administrative plan overseeing sta k eholder engagement , communication C ontinued use ( and updating ) of valuation results through 70 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Technical steps: the main stages in duct and quality control in carrying undertaking valuation; out the study; and Reporting outputs: the document- Coordination needs: the logistical, ation or other materials that will be administrative and other manage produced; ment inputs that are required to en- Process steps: the areas of support sure that the study runs smoothly that are required to foster good con- and according to plan. usually undertaken by assigned/ hired technical valuation experts Figure 7: F draft reporting materials Practical steps in putting together an EbA valuation study: things to think about and do D workplan and E raw data methodology G final reporting materials 5 6 7 collecting analysing documenting the data the the findings information and awareness outputs into communications mater­ials and k nowledge products communicating with sta k eholders reviewing e x perts ‘ wor k launching the final products I n polic y , institutional and ph y sical conte x t needs according to agreed plan and capacit y / awareness process and events dissemination , communication , dialogue and polic y advise Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 71 6.1 Technical Most valuation studies follow a logical progression through seven main stages, steps and and usually produce a similar array of reporting outputs. These ensure that the reporting information and analysis required to value EbA benefits, costs and impacts are outputs produced in a credible and relevant way, and include: 1 2 3 framing the defining the scoping the need for EbA study purpose values to be valuation and focus included Step 1. Framing the need for Step 2. Defining the study pur- Step 3. Scoping the values to EbA valuation involves thinking pose and focus involves clearly be included involves clarifying through the rationale for valua- identifying the practical purpose what is to be assessed or valued in tion. A key point to remember is and envisaged outcome of the terms of EbA benefits, costs and that, although valuation can be a study. It also requires specify- impacts as well as the beneficiaries powerful tool for promoting more ing the questions that it aims to and cost-bearers (see Chapter 2). effective adaptation decision-mak- answer, the stakeholders it seeks Valuation studies rarely need to ing – and, conversely, under-valua- to engage with and the target be totally comprehensive in their tion often poses a major challenge audience that it intends to com- coverage: they focus on the key to EbA (see Sections 1.1 and 2.3) municate with (see Chapters 3 values that are most importance – better ‘evidence’ of values is not and 5). This important step is to do (and relevant) to the study purpose, always the main factor hindering with articulating exactly how (and questions, decision process and EbA uptake or mainstreaming. A through whom) the study intends target audience being addressed. very important initial step is there- to support, inform or influence fore to establish with certainty that a particular aspect of adaptation there is, indeed, a need for valua- decision-making. The decision tion. This would usually result in a objective and questions to be ad- statement of intent which sum- dressed should be clearly docu- marises why the valuation study mented (reporting output B ), has been deemed necessary in the and an engagement strategy and first place (reporting output A ). communications plan should be This often also provides the basic developed (reporting output C ). justification or concept that is used to secure funding or manage- ment approval for carrying out the study, and informing partners about it. 72 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 4 designing 5 6 collecting analysing the valuation the data the approach information Step 4. Designing the valuation Step 5. Collecting the data in- Step 6. Analysing the informa- approach involves elaborating volves obtaining the information tion involves combining and inter- the specific methods and metrics that is needed to value the selected preting the raw data to answer the that will be applied to measure EbA benefit, costs and impacts. The decision questions specified for the EbA values (see Chapter 4). This length and complexity of this step valuation study. Again, the timing includes data needs and sources, can vary greatly, depending largely and level of detail will depend information collection procedures on the complexity of the valuation largely on the study scope, cover- and analytical approaches, as well methods being used and whether, age and methodology. as logistical aspects and process and to what extent, they require elements such as planning for field primary data collection, surveys surveys, stakeholder participation and field visits. It should result and communications. It should in the delivery of the raw data result in a workplan and method- (reporting output E ) required to ology (reporting output D ), de- compute EbA values. tailing both the technical approach and the milestones for delivering the valuation study, and linking in to the stakeholder engagement strategy and communications plan that have been produced earlier. 7 documenting In addition, it is worth emphasising the exercise, or delegated to an expert the findings that the process of EbA valuation rarely in political economy, decision analysis comes to a complete end once the final or stakeholder assessment. The actual results or reporting outputs have been valuation is however usually undertaken delivered. Most EbA valuation studies will by technical experts that are assigned or Step 7. Documenting the find- usually have broader and longer-lasting hired to do so, who may also be engaged ings involves compiling draft and relevance and applications. These may be to participate in or observe steps 1 and final reporting materials (report- in relation to the original topic or issue 2. Sometimes, although less commonly, ing outputs F and G ). It being addressed as it evolves over time, the team of technical valuation experts should be noted that these may or for other decision-making processes could also provide the skills and capacities or may not be limited to a written and needs that might arise in the future that are required to lead on framing and report – they often also include in other sites and sectors, for other groups defining the exercise. Thus, steps 3-7 and policy briefs, graphics or Power- or adaptation goals. The valuation results reporting outputs D - G typically Point presentations. In turn, these will typically continue to be applied, used comp­rise the core elements of the terms outputs are usually transformed and updated through dissemination, com- of reference that would be developed for into other materials which are munication, dialogue and policy advice. the technical experts that will be under- then shared via various means, in taking the study. line with the communications plan Steps 1 and 2 and reporting outputs A , that has been developed for the B and C are typically led by the study (see Section 5.4). agency or organisation that commissions Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 73 6.2 Process It is crucial to ensure that the valuation process is managed well, in the sense of broader enabling conditions that are re- quired to ensure relevance, credibility and steps applying best-practice research principles such as inclusivity, transparency and ac- legitimacy. These steps are closely linked to the perspectives and tools outlined in countability, as well as setting in place the Chapter 5, and include: understanding decision process and defining the audience procedural re q uirements Understanding the decision process and Defining the audience should help to procedural requirements is critical in en- make the study purpose and questions suring that the valuation study is properly well-targeted, and is also central to devel- embedded in the decision-making struc- oping effective strategies for engaging and ture that it seeks to guide or inform, and communicating with key stakeholders increases the likelihood that its findings (see Section 5.3). having influence and impact (see Section 5.2). It is also a key step in defining the study purpose (see Section 3.1). transforming technical outputs into communi - engaging and cations mater­ials and communicating k nowledge products with sta k eholders Engaging and communicating with stake- Transforming technical outputs into com- holders should be a continuous process, munications materials and knowledge throughout the course of the valuation products is an important step in com- study. As well as contributing value infor- municating the findings of the valuation mation, this is a way of enhancing aware- study, and should take place at every ness about EbA, and strengthen­ing buy-in stage and for every reporting output (see and influence (see Section 5.3). Section 5.4). The aim is to ensure that the information that is shared from the EbA valuation is interesting, appropriate and useful to the target audience. building capacit y and awareness Building capacity and awareness is also an ongoing concern from the start to the end of the valuation study. Not only does the study process offer ample opportuni- ties to build general understanding and knowhow on EbA valuation among deci- sion makers and other partners, but can also be used as a mechanism for deliver- ing more formal training and skills-en- hancement (see Section 5.5). 74 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook These process steps are usually under- dealing with stakeholder assessment as- taken by the agency or organisation that pects. Partnerships may also be formed to commissions the valuation exercise, deliver stakeholder engagement and com- although certain tasks and functions munications activities – for example with sometimes need to be delegated to part- professional communications agencies, ners or external specialists. As described non-governmental organisations, or local above, experts in political economy, deci- civil society groups. Capacity-building sion analysis or stakeholder assessment and awareness, too, may require engaging may be sought to assist in identifying or external partners or experts. 6.3 Coordination The success of EbA valuation does not just rest on selecting the ‘best’ purpose, is necessary to be mindful of the logistical, administrative and other management needs methods and data or with carrying out the ‘right’ technical and process steps. It requirements for ensuring that the valu- ation study runs smoothly and according also depends on effective coordination. It to plan, including: drawing up a budget initiating dialogue and plan Initiating dialogue with decision mak- Drawing up a budget and plan is a very ers involves getting the ball rolling, and practical and necessary task. It is always preparing the ground for the valuation important, early on, to have a clear idea study that is to follow (and the process of of the funding, timing, staffing and other stakeholder engagement that will ensue). material needs of the study, and to be sure Depending on the decision process that is that they can actually be met. It is also being targeted and the context in which crucial to chart out the timeline, activi- the exercise is taking place, this may ties, milestones and responsibilities for require introducing the valuation study to delivering the study. local stakeholders, establishing a platform to interact with industry and business, seeking high-level endorsement, or even following some kind of a formal applica- tion and approval process. recruiting e x perts delivering logistical Recruiting experts may involve hiring ex- and administrative needs ternal consultants, forming a partnership with another organisation or group, or assigning tasks to staff within the agency that has commissioned the valuation Delivering logistical and administrative study. Depending on the staffing arrange- needs must obviously take place on a ments, this may necessitate preparing timely basis throughout the study process, terms of reference, initiating an advertise- according to the agreed budget and plan. ment and tender process, evaluating bids or applications, and negotiating contracts. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 75 managing , trac k ing overseeing sta k e‑ and reviewing holder engagement , e x perts ‘ wor k communication and capacit y / awareness process and events Managing, tracking and reviewing experts’ work should be seen as a con- tinuous process. It is rarely feasible to Overseeing stakeholder engagement, withdraw from the valuation study as communications and capacity/aware- soon as the technical tasks are assigned or ness process and events typically requires a consultancy contract has been issued. frequent attention. It involves checking Periodic discussions, reviews and tracking on process (that engagement, communi- are almost always required, to establish cations, capacity and awareness concerns that the intended study focus and pur- are continuing to be addressed) as well as pose is being maintained, that tasks are on products (that workshops, meetings, proceeding according to plan, and that reports and other materials are being quality and other standards are being up- delivered as required). held. If capacity is very limited, it may be prudent to consider engaging an external expert, mentor or review panel to assist. launching the final products monitoring and respon - ding to changes in polic y , institutional Launching the final products is an and ph y sical conte x t important activity – valuation studies usually yield at least one major docu- ment, message or outreach event that Monitoring and responding to changes in reports on their overall findings. It should policy, institutional and physical context however be emphasised that the delivery involves periodically checking and re- of certain findings or conclusions about checking that the study purpose, ques- EbA costs, benefits and impacts rarely tions and focus remain relevant. Condi- spells the end of processes to use valua- tions and circumstances may change over tion to leverage decision-making change. the course of the valuation study, which Often, a valuation study serves as the first require a shift in its focus, or demand that stage in creating awareness and capacity, new issues, concerns or even stakeholders or in shifting adaptation paradigms and are taken on board. decision-making procedures. With few exceptions, coordination is almost always the responsibility of the agency or organisation that commissions the valuation exercise. 76 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 7 Learning from experience: case studies of EbA-relevant valuations Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 77 The literature contains a wealth of exam- They reflect a mixture of grey, green and ples of the use of valuation to assess, mea- hybrid adaption measures, apply a wide sure and compare adaptation measures. range of valuation methods, illustrate var- Some of the most interesting examples ious areas of technical focus, and report of valuation have been compiled as case on studies carried out for many different studies, as a supplement to this source- purposes, across a diverse array of biomes, book. These 4-6 page case studies are sectors and decision-making contexts. directly accessible through links. Figure 8: Map of EbA-relevant valuation case studies Table 3: List of EbA-relevant valuation case studies 1. Albania Cost-benefit analysis of adaptation options for the power sector This case study involved an extended cost-benefit analysis of adaptation options in Albania’s power generation sector. The aim was to provide information that could be used to inform and support energy sector investment planning by identifying the optimal power generation asset to supply the shortfall in electricity that would directly be caused by climate change. Although the options being considered were all grey, engineered solutions, the analysis considered a wide range of social and environmental indicators, alongside more conventional financial costs and benefits. 78 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 2. Argentina Physical effectiveness and cost efficiency analysis of water sector adaption measures This case study describes an integrated assessment to consider the physical effectiveness and cost efficiency impacts of adaptation measured designed to address seasonal water shortages in a river basin in north-west Argentina. This measured reductions in unmet water demand against the cost of achieving these savings. The analysis sought to help decision makers make informed choices among alternative water infrastructure designs that would be robust and sustainable in the face of climate change. 3. Australia Cost-benefit analysis to make the case for flood mitigation investments This case study evaluates the economic impacts of flood mitigation interventions in Australia. It uses biophysical models and cost-benefit analysis to assess climate risk, assets at risk and the protective capacity of mitigation measures. The aim was to establish the business case for flood mitigation investments, as well as to showcase methods that can be used to inform the allocation of limited regional government funding to infrastructure projects. 4. Bangladesh Cost-benefit analysis of national-level grey and green adaptation options This case study describes a cost-benefit analysis of various options for climate adaptation in Bangladesh. It considers both grey and green interventions, as well as longer-term measures to increase labour productivity and relocate vulnerable coastal populations. The aim was to ge- nerate information that could be used to prioritise strategic options for adaptation, and guide investment planning. 5. Belize Use of InVEST to weigh up coastal adaptation options and trade-offs This case study describes a study to compare the biophysical impacts and economic value of alternative packages of grey and green coastal adaptation options in Belize. The aim was to influence coastal zone planning processes. The InVEST tool was used to model and map the provision of ecosystem services (including coastal protection, fisheries, tourism and carbon). Cost benefit analysis was then applied to weigh up the physical costs of different adaptation options as well as the value of the ecosystem service benefits and damages avoided they would generate. 6. Burkina Income statements and cost-benefit analysis of ‘soft’ and ecosystem-based Faso and adaptation activities Ghana This case study measured the economic performance of a variety of ‘soft’ and ecosystem-based adaptation measures that had been implemented in the Volta Basin of Burkina Faso and Ghana. It was based on qualitative techniques as well as monetary income statements and cost-bene- fit analysis. The aim was to demonstrate a methodology and generate information that could be used to better design, implement and evaluate adaptation measures to meet local commu- nity needs and constraints. 7. Canada Cost-benefit analysis of engineered and non-structural coastal adaptation options This case study assessed the economic value of coastal adaptation options in Canada. Cost- benefit analysis techniques were used to measure the erosion and flood-related financial, eco- nomic and (in some cases) social and environmental damages avoided, and to compare them with the direct cost of adaption interventions. This yielded a prioritised list of adaptation needs and measures, showing where interventions were most justified in economic terms. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 79 8. Canada Cost-benefit analysis of flood mitigation interventions This case study describes a cost-benefit analysis carried out to assess the desirability of a flood mitigation project in Canada. It came up with measures of profitability in terms of damage costs avoided relative to the project investment, and also compared the project with two other flood control options in order to ascertain which returns the highest benefit:cost ratio. The study was carried out to fulfil the regulatory requirements of the Government of Alberta, to determine if the project was economically viable. 9. China Cost-effectiveness analysis of water-saving irrigation technologies for climate adaptation This case study looks at the economic viability of water-saving irrigation technologies as clima- te adaptation measures in China. This is measured by looking at the cost-effectiveness of four commonly-used technologies, as compared to traditional irrigation, in reducing the adverse effects of climate change, via increased crop yield and reduced water consumption. The aim was to generate new information that could support the identification of balanced responses to climate change and sustainable economic development. 10. Czech Cost-benefit analysis of flood adaptation measures Republic This case study assesses the costs and benefits of ongoing and planned flood protection adaptation measures in the Czech Republic. Following a hazard and impact assessment which simulated the spatial patterns of damages and losses in different locations and generated damage estimates, a cost-benefit analysis was carried out to generate recommendations to decision makers about whether the proposed investments will promote economic efficiency. 11. Fiji Least-cost, damage cost and cost-benefit analysis of urban coastal adaptation options This case study describes an economic analysis of coastal adaptation options in Fiji. It com- pares the costs, benefits and overall profitability of different combinations of grey and green measures. The intention was to inform and guide the development of a full adaptation plan. The study involved a least-cost analysis, a damage cost assessment, and a cost-benefit analysis which also incorporated the ecosystem service co-benefits generated by green adaptation options. 12. Georgia Cost-benefit analysis of sustainable farmland management practices This case study describes a cost-benefit analysis of farm management alternatives in Georgia, which aimed to guide and inform actions to avert land degradation and facilitate climate ad- aptation. The focus was on measures to reduce the incidence crop residue burning. A variety of valuation methods were used (including choice experiments, market prices and damage costs avoided) to value costs and benefits, and come up with indicators of the private and public returns to different land management options. 13. Germany Physical effectiveness, cost-effectiveness and cost-benefit analysis of flood risk management measures This case study evaluates the physical and economic impacts of flood risk management mea- sures at two sites on the Mulde River, Germany. Three different approaches were applied to evaluate the flood control measures: physical effectiveness, cost-effectiveness and cost-bene‑ fit (efficiency) analysis. The aim was to demonstrate a methodology that could capture more fully the value of non-structural measures that are better in terms of effectiveness related to hydrological protection standards, and better make the case for these ‘soft’ techniques. 80 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 14. Greece Choice experiments to value the public benefits of adaptation for river basin ecosystem services This case study describes the application of choice experiment techniques to value local residents’ preferences for undertaking climate adaptation measures which would maintain key ecosystem services in a river basin in Greece. The intention was to provide decision-support information that could assist in adaptation planning, and would highlight the need to invest in measures to secure the river basin in the face of climate change. 15. Guyana Measuring changes in climate change-related knowledge, attitudes and practices in Guyana This case study describes a knowledge, attitudes and practices survey on climate change awareness and education in Guyana. The aim was to investigate current perceptions, identify gaps, and generate recommendations to help in addressing sustainable climate change adapta- tion, mitigation and disaster risk programming. The study was conducted using both qualitative and quantitative methodologies, involving structured questionnaires and interviews with key stakeholders. 16. India Extended cost-benefit analysis of drought and flood-related disaster risk-reduction and response interventions This case study assesses the costs and benefits of flood disaster risk-reduction and response interventions in India. To do this, it considered a variety of economic, social, human and physi- cal values that would not be included in conventional cost-benefit analyses. The aims was to provide evidence that investments in disaster mitigation and preparedness measures are well- spent, and to demonstrate a tool that can be used to choose between different intervention options. 17. Indonesia Evaluating the biophysical and socioeconomic effectiveness of hybrid “building with nature” coastal adaptation measures This case study describes how the benefits of a hybrid “Building with Nature” approach to coastal restoration and adaptation were evaluated. A variety of methods were used to measure biophysical and socioeconomic effects such as coastal risk reduction, land and water quality improvements, mangrove re-establishment and livelihood gains. These included field observa- tions and measurements, satellite and drone technologies, household surveys and community consultations. 18. Malawi Bayesian Belief network to quantify the biophysical adaptation benefits of climate-smart agriculture This case study describes a study carried out to quantify the biophysical adaptation benefits of climate-smart agriculture in Malawi. It used a multiple-indicator Bayesian Belief Network based on assigning subjective probabilities to express a degree of belief in particular events or outcomes. This was used to compare the impacts of different farm interventions on climate change vulnerability. The aim was to demonstrate a simple methodology that could be used to generate evidence to justify and encourage higher investments in climate adaptation. 19. Malawi Participatory mapping and valuation of farmers’ land management costs, benefits and and preferences Tanzania This case study describes the use of participatory methods to assess local perceptions and preferences for different land use management choices and agroecosystem services in Malawi and Tanzania. The study was prompted by the top-down nature of many of the assessment methods that are conventionally used to guide the design of agricultural projects, especially their failure to adequately consider farmers’ own needs and priorities. It aimed to inform the selection, design and evaluation of sustainable land management (SLM) and climate-smart agriculture (CSA) interventions. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 81 20. Mexico “Integrating Ecosystem Services into Development Planning” valuation of economic contribution of protected area ecosystem services This case study describes an exercise to value protected area ecosystem services, as part of a broader exercise to understand and act on ecosystem service dependencies, impacts and opportunities. The aim was to demonstrate their economic contribution to local, national and sectoral development processes, as well as generating information that could be used to address key conservation threats and management issues. Capacity-building formed a cross- cutting objective, and continuous area of focus in the valuation study. 21. Morocco Multi-stakeholder cost-benefit analysis and contingent ranking of climate adaptation in the irrigation sector This case study evaluates economic aspects of adaptation interventions in the irrigation sector in Morocco. It employs a cost-benefit analysis focused, multi-stakeholder approach which takes account of the wider effects of adaptation measures on different sectors and groups, as well as the potential synergies and trade-offs between them. The intention was to provide a fuller picture of adaptation impacts as well as to generate information that could be used to make the case for adaptation and encourage uptake. 22. Myanmar Using InVEST to conduct a natural capital assessment of ecosystem service values and trade-offs This case study describes work carried out in Myanmar to map and value natural capital at the national level and in Tanintharyi Region. A broad range of ecosystem services were considered, including sediment retention, waterflow regulation, flood attenuation and coastal protection. Future climate impacts were incorporated into the valuation scenarios that were modelled. The information was intended to feed into various land use planning applications, including understanding trade-offs and identifying options for protected areas, infrastructure develop- ment and climate adaptation 23. Nepal Integrated biophysical, social and economic assessment of ecosystem-based disaster risk reduction approaches to road construction in Nepal This case study describes a cost-benefit analysis to compare green and grey options for road development in Nepal. This integrated biophysical, social and economic methods in order to cover a wide range of different effects and values. The main aim was to generate evidence to make the case for bio-engineering and ecosystem-based disaster risk reduction to planners, budget holders and policy makers at both district and national levels. 24. Niger Extended social cost-benefit analysis to evaluate ‘hard’ and ‘soft’ community-based adaptation measures This case study evaluates community-based adaptation measures in Niger. Unlike more con- ventional cost-benefit analysis techniques, it incorporated a wide variety of quantified indi- cators to measure changes in communities’ economic, social and environmental capital. The study sought to demonstrating the effectiveness of community-based adaptation approaches for building resilience and adaptive capacity across a broad range of outcomes. 25. Peru Physical impact assessment and cost-effectiveness analysis of green water inter- ventions This case study valued both the physical and economic impacts of ecosystem-based water sup- ply interventions in Peru. This yielded indicators of potential effects on baseflow and cost-effec- tiveness. The aim was to make the case for integrating and prioritising green options into water planning and investments, at the same time as developing and demonstrating a practical assess- ment methodology that could be applied more generally to infrastructure in other sectors. 82 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 26. Philippines Cost-benefit analysis and total economic valuation to make the case for ecosystem-based coastal adaptation This case study describes two climate adaptation-related ecosystem valuation exercises carried out in the Philippines. One compared the relative costs and benefits of grey and green coastal adaptation options, while the other was a broader exercise that looked at both adaptation and non-adaptation related benefits of ecosystem restoration and conservation at the river-basin level. It makes the point that both targeted and general information on ecosystem values can help to make the case for green adaptation measures. 27. Philippines Integrated ecosystem accounting This case study describes how ecosystem accounts were developed for two sites in the Philip- pines. The aim was to demonstrate to local decision makers the environmental and economic consequences of various land use trade-offs for different groups and sectors, so as to help to inform the development of strategies for managing competing claims on natural resources. The study adopted the UN System of Environmental-Economic Accounting, combining spatial, biophysical and economic data and integrating various ecosystem valuation tools. 28. Portugal Cost-benefit analysis of coastal protection interventions to safeguard ecosystem services This case study adopts a spatially-explicit approach that allows for both the physical and financial-economic assessment of coastal protection investments options at the local scale in Central Portugal. This uses a shoreline evolution model is used in combination with a benefits transfer approach for the valuation of coastal ecosystems to assess the costs and benefits of a wide range of types, locations and combinations of coastal protection investment options. The aim was to make the case that it is worthwhile to undertake investments to protect natural, as well as settled, coastal areas. 29. Saint Cost-benefit analysis of the adaptation benefits of climate-proofing community Lucia infrastructure This case study describes efforts to value the adaptation benefits arising from climate-proofing a community centre in Saint Lucia. A cost-benefit analysis was carried out which looked both at the direct costs of retrofitting and the foregone damage costs and various other social and environmental benefits. The aim was to show how economic analysis can be used to guide decision-making, as well as to convince policy makers that investments in adaptation can be worthwhile. 30. Samoa Cost-benefit analysis of community-level coastal protection measures This case study carried out an economic assessment of a seawall and associated ‘green’ and ‘soft’ adaptation measures to protect a coastal village in Samoa against erosion and storm surges. Cost-benefit analysis techniques were used, looking at direct expenditures on con- structing and maintaining the measures, and on avoided damages to land and infrastructure. The aim was to determine whether the adaptation intervention represented a worthwhile use of funds and should be scaled up elsewhere. 31. South Assessment of the employment benefits of climate adaptation Africa This case study describes studies carried out to measure how climate change affects employ- ment prospects in South Africa (and, conversely, how adaptation measures will generate added benefits to the labour force). It used a methodology based on modelling the employment- creation potential of climate adaptation and mitigation measures, and on the climate-related job losses to value these effects in major sectors of the economy, and at the national level. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 83 32. South Cost-effectiveness analysis to value rangeland rehabilitation measures in Africa Namaqualand This case study describes work carried out to measure how climate change affects employ- ment prospects in South Africa. This involved modelling both climate-related job losses and the employment-creation potential of climate adaptation and mitigation measures. The effects were modelled for major sectors of the economy, and at the national level. The intention was to better understand the labour impacts of climate change and climate-change responses, so as to guide the development of policy responses to sustain and enhance jobs. 33. Sudan Simplified cost-benefit analysis techniques to evaluate drought-related disaster risk reduction measures This case study measured the costs, benefits and impacts of drought-related disaster risk reduction measures in Sudan. Simplified, rapid cost-benefit techniques were used to weigh up the physical costs and outputs from interventions, and show their relative return on invest- ment. Quantitative and qualitative community-based indicators of resilience were also deve- loped. The aim was to evaluate the site-specific effects as well as to contribute towards global efforts to improve disaster risk reduction performance measurement and impact analysis. 34. Tanzania Technical suitability and physical impact assessment of community-level flood and adaptation measures Indonesia This case study describes a study carried out to measure the technical suitability and physical effectiveness of community-initiated flood adaptation interventions in informal urban sett- lements in Indonesia and Tanzania. The methodology combined qualitative and quantitative techniques to investigate and measure the extent to which adaptation measures conformed to engineering standards, and were effective in protecting against flood impacts. 35. Thailand Biophysical and economic evaluation of watershed adaptation options This case study describes biophysical-economic evaluations of climate adaptation options at the watershed level in two of Thailand’s key river basins. The focus was on assessing the potential of ecosystem-based approaches to protect against extreme weather events, as com- pared to conventional ‘grey’ options. The aim was to support local water planners and national decision makers to design and implement effective measures for the prevention of flooding and drought in the face of climate change. 36. Uganda Cost-benefit analysis of farm-level adaptation measures This case study involved an economic assessment of different project options for farm-level adaption measures addressing crop production, livestock production and water management. It used standard cost-benefit analysis techniques. The aim was to assist in prioritising the interventions according to their relative economic viability and profitability under different climate futures. 37. United Bayesian Belief network to assess the water quality and flood mitigation benefits Kingdom of riparian buffer strips This case study describes the application of a Bayesian Belief Network approach to assess the effectiveness of different riparian buffer strip management options in delivering water quality and flood risk mitigation services in the UK. The aim was to develop and demonstrate the eco- system approach via a joint model which integrated biophysical and socioeconomic aspects, and was geared towards generating results that are of use to decision-making. 84 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 38. USA Contingent valuation to measure the public benefits of wetland restoration This case study measures public perceptions of the benefits of wetland restoration in the USA, and analyses these values by assessing their willingness to pay to mitigate the negative con- sequences of wetland loss. The aim was to overcome current methodological and knowledge gaps about the general public’s perceptions of wetland values, including storm protection, eco- system services and recreational benefits. The study demonstrates the importance of including public opinion, as well as scientific ‘expert’ data, in coastal decision-making. 39. USA Integrated biophysical and economic valuation to weigh up coastal adaptation options This case study investigates the effectiveness of different adaptation options in addressing coastal erosion, flooding hazards and sea level-rise in the USA. An integrated valuation metho- dology was applied which combined hazard projections with biophysical modelling and eco- nomic analysis. The aim was to provide decision makers in the region with the tools they need to compare a suite of possible adaptation strategies to combat accelerating coastal erosion in their jurisdictions. 40. Viet Nam Saved health, saved wealth approach to compare the benefits of coastal adaptati- on options This case study describes how a “saved health, saved wealth” approach was used to weigh up the benefits and impacts of grey and green coastal adaptation options in southern Viet Nam. Two alternative interventions were considered: a concrete dyke and mangrove rehabilitation. The methodology compared economic assets and life expectancy under a baseline business- as-usual scenario with the economic damages, illnesses and mortality that would be avoided through undertaking adaptation measures. Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 85 EbA valuation methods 86 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 8 References: key sources on EbA valuation techniques and applications Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 87 8.1 Documents referred to in the text Aalst, M., Cannon, T. and Community level adaptation to climate change: The potential role of participatory I. Burton (2008) community risk assessment. Global Environmental Change 18(1): 165-179. ActionAid (2005) Participatory Vulnerability Analysis A step-by-step guide for field staff field staff. ActionAid International, London. ADB (2015) Economic analysis of climate-proofing investment projects. Asian Development Bank, Manila. Adger, W., Barnett, J., Brown, Cultural dimensions of climate change impacts and adaptation. Nature Climate K., Marshall, N. and K. O’Brien Change3: 112-117. (2012) AECOM (2012) Economic framework for analysis of climate change adaptation options Framework specification. Report by AECOM Australia to Australian Department of Climate Change and Energy Efficiency (DCCEE), Canberra. Balbi, S. and C. Guipponi (2010) Agent-Based Modelling of Socio-Ecosystems: A Methodology for the Analysis of Ad- aptation to Climate Change. International Journal of Agent Technologies and Systems 2(4): 17-38. Barbier. E., Acreman, M. and Economic valuation of wetlands: A guide for policy makers and planners. Ramsar Con- D. Knowler (1997) vention Bureau, Gland. Berghöfer A., Brown, C., Increasing the Policy Impact of Ecosystem Service Assessments and Valuations – In- Bruner, A., Emerton, L., Esen, sights from Practice. Helmholtz-Zentrum für Umweltforschung (UFZ) GmbH, Leipzig, E., Geneletti, D., Kosmus, M., and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Eschborn. Kumar, R., Lehmann, M., Leon Morales, F., Nkonya, E., Pisto- rius, T., Rode, J., Slootweg, R., Tröger, U., Wittmer, H., Wun- der, S. and H. van Zyl (2016) Berghöfer A., Wittich, A., Analysis of 19 ecosystem service assessments for different purposes – insights from Wittmer, H., Rode, J., Emerton, practical experience. ValuES Project Report. Helmholtz Zentrum für Umweltforschung L., Kosmus, M. and H. van Zyl (UFZ) GmbH, Leipzig, and Deutsche Gesellschaft für Internationale Zusammenarbeit (2015) (GIZ) GmbH, Eschborn. Bharwani, S., Downing, T., Social Network Analysis: Decision Support Methods for Adaptation. Method Overview, Varela-Ortega, C., Blanco, I., MEDIATION Project Briefing Note 8, MEDIATION project (Methodology for Effective Esteve, P., Carmona, G., Taylor Decision-making on Impacts and AdaptaTION) Funded by the European Commission R., Devisscher, T., Coll Besa, M. FP7. Tainio, A., Ballard, D. and P. Watkiss (2013) 88 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook CARE (2002) Household Livelihood Security Assessments: A Toolkit for Practitioners. CARE USA PHLS Unit, Atlanta. CARE (2009) Climate Vulnerability and Capacity Analysis Handbook. CARE International, London. Carmen, E., Nesshöver, C., Creating a biodiversity science community: experiences from a European Network of Saarikoski, H., Vandewalle, M., Knowledge Environmental Science & Policy 54: 497-504. Watt, A., Wittmer, H. and J. Young (2015) Carpenter, S. , Mooney, H., Science for managing ecosystem services: Beyond the Millennium Ecosystem Assess- Agard, J., Capistrano, D., ment. Proceedings of the National Academy of Sciences 106(5): 1305-1312. DeFries, R., Diaz, S., Dietz, T., Duraiappah, A., Oteng-Yeboah, A., Pereira, H., Perrings, C., Reid, W., Sarukhan, J., Scholes, R. and A. Whyte (2009) Cash, D. and W. 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Report prepa- red by Conservation Strategy Fund (CSF) for the National Commission on Natural Pro- tected Areas of Mexcio in the context of the Project Valuation of Ecosystem Services of Natural Protected Areas of Mexico (EcoValor Mx), Mexico City. http://www.ecovalor.mx/pdf/ECO_caboPolicyBriefFL_ing.pdf CSF (2017) Valuation of ecosystem services provided by Cozumel Reefs National Park and Cozu- mel Island Flora and Fauna Protection Area. Report prepared by Conservation Strategy Fund (CSF) for the National Commission on Natural Protected Areas of Mexcio in the context of the Project Valuation of Ecosystem Services of Natural Protected Areas of Mexico (EcoValor Mx), Mexico City. http://www.ecovalor.mx/pdf/ECO_cozumelPolicyBriefFL_ing.pdf CSF (2017) Valuation of ecosystem services provided by Iztaccíhuatl–Popocatépetl National Park. 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Dixon (2016) https://wwf-myanmar.objects.frb.io/uploads/1360892026575ae004e8493.pdf 98 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook McVittie, A., Norton, L., Martin- Operationalizing an ecosystem services-based approach using Bayesian Belief Net- Ortega, J., Siameti,I., Glenk, K. works: an application to riparian buffer strips. Ecological Economics 110: 15-27. and I. Aalders (2015) http://nora.nerc.ac.uk/506020/1/N506020PP.pdf Meyer, V., Priest, S. and Economic evaluation of structural and non-structural flood risk management measu- C. Kuhlicke. (2012) res: examples from the Mulde River. Natural Hazards 62(2): 301-324 MiSRaR (undated) Good practice: Cost-benefit analysis of (past) coastal erosion and (future) coastal protection interventions in Central Portugal. Mitigation of Spatial Relevant Risks in European Regions and Towns Project. http://www.cesam.ua.pt/files/Good_practice_Aveiro_CBA%20coastal%20erosion%20 &%20protection_03_final.pdf Nunez, E., Ferrer, A. and Evaluating the Cost Effectiveness of Ecosystem based Adaptation Actions for Coastal D. Hole (2015) Protection: Mangrove Restoration and Rehabilitation in the Philippines. Conservation International Philippines, Manila. Phil-WAVES TWG-LLDA (2016) Pilot Ecosystem Account for Laguna de Bay Basin. WAVES Technical Report, Lake La- guna Development Authority Technical Working Group for Wealth Accounting and the Valuation of Ecosystem Services (WAVES) project, World Bank, Manila. https://www.wavespartnership.org/en/knowledge-center/pilot-ecosystem-account- laguna-de-bay-basin Phil-WAVES TWG-Southern Pilot Ecosystem Account for Southern Palawan. WAVES Technical Report, Southern Palawan (2016) Palawan Technical Working Group for Wealth Accounting and the Valuation of Ecosys- tem Services (WAVES) project, World Bank, Manila. https://www.wavespartnership.org/en/knowledge-center/pilot-ecosystem-account- southern-palawan Rao N., Carruthers T., Anderson A comparative analysis of ecosystem–based adaptation and engineering options for P., Sivo L., Saxby T., Durbin, T., Lami Town, Fiji. A synthesis report. Secretariat of the Pacific Regional Environment Jungblut V., Hills T. and Programme (SPREP), Apia. S. Chape (2012) http://www.sprep.org/publications/a-comparative-analysis-of-ecosystem-based- adaptation-and-engineering-options-for-lami-town-fiji-synthesis-report Rao N., Carruthers T., Anderson A comparative analysis of ecosystem–based adaptation and engineering options for P., Sivo L., Saxby T., Durbin, T., Lami Town, Fiji. A technical report. Secretariat of the Pacific Regional Environment Jungblut V., Hills T. and Programme (SPREP), Apia. S. Chape (2013) https://www.sprep.org/publications/lami-town-fiji-ebatechnical-report Rizvi, A., Baig, S., and Ecosystems Based Adaptation: Knowledge Gaps in Making an Economic Case for In- M. Verdone (2015) vesting in Nature Based Solutions for Climate Change. International Union for Conser- vation of Nature (IUCN), Gland. https://portals.iucn.org/library/node/45156 Roebeling P., Coelho C. and Coastal erosion and coastal defense interventions: a cost-benefit analysis. Journal of E. Reis (2011) Coastal Research 64: 1415-1419. http://www.ics2011.pl/artic/SP64_1415-1419_P.C.Roebeling.pdf Rosenthal, A., Arkema, K., Identification and valuation of Adaptation Options in Coastal-Marine Ecosystems: Test Verutes, G., Bood, N., Cantor, D., case from Placencia, Belize. The Natural Capital Project, Stanford University, World Fish, M., Griffin, R. and Wildlife Fund. M. 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Harries, T., Holzmann, H., http://www.flood-era.ioer.de/files/FLOOD-ERA_Final_report.pdf Jessel, B., Koeniger, P., Kuhli- cke, C., Neuhold, C., Olfert, A., Parker, D. and A. Schildt (2008) Scussolini, P., Kuik, O., Kap- Description of adaptation options and their costs and benefits. Report by Vrije Univer- rová, K., Melichar, J., Sainz de siteit Amsterdam, Charles University of Prague, Basque Centre for Climate Change and Murieta, E., Galarraga, I., Lago, Ecological Institute to FP7-ENV-2013-Two-Stage-603906-ECONADAPT. M., Rouillard, J. and http://econadapt.eu/sites/default/files/docs/Deliverable%206-2%20Approved%20 J. Troeltzsch (2013) for%20publishing.pdf Sharp, R., Tallis, H.T., Ricketts, InVEST User’s Guide. The Natural Capital Project, Stanford University, University of T., Guerry, A.D., Wood, S.A., Minnesota, The Nature Conservancy and World Wildlife Fund. 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Butzengeiger-Geyer, S. and Paper presented at 7th Meeting of the OECD Joint DAC-EPOC Task Team on Climate M. Köhler (2011) Change and Development Co-operation, Bern. https://www.oecd.org/env/cc/48351229.pdf TNC (2016) Economic Impacts of Climate Adaptation Strategies for Southern Monterey Bay. Report prepared for the California State Coastal Conservancy by The Nature Conservancy, San Francisco. http://www.slc.ca.gov/Info/AB691/2016_TNC_EconomicImpactsAdaptationSMonte- reyBay.pdf 100 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Tonneijck, F., Winterwerp, H., Design and Engineering Plan. “Building with Nature Indonesia – Securing Eroding van Wesenbeeck, B., Bosma, R., Delta Coastlines” project. Debrot, D., Noor, Y. and T. Wilms https://www.wetlands.org/publications/building-with-nature-indonesia-design-and- (2015) engineering-plan/ Treitler, R. (2016) Economic benefits of EbA measures to assure water security case study: EbA sediment trap versus dredging. Paper presented at conference on Water Security and Climate Change: Challenges and Opportunities in Asia, Bangkok. UNSD (2014) The System of Environmental-Economic Accounts (SEEA): Measurement Framework in Support of Sustainable Development and Green Economy Policy. Briefing Note, United Nations Statistics Division, New York. https://unstats.un.org/unsd/envaccounting/Brochure.pdf Vardakoulias, O. and Managing uncertainty: An economic evaluation of community-based adaptation in N. Nicholles (2014) Dakoro, Niger. Report prepared for CARE International by New Economics Foundation (NEF), London. http://www.careclimatechange.org/files/Managing_Uncertainty_CARE_nefc_email_ version.pdf Vardakoulias, O. and Simplified guidelines for Social Cost-Benefit Analysis of Climate Change adaptation N. Nicholles (2014) projects on a local scale. Report prepared for CARE International by New Economics Foundation (NEF), London. http://careclimatechange.org/wp-content/uploads/2014/08/CostBenefit.pdf Venton, C. and P. Venton (2004) Disaster preparedness programmes in India: a cost benefit analysis. Network Paper No. 49, Humanitarian Practice Network, Overseas Development Institute (ODI), London. https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/506. pdf Westerberg, V., Costa, L. and Cost Benefit Analysis of Agricultural Burning Practices in the Dedoplistskaro Municipa- G. Ghambashidze (2016) lity, Georgia. Report prepared for GIZ Biodiversity South Caucasus Programme, Tbilisi. http://biodivers-southcaucasus.org/wp-content/uploads/2017/03/Report_Wester- berg_Cost-Benefit-Analisys_EN_2016.pdf.pdf Wetlands International (2014) Building with Nature Indonesia – reaching scale for coastal resilience. https://www.ecoshape.org/uploads/sites/2/2016/07/building-with-nature-in-indone- sia-1.pdf Winterwerp, H., A sustainable solution for massive coastal erosion in Central Java – Towards Regional van Wesenbeeck, B., Scale Application of Hybrid Engineering. Discussion paper, Deltares and Wetlands van Dalfsen, J., Tonneijck, F., International. Astra, A., Verschure, S. and https://www.deltares.nl/app/uploads/2016/07/Deltares-WI-2014-Sustainable-solu- P. van Eijk (2014) tion-massive-erosion-Central-Java.pdf Winterwerp, H., Wilms, T., Building with nature: sustainable protection of mangrove coasts. Terra et Aqua 144: Siri, H., Vries, J., Noor, Y., 5-12. van Wesenbeeck, B., http://www.iadc-dredging.com/ul/cms/terraetaqua/document/4/9/7/497/497/1/ Cronin, K., van Eijk, P. and terra-et-aqua-144-complete.pdf F. Tonneijck (2016) Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook 101 Wolny, S., Hamel, P. and Myanmar national ecosystem service assessment technical report. Natural Capital L. Mandle (2016) Project, Stanford. http://www.naturalcapitalproject.org/wp-content/uploads/2017/04/Myanmar_na- tional_natural_capital_assessment_technical_report_2016_06_06.pdf World Bank (2009) Climate Vulnerability Assessments: An Assessment of Climate Change Vulnerability, Risk, and Adaptation in Albania’s Power Sector. Report No. 53331-ALB, Energy Sector Management Assistance Program (ESMAP) report, World Bank, Washington DC. http://documents.worldbank.org/curated/en/954321468004245666/pdf/533310REPL ACEM1arch0100FINAL0TO0IDU.pdf World Bank (2015) Ecosystem Accounts Inform Policies to Manage Competing Demands on Southern Palawan‘s Resources. WAVES Policy Briefing, Wealth Accounting and the Valuation of Ecosystem Services (WAVES) project, World Bank, Manila. https://www.wavespartnership.org/en/knowledge-center/policy-briefing-ecosystem- accounts-provide-inputs-decisions-making-and-policy World Bank (2016) Ecosystem Accounts Inform Policies for Better Resource Management of Laguna de Bay. WAVES Policy Briefing, Wealth Accounting and the Valuation of Ecosystem Ser- vices (WAVES) project, World Bank, Manila. https://www.wavespartnership.org/en/knowledge-center/policy-briefing-ecosystem- accounts-inform-policies-better-resource-management Wyatt, A., Moreda, F., Technical Note. Hydro-BID Case Study: A Water Resource Model of the Rio Grande Brantly, G., Basin in Argentina. Report prepared for IDB Contract Number: INE/WSA/RG-T1862- Miralles-Wilhelm, F. and SN1/11 Integrative Model of Climate Change and Water Resources, Inter-American R. Muñoz Castillo Development Bank, Washington DC. (2014) http://hydrobidlac.org/assets/site_18/files/case%20studies/hydro-bid%20case%20 study_%20a%20water%20resource%20model%20of%20the%20rio%20grande%20 basin%20in%20argentina.pdf Zou, X., Li, Y., Cremades, R., Cost-effectiveness analysis of water-saving irrigation technologies based on climate Gao, Q., Wan, Y. and X. Qin change response: A case study of China. Agricultural Water Management 129: 9-20. (2013) http://ac.els-cdn.com/S0378377413001856/1-s2.0-S0378377413001856-main.pdf?_ tid=d0883d7c-37c7-11e7-889c-00000aacb361&acdnat=1494671879_c130ce1688e- e0b3cd1ae765c5ee7da3f 102 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices Bonn and Eschborn, Germany Global Project „Mainstreaming EbA — Strengthening Ecosystem-Based Adaptation in Planning and Decision Making Processes“ Heinrich-von-Stephan-Straße 7-9 53175 Bonn Germany Tel. +49 228 4460-1535 Fax +49 228 446080-1535 arno.sckeyde@giz.de www.giz.de/climate-change This project is part of the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) supports this initiative on the basis of a decision adopted by the German Bundestag. Author Lucy Emerton Layout ECO Consult, Oberaula Photo credits Cover: GIZ (3) CONANP (p. 67); ECO Consult (pp. 41, 48); GIZ (pp. 1, 3 (2), 7, 11, 13, 15, 19, 21, 30, 34, 35, 39, 45, 46, 51, 53, 58, 65, 69, 72, 77, 87); INFIS (p. 62: http://panorama.solutions/es/node/1117); IUCN (p. 43: Intu Boedhihartono - https://www.flickr. com/photos/iucnweb/3441441842/ Burundi; p. 55: https://www.flickr.com/photos/iucnweb/8890023815/ Columbia); Jacques van Rooyen (p. 39); UNEP (p. 12: https://www.flickr.com/photos/unep/22648007898/ Mesoamerica TEEB) URL links: This publication contains links to external websites. Responsibility for the content of the listed external sites always lies with their respective publishers. If third-party content gives rise to civil or criminal liability GIZ expressly dissociates itself from such content. Maps: The maps printed here are intended only for information purposes and in no way constitute recognition under internati- onal law of boundaries and territories. GIZ accepts no responsibility for these maps being entirely up to date, correct or complete. All liability for any damage, direct or indirect, resulting from their use is excluded. © GIZ/Ira Olaleye As at Addresses of the BMUB offices December 2017 BMUB Bonn BMUB Berlin GIZ is responsible for the content of this publication. Robert-Schuman-Platz 3 Stresemannstraße 128 – 130, 53175 Bonn 10963 Berlin On behalf of Germany Germany Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) poststelle@bmub.bund.de Division: Environment and Sustainable Use of Natural Resources www.bmub.bund.de 106 Valuing the Benefits, Costs and Impacts of Ecosystem-based Adaptation Measures — Sourcebook Albania Case study 1 Cost-benefit analysis of adaptation options for Albania’s power sector This case study involved an extended cost-benefit analysis of EbA adaptation options in Albania’s power generation sector. The aim was to provide information that could be used to inform and sup- port energy sector investment planning by identifying the optimal power generation asset to supply the shortfall in electricity that would directly be caused by climate change. Although the options being considered were all grey, engineered solutions, the analysis considered a wide range of social and environmental indicators, valuation alongside more conventional financial costs and benefits. case studies Published by What was being measured, and why? Which methods were used? This study was carried out to First of all, to assess the range of energy generation technologies examine alternative adapta- that could be used, the shortfall in power that would result from tion options in Albania’s power climate change was identified. This was based on the projections generation sector. The inten- provided in the National Energy Strategy, which took into account tion was to examine options to two scenarios: passive (no energy demand control or energy effici- manage the risks and vulner- ent measures) and active (including implementation of energy ef- abilities to energy security in ficiency measures such as residential property insulation standards the face of climate change, and installation of domestic solar water heating). Expert opinion was and to provide information that engaged to extend and modify these projections based on the cli- could be used to inform and mate change risks that had been identified, potential energy supply support energy sector invest- curves were generated that would meet demand, and shortfalls in ment planning and decision- power generation were calculated. making. As the diversification Next, adaptation options to meet the projected power shortfall due of power generation assets to climate change impacts were identified, and a cost-benefit ana- was identified as a key adap- lysis was carried out to compare them. Eight reasonable and practi- tation option, a cost-benefit cable technology-based options (asset ty- analysis was conducted with a pes) for filling the electricity shortfall were view to identifying the optimal identified during stakeholder workshops: Workhops identify power generation asset to sup- import, combined cycle gas turbine, impro- ply the shortfall in electricity eight technology- vement and updating of existing large hyd- that would directly be caused ropower plants, improvement and updating based options by climate change. of existing small hydropower plants, install The extended cost-benefit new small hydropower plants, wind power, analysis looked at the desir- concentrated solar power, install new large ability of alternative adapta- hydropower plant. To compare the costs and benefits of all the diffe- tion options in economic, not rent assets on a like-for-like basis, a quantity of power was chosen, purely financial, terms: it was 350 GWh, which could meet the estimated climate change-induced concerned with measuring shortage for 20 years. All of the generation capacity is not required impacts and values to groups at once, but rather the need increases over the assessment period. across the economy, not just Each of the assets under study have different expected periods of to power operators and con- service. sumers. Thus, even though it Both public and private benefits and costs were included in the cal- was concerned only with engi- culations, and a qualitative analysis of non-monetizable benefits and neered (not ecosystem-based) costs was also carried out. The eight power technology options were options, the a relatively wide evaluated on the basis of eight parameters that were determined variety of economic, environ- based on the outcome of workshops and discussions with stake- mental and social indicators holders. Parameters were chosen that reflect financial, social, and were incorporated into the environmental aspects of the different options: capital expenditure, calculations. These included, operating expenditure, electricity revenue, value of water, carbon as well as direct costs and dioxide emissions, ecosystem service values, disturbance to people revenues, the cost of carbon and property and discount rate. Vulnerability to natural disasters dioxide emissions, ecosystem and increased climatic vulnerabilities is another parameter that was service values, disturbance to people and property and vul- nerability to natural disasters. Case study 1 Albania 2 EbA valuation case studies identified as being important at the workshops, but was only able to be incorporated into the cost-benefit analysis through sensitivity testing. The cost-benefit analysis was run over a period of 40 years (2010- 2050), so as tie in with climate modelling timeframes and a notable threshold date. It yielded net present value estimates for each of the identified adaptation options. The options were sorted and pre- sented, and any which returned a net present value less than zero was not considered economic or sustainable. Finally, a sensitivity analysis was carried out. This is because cost-benefit analyses of this type are inherently subject to uncertainty. By varying key input parameters over a wide but reasonable range, the implications of a range of possible futures can be examined. The sensitivity of the results to variation in the value of key parameters was therefore assessed, looking at the cost of carbon and air pollution, the value of water, ecosystem service values, disturbances to society, electric- ity revenues, fuel cost and the social discount rate. Another set of parameters was designed to explore the effect that increasing fre- quency of extreme events may have on the availability of electricity from various sources. The primary source of risk is the vulnerability of power transmission assets to wind and lightning strikes. To set up this scenario, a penalty was placed on long-distance transmission EbA assets, which are more vulnerable to these risks. What were the findings? valuation The three most economic and sustainable adaptation options were identified as being enhancements to existing large hydropower as- sets, enhancements to existing small hydropower assets and the building of new small hydropower plants. While two other options appeared unsustainable in the light of the specified goal (namely: filling the future shortfall in electricity sup- ply due to the impacts of climate change) — building new large hydropower plants, and importing power — they were not excluded. This is because, in the context of the study, the relative ranking of case studies the options is more important than the specific net present value of any particular option. Both of these options may, in fact, be sustain- able in certain contexts. Case study 1 Albania 3 EbA valuation case studies Bibliography World Bank (2009) Climate Vulnerability Assessments: An EbA valuation Assessment of Climate Change Vulnerability, Risk, and Adaptation in Albania’s Power Sector. Report No. 53331-ALB, Energy Sector Management Assistance Program (ESMAP) report, World Bank, Washington DC. http://docu- ments.worldbank.org/curated/ en/954321468004245666/pdf/533 310REPLACEM1arch0100FINAL0T O0IDU.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Argentina Case study 2 Physical effectiveness and cost efficiency analysis of water sector adaption measures in Argentina This case study describes an integrated assessment to consider EbA the physical effectiveness and cost efficiency impacts of adapta- tion measures designed to address seasonal water shortages in a river basin in north-west Argentina. This measured reductions in unmet water demand against the cost of achieving these sav- ings. The analysis sought to help decision makers make informed choices among alternative water infrastructure designs that would be robust and sustainable in the face of climate change. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to Evaluation of the effectiveness of adaptation measures in address- evaluate possible water sector ing seasonal water shortages was informed by the outputs of hydro- adaptation interventions in a logical and climate modelling in the study area (the Upper Bermejo region already suffering from River of the Rio Grande Basin). This commenced with data collection water scarcity in north-western Argentina. It measured options and an assessment of the natural conditions, focusing on stream- for addressing seasonal water flow, current and future climate, soils, and land use. Existing water shortages through enhanc- infrastructure, water management practices and water demand was ing the effectiveness and also estimated. A hydrology and climate model for Latin America efficiency of agricultural and and the Caribbean, Hydro-BID, allowed for the modelling of current urban water use by means of and future streamflows. Using these data outputs, a comparison of improvements in water supply and distribution infrastructure. water supply and demand was made using a Water Evaluation and The study assessed three ad- Planning (WEAP) model, so as to calculate unmet water demand for aptation options terms of their several climate projections and several adaptation scenarios. physical effectiveness in reduc- ing unmet water demand, and The assessment of adaptation options examined unmet water de- their cost-efficiency measured mand from 2011-2060 for three selected climate projections and as cost per unit reduction in three packages of adaptation measures. These comprised option unmet demand. 1 – improved water efficiency (improvements to urban water supply The study was carried out for and distribution infrastructure), option 2 – improved irrigation effi- the Inter-American Develop- ciency (improvements to irrigation application technologies, moving ment Bank (IDB). It was stim- from furrow to drip systems) and option 3 – improved urban and ir- ulated by the IDB’s recognition rigation efficiency (a combination of the previous two options) These that many of the infrastructure were measured against the reference scenario 0 – current efficiency projects carried out in water and irrigation (as well as in (where no efficiency improvements are implemented, leakages in other sectors such as sanita- urban systems remain high, irrigation efficiency remains lows, and tion, flood control, transport, both cropping patterns and rates of increase in water demand re- and energy) may be affected main as is). negatively by climate change. Assessing both the possible fu- The adaptation options were assessed in terms of their physi- ture changes that might occur cal effectiveness (measured in terms of reduction of unmet water in water availability and the demand) and cost efficiency (evaluated by comparing net cost per means to address them is an cubic meter of water saved). Physical effectiveness was calculated important step toward ensur- ing that infrastructure projects by conducting water balance analyses, employing a WEAP model to meet their operational, finan- show the unmet demand under each adaptation option and climate cial, and economic goals. The scenario. Reductions in unmet water demand were expressed in aim was therefore to develop terms of millions of cubic metres saved relative to the reference and demonstrate economic base case. Cost-efficiency was derived from the present value of all analysis and decision support capital and operating costs associated with that option, divided by tools to estimate the costs and benefits of climate adaptation the total reduction in unmet demand. This was expressed in terms measures, and to help decision of USD per m3 /day saved, discounted over the study period. makers make informed choices among different infrastructure designs and alternative policies for water resources management. Case study 2 Argentina 2 EbA valuation case studies What were the findings? The evaluation showed that major reductions in future unmet water demand could be achieved by improving the effectiveness of urban water distribution infrastructure and improving irrigation applica- tion efficiency. Improving the efficiency of urban water use was projected to reduce unmet demand only modestly, limiting its rise to approximately 141-183 million m3/year. In contrast, improving the application efficiency of water use in irrigation had a substantial impact, limiting the increase in unmet demand to about 16-44 million m3/year. Cost efficiencies were calculated to be in the order of USD 0.02 for urban and industrial water efficiency improve- ments and USD 0.04 - USD 0.07 for improvements in irrigation ap- plication efficiency for sugar cane and tobacco respectively. EbA valuation case studies 3 EbA valuation case studies EbA Bibliography Wyatt, A., Moreda, F., Brantly, G., Miralles-Wilhelm, F. and R. Muñoz Castillo (2014) Technical Note. Hydro- BID Case Study: A Water Resource Model of the Rio Grande Basin in valuation Argentina. Report prepared for IDB Contract Number: INE/WSA/RG- T1862-SN1/11 Integrative Model of Climate Change and Water Resources, Inter-American Development Bank, Washington DC. http://hydrobidlac. org/assets/site_18/files/case%20stud- ies/hydro-bid%20case%20study_%20 a%20water%20resource%20model%20 of%20the%20rio%20grande%20 basin%20in%20argentina.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Australia Case study 3 Cost-benefit analysis to make the case for flood mitigation investments in Australia This case study evaluates the economic impacts of flood mitiga- EbA tion interventions in Australia. It uses biophysical models and cost-benefit analysis to assess climate risk, assets at risk and the protective capacity of mitigation measures. The aim was to estab- lish the business case for flood mitigation investments, as well as to showcase methods that can be used to inform the allocation of limited regional government funding to infrastructure projects. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study assessed flood protection investments in Grafton (New highlight the economic gains South Wales), Roma and St. George (Queensland). It focused on that can be achieved from large-scale public flood mitigation investments to reduce the eco- investments in flood mitiga- nomic cost of natural disasters. Because of these community-wide tion infrastructure in three protection and public financing aspects (and thus of the business towns of New South Wales case that is required to support them), and Queensland, Australia. It the study was aimed to evaluate a broad applied a cost-benefit analysis range of benefits and the costs of respec- based on the assessment and tive mitigation options. It used a cost- Time frame of monetary valuation of climate benefit approach based around three core 50 years reflected risks, risks to assets and pro- duction, and the protective ca- modules: climate risk, elements at risk and long-term nature pacity of mitigation measures. protective capacity of mitigation. Various of investments This enabled the overall gains flood mitigation measures were assessed, from flood mitigation interven- including levees, floodway channel diver- tions to be modelled, as well sions, drains, dams, storm water drainage systems. A period of as the costs and benefits of in- 50 years was selected as the time frame, reflecting the long-term dividual measures or packages nature of the investments. The analysis adopted a conservative of measures to be compared. financial-based approach, and did not consider the additional social The study was carried out in and environmental costs associated with flooding. response to the recognition The climate risk module examined total flood risk, encompassing that, given the demands on weather patterns at the three towns and surrounding areas. It uti- government budgets and in lised past records of weather patterns, and projected these trends ensuring taxpayers’ money is well spent, establishing a into the future based on technical assessments of flood risks which robust business case is a vital projected expected damages for different scale flood events. The pre-condition for advancing analysis was made over the long term, allowing for future changes flood mitigation investments. in the frequency and severity of heavy rainfall events. This scenario One of the key aims of the was based onto technical assessments of flood risks for which pro- study was to provide evidence jected expected damages for different scale flood events. that measures such as levees are a cost-effective and proven The elements at risk module investigated the impacts of floods on means of reducing long-term people, assets and productive activities. This involved evaluating the community exposure to the towns’ current economic composition, industry, residential housing risk of floods. t also sought to and public infrastructure profiles. These were obtained from local showcase methods that can be and national government records, and were compared with statistics used to inform the allocation showing property damages from past flood events. This established, of limited regional govern- for each site, ‘value at risk’ across different asset classes such as ment funding to infrastructure residential houses, commercial buildings and public infrastructure, projects. The overall goal was and its economic structure. to provides decision-makers with a systematic and forward- The protective capacity of mitigation module looked at the extent looking way of developing a to which different measures protect a community and how much business case for flood mitiga- tion investments. Case study 3 Australia 2 EbA valuation case studies Which methods were used? it costs to build and maintain them. This essentially involved mea- suring the long-term capital and operating expenditures against total economic benefit, measured as avoided losses from expected disaster events. Damages avoided included both direct and indirect costs resulting from flooding, such as damage to private and public assets, regional production and productivity losses. It also looked at potential improvements in insurance coverage. Reductions in insurance premiums were included on the basis that construction of a flood levee reduces uncertainty and therefore provides greater ability by insurers to adequately and appropriately price premiums based on risk. Discounts to risk premiums were calculated from the average premiums paid at the time of the study. Bringing these figures together, the cost-benefit analysis yielded a range of indicators of the estimated benefits of flood mitigation in- terventions. These included a statement of capital and maintenance costs, a breakdown of benefits (avoided) costs to households, busi- nesses, public infrastructure, productivity and insurance coverage. Net present values and benefit-cost ratios provided overall mea- sures of project profitability over different time frames. EbA What were the findings? The study showed that significant economic value is at risk from valuation floods in the study sites and that, accordingly, there are strong pro- tective benefits from flood mitigation interventions. Based on their protective capacities and underlying weather risks, the flood mitiga- tion investments in Roma and St. George showed net benefits of AUD 64.7 million and AUD 25.7 million respectively over the next 50 years, while the legacy flood mitigation structures in Grafton show a long-term net economic gain of AUD 59.2 million. It also demonstrated that effective flood mitigation can be delivered at low cost. Benefit-cost ratios for the three levee systems were in the order of 2.2-5.4, indicating a robust economic return on invest- ment for the community. Importantly, this compared well with other case studies infrastructure projects which were candidates for limited allocations of regional development funding from governments. Case study 3 Australia 3 EbA valuation case studies EbA valuation Bibliography Giang, I. (2014) Economic benefits of flood mitigation investments. Urbis Pty Ltd, Sydney. http://www.pc.gov. au/inquiries/completed/disaster-fun- ding/submissions/submissions-test2/ submission-counter/subdr176-disas- ter-funding-attachment.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Bangladesh Case study 4 Cost-benefit analysis of national-level grey and green adaptation options in Bangladesh This case study describes a cost-benefit analysis of various op- EbA tions for climate adaptation in Bangladesh. It considers both grey and green interventions, as well as longer-term measures to increase labour productivity and relocate vulnerable coastal populations. The aim was to generate information that could be used to prioritise strategic options for adaptation, and guide investment planning. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out The study looked at both interim measures or “reactive adaptation to assess the costs and ben- interventions” which focus specifically on storm surges and inland efits of climate adaptation in flooding, and a long-term strategy of resilient economic growth, Bangladesh. Bangladesh is one assets diversification and human capital formation. The interim- of the most vulnerable coun- reactive measures included foreshore afforestation and mangrove tries in the world to climate protection, construction of cyclone-resistant shelters/ housing and change, with tropical cyclones, early warning systems, polders reconstruction and setback. Two floods, droughts and other long-term strategies were considered: measures to increase agricul- extreme weather events creat- tural productivity and population relocation. ing an immediate threat to the economy. The cost-benefit analysis of interim-reactive measures focused on The study sought to demon- the protection of population, property and agricultural land within strate that adaptation should cyclone risk zones and inundation zones with depths of more than be deeply embedded into the 1 m. A first step was to calculate the size and distribution of this po- national development strategy. pulation. Then, the impacts, costs and benefits of each of the three Bearing resource constraints specified adaptation options were calculated. For all of the adapta- in mind, it aimed to present tion options, the costs were based on the physical costs of estab- information about the relative costs, benefits and returns to lishing and maintaining the specified adaptation measures. Benefit different adaptation options calculations however varied for each option. The analysis yielded that could be used to support present values and benefit:cost ratios for each adaptation option, development and investment calculated at 3, 5 and 10 per cent discount rates over the period planning. 2015-50. Monte-Carlo simulations were also run for each sub-analy- sis, in order to account for uncertainties. For mangrove afforestation and protection option, this required con- structing biophysical models to estimate the protective functions of mangroves and polders, and the likely future patterns of extreme weather events, their incidence, severity and impact. Damage cost techniques were used to estimate the resulting losses. In addition, the broader value of ecosystem provisioning, recreational, biodiver- sity and carbon sequestration services were estimated using benefit transfer techniques. Assessment of the construction of cyclone-resistant shelters/ hous- ing and early warning systems looked at reduced injuries and loss of life for both humans and livestock, as well as avoided damages to housing and personal property. These were calculated based on data from previous natural disasters, translated into individual risk estimates. Per capita gross domestic product (GDP) was used as a proxy for the value of life year lost, and injuries were estimated at USD 100 per case. Case study 4 Bangladesh 2 EbA valuation case studies Which Methods were used? The polder reconstruction and setback option was combined with the establishment of a mangroves greenbelt and a fund to encour- age cyclone-resistant private housing. As with the other adaptation options, a variety of avoided damages to agriculture housing and infrastructure were modelled. The long-term strategies relating to agricultural productivity and population relocation were modelled at a macro-level, assuming cer- tain percentage growth rates in domestic agricultural production per capita (20 per cent between 2015-2050) and labour participation (0.5 per cent per year), as well as residual damages from climate change (estimated as percentage of output). In order to calculate the benefits and costs of transformations in agricultural productivity, a production function incorporating land per unit of labour, people employed in agriculture, capital and total factor productivity was calibrated with USDA data for South Asia. Assumptions were made about the changes in these component variables, as well as the required investment costs. The relocation of population inland was considered in combination with job creation in the manufacturing and service sectors. Esti- EbA mates were made of avoided damage costs (from coastal storms and disasters as well as from progressive land and water degrada- tion), increased participation in productive employment, as well as the physical costs of relocation. valuation What were the findings? The overall conclusion of the study was that almost all of the adap- tation options considered had a benefit:cost ratio of greater than one. Only polder reconstruction and setback a less than 3 metre inundation area was demonstrated to be unprofitable. The two long- term strategies, aiming to increase agricultural productivity and relocation vulnerable populations, showed the highest returns, fol- lowed by mangrove restoration protection (all with benefit:cost ra- tios greater than two). In contrast to the other options, mangrove- case studies based adaptation generates a sizeable share of external benefits, as well as offering opportunities to leverage additional financial flows and income (for example through the carbon market and tourism). Case study 4 Bangladesh 3 EbA valuation case studies Bibliography EbA valuation Golub, A. and E. Golub (2016) Cost- benefit analysis of adaptation strategy in Bangladesh. Bangladesh Priori- ties, BRAC Research and Evaluation Department, Dakar and Copenhagen Consensus Center, Tewksbury. http:// www.copenhagenconsensus.com/ sites/default/files/golub_climate_ change_adaptation.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Belize Case study 5 Use of InVEST to weigh up coastal adaptation options and trade-offs in Placencia, Belize This case study describes a study to compare the biophysical EbA impacts and economic value of alternative packages of grey and green coastal adaptation options in Belize. The aim was to influ- ence coastal zone planning processes. The InVEST tool was used to model and map the provision of ecosystem services (including coastal protection, fisheries, tourism and carbon). Cost-benefit analysis was then applied to weigh up the physical costs of dif- ferent adaptation options as well as the value of the ecosystem valuation service benefits and damages avoided they would generate. case studies Published by What was being measured, and why? Which methods were used? This study was carried out The study included ecosystem services assessment, scenario de- to assess and compare the velopment and cost-benefit aspects. The ecosystem services as- relative costs and benefits of sessment was based on InvEST (integrated valuation of ecosystem alternative adaptation options services and tradeoffs). This is a spatially-explicit, software-based to defend the coastline around tool for modelling ecosystem service values and trade-offs that uses Placencia, Belize against maps as information sources and produces maps as outputs. In- level rise and coastal storms. VEST has various modules dealing with different biomes and ecosys- The study compared various tem services. These models are based on production functions that packages of ecosystem-based define how changes in an ecosystem’s structure and function are options (including conservation and restoration of coral reefs likely to affect the flows and values of ecosystem services across and mangroves, forest resto- the landscape, expressing the results in either biophysical or mon- ration and rehabilitation) and etary terms. grey infrastructure (such as Four ecosystem services were modelled: lobster fisheries, coastal sea walls). protection, tourism and recreation, carbon storage and sequestra- The study sought to generate tion. This yielded estimates of the locations and levels of ecosystem information to feed into and service provision. Three adaptation sce- influence coastal zone planning narios were compared: integrated adapta- processes led by the Belize tion (EbA and some grey infrastructure in Four ecosystem Coastal Zone Management Au- developed areas without high-value beach- services were thority and Institute (CZMAI), front property), reactive adaptation (grey including the development of modelled infrastructure is the primary emphasis and a nationally binding Integrated sea walls are built to protect investments Coastal Zone Management Plan (ICZMP) with region-spe- in tourism and private property), and no cific spatial planning and guid- action. ance. It also aimed to address The cost-benefit analysis then looked at the monetary impacts of some of the key constraints the different adaptation measures in terms of their physical estab- faced by cost-benefit analyses of adaptation options so far, lishment and maintenance costs as well as the value of the ecosys- and in so doing, strengthen tem services they would generate. The value of lobster fisheries was the methodology for climate calculated by looking change adaptation planning. at catch values, coastal protection values were estimated through damages to property and infrastructure, tourism and recreation The study was carried out by values were based on revenues and earnings, and carbon storage the Natural Capital Project, and sequestration was valued at the social cost of carbon. Benefit WWF as a consultancy to the calculations also took account of spillover effects (such as the po- Inter-American Development tential negative impacts on tourism from seawall construction). The Bank entitled “Identification and Valuation of Adaptation cost-benefit model also accounted for the expected costs that would Options in Coastal-Marine arise from sea level rise and increasing temperatures in the future, Ecosystems”. The work was including changes in lobster catch and expected property damage carried out in collaboration with the Belize Coastal Zone, Management Authority and Institute (CZMAI). Case study 5 Belize 2 EbA valuation case studies Which methods were used? from erosion and storms. For each of the three adaptation scenarios under consideration, future cost and benefit streams were calculat- ed, and discounted in order to yield a single measure of net present value (NPV). Data was obtained from a number of sources. Ecosystem services data were collected as part of a three-year coastal zone planning process led by CZMAI. Information was also provided by a variety of government agencies in Belize, WWF offices, local non-governmen- tal organisations and private entities, and peer-reviewed literature. Many of the cost and benefit figures that were used came from desk reviews and benefit transfer techniques, supplemented by extensive stakeholder dialogues and consultations with policy-makers. What were the findings? The main findings of the study was that adaptation measures based primarily on grey engineering (the reactive adaptation scenario) EbA would pose the highest risk to sea grass, coral reefs, and man- groves. The greatest benefits overall and highest levels of efficiency are achieved with a package of adaptation measures which combine grey and green approaches (the integrated adaptation scenario). Even though this option does not provide the highest returns for coastal protection, its costs are far lower, and it generates a sub- stantially higher level of co-benefits for fisheries, tourism and climate mitigation. valuation case studies Case study 5 Belize 3 EbA valuation case studies Bibliography IADB (2015) Identification and valuation of adaptation options in coastal-marine ecosystems. Placencia, Belize. Inter-American Development Bank, Washington DC. http://idb- docs.iadb.org/wsdocs/getdocument. aspx?docnum=40019590 Rosenthal, A., Arkema, K., Verutes, G., Bood, N., Cantor, D., Fish, M., Griffin, and M. Panuncio (2013) Identification and valuation of Adaptation Options in EbA Coastal-Marine Ecosystems: Test case from Placencia, Belize. The Natural Capital Project, Stanford University, World Wildlife Fund. https://www. mpaaction.org/sites/default/files/ Rosenthal%20et%20al_2013_Identifi- cation%20and%20Valuation%20of%20 Adaptation%20Options%20in%20 valuation Coastal-Marine%20Ecosystems.pdf Sharp, R., Tallis, H.T., T. Ricketts et al. (2016) InVEST User’s Guide. The Natu- ral Capital Project, Stanford University, University of Minnesota, The Nature Conservancy and World Wildlife Fund. http://data.naturalcapitalproject.org/ nightly-build/invest-users-guide/ InVEST_+VERSION+_Documentation. pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Burkina Faso, Ghana Case study 6 Income statements and cost-benefit analysis of ‘soft’ and ecosystem-based adaptation activities in Burkina Faso and Ghana This case study measured the economic performance of a variety EbA of ‘soft’ and ecosystem-based adaptation measures that had been implemented in the Volta Basin of Burkina Faso and Ghana. It was based on qualitative techniques as well as monetary income statements and cost-benefit analysis. The aim was to demon- strate a methodology and generate information that could be used to better design, implement and evaluate adaptation mea- sures to meet local community needs and constraints. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study looked at four ‘soft’ and ecosystem-based adaptation measure the costs, benefits interventions: multi-purpose reforestation/tree planting, gardening, and performance of various rearing of small ruminants and crop warranty/storage credit system ‘soft’ and ecosystem-based based on loans guaranteed by already-harvested stocks. Two addi- adaptation activities that had tional adaptation interventions, organic manure/stabilised compost been carried out in the Volta pits and sustainable non-timber forest product harvesting, were not Basin in east-central Burkina valued due to a lack of data. Faso and north-west Ghana. It used qualitative techniques The methodology had a strong emphasis on participatory tech- to describe the economic and niques, aiming to involve the main adaptation stakeholders in the technical effects of interven- process of collecting and analysing information. Data collection was tions, as well as income state- conducted through focus group interviews ment and cost-benefit analysis and individual surveys which discussed en- methods to generate monetary vironmental variables and climate hazards, data on their financial and Focus group as well as the adaptation activities them- economic performance. selves, the income and other benefits that interviews and The study was prompted by had been generated, and their strengths individual surveys the general lack of infor- and weaknesses. The focus group inter- mation about the costs and views involved the participants in collective benefits of different adapta- actions such as seedling production, refor- tion options. In the absence of estation and exploitation of non-timber forest products. Individual such knowledge, it is almost interviews were also conducted with technical and non-governmen- impossible to identify imple- tal organisations that played an active role in implementing the mentation needs or gaps in relation to local communi- adaptation interventions, and used a semi-structured questionnaire. ties, and, especially, to adjust A questionnaire survey was also administered to a sample of just the content of interventions under 200 of beneficiaries of the adaptation activities (selected to best deliver on adaptation from a total beneficiary population of 500 people). This covered the goals in an effective, equitable and sustainable manner. impacts of the adaptation measures, their implementation costs and cash income generated. The overall objective of the study was therefore to con- Based on these data, descriptive statistics were calculated to tribute participatory learning characterise and describe the participants in the adaptation activi- about the economic benefits ties, and the context in which they operate. Income statement of climate change adaptation techniques were then used to estimate the costs and income of the initiatives in Burkina Faso and adaptation measures, so as to evaluate their financial and techni- Ghana. It also aims to identify cal performance. A cost-benefit analysis was undertaken to assess and analyse the content, scope the internal rate of return and the net present value of adaptation and relevance of the adapta- investments. Finally, a frequency analysis was conducted to investi- tion activities and evaluate gate the responses to questions asked during the group interviews. the costs and benefits gener- ated by promoted adaptation activities through analysing technical, environmental and economic performance. Case study 6 Burkina Faso, Ghana 2 EbA valuation case studies What were the findings? The study showed that all of the adaptation interventions were cost- effective, with benefit-cost ratios that were greater than one. These findings confirmed that it is legitimate to invest public (or donor) resources in climate change adaptation measures. From a private point of view, adaptation activities have been finan- cially beneficial to the participants. Every West African CFA Franc (CFAF) invested in adaptation generates CFAF 169 for gardening, CFAF 22 for rearing small ruminants, CFAF 20 for secured warrant- ing and 127 CFAF for reforestation/planting fruit trees. From a social point of view, the investments made by the project and beneficiaries generated an internal rate of return of 30 per cent, much higher than the interest rate for bank savings in Burkina Faso. However, constraints were identified as regards beneficiaries’ ca- pacity to successfully engage in adaptation activities. This exerts a significant influence on the level of the economic and technical performance obtained, and can undermine the effectiveness and profitability of adaptations. Importantly, it implies that the promo- tion of adaptation activities in rural communities must also include capacity-building measures. EbA valuation case studies Case study 6 Burkina Faso, Ghana 3 EbA valuation case studies Bibliography EbA valuation Somda, J., Naba, M., and A. Onadja (2013). Economic per- formance of climate change adaptation activities in the Volta Basin. International Union for Conservation of Nature (IUCN) Central and Western Africa Office, Ouagadougou. https://portals.iucn. org/library/sites/library/files/do- cuments/2013-004.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Canada Case study 7 Cost-benefit analysis of engineered and non-structural coastal adaptation options in Canada This case study assessed the economic value of coastal adaptation EbA options in Canada. Cost-benefit analysis techniques were used to measure the erosion and flood-related financial, economic and (in some cases) social and environmental damages avoided, and to compare them with the direct cost of adaption interventions. This yielded a prioritised list of adaptation needs and measures, showing where interventions were most justified in economic terms. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study considered 11 case study sites were selected across Que- assess adaptation options for bec and the Atlantic Provinces covering various infrastructures and the east coast of Canada. It economic sectors, including transportation, trade, fisheries, tourism, uses cost-benefit analysis to residential areas and agriculture. Each case study analysis provided compare the cost of imple- an inventory of infrastructure, properties and assets jeopardized menting an adaptation strate- by the impacts of coastal flooding and/or coastal erosion within the gy and its impacts against the next 50 years, a portfolio of potential adaptation options to address benefits of the losses miti- these projected risks, and an assessment of these options based on gated. The main objective was their costs and benefits. Both hard and soft engineering structures to determine the economic viability of various interven- were considered, as well as non-structural adaptation options. tions for protecting the coast- Key assumptions related to climate change and hazards projections line. This involved adding an concern sea-level rise, flooding and erosion assessment. For sea- economic layer of analysis to level rise, the RCP 8.5 scenario from the Fifth Assessment Report by existing climate change impact and adaptation data relating to the Intergovernmental Panel on Climate Change (IPCC) was select- sea-level rise, coastal flooding, ed, assuming a constant increase in greenhouse gases until 2100. coastal erosion and infrastruc- For erosion hazard, the historical rates derived from aerial and ter- ture and property vulnerabil- restrial measurements of coastline retreat were linearly projected in ity, as well as evaluating the the future. For the flooding hazard, water level return periods were economic costs and benefits of used to project the extent of flooding. appropriate adaptation op- tions. A slightly different range of costs and benefits were valued in the two different regions. In addition to the construction and mainte- The study was commissioned nance costs adaptation options, all of the study sites considered by the Economics Working erosion-related and flood-induced losses and damages to land, Group of Canada’s Climate commercial buildings and public infrastructure as well as the general Change Adaptation Platform. economic impacts of reduced land values, loss of goods and com- It was prompted by the gen- mercial revenues and decline in trade and tourism revenues. In the eral lack of information about either the economic benefits Quebec case studies, the costs of emergency evacuation, traffic and costs of climate adapta- disruptions and debris clean up were also tion or the methods by which valued, and a series of environmental and they could be quantified, social costs were factored into the analy- Two different meaning that that planners sis. These included loss of natural habitats valuation sets and decision-makers had no and fish spawning grounds, as well as loss according to region tested protocol to follow when of sea access, decline in recreational use, prioritising the adaptation op- reduced quality of lie, deterioration in the tions available to them. The landscape and loss of historical and cultural study therefore sought to cre- heritage. The benefits originating from the ate economic knowledge and positive impacts of adaptation were only included in cost-benefit tools to help decision-makers analyses for the Quebec sites, and included gains in tourism rev- in Canada’s private and public enues, enhancements in fish spawning grounds and improvements sectors make better adaptation investment choices and policy in the coast’s recreational use, quality of life and landscape. decisions. Case study 7 Canada 2 EbA valuation case studies Which methods were used? The economic approaches applied in both sets of case studies were based on stakeholder consultation. These helped to identify the potential impacts of erosion and flooding hazards, select the adap- tation options to be assessed, estimate the costs and benefits of adaptation options, and quantify potential impacts. Importantly, the support of stakeholders increased the robustness of the results and led them to appropriate the results. In Quebec, field consultations were also carried out by surveying residents and tourists in order to quantify and estimate the use values. In addition, a provincial survey of 2,000 Quebec residents was conducted over the Internet to determine the potential impacts of specific adaptation options on their tourism behaviour. The economic cost-benefit analysis was then carried out. This was based on a time horizon of 50 years (from 2015-2064), applied a discount rate of 4 per cent, and valued costs and benefits at eco- nomic (rather than) financial prices. First the net present value of the non-intervention, business as usual, scenario was calculated, Business as usual: overall and per linear metre. This offered baseline scenario for a baseline scenario for comparing adapta- comparing options tion options, as it represented the costs EbA associated with damages from erosion and/ or flooding when intervention is minimal. Similar calculations were carried out for the different adaptation measures, showing the net present value and benefit:cost ratio of each. The most advantageous adaptation options were then compared with the non-intervention option. On the basis of the incremental valuation costs and benefits associated with undertaking adaptation measures (or, conversely, failing to act), the study sites were divided into five groups. Each group represented a different level of investment pri- ority, and provided a means of indicating to decision-makers where (and to what level) it would be economically justified to implement adaptation interventions, as well as which adaptation options would generate the highest level of benefits and costs avoided to society. case studies Case study 7 Canada 3 EbA valuation case studies What were the findings? The study found that the non-intervention option triggers net costs that range from CAD 0-705 million. Expressed by linear meter of coastline for a better appreciation of site importance, non-interven- tion costs range from CAD 0-777,848, centred on a median of CAD 1,221. Based on a comparison of their net present values with the non-intervention baseline, the results indicated that implementing an adaptation option would generate a net value-added for 29 of the 46 sites studied. The categorisation of sites and adapta- tion options into five groups, depend- ing on their economic profitability Adaptation brings and in comparison to a do-nothing scenario, generated extremely use- benefits beyond ful information for decision-makers. the site itself The first group, not intervening is not an option, was of the highest priority and represented sites where failing to intervene would represent a considerable loss for society. In most cases, there were strategic regional and provincial assets at stake, meaning that adaptation would bring benefits that spread beyond the site itself. The analysis showed that investments of ranging EbA from CAD 1.5 million to CAD 77.1 million were warranted and would return a net benefit. Sites in the second group, net advantage to intervene, registered high levels of damages and associated loss of coastal assets or uses. Investments in the range of CAD 100,000 to CAD 13 million could be justified economically. Most of the sites in the third group, small advantage to intervene, consisted of a single major asset which needs to be protected. Only relatively low-cost investments were justified. For the fourth group, within a margin valuation of CAD 25,000, the added-value of adaptation was minimal. Be- cause the potential damages were minimal, the discounted cost of the adaptation option needed also to be relatively low to justify any intervention. The fifth and last group, no economic advantage to intervene, included sites where the cost of the non-intervention op- tion is zero or almost negligible as well as where adaptation options were more costly than the averted damages. One of the most important lessons learned from the study con- cerned the collaborative approach that had been adopted. The cost- benefit analysis process was supported by strong ties with commu- nities and decision-makers. Key public and private asset managers, case studies local and regional authorities and representatives from various sectors (civil security, transportation, agriculture, environment, etc.) Case study 7 Canada 3 EbA valuation case studies What were the findings? were invited to contribute to the case studies. Over the project’s two-year period, dialogue was established and maintained. Not only did this serve to increase access to data and information and make the studies more robust in technical terms, but it also made a sig- nificant difference in how the results were perceived. These process- es of engagement increased stakeholder understanding, acceptance and buy-in, and, as a result, enhanced consensus on adaptation options. Furthermore, stakeholders appeared more likely to defend and use the figures generated when they were actively involved in validating the assumptions and results. Bibliography Boyer-Villemaire, U., Circé, M., Da EbA valuation Silva, L., Desjarlais, C. and F. Morneau (2016) Atlantic-Quebec Cost-Benefit Analysis of Adaptation Options in Coastal Areas: Synthesis Report. Ouranos Consortium on Regional Climatology and Adaptation to Cli- mate Change, Montreal and Climate Research Lab, University of Prince Edward Island, Charlottetown. https:// www.ouranos.ca/publication-scienti- fique/Synthesis-Report-Atl-Qc.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Canada Case study 8 Cost-benefit analysis of flood mitigation interventions in Canada This case study describes a cost-benefit analysis carried out to EbA assess the desirability of a flood mitigation project in Canada. It came up with measures of profitability in terms of damage costs avoided relative to the project investment, and also compared the project with two other flood control options in order to ascertain which returns the highest benefit: cost ratio. The study was car- ried out to fulfil the regulatory requirements of the Government of Alberta, to determine if the project was economically viable. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The analysis looked at the three components of the project: a river assess the desirability of a the diversion structure, a diversion channel and reservoir inlet structure Springbank Off-Stream Flood and an off-steam storage dam and reservoir. It followed a relatively Storage Mitigation Project, simple process, as it looked only at direct costs and benefits and intended to ameliorate flood did not take broader social environmental impacts into account. On damages in the City of Cal- the benefit side, the analysis considered only avoided flood-related gary, Canada. It compares the damages, while the costs just incorporated the capital and recur- project with two other flood rent expenditures associated with establishing and maintaining the control options in order to physical structures and associated engineering measures. Benefits ascertain which returns the highest benefit:cost ratio. were restricted to economic benefits accruing in the flood risk area within the City of Calgary boundaries. The study commissioned by the Resilience and Mitigation The cost inputs were based on a prelimi- Branch of the Government nary engineering design that had already Preliminary of Alberta’s Environment and been carried out for the project. These engineering design Sustainable Resources Depart- included construction costs, upstream already carried out ment as part of the normal mitigation measures and land acquisi- appraisal process for public tion, as well as annual operation and sector investment projects. maintenance. Land acquisition costs were Cost-benefit analyses are based on market values, using conserva- routinely used by the Canadian tive (higher cost) estimates. The investment costs were modelled Government as part of the for both 1:100 and 1:200 year protection scenarios. As additional business case for projects at subsurface soils investigations and more detailed hydrological as- Federal, Provincial and Mu- nicipal levels. The purpose of sessment and topographic data are required to better establish the the Springbank Off-Stream project details and size, a 25 per cent contingency was also included Flood Storage Mitigation Proj- as an attempt to account for additional costs that may be incurred ect analysis was to provide a as a result of further development of the engineering design. comparison of project benefits (in terms of damages averted) Avoided damage costs (the project benefits) were calculated using to project costs (including a probabilistic approach. Flood damages were estimated with the capital and operating costs), application of depth-damage curves applied to the various return to determine if the project was flood events (probability). The flood damage probability distribu- economically viable and could tion was then plotted and the average annual damage estimated be considered to be a justifi- for project evaluation purposes. Damage assessments were gener- able use of public funds. ated for nine return frequencies including: 1:2 year, 1:5 year, 1:10 year, 1:20 year, 1:50 year, 1:100 year, 1:200 year, 1:500 year and 1:1000 year, which allowed for the computation of average annual damages. Damage estimates were also assessed under two cases: a higher or ‘worst case’ condition and a lower or ‘anticipated case’ condition. Case study 8 Canada 2 EbA valuation case studies Which methods were used? With and without project scenarios were modelled to compare be- tween the events predicted to occur if the project is implemented and those predicted to occur if it does not go ahead. With the up- dated average annual damages and cost estimates of the diversion alternative, an economic efficiency evaluation was performed, based on the net present value of benefits and costs. A discount rate of four per cent was applied, the same as is used for all flood mitiga- tion projects across Alberta Province. Benefit:cost ratios, present values and average annual damages were then calculated for each of 1:100 and 1:200 year protection, under high and low damage scenarios. The Springbank Off-Stream Flood Storage Mitigation Project was compared with two other flood control options: McLean Creek Flood Storage Project and Glenmore Reservoir Diversion. The benefit: cost ratios of each were compared for each of 1:100 and 1:200 year protection, under high and low damage scenarios. EbA What were the findings? The analysis estimated that the cost of the Springbank Off-Stream Reservoir project designed to accommodate a 1:100 year flood event, excluding the price of land acquisition, would be some CAD 160 million. It would result in a reduction of average annual dam- ages of between CAD 13.75 million and CAD 26.11 million, depend- valuation ing on the protection and damage scenario being considered. The project thus achieved a positive benefit:cost ratio under all four scenarios (ranging from 1.3 under a low damage scenario to around 2 for a high damage scenario), suggesting that it was an economi- cally effective project. When compared with other flood mitigation options, the Springbank Off-Stream Reservoir project was also found to generate higher benefit: cost ratios than either of the other mitigation options considered (the McLean Creek Flood Storage Project and Glenmore Reservoir Diversion). case studies Case study 8 Canada 3 EbA valuation case studies Bibliography EbA valuation IBI Group (2015) Benefit/Cost Analysis of Flood Mitigation Projects for the City of Calgary: Springbank Off-Stream Flood Storage. Prepared for Government of Alberta ESRD – Re- silience and Mitigation Branch by IBI Group, Calgary. http://aep.alberta.ca/ water/programs-and-services/flood- mitigation/documents/springbank- benefit-cost.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye China Case study 9 Cost-effectiveness analysis of water-saving irrigation technologies for climate adaptation in China This case study looks at the economic viability of water-saving EbA irrigation technologies as climate adaptation measures in China. This is measured by looking at the cost-effectiveness of four commonly-used technologies, as compared to traditional irriga- tion, in reducing the adverse effects of climate change, via in- creased crop yield and reduced water consumption. The aim was to generate new information that could support the identification of balanced responses to climate change and sustainable eco- valuation nomic development. case studies Published by What was being measured, and why? Which methods were used? This study involved a cost- The study carried out a cost-effectiveness analysis, a decision-mak- effectiveness analysis of four ing tool that compares alternative means of achieving a given goal water-saving irrigation tech- with regard to their resource utilization (cost) and outcomes (ef- niques that are widely imple- fectiveness). It can be used to find the least-cost means of reaching mented in China to address a particular goal, or to estimate the expected costs of achieving a the impacts of climate change. particular outcome. Four of the most widely-used water-saving ir- The aim was to thoroughly rigation techniques in China were included in the study: sprinkler understand the economic irrigation, micro-irrigation, low-pressure pipe irrigation and channel feasibility, effectiveness and lining. efficiency of water-saving irrigation as a climate adapta- The four selected irrigation techniques were each compared with tion intervention. a baseline scenario in which traditional irrigation was employed. The reason for the study was Each option was described in terms of the water consumption and that, although a large body of grain yield per hectare of irrigated farmland, as well as the costs of research indicated that cer- undertaking irrigation. These costs included the initial investment in tain irrigation techniques can capital and equipment, annual operations and maintenance, water contribute to water saving, the fees and energy fees. Data on capital and recurrent costs as well cost and effectiveness of using as crop yields were obtained from published studies, whereas en- water-saving irrigation to cope ergy and water prices came from government statistics. Estimates with climate change remained of the increases in grain yield and reductions in agricultural water unknown. It was observed that consumption were taken from previous research which was based there have been few com- on field experiments comparing traditional irrigation methods with parisons with other adaptation water-saving technologies. measures in the agricultural water sector. A clear picture Adaptation effectiveness was measured in two ways, based on the of the cost-effectiveness of main effects of water-saving irrigation techniques on reducing the water-saving techniques for adverse effects of climate change: increased crop yield and reduced adaptation was thus seen as a water consumption (and hence improved drought resilience). Both way of supporting the identi- fication of balanced responses of these benefits reduce the vulnerability of farmers. By compar- to climate change and sustain- ing water-saving irrigation techniques against the baseline, the able economic development. analysis yielded estimates of the cost-effectiveness ratios of an- nual average increase in grain yield and average volume of reduced water use per unit area of farmland irrigated. These were expressed as the additional cost of increasing each ton of grain yield (USD per tonne) and the of reducing each cubic meter of water (USD per cubic metre). Case study 9 China 2 EbA valuation case studies What were the findings? Based on the cost-effectiveness analysis, the study found that water-saving irrigation was a cost-effective means of coping with climate change, and generates significant adaptation benefits. Only one approach (channel lining) returns a negative cost-effectiveness ratio, but when considering the revenues from improved adapta- tion, all of the measures assessed were economically feasible. Even though micro-irrigation, in particular, has very high incremental costs for adaptation (it returns the highest cost per increased unit of grain yield and saved unit of water), it performs best of all four technologies considered. Micro-irrigation has the highest cost-effec- tiveness ratio for both of the adaptation effects assessed (crop yield and water use), followed by sprinkler irrigation, low-pressure pipe irrigation and channel lining. EbA valuation case studies 3 EbA valuation case studies Bibliography Zou, X., Li, Y., Cremades, R., Gao, EbA valuation Q., Wan, Y. and X. Qin (2013) Cost- effectiveness analysis of water-saving irrigation technologies based on climate change response: A case study of China. Agricultural Water Management 129: 9-20. http://ac.els- cdn.com/S0378377413001856/1- s2.0-S0378377413001856-main. pdf?_tid=d0883d7c-37c7-11e7- 889c-361&acdnat=1494671879_ c130ce1688ee0b3cd1ae765c5ee7da3f case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Czech Republic Case study 10 Cost-benefit analysis of flood adaptation measures in the Czech Republic This case study assesses the costs and benefits of ongoing and EbA planned flood protection adaptation measures in the Czech Re- public. Following a hazard and impact assessment which simulat- ed the spatial patterns of damages and losses in different loca- tions and generated damage estimates, a cost-benefit analysis was carried out to generate recommendations to decision-makers about whether the proposed investments will promote economic efficiency. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study assessed a package of flood protection adaptation mea- value existing and planned sures that were underway or planned to be implemented in the Vl- measures to address flood tava river basin. This included four main categories of interventions, risks in the Vltava river basin, including increasing the safety of water works against overflowing, Prague, the Czech Republic. It involving the reconstruction and modification of existing water res- assessed both the biophysical ervoirs; reconstruction and renewal of polders, reservoirs and dykes hazards and impacts resulting to increase the flow capacity of the channels of water courses; wa- from flooding under different ter retention and restoration measures such as increasing the water climate change pathways, and retention ability of the landscape, creation of new retention areas the economic return on invest- ment. along water courses and protection of the landscape against erosion; and water man- The case study was one of two agement measures centred on changing being carried out as part of a water runoffs in time, especially in the case Methodology larger project which sought to of multifunctional reservoirs (accumulation, included four support adaptation planning components hydro-energy, flood protection or recre- in Europe through building ation) that imply adjustment of manipula- the knowledge base on the tion regulations. The methodology included economics of adaptation to four components: a context analysis, climate change and converting this into practical information hazard and impact assessment, followed by the economic assess- for decision makers. The case ment using cost-benefit analysis, and then the decision whether the study aimed to provide real- investments promote economic efficiency. world economic appraisals of First, background data on the institutional and planning context to investments in climate change adaptation in the European the site was compiled, and then hazards and impacts were mod- context, in order to show how elled. Hazard data was collected from a range of GIS maps and cost-benefit analysis can pro- databases (on hydrological and water resources, flood danger and vide a viable tool for appraisal risks), as well as from the census of the Czech Statistical Office of adaptation investments. (affected populations and housing), national surveys and insurance It also intended to generate companies (value of assets subject to flood risk), state enterprises information which could help (water use) and other sources. These were used to estimate future inform decisions about which hazards by simulating the spatial patterns of damages and losses investments would promote in different locations, considering 5-, 20-, 100-, 500-year return economic efficiency, and help periods. in mainstreaming adaptation in infrastructure development as The impacts of climate change on floods, and the costs and benefits a crucial component of building of flood protection adaptation measures in the Vltava river basin resilience to climate change was simulated by means of the hydrological model Bilan. This used impacts. temperature and rainfall projections for two pathway scenarios to the year 2100, using a set of regional climate models. The outputs of the hydrological modelling were then translated into flooding extent and depths, assets under risk were identified, and expected Case study 10 Czech Republic 2 EbA valuation case studies Which methods were used? annual damages were calculated from exceedance probability loss curve which represents a relationship between different levels of flood damage of a particular return period and the corresponding probabilities of flood events. This took account of damages to hous- ing, businesses, public buildings and road infrastructure as well as loss of agricultural production. The cost-benefit analysis then assessed economic aspects of the adaptation measures. The main project benefits were the damage costs avoided. The costs included both capital and recurrent ex- penditures, as well as ‘lump sum costs’: the additional costs that are incurred when a 50-year or higher flood occurs. Measures of net present value were generated to show the relative profitability of the adaptation interventions. The net benefits of the adaptation options were expressed as the difference between the situation without new adaptation investment (with a 10-year protection) and adaptation investment (with a 500-year protection), over the period 1999-2014. Lastly, a sensitivity analysis was performed measuring the influence of changes in key input parameters when other pa- rameters are held constant. EbA What were the findings? Overall, the results supported the adaptation measures. The analy- valuation sis showed a positive net present value for flood protection mea- sures in all of the climate scenarios under consideration. The ex- pected profitability was however found to vary greatly with the use of different discount rates and return periods while the choice of infrastructure cost variables and depth-damage functions are less significant. case studies Case study 10 Czech Republic 3 EbA valuation case studies Bibliography ECONADAPT (2014) Appraisal of adaptation to river flood at the Vltava river, Prague. ECONADAPT toolbox http://econadapt-toolbox.eu/node/51 ECONADAPT (2015) The Costs and Benefits of Adaptation: Results from the ECONADAPT Project. Published by the ECONADAPT consortium. EbA http://econadapt.eu/sites/default/ files/docs/Econadapt-policy-report- on-costs-and-benefits-of-adaptaiton- july-draft-2015.pdf Scussolini, P., Kuik, O., Kaprová, K., Melichar, J., Sainz de Murieta, E., Galarraga, I., Lago, M., Rouillard, J. valuation and J. Troeltzsch (2013) Descripti- on of adaptation options and their costs and benefits. Report by Vrije Universiteit Amsterdam, Charles University of Prague, Basque Centre for Climate Change and Ecological Institute to FP7-ENV-2013-Two-Sta- ge-603906-ECONADAPT. http://eco- nadapt.eu/sites/default/files/docs/ Deliverable%206-2%20Approved%20 for%20publishing.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Fiji Case study 11 Least-cost, damage cost and cost-benefit analysis of urban coastal adaptation options in Fiji This case study describes an economic analysis of coastal adap- EbA tation options in Fiji. It compares the costs, benefits and overall profitability of different combinations of grey and green mea- sures. The intention was to inform and guide the development of a full adaptation plan. The study involved a least-cost analysis, an damage cost assessment, and a cost-benefit analysis which also incorporated the ecosystem service co-benefits generated by green adaptation options. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study was preceded by a vulnerability and adaptation assess- provide an economic analysis ment, which provided information on key threats to natural resourc- of climate adaptation options es, described the local socio-political context, and identified poten- in coastal Lami Town, Fiji. It tial climate adaptation measures. The cost-benefit analysis analysed compared both the costs and these options further. the benefits of different com- Lami town is surrounded by various protective natural ecosys- binations of ecosystem-based tems, including mangroves, coral reef, seagrass and mudflats and, and engineering adaptation in upstream areas, forested areas. With threats from both coastal options to reduce vulnerabi- flooding and river flooding and erosion predicted to increase with lity to storms and extreme climate change, preserving intact natural weather events, The resulting ecosystems is seen as a key strategy to information was intended to assist in halting erosion and protecting be used the basis for develop- Lami Town from current and future storms Several engineering- ment of a full adaptation plan for Lami Town. and extreme weather events. Several based solutions had ecosystem-based adaptation options were been applied before The study was carried out as identified, including the rehabilitation of an inter-agency collaboration mangroves and riparian buffers, and reduc- between United Nations Envi- ing upstream logging and coral extraction. ronment Programme (UNEP), In addition, a number of engineering-based the Secretariat of the Pacific solutions have conventionally been applied in the region and are Regional Environment Pro- slated as possibilities for further development, including physi- gramme (SPREP), Conservati- cal measures to increase drainage and protect, dredge and realign on International, UN-Habitat, rivers, the construction of infrastructure such as sea walls, storm Lami Town Council, and the surge barriers, sea dykes, the flood-proofing of buildings and roads, University of Maryland Center as well as activities to reclaim land and undertake beach nourish- for Environmental Science. ment. A number of economic analyses were carried out, calculated over 10 and 20 year time frames, and brought to present values by us- ing a 2 per cent discount rate. A least-cost analysis was carried out which looked at the total cost of implementing adaptation options, singly or in combination. This considered both capital and mainte- nance costs. The economic analysis also looked at the relative costs of damages under different adaptation scenarios. These were cal- culated relative to a 'do nothing' scenario, using data collected after flood events on losses to businesses and households, as well as health costs. The government structures and provision of flood relief supplies and services were however unavailable and not included. Obviously, different adaptation measures are more or less effective in different situations, so various levels of damages avoided were estimated for each option. Finally, these data on physical costs and avoided damages were brought together in a cost-benefit analysis. This also incorporated Case study 11 Fiji 2 EbA valuation case studies Which methods were used? the value of ecosystem service co-benefits that would be provided from ecosystem-based approaches involving the conservation or rehabilitation of mangroves, coral reefs, mudflats/seagrasses and upland forests. Unit values were calculated for different ecosystems and services, based on benefit transfer techniques which extrapo- lated figures from studies carried out in similar circumstances else- where. Cost-benefit analyses were carried out for four scenarios, each involving a different balance of ecosystem-based and engi- neering options and ranging from purely ecosystem-based through to purely engineering solutions. This yielded measures of net pres- ent value (NPV) and annualized net present value (ANPV), as well as benefit:cost ratios showing the benefits generated for every Fijian Dollar (FJD) spent on coastal adaptation. What were the findings? EbA The study clearly showed that the benefits of taking action out- weighed the costs, in all cases of both grey and green adaptation measures. Green options tend to be cheaper to implement. the costs per unit area (m2) or per unit length (m) are vastly different (see table below). As a cost over 20-years, replanting mangroves or stream buffers costs less than FJD 5 per m2, while building seawalls or reinforcing river banks costs more than FJD 2,000 per metre. valuation Packages of ecosystem-based options also give higher benefit:cost ratios, even though assumed damage avoidance is higher for pure engineering options, with a benefit of FJD 19.50 for every dollar spent. case studies Case study 11 Fiji 3 EbA valuation case studies Bibliography Rao N., Carruthers T., Anderson P., Sivo L., Saxby T., Durbin, T., Jungblut V., Hills T. and S. Chape (2012) A comparative analysis of ecosystem– based adaptation and engineering EbA options for Lami Town, Fiji. A synthe- sis report. Secretariat of the Pacific Regional Environment Programme (SPREP), Apia. http://www.sprep.org/ publications/a-comparative-analysis- of-ecosystem-based-adaptation-and- engineering-options-for-lami-town- fiji-synthesis-report valuation Rao N., Carruthers T., Anderson P., Sivo L., Saxby T., Durbin, T., Jungblut V., Hills T. and S. Chape (2013) A com- parative analysis of ecosystem–based adaptation and engineering options for Lami Town, Fiji. A technical report. Secretariat of the Pacific Regional En- vironment Programme (SPREP), Apia. https://www.sprep.org/publications/ lami-town-fiji-ebatechnical-report case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Georgia Case study 12 Cost-benefit analysis of sustainable farmland management practices in Georgia This case study describes a cost-benefit analysis of farm man- EbA agement alternatives in Georgia, which aimed to guide and inform actions to avert land degradation and facilitate climate adaptation. The focus was on measures to reduce the incidence crop residue burning. A variety of valuation methods were used (including choice experiments, market prices and damage costs avoided) to value costs and benefits, and come up with indicators of the private and public returns to different land management valuation options. case studies Published by What was being measured, and why? Which methods were used? This case study reports on a The valuation exercise was carried out as a case study under the study to assess the benefits Economics of Land Degradation Initiative (ELD), and adopted the of undertaking measures to ELD “6+1 step approach” to conducting cost-benefit analyses for address land degradation. It sustainable land management options. This involves a process looked at the issue of agricul- of scoping, ecosystem service identification, economic valuation, tural burning in Dedoplistskaro analysis of land degradation patterns and pressures, cost-benefit District, an important food- analysis and on-the-ground implementation. producing region of Georgia. After harvesting, farmers burn The cost-benefit analysis compared three alternative scenarios, each the crop residues remaining involving different land management practices: continued burning in their fields (rather than of residues (business as usual), a voluntary no-burn scenario, and a collecting them and incorpo- legal ban on burning. Various different private and public costs and rating them into the fields). benefits were considered which would be influenced by the burn- This damages the land and ing or incorporation of crop residues, and the continued presence or destroys nutrients that would absence of hedgerow windbreaks. These included changes in farmer otherwise go into the soil. It welfare, crop yields, farm income and avoided carbon emissions. also has a knock-on effect on The physical costs of establishing and maintaining the ban were also other aspects of the farm land- estimated. scape that generate beneficial A choice experiment valuation survey was carried out to value services: for example on hedg- changes in farmer welfare and preferences for different options for es which provide windbreaks implementing the burning ban. Increases or decreases in the yearly and shelter. In the context land registration fee were used as the payment vehicle. The survey of climate change (especially was undertaken with 300 farmers, and calculated their welfare loss- the increasing occurrence of es from the disappearance of windbreaks as well as their willingness dry spells and heat waves), to pay to ensure a legally-enforced ban on burning (as opposed to a frequent and larger fires are voluntary-initiated moratorium). becoming more common. Measures to control burning The calculation of other costs and benefits relied mainly on second‑ therefore also form an im- ary data sources. The impact of crop residues on soil nutrients and portant component of climate moisture was valued using an integrated water balance model, adaptation strategies. AquaCrop. This showed the gains and losses in crop yields and production costs The study was carried out to that would result from different burning re- strengthen policy implementa- gimes, which were valued at market prices. AquaCrop used tion. Although the Ministry of Income from the sale of straw (an op- as an integrated Environment had initiated legal portunity cost of retaining residues on the water balance model changes to ban crop residue farms) was calculated using local market burning, this policy needed prices, and global estimates of the social to be justified on economic cost of carbon were applied to value carbon and ecological grounds, if it emissions. The material, enforcement and was to be enforced. To these awareness/capacity costs of establishing and maintaining the alter- ends, the valuation study was native SLM measures were based on estimates from the Ministry of undertaken to demonstrate the Environment. economic benefits and costs of implementing the burning ban. ...contd. overleaf Case study 12 Georgia 2 EbA valuation case studies Which Methods were used? ...contd. The cost benefit analysis was run for a time period of 10 years, starting from the date that it was assumed that the residue burning It sought to make the case to policy would be enacted. Future cost and benefit were discounted agricultural and environmen- using the Georgian real interest rate of 4 per cent, yielding indica- tal decision-makers (includ- tors of the net present value and cost-benefit ratio of each land ing farmers themselves) for management scenario. investing in sustainable land The study took 5 months to complete, and was carried out by a management practices, and to team consisting of an international and a national consultant with identify the most effective and training in economics and soil science. The global ELD network also beneficial way of implementing played a role in providing technical backstopping, quality control the burning ban. and peer review. The research was carried out through the Regional Environmental Centre for the Caucasus, an independent, non-for- profit organisation established to assist in solving environmental problems as well as development of civil society in the countries of the South Caucasus. How were the results disseminated EbA and what was their impact? The study yielded a number of interesting results. The main finding was that any effort to reduce the incidence of burning would gener- ate substantial private and public benefits. Even though a legally- enforced ban would incur the highest costs, it would eventually also give the highest social gains and farmer returns. For example, it is estimated that agricultural yields will increase by between 11-23 valuation per cent if farmers integrate crop residues into the soil instead of burning them. The ban on burning would also help to avoid almost 50,000 CO2 equivalent tonnes of emissions. Overall, farmers would enjoy up to 3 USD of benefits for every 1 USD that they and the Georgian government need to spend to avoid burning and enforce a policy ban. These results were disseminated through various means. A series of targeted workshops were held at both local and national levels with farmers and key decision-makers (including legal drafters from the government) to present and discuss the study findings and their implications. A technical report and short policy brief were also pro- case studies duced, which have been shared at both national and international levels. Case study 12 Georgia 3 EbA valuation case studies How were the results disseminated and what was their impact? The study was carried out un- The evidence generated has proved to be fairly convincing to its der the Economics of Land main target audience: government decision-makers. The national Degradation (ELD) Initiative, government is now drafting a new policy on burning, which will which deals with the economic eventually be translated into a law. Although the cost-benefit benefits of land and land based analysis was obviously not the only factor driving this, it played an ecosystems. ELD highlights the important role in presenting concrete figures that justified taking value of sustainable land man- these further actions. As the study took place in partnership with an agement and provides a global existing project (the GIZ Biodiversity South Caucasus Programme), approach for analysis of the and focused on a topic that was already a core part of the project’s economics of land degradation. work (the planting and rehabilitation of natural windbreaks), there It aims to make economics of were ample opportunities to follow up on the study and to take a land degradation an integral longer-term and more applied approach to addressing the issues part of policy strategies and that it dealt with. decision making by increasing the political and public aware- ness of the costs and benefits of land and land-based ecosys- tems. Working with a wide net- work of partner organisations and funded by the German What are the key insights and Federal Ministry for Economic lessons learned on valuing Cooperation and Development EbA-relevant benefits? (BMZ), the ELD Secretariat is hosted by GIZ’s Sector Project to Combat Desertification. The One of the key success factors in the study was its concern with case study was carried out in stakeholder engagement at all stages of the valuation process, from partnership with the GIZ Bio- design and inception through to final communication and planning diversity South Caucasus Pro- for follow-up. This ensured that the study was seen as being useful gramme, funded by Austrian and relevant by its target audience. It addressed an issue that was Development Cooperation already a high priority, and of great interest, to decision-makers and and working in Georgia in co- farmers in Georgia (as well as to the host GIZ project). The land operation with the Ministry of management intervention scenarios that were analysed were also Environment and Natural Re- chosen based on the stated needs and advice given by of civil soci- sources Protection and other ety organisations and farmer in Dedoplistskaro District. counterpart agencies. Stakeholder participation also engendered a sense of buy-in among For further information see both farmers and policy-makers. As data were gathered and analy- http://www.eld-initiative.org/, ses carried out, they were shared and validated with those involved http://biodivers-southcauca- on a regular basis. This ongoing consultation meant that the target sus.org/ audience for the study (local and national decision-makers) already had a strong interest in the study by the time its findings were presented, and felt that the economic evidence it provided was both believable and relevant. The study also gained credibility by working through an existing project which had on-the-ground presence in Georgia, had built up good relationships over time. 4 EbA valuation case studies What are the key insights and lessons learned on valuing EbA-relevant benefits? Another strategic decision which proved to be important in making Bibliography the study findings acceptable and interesting to users was its focus on the positive aspects of sustainable land management measures, This case study is based on infor- rather than on the negative aspects of a continuation of the status mation provided by Mark Schauer quo of residue burning. Seeing how tangible public and private and Hannes Etter (Coordinator and value could be added and costs could be avoided offered a convinc- Science Desk Officer of the GIZ Eco- ing argument for the burning ban as being something that would be nomics of Land Degradation Initia- in the interest of both farmers and the general public. Again, it was tive) and presented in the following an added advantage that the study was working with a project that documents: was able take the study findings forward, and support the develop- ment of additional measures to advance the burning ban. ELD Initiative (2015) ELD Initiative As is the case with many ecosystem valuation studies, it remained User Guide. A 6+1 step approach to something of a challenge to access relevant and credible data which assess the economics of land manage- could be used to substantiate the biophysical linkages and causali- ment. Economics of Land Degrada- ties between changes in ecosystem status, effects on farm produc- tion Initiative, Bonn. http://www. tion, and economic impacts. For example, it was not possible to find eld-initiative.org/fileadmin/pdf/ELD- EbA statistically robust leading variables that could predict the incidence UserGuide_07_web.pdf or severity of future fire hazards, and even the data that were avail- able took much longer to locate and access than had been antici- ELD Initiative (2016) Reducing wild- pated. fires in Georgia. Policy Brief, Econom- ics of Land Degradation Initiative, Bonn. http://www.eld-initiative.org/ fileadmin/pdf/ELD_policy_brief_Geor- gia_web.pdf valuation Westerberg, V., Costa, L. and G. Gham- bashidze (2016) Cost Benefit Analysis of Agricultural Burning Practices in the Dedoplistskaro Municipality, Georgia. Report prepared for GIZ Biodiversity South Caucasus Programme, Tbilisi. http://biodivers-southcaucasus.org/ wp-content/uploads/2017/03/ Report_Westerberg_Cost-Benefit- Analisys_EN_2016.pdf.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Germany Case study 13 Physical effectiveness, cost-effectiveness and cost-benefit analysis of flood risk management measures in Germany This case study evaluates the physical and economic impacts of EbA flood risk management measures at two sites on the Mulde River, Germany. Three different approaches were applied to evaluate the flood control measures: physical effectiveness, cost-effective- ness and cost-benefit (efficiency) analysis. The aim was to dem- onstrate a methodology that could capture more fully the value of non-structural measures that are better in terms of effective- ness related to hydrological protection standards, and better valuation make the case for these ‘soft’ techniques. case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The research was one of six European case studies carried out evaluate the economic efficien- under the FLOOD-ERA research project “Risk Assessment and Risk cy of flood risk management Management: Effectiveness and Efficiency of Non-structural Flood measures at two sites on the Risk Management Measures”. It adopts a standardised framework Mulde River in Saxony, Ger- and methodology for the evaluation of the effectiveness and effi- many. The benefits and costs ciency of structural and especially non-structural measures. of structural measures (dykes Two case studies were investigated, both on the Mulde River. Each and floodwalls) were compared one evaluated and compared planned or already-conducted struc- with those of non-structural tural flood control measures with non-structural measures, with measures (resettlement and regard to effectiveness, cost-effectiveness and efficiency. For the early warning). The rationale Erlln case, dyke heightening and relocation was compared with a was to demonstrate the need hypothetical resettlement plan. For Grimma, a local warning system for methods that are based on was compared with an initiative that integrated flood protection into a wider range of economic ap- the old town wall. praisal techniques than would conventionally be applied to The study applied three different ap- infrastructure planning, which proaches to evaluate the flood control could capture more fully the measures: effectiveness, cost-effectiveness Three different value of non-structural mea- and cost-benefit analysis. It also measured sures that are better in terms approaches to the transactions costs associated with each of effectiveness related to alternative. The empirical work was based evaluate flood hydrological protection stan- on various methods, including primary data control measures dards. collection, document analyses, hydraulic modelling and interviews with decision- The study was designed to in- makers. vestigate and critically assess the effectiveness and efficiency The effectiveness analysis measured the degree to which the mea- of non-structural measures in sures achieved the specified target of no damages up to the 1:100 comparison to structural mea- event (in other words providing protection against a flood event of a sures. The aim was to provide level of severity that has a one per cent risk of occurring each year). information which could help In order to evaluate the benefits of each measure their risk-reducing to overcome the barriers to effect in terms of a reduction of the annual average damage com- implementation of these ‘soft’ pared to a baseline ‘do-nothing’ option was calculated. This was techniques, and guide deci- calculated by a meso-scale damage evaluation approach looking at sion-makers on the most ap- the situation with and without the measures. It applied GIS-based propriate methods to use when methods based on data from official statistics (the net value of fixed evaluating different measures assets for different economic sectors) which was then assigned to in a consistent, comparative corresponding land use categories, and used to construct relative and comprehensive way. In depth/damage curves in order to calculate the damaged share of addition, the study yielded these values, depending on inundation depth. Mean damages as recommendations for the im- well as minimum and maximum values were calculated for each provement of flood risk man- grid cell. This yielded estimates reductions in the monetary costs of agement strategies in the case average annual damages that would be achieved by the different study sites. measures. Case study 13 Germany 2 EbA valuation case studies Which Methods were used? The cost-effectiveness analysis compared the relative expenditures (costs) and outcomes (effects) of actions in terms of achieving flood-protection targets. These looked at the physical expenditures made on establishing and maintaining each option, and were based on actual project budget figures from the study sites and elsewhere. These were expressed as absolute amounts as well as the costs per percentage of achieving the target (in other words the expenditures required to avoid 1% of the damages caused by a flood event each year). The cost-benefit analysis then drew these data together, and considered both cost and benefits in monetary terms as a measure of efficiency. It yielded measures of benefit:cost ratios and net pres- ent values. For the evaluation of transaction costs associated with the differ- ent types of measures, stakeholder interviews were carried out to gather qualitative statements on the efforts and costs associated with the decision making and implementation process, and to con- duct a short semi-quantitative questionnaire on the different types of transaction costs. This yielded indices of the costs of information, design and planning meetings, communication, negotiation and con- flict resolution, and other post-construction costs. EbA What were the findings? The results yielded specific conclusions for each site and flood con- trol measure considered. For the Erlln site, it was found that that both of the measures evaluated were effective in achieving flood protection goals. In contrast, results of the benefit-cost analysis valuation showed that neither was efficient, although the structural measures performed better than the non-structural resettlement option. For Grimma, the planned structural measure was demonstrated to be effective but not efficient, mainly due to its high costs. By contrast, the non-structural early warning system appears efficient, but much less effective. Overall, the case study results showed that, when weighing up dif- ferent flood control options, the choice of evaluation criteria can have a major impact on assessment results. In this regard, efficien- cy as an evaluation criterion was shown to be superior to cost-effec- case studies tiveness and effectiveness. This is because cost-effectiveness and effectiveness are unable to consider all benefits in terms of damage reduction and might therefore favour structural over non-structural Case study 13 Germany 3 EbA valuation case studies What were the findings? measures. The results also indicated that transaction costs could Bibliography play an important role, especially with non-structural measures as- sociated with land-use changes. This could explain why, currently, EC (2013) Multi-criteria analysis decision-makers rarely select these kinds of non-structural mea- — the better way to evaluate flood sures when they are planning flood control interventions. management. Science for Envi- ronmental Policy Thematic Issue 40, European Commission DG Environment News Alert Service. http://ec.europa.eu/environment/ integration/research/newsalert/ pdf/40si9_en.pdf Meyer, V., Priest, S. and C. Kuh- licke. (2012) Economic evaluation of structural and non-structural EbA flood risk management measures: examples from the Mulde River. Natural Hazards 62(2): 301-324 Schanze, J., Hutter, G., Penning- Rowsell, E,. Nachtnebel, H-P., Meyer, V., Werritty, A., Harries, T., Holzmann, H., Jessel, B., Koeni- valuation ger, P., Kuhlicke, C., Neuhold, C., Olfert, A., Parker, D. and A. Schildt (2008) Systematisation, evaluation and context conditions of struc- tural and non-structural measures for flood risk reduction. FLOOD- ERA Joint Report, ERA-Net CRUE, CRUE Funding Initiative on Flood Risk Management Research, Lon- don. http://www.flood-era.ioer.de/ files/FLOOD-ERA_Final_report.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Greece Case study 14 Choice experiments to value the public benefits of adaptation for river basin ecosystem services in Greece This case study describes the application of choice experiment EbA techniques to value local residents’ preferences for undertaking climate adaptation measures which would maintain key ecosys- tem services in a river basin in Greece. The intention was to pro- vide decision-support information that could assist in adaptation planning, and would highlight the need to invest in measures to secure the river basin in the face of climate change. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study used choice experiments techniques to value people’s assess local residents’ prefer- preferences for river basin adaptation measures. Choice experi- ences for climate adaptation ments are a quantitative technique for eliciting people’s preferences, in the Aoos river basin, north- allowing researchers to how individuals value selected attributes of western Greece. Choice exper- an activity, service or outcome by asking them to state their choice iment techniques were used over different hypothetical alternatives. to value the public benefits of implementing adaptation Four services were selected to demonstrate the economic impacts of strategies related to four key climate change on river basin water resources, which were of high river basin services: irrigation, economic and social importance to the region: irrigation, rafting, rafting, hydropower production hydropower production and ecological state. In addition the costs and ecological state. Cur- per month of the adaptation activities required to achieve differ- rently, the Aoos River ecology ent outcomes were included. Incorporating various combinations of is ‘good’ and thus meets the attributes for each of the services and costs, this yielded 96 differ- requirements of the EU Water ent adaptation alternatives, which were merged into pairs plus the Framework Directive 2000/60. status quo scenario. The generated 48 choice sets were blocked into Under climate change pres- 8 versions (of 6 choice sets), one of which was randomly allocated sures and in the absence to each respondent of adaptation measures, it The survey was carried out over the course is expected that river basin of two months, and involved 303 respon- services will undergo a signifi- dents, selected randomly from the local cant deterioration. Irrigated 303 respondents, population. A questionnaire was formulated land will reduce substantially, selected from to frame the choice experiment, which rafting periods will decrease, elaborated various aspects of the issues local population electricity production will de- cline, and the ecological state being examined as well as the characteris- will worsen to ‘poor’. tics of the respondent. This was structured into five parts. First of all, respondents Noting that conventional mar- were asked broad questions about the local environment and river ket data cannot reveal public system. Next they were asked their opinions about global climate preferences for adaptation ac- change issues and the effect on local water resources. Then the tivities, the aim was to develop choice experiment was carried out. The final section recorded par- a methodology that could ticipants’ socioeconomic profiles and asked several follow-up control illustrate the consequences of questions. IPCC climate projection models for the Southern Mediter- Conditional logit, random parameters logit and latent class models ranean basin (which indicate were used to conduct an econometric analysis of the results. This a strong drought trend). The provided utility estimates for each attribute, and also enabled re- ultimate goal was to provide spondents’ willingness to pay for different adaptation alternatives to information that could provoke be estimated. An implicit price was derived for the marginal change discussion and dialogue among in attributes. In order to calculate willingness to pay, two distinct policy-makers and stakehold- scenarios were defined (moderate adaptation policy and strong ad- ers, assist in adaptation plan- aptation policy) and compared with the ‘do nothing’ situation. ning for the Aoos River basin, and help to highlight the need to invest in measures to se- cure key river basin services in the face of climate change. Case study 14 Greece 2 EbA valuation case studies What were the findings? The survey found that just under ninety per cent of the respondents were concerned about the future condition of the river Aoos, and something over a fifth identified the reduction in water flow as the most possible threat. Regarding river water priorities, around half of respondents identified the ecological status of the river as being most important, forty per cent opted for irrigation water, five per cent for hydroelectric production and just three per cent for raft- ing. Almost all recognized the need to initiate adaptation measures against climate change at a local level. All of the responses indicated positive and significant economic ben- efits associated with river basin adaptation measures. The results indicate an implicit value for each local household of as much as 540 € per year for moderate adaptation measures, increasing to 780 € per year for a set of strong adaptation interventions which will maintain river basin services at current levels. This translates into a willingness to contribute voluntary payments of 2 € for every km2 of preserved irrigation area, 1.20 € for every additional month of raft- ing activities, 0.35 € for every 10 per cent increase in hydropower production, and 12 € for upgrading the ecological state to the next better provision level (’poor’, ‘fair’, ‘good’). EbA valuation case studies Case study 14 Greece 3 EbA valuation case studies Bibliography EbA valuation Andreopoulos, D., Damigos, D., Comiti, F. and C. Fisher (2015) Estimating the non-market benefits of climate change adaptation of river ecosystem services: A choice experiment application in the Aoos basin, Greece. Environ. Sci. Policy 45: 92-103.. https://editorialexpress.com/ cgi-bin/conference/download.cgi?db_ name=AERNA2014&paper_id=77 case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Guyana Case study 15 Measuring changes in climate change-related knowledge, attitudes and practices in Guyana This case study describes a knowledge, attitudes and practices EbA survey on climate change awareness and education in Guyana. The aim was to investigate current perceptions, identify gaps, and generate recommendations to help in addressing sustainable climate change adaptation, mitigation and disaster risk program- ming. The study was conducted using both qualitative and quan- titative methodologies, involving structured questionnaires and interviews with key stakeholders. valuation case studies Published by What was being measured, and why? Which methods were used? This knowledge, attitudes and The study used both quantitative and qualitative methods. Ques- practices (KAP) study was car- tionnaire surveys were carried out face to face with respondents, ried out to measure current and with students. Qualitative information was collected via focus status and gaps in people’s groups and key stakeholder/informant interviews, in Regions 4, 5, knowledge, attitude and be- 7, and 9 if the country. As well as addressing knowledge, attitudes havioural practices relating to and practices separately, the surveys looked at the relationships climate change, including ad- between each element, namely: aptation, mitigation and disas- • Knowledge and attitudes—how do people feel about climate ter risk reduction factors. This change, once they are aware of the effects it has on them? Is had five main aims: to explore there a change? Does knowledge lead to desirable attitudes? knowledge and perceptions of climate change, identify how • Knowledge and Practices —how proactive are people once they the causes of changing weath- become knowledgeable of climate change issues? Does know- er patterns are explained, in- ledge lead to positive behaviours? vestigate barriers to respond- ing to climate change, assess • Attitudes and Practices—does a sentiment towards climate media consumption patterns change correlate with desirable behaviours? Does good practice and preferences, and inform increase when desirable attitudes are achieved? recommendations on the best methods of communicating on A national household survey was conducted to examine the levels climate change. of knowledge, attitudes and practices towards climate change. This commenced with demographic questions, followed by questions The study was carried out by pertaining to knowledge of climate change, attitudes toward climate the United Nations Develop- change and practices related to climate change. The survey ended ment Programme (UNDP), with questions about media usage. The survey sample was chosen under the Japan-Caribbean to represent +/- 4% of the total population, and respondents were Climate Change Partnership. chosen via a randomised sampling process but maintaining a 50:50 This partnership aims to imple- ratio between men and women. The students’ survey incorporated ment climate initiatives to many of the questions within the national survey, but was designed support the beneficiary coun- to be completed by fourth and fifth form students under supervi- tries in designing and imple- sion and guidance. Although students were menting climate initiatives. chosen at random they were chosen from a The study sought to generate sample of just three schools, within a spe- Students’ survey basic information to inform the cific age and class group. Quantitative data for fourth and development of these activi- were analysed using SPSS software, over- ties, particularly by identifying fifth graders all and disaggregated by location, gender, where there are significant age, educational status and occupational gaps in knowledge, attitude categories. and behavioural measures to instil best practice and under- The qualitative research was conducted to introduce contextual in- standing. formation to the study to address “how” and “why” certain attitudes and practices exist. Hence, the qualitative component provides anecdotal data to establish a deeper understanding. The qualita- tive component of this survey involved in-depth interviews with key Case study 15 Guyana 2 EbA valuation case studies Which methods were used? stakeholders from local community members, the media, national government, local leaders and non-governmental organisations. The sectors interviewed included the agriculture, fishing, goods and ser- vices and extractives industries. Key Informant Interviews were held with community members as well as national level government and international donor agencies, senior-level officials and ministers. Participants in focus group discussions represented a cross-section of the population, disaggregated by gender, age, and economic status. What were the findings? The KAP study found that the vast majority of respondents perceive that climate change is occurring and believe that climate change ex- ists, although only around a half stated that they understood what climate change meant. Nearly all could however identify a range of causes of climate change, including deforestation, carbon emissions and burning of fossil fuels. Almost 90 per cent had experienced cli- mate-related natural disasters, and around three quarters had suf- EbA fered some kind of damage or loss as a result. More than two thirds stated that they had undertaken some form of adaptation action to cope with the effects of climate change, including ecosystem-based measures such as habitat restoration or conservation as well as ac- tions to improve disaster risk reduction infrastructure, extend water security and conserve energy. valuation case studies Case study 15 Guyana 3 EbA valuation case studies EbA valuation Bibliography Hope, S. (2016) Knowledge, attitudes & practices study on climate change adaptation & mitigation in Guyana. United Nations Development Pro- gramme (UNDP), Georgetown. http:// www.adaptation-undp.org/sites/de- fault/files/resources/climate_change_ kap_survey_report_guyana_0.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye India Case study 16 Extended cost-benefit analysis of drought and flood-related disaster risk-reduction and response interventions in India This case study assesses the costs and benefits of flood disaster EbA risk-reduction and response interventions in India. To do this, it considered a variety of economic, social, human and physical values that would not be included in conventional cost-benefit analyses. The aim was to provide evidence that investments in disaster mitigation and preparedness measures are well-spent, and to demonstrate a tool that can be used to choose between different intervention options. valuation case studies Published by What was being measured, and why? Which methods were used? This study presents a cost for the analysis, impacts were analysed in five categories — natu- benefit analysis of drought and ral, physical, human, social and economic. Qualitative impacts were flood-related disaster risk-re- assessed in light of two important concepts – additionality (the duction and response interven- incremental impacts of the project) and displacement (any negative tions in Andhra Pradesh and impacts that may occur as a result of project impact). For example, Bihar States, India. Its objec- the analyses in Dharbanga and Khamman looked at the impact of tive was to analyse the net interventions on natural resources such as forests, soils and crops, benefits resulting from disaster physical assets such as houses and tools, human impacts such as mitigation and preparedness injuries and lives lost, social impacts such as organisation, empow- and to assess the cost-effec- erment and equity, and economic impacts such as food security, tiveness of such interventions. education, employment and credit availability. An important reason for car- Second, a quantitative analysis of costs rying out the study was the and benefits was undertaken. Data on pro- concern that, historically, the gramme costs were verified and grouped Analysis of materials response to disasters has been according to one-off (fixed) costs, and and supplies, focused on relief, with govern- variable costs that occur on a regular basis. personnel and ments, donors and NGOs pro- The Dharbanga analysis looked at materials viding post-disaster resources and supplies, personnel and running costs. running costs and aid. Whilst this work is In Khamman, because it was not possible essential to respond to people to quantify most of the benefits of the DMP in need, the focus of disaster intervention, project expenditures were limited to the installation of response has been shifting to handpumps and provision of toolkits for their repair. Benefits were encompass the wider issue of also assessed in terms of the reduced costs, losses and damages preparedness, risk-reduction occurring with the intervention as compared to a without DMP situ- and strengthening resilience. ation. In Dharbanga, these included the avoided (flood-related) Yet, despite these shifts in losses of handpumps, household possessions, tools and livestock, thinking, the incorporation of reduced injuries and loss of life, and reduced expenditures on boat disaster mitigation and pre- rental for evacuations. All of these were valued at local market pric- paredness into humanitarian es. In Khamman, as mentioned above, only a partial analysis was and development work is ar- possible. The main focus was on the time and health savings as- gued to have been slow, with sociated with the installation of hand pumps, as well as the avoided the priority remaining on relief costs of repairing government pumps. and emergency responses. For each year of the project lifetime, expected costs were sub- The study therefore aimed to tracted from expected benefits to determine the net benefit for each provide evidence-based re- year. These values were then discounted using the discount rate to search to confirm that invest- calculate net present values and cost-benefit ratios for the project ment in disaster mitigation and period (20 years). Lastly, sensitivity analyses are used to demon- preparedness is money well strate any variation that may occur in the values presented. In this spent from an economic point instance, one of the key uncertainties is the duration and intensity of view. It also intended to of the hazard. show how cost-benefit analysis can be used as an analytical tool to choose between diffe- rent types of intervention. In addition, the study sought ...contd. overleaf Case study 16 India 2 EbA valuation case studies What were the findings? ...contd. The overall conclusion of the case studies was the DMP interventions to provide information which studied showed a positive return on investment, generating greater could be used to advocate for benefits than the costs incurred. In Dharbanga, the intervention had increasing the funding and cost Indian Rupees (INR) 1.33 million and generated INR 5 million other resources allocated to of benefits, translating into a net present value of INR 3.70 million specific disaster mitigation and or British Pound (GBP) 46,000 or a benefit-cost ratio showing that preparedness interventions. ever INR or GNP invested had generated a local return of 3.67 INR or GBP. The Khamman project showed a net present value of INR 2.11 million or GBP 26,000, and a benefit-cost ratio of 13,38. Both sets of interventions therefore demonstrated a clear economic argu- ment for DMP. In addition, a number of useful broader lessons learned were gener- ated by the study. One was that cost-benefit analysis was shown to be an important tool for monitoring ex-post project impacts, as well as for informing choices between potential future DMP interventions. This can help organisations in their planning, to develop measures that make the greatest impact on the community in question (both quantified and qualified), and to demonstrate to potential donors the cost-effectiveness of their proposed activities. In Dharbanga, for example, cost-benefit analysis was used to calculate the possible benefits of improved housing on stilts, and microfinance initiatives. EbA Another very important insight was that development must inte- grate DMP if it is to be effective in hazard-prone areas. The ex- amples of the hand pumps in both Dharbanga and Khamman clearly demonstrate that investment in development could be rendered useless if it does not accurately take account of local conditions and integrate DMP. valuation case studies Case study 16 India 3 EbA valuation case studies EbA valuation Bibliography Venton, C. and P. Venton (2004) Disaster preparedness programmes in India: a cost benefit analysis. Network Paper No. 49, Humanitarian Practice Network, Overseas Development Ins- titute (ODI), London. https://www.odi. org/sites/odi.org.uk/files/odi-assets/ publications-opinion-files/506.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Indonesia Case study 17 Evaluating the biophysical and socio- economic effectiveness of hybrid “building with nature” coastal adaptation measures in Indonesia This case study describes how the benefits of a hybrid “Building EbA with Nature” approach to coastal restoration and adaptation were evaluated. A variety of methods were used to measure biophysi- cal and socioeconomic effects such as coastal risk reduction, land and water quality improvements, mangrove re-establishment and livelihood gains. These included field observations and measure- ments, satellite and drone technologies, household surveys and community consultations. valuation case studies Published by What was being measured, and why? Which methods were used? This key sheet reports on stud- While the pilot project evaluation focused mainly on collecting ies carried out to monitor and biophysical data to measure changes in sedimentation rates and evaluate the impacts of hybrid, mangrove colonisation, as well as to gauge the success and durabil- grey-green coastal restora- ity of the permeable dams, the technical monitoring protocol for the tion and adaptation measures larger project looks at a wide range of indicators of coastal safety, along the severely eroded mangrove re-establishment and socioeconomic change. These coastline of Demak Regency, include restoration of the sediment balance, reduced salt water Central Java. The “Building intrusion, decreased erosion rates, re-establishment of mangroves, with Nature” (BwN) approach recovery of pond fisheries production, improvements in income and combines the construction of livelihoods diversification. permeable brushwood dams and mud nourishments with A variety of direct and indirect methods are employed to collect this mangrove rehabilitation, information. These include the physical measurements of variables sustainable aquaculture and such as sediment availability, salinity, water quality, mangrove other livelihood diversification extent and composition. Satellite imagery is being used to assess measures. coastline change and erosion/deposition areas, while drone images offer a means of assessing on-the-ground The project has so far passed mangrove recovery. Interviews and focus through two stages, both of group discussions provide a major source Drone imagery which have involved studies to of data about changes in local livelihood measure benefits. The first fo- status and ecological conditions. This is used for assessing cused on evaluating the effects supplemented by sampling surveys and mangrove recovery of a small-scale pilot activity, direct observations made by community aiming to demonstrate that members themselves about mangrove the novel BwN approach could rehabilitation and the recovery of pond indeed work, and to make the fisheries. The principle of stakeholder participation plays a key role case for scaling it up more in the technical monitoring protocol. Local communities are actively widely. A monitoring protocol engaged in collecting and recording monitoring information (for ex- has now been designed to ample through taking part in regular dialogues, helping with the col- track the impacts of the larger lection of field measurements, keeping logbooks and other records). five-year project that ensued. With the overall goal of ensur- Monitoring is carried out on an ongoing basis, with data collection ing that restoration objectives taking place at regular intervals. The monitoring team is diverse, are met, it seeks to provide and consists of ecologists, engineers, physical geographers and information that can be used aquaculture experts as well as local stakeholders. These are drawn to continuously update instruc- from project partner institutions, local and foreign universities, and tions for the design, construc- also includes representatives from the Indonesian government, field tion, and supervision of the facilitators and coastal villagers. eco-engineering measures in the light of any new learning and knowledge generated, and in response to changing needs and circumstances in the proj- ect area. It is planned that the collection of biophysical and socio-eco‑ ...contd. overleaf Case study 17 Indonesia 2 EbA valuation case studies How were the results disseminated ...contd. and what was their impact? nomic monitoring informa- tion will be supplemented The pilot project was found to be highly successful from a hydro- with studies to quantify these sedimentological point of view, showing sedimentation behind the effects in monetary terms. brushwood dam structures and the natural emergence of mangrove Economic valuation is seen as seedlings. It generated information that was used to demonstrate a particularly important way the efficacy of the BwN approach to coastal planners and decision- of making the case, especially makers, thereby helping to gain their acceptance and support for to investors. This has bearings the scaling-up of activities across the northern coastline of Java. It on the long-term sustainability also fed into the production of a design and engineering plan for this of project activities. Although larger project. this has not yet started, efforts Technical monitoring of the ensuing project is still at a relatively are underway to design an early stage, with results only just beginning to be generated. Fol- extended cost-benefit analysis lowing the participatory processes that have been established to approach that can reflect both collect data, information dissemination is also guided by a strong direct market effects and indi- principle of stakeholder engagement. A regular cycle has been es- rect or non-market ecosystem tablished which brings together the various different agencies and values. groups that are involved in the project. Every six months, infor- mation is presented, analysed and discussed, and the design and delivery of interventions are updated as necessary. In addition, various efforts are being made to share technical find- ings on the impacts of the BwN approach more widely – with the general public in Indonesia as well as with the national and inter- national scientific community. This obviously demands a variety of approaches, including the use of blogs, websites and other social media, discussion papers, articles in peer-reviewed scientific publi- cations and presentations at workshops and conferences. The results of the technical evaluation and monitoring has provided evidence of intervention impact have generally been well-received by their target audience (coastal planners and managers, includ- ing local community members). The BwN approach has proved to be influential in shaping how coastal adaptation and disaster risk reduction policy and planning is carried out. The findings from the first small- Government ready scale pilot generated the initial buy-in to adopt BwN to scale-up activities in Java, and there is now interest from the Government of approach elsewhere Indonesia to adopt BwN approaches as part of coastal management and adapta- tion portfolios elsewhere in the country. At the community level, project partners have been invited to facilitate the development of 10-year village development plans and regulations that will guide resources man- Case study 17 Indonesia 3 EbA valuation case studies How were the results disseminated and what was their impact? The Building with Nature In- agement and define ambitions for both sustainable aquaculture and donesia – Securing Eroding coastal security. The BwN methodology, and particularly the hybrid Delta Coastlines’’ project is approach it embodies, has also sparked a lot of interest within the funded by the Dutch Sustain- international conservation and development community, and many able Water Fund, The Fed- of its principles are now being incorporated into the design of other eral Ministry for the Environ- ecosystem-based climate adaptation and disaster risk reduction ment, Nature Conservation, interventions. Building and Nuclear Safety The technical monitoring protocols, too, have generated a great deal (BMUB) as part of the Interna- of interest within both the Ministry of Marine Affairs and Fisheries tional Climate Initiative (IKI), and the Ministry of Public Works and Housing. The mainstreaming Waterloo Foundation, Otter of hybrid approaches to coastal management and adaptation, based Foundation, Topconsortia for on engineering and ecological principles, would be translated into Knowledge and Innovation, both investment programme design and monitoring procedures. The and Mangroves for the Future. Demak Government has already taken up some of the monitoring It is jointly implemented by methods developed in the project, in relation to both ‘green’ (envi- Ecoshape, Wetlands Interna- ronmental sector) and ‘grey’ (built infrastructure) public works. tional, the Ministry of Marine Affairs and Fisheries (MMAF), Ministry of Public Work and Human Settlement (PU), the Ecoshape Consortium, Witte- What are the key insights and veen + Bos, Deltares, Wagenin- lessons learned on valuing gen University & Research, EbA-relevant benefits? UNESCO-IHE, Von Lieberman, the Diponegoro University and One key lesson learned is the importance of generating evidence local communities. about both the biophysical and socioeconomic benefits of ecosys- tem-based coastal restoration and adaptation measures, so as to For further information see secure people’s support and to ensure that activities are imple- https://www.wetlands.org/ mented in an appropriate and effective manner. This is especially casestudy/building-with- important when introducing new design models such as the BwN nature-indonesia/ approach. It is also relatively rare – in all too many cases, data are lacking about the physical effectiveness or economic efficiency of EbA and other ‘green’ adaptation and disaster-risk reduction ap- proaches. Not only does this reduce the likelihood of their being able to compete, or to be judged, on equal terms with grey infrastructure approaches, but it also makes it difficult to make a convincing case to decision-makers of the wisdom of investing in them. Perhaps the most significant insights arise from the ‘learning by doing’ approach that was employed, as well as the strong empha- sis on stakeholder participation and communication. This has been instrumental in securing the buy-in and support that is required to sustain and scale-up the eco-engineering models that have been de- veloped in Demak. While data and evidence were important to make the case, one of the most important success factors was entering Case study 17 Indonesia 4 EbA valuation case studies What are the key insights and lessons learned Bibliography on valuing EbA-relevant benefits? This case study is based on informa- into a joint learning process with coastal communities, local and tion provided by Pieter van Eijk (Head national government agencies. At the same time, efforts were made of Disaster Risk and Climate Adapta- to embed the BwN approach (both the hybrid restoration measures tion Programme, Wetlands Interna- and the monitoring protocols) in subnational and national policies, plans and budgets. This alignment greatly increases ownership with tional) and presented in the following regards to decision making and engagement. documents: While the monitoring approaches and indicators have been carefully Cronin, K., van Wesenbeeck, B., designed to be appropriate and implementable in a local context, Bosma, R., Debrot, D. and F. Tennejick data availability and capacity have remained as major constraints (2015) Technical protocol for Moni- for measuring impacts and monitoring the BwN approach. toring and Evaluation. “Building with Nature Indonesia – Securing Eroding Delta Coastlines” project. Tonneijck, F., Winterwerp, H., B. van Wesenbeeck et al. (2015) Design and Engineering Plan. “Building with Nature Indonesia – Securing Erod- ing Delta Coastlines” project. https:// EbA www.wetlands.org/publications/ building-with-nature-indonesia- design-and-engineering-plan/ Wetlands International (2014) Building with Nature Indonesia – reaching scale for coastal resilience. https://www.ecoshape.org/uploads/ valuation sites/2/2016/07/building-with-na- ture-in-indonesia-1.pdf Winterwerp, H., van Wesenbeeck, B., J. can Dalfsen et al. (2014) A sustainable solution for massive coastal erosion in Central Java – Towards Regional Scale Application of Hybrid Engineer- ing. Discussion paper, Deltares and Wetlands International. https://www. deltares.nl/app/uploads/2016/07/ Deltares-WI-2014-Sustainable-solu- tion-massive-erosion-Central-Java. pdf case studies Published by On behalf of the Federal Ministry for Contact the Environment, Nature Conservation, Dr. Arno Sckeyde Winterwerp, H., Wilms, T. Siri, Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) H.,Vries et al. (2016) Building with nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author GmbH Use of Natural Resources Lucy Emerton nature: sustainable protection of mangrove coasts. Terra et Aqua 144: Global Project „Mainstreaming Addresses of the BMUB offices: Layout EbA — Strengthening Ecosystem- 5-12. http://www.iadc-dredging. BMUB Bonn: ECO Consult, Oberaula Based Adaptation in Planning and Decision Making Processes“ Robert-Schuman-Platz 3, com/ul/cms/terraetaqua/docu- As at 53175 Bonn, Germany ment/4/9/7/497/497/1/terra-et- Heinrich-von-Stephan-Straße 7-9 December 2017 BMUB Berlin: aqua-144-complete.pdf 53175 Bonn, Germany The geographical map is for Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Malawi Case study 18 Bayesian Belief network to quantify the biophysical adaptation benefits of climate-smart agriculture, Malawi This case study describes a study carried out to quantify the EbA biophysical adaptation benefits of climate-smart agriculture in Malawi. It used a multiple-indicator Bayesian Belief Network based on assigning subjective probabilities to express a degree of belief in particular events or outcomes. This was used to compare the impacts of different farm interventions on climate change vulnerability. The aim was to demonstrate a simple methodology that could be used to generate evidence to justify and encourage valuation higher investments in climate adaptation. case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study uses a Bayesian Belief Network approach, a graphical assess the adaptation benefits representation of a probabilistic dependency model which describes of climate-smart agriculture the probability of an outcome occurring by considering both the (CSA) in Malawi. It applies a process that leads to that event and the state of information de- multiple-indicator Bayesian scribing the process. It assigns subjective probabilities to express a Belief Network approach that degree of belief in events (and thus particular outcomes) occurring, allows for the assessment of thereby offering a framework into which decision-makers, benefi- climate change vulnerability. ciaries or other stakeholders can input their knowledge, and assess This can be used to identify the implications for the rest of the (linked) system. appropriate adaptation strat- egies, and to quantify the The study focused on understanding the impacts of adaptation biophysical adaptation benefits activities on biophysical vulnerability, although it should be noted from activities that are imple- that the approach followed would be equally suited to describing mented. It showed the impact impacts on socioeconomic factors. It looked at various CSA inter- of different CSA alternatives ventions that are commonly practised in on biophysical vulnerability. Malawi, including intercropping, alley crop- The study was prompted by ping, legume fallows, crop rotation, later- Survey of 50 the massive shortfalls that maturing cultivars, water management randomly selected exist in the amount of funding practices, mulch cover and low/no tillage). available for climate adapta- households Both adaptation activities and indicators of tion in Africa. These financing vulnerability were based on local percep- gaps are argued to be at least tions, elicited from a survey of 50 house- partially caused by the difficul- holds randomly selected from a total sample of 12,271 households ty of assessing and monitoring when adaptation is achieved. for which relevant data were available. The study therefore aimed to The Bayesian Belief Network was composed of five subnets, de- demonstrate a simple meth- signed to capture the adaptation process. Subnets 1-3 described the odology that could be used to process variables: subnet 1 included a description of future climate describe and measure the ad- aptation benefits and impacts projections, subnet 2 described the impacts upon the site, informed of CSA. The assumption was by subnet 1 (climate change projections) and subnet 3 (site descrip- that being able to generate tion). Subnet 4 detailed the adaptation options. Subnet 5 con- this kind of evidence offers a sisted of output variables, which described the site’s vulnerability means of tracking the effec- to climate change. A multi-variable binary-state adaptation subnet tiveness and performance of was added that, when activated, would impact on either the climate adaptation interventions, and impact or local resilience subnets. This allowed for a ‘no adaptation’ thus of better making the case baseline to be created, against which a given set of CSA interven- for increasing investments in tions could be measured in terms of their adaptation effectiveness climate adaptation. and impact. The efficacy of the adaptation actions modelled rela- tive to this no-adaptation baseline was demonstrated by the shift in frequency distribution that occurs. Case study 18 Malawi 2 EbA valuation case studies Which Methods were used? A vulnerability index was derived from the output variables, which expressed both the probability and magnitude of expected biophysi- cal sensitivity to climate change. This enabled the effectiveness of different CSA interventions in increasing biophysical resilience at different sites to be compared. Sensitivity analysis was also under- taken, to assess which climate impacts were most responsible for higher vulnerabilities, and which site characteristics mostly affected these. A combinatoric approach was used to analyse which set of adaptation actions held most benefits and to assess whether some multi-adaptation responses hold less benefits than single-adaptation responses. What were the findings? The study demonstrates the potential of the Bayesian Belief Net- EbA work approach for comparing adaptation approaches at a local level. Its results suggested that all of the CSA interventions investigated reduced vulnerability as compared to the no-adaptation baseline. Intercropping, alley cropping and legume fallows were the best ap- proaches to mitigate the climate impacts of decreased water avail- ability and increased pests. It also found that increasing the number of CSA actions increases total biophysical adaptation benefits. How- ever, returns on biophysical adaptation benefits gained per adapta- valuation tion action diminish as adaptation actions are added to the model. case studies Case study 18 Malawi 3 EbA valuation case studies EbA valuation Bibliography de Nijs, P., Berry, N., Wells, G. and D. Reay (2014) Quantification of biophy- sical adaptation benefits from Clima- te-Smart Agriculture using a Bayesian Belief Network. Scientific Reports 4: 6682 DOI: 10.1038/srep06682 http:// pubmedcentralcanada.ca/pmcc/artic- les/PMC4202202/pdf/srep06682.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Malawi, Tanzania Case study 19 Participatory mapping and valuation of farmers’ land management costs, benefits and preferences This case study describes the use of participatory methods to EbA assess local perceptions and preferences for different land use management choices and agro-ecosystem services in Malawi and Tanzania. The study was prompted by the top-down nature of many of the assessment methods that are conventionally used to guide the design of agricultural projects, especially their fail- ure to adequately consider farmers’ own needs and priorities. It aimed to inform the selection, design and evaluation of sustain- valuation able land management (SLM) and climate-smart agriculture (CSA) interventions. case studies Published by What was being measured, and why? Which methods were used? The study assessed community The study commenced with focus group discussions held at the perceptions of and preferences community level, in order to build up a picture of the social, eco- for different agroecosystem nomic, institution-al and biophysical context in which farmers services and land management operate. This also provided a means of defining the agroecosys- choices. The aim was to build tem services and land management features that would be further and demonstrate methods investigated later on. These broader interactions set the scene and that could be used to guide established a basic understanding of how and why different commu- the development of sustain- nity members are encouraged, enabled and empowered (or not) to able land management (SLM) make particular livelihood and land use decisions. It also provided a and climate-smart agriculture means of understanding the role and interaction of different liveli- (CSA) interventions in Ncheu hoods sources and strategies within the broader landscape. District Malawi and Lushoto District Tanzania. Next, a participatory resource mapping exercise was carried out. This involved using free, high resolution satellite imagery from The overriding concern was to Google Earth Pro to present an aerial view of the landscape in fine ensure that planning support detail. Community members then identified key features on the information would be targeted map, which helped to clarify the extent towards farm-ers‘ own needs of the area the map represented. Next, and constraints rather than discussions were held on natural resources Drone images used being based only on what (such as water, livestock, cultivated land scientists and external experts and uncultivated land) and various key for assessing considered to be the ‚best‘ features were identified, such as where mangrove recovery technical and technological resources were located and how they were solutions to overcoming land used, what changes had taken place in the degradation problems and sus- supply of resources and how these changes taining agricultural productivity were impacting livelihoods, and restrictions to access, conflicts over in the face of climate change. use and management of each resource in question. Mapping with The main target audiences different groups, such as men, women and youth showed which were district and local agricul- resources were the most important to different groups as well as tural planners and implement- differences in access and perceptions of change. ers, as well as research scien- tists and development donors. Building on this information about how community members differ- entially manage, use and depend on land, resources and ecosystem The study was motivated by services across the wider landscape, the next stage of the study the apparent contradictions focused on establishing how farmers valued different land man- that exist between what re- agement alternatives. This used the Evaluating Land Management search recommends, projects Options (ELMO) tool, a novel method that had been developed by promote and donors invest in CIAT to investigate farmers‘ own perceptions and explanations of as being the most effective the costs and inputs, benefits and outcomes, advantages, disadvan- measures to enhance on-farm tages associated with different land management choices. Rather climate adaptation and ad- than calculating these values directly, various tools are used to rank, dress land degradation, and weight and score different land management options or in-terven- those which farmers actually tions against metrics which have been deemed as being particularly carry out. Most socioeconomic important to the community or farmer being studied. and biophysical studies assess the benefits of different adap- tation and land management ...contd. overleaf Case study 19 Malawi, Tanzania 2 EbA valuation case studies Which methods were used? ...contd. The methodology is intended to be a rapid assessment, with each stage able to be carried out over the course of a few days. It relies options according to external- solely on primary data collection, via community consultations, ly-driven indicators of value, focus group discussions and individual interviews. It should how- not in the light of what farm- ever be noted that the approach is de- ers themselves perceive as the signed as part of a broader assessment main costs and benefits. process, integrated with other disciplines Approach is The study undertook spatial and other socio-economic and biophysical survey techniques. In Ntcheu and Lushoto, part of a broader and economic assessments of agroecosystem service values. these included land use / land cover change assessment process It sought to understand how mapping, soil analysis, land degradation and why people use land and surveillance frameworks, household sur- resources (both on and be- veys and a range of complementary partici- yond the farm itself), and how patory rapid appraisal tools such as transect walks, focus groups, changes in their availability key informant interviews and participatory video. The study team impact livelihoods across the incorporated anthropological, environmental economic and agri- landscape. Following on from cultural expertise. Research was conducted by local partner NGOs this, the study investigated and universities, with technical backstopping being provided by an farmers‘ percept-ions of the international research centre. costs, benefits and economic drivers that shape their will- ingness and ability to invest in CSA and SLM (or, conversely, encourage or even force them into situations which result in How were the results disseminated land degradation or under- and what was their impact? mine their adaptive capacity). This intended to show which The study yielded a number of interesting insights, which would on-farm land management have been unlikely to have been revealed by more conventional measures would be the most effective and sustainable when socioeconomic and biophysical survey techniques. One key finding judged in local terms, and to from the participatory resource mapping was that local perceptions identify what additional inter- of ecosystem service benefits, and how these change over time, ventions might be required to vary widely between different stakeholders (for example between enable, encourage and em- men and women, young and old, rich and poor). The implication is power farmers to capture the that, if CSA or SLM interventions are being evaluated or planned, benefits from CSA and SLM. then they need to address these different constraints and objec- tives. Meanwhile, ELMO made it clear that many of the CSA or SLM techniques that are most commonly practised and which farmers express the great-est preference for are not those which yield the highest production gains, generate the greatest income, or entail the lowest costs (the characteristics that would traditionally be deemed important when land management interventions are se- lected and designed). Meanwhile, other apparently profitable inter- Case study 19 Malawi, Tanzania 3 EbA valuation case studies How were the results disseminated and what was their impact? The AGORA project ‘Acting ventions show relatively low rates of adoption. It is clear that, while Together Now for Pro-poor perceptions of economic gain and loss are key to farmers‘ decis- Strategies Against Soil and ions to adopt or reject particular land management and adapta- Land Degradation’. The project tion techniques, it would be over-simplistic to assume that these is carried out by the Interna- concepts refer only to efforts to maximise short-term income and tional Center for Tropical Ag- production or to minimise cash expenditures and direct outlays (the riculture (CIAT), Institute for measures that conventional agronomic, soil science and economic Advanced Sustainability Stud- analysis would point to as indicating the most desirable intervention ies (IASS) of Germany, Selian options). The implication is that, if CSA or SLM planning does not Agricultural Research Institute recognise these different perspectives, then the resulting interven- (SARI) of Tanzania, and Li- tions may be of little interest or benefit to the intended targets. longwe University of Agricul- These results were disseminated through a number of means, in- tural and Natural Resources cluding technical papers and policy briefs (in both English and local (LUANAR) and Total Land Care languages), and via community validation exercises and dialogues (TLC) of Malawi. It is funded at the district level. The heavy emphasis placed on stakeholder by the funded by the German participation helped to enhance buy-in and understanding. District- Federal Ministry for Economic level planners and decision-makers, in particular, were interested in Cooperation and Development the study findings, saying that this was a new kind of information to (BMZ) and the CGIAR Research them, and stating that „we‘d never thought of the landscape in this Program on Water, Land and way“. Ecosystems (WLE) and CGIAR Fund donors. For further information see: What are the key insights and http://ciat.cgiar.org/where- lessons learned on valuing we-work/africa/ EbA-relevant benefits? One important feature of the study was that it formed a part of a much larger, integrated research process which also included agro- nomic, soil science, hydrological and ecological data collection on the biophysical effects and characteristics of different CSA and SLM practices. These other components of the research process were important. By themselves, participatory techniques cannot give a complete picture of ecosystem values or land management costs and benefits. They do, however, provide vital information to supple- ment the data gathered via more conventional techniques – which would not normally take community perceptions of ecosystem va- lues, costs and benefits into account. This combination of research techniques and areas of focus were able to present a well-rounded picture to decision-makers, incorporating multiple perspectives and values. The fact that the target audience (district-level planners and decis- ion-makers) were directly involved in carrying out the studies was Case study 19 Malawi, Tanzania 4 Eba valuation case studies What are the key insights and lessons learned Bibliography on valuing EbA-relevant benefits? very important in fostering buy-in, and making the findings credible This case study is based on informa- tion provided by Katherine Snyder and understandable. This engagement was also enhanced by the (Director, Master’s Program in fact that both of the survey techniques – participatory mapping and Development Practice, University of ELMO – were perceived by participants as being “fun” to undertake, Arizona) and presented in the follow- and involved learning and applying new methods that neither gov- ing documents: ernment officers nor local farmers had encount-ered before. Braslow, J., Cordingley, J. and K. Employing novel participatory approaches was not without its dif- Snyder (2016) A Guide for participa- ficulties, It was often hard for community members to relate their own experiences by means of a map, and it also took time to ex- tory mapping of ecosystem services plain the ranking, weighting and scoring exercises that formed the in multiuse agricultural landscapes: basis of ELMO. As is so often the case with participatory techniques, How to conduct a rapid spatial as- both exercises were time-consuming. Resource mapping took 3-4 sessment of ecosystem services. hours to complete, and ELMO interviews often lasted as long as 2 Publicación CIAT No. 424, Interna- hours. tional Center for Tropical Agriculture (CIAT), Cali.. https://cgspace.cgiar.org/ Last but not least, capacity issues posed a real constraint. Neither handle/10568/77762 the researchers from the international agricultural centre nor those from local-lev3l NGO and government partners were familiar with Emerton, L. (2016) Assessing the participatory survey techniques. Many made the assumption that, EbA economic costs, benefits and drivers because socioeconomic techniques are based around talking to of sustainable land management for people, they require no special training or expertise to carry out. farmers in Ntcheu District, Malawi & As a result, surveys were not always administered correctly, or with Lushoto District, Tanzania. Publicación open participation from local communities. CIAT No. 423, International Center for Tropical Agriculture (CIAT), Cali. https://ciat.cgiar.org/publications/ publication-details/?handle1=10568& valuation handle2=77786 Emerton, L., Snyder, K. and Cording- ley, J. (2015) Evaluating Land Manage- ment Options (ELMO): a participatory tool for assessing farmers’ sustainable land management decision preferenc- es and trade-offs. International Center for Tropical Agriculture (CIAT), Nairobi. https://wle.cgiar.org/evaluating-land- management-options-elmo case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Mexico Case study 20 “Integrating Ecosystem Services into Development Planning” valuation of economic contribution of protected area ecosystem services in Mexico This case study describes an exercise to value protected area EbA ecosystem services, as part of a broader exercise to understand and act on ecosystem service dependencies, impacts and oppor- tunities. The aim was to demonstrate their economic contribution to local, national and sectoral development processes, as well as generating information that could be used to address key conser- vation threats and management issues. Capacity-building formed a cross-cutting objective, and continuous area of focus in the valuation valuation study. case studies Published by What was being measured, and why? Which methods were used? This key sheet reports on ef- The valuation studies adopted GIZ’s “Integrating Ecosystem Ser- forts to value the economic vices into Development Planning” (IES) approach. The IES approach contribution of protected areas addresses the environmental and economic trade-offs associated (PAs) in Mexico. The valua- with development measures, and helps to systematically incorporate tion studies were carried out ecosystem service-related opportunities and risks into conservation in response to the general lack and development strategies and plans. of attention paid to ecosystem services in most decision- In line with the IES approach, each of the studies therefore focused making processes, especially on a specific management issue and associated ecosystem services, in the sectors that depend and according to the conservation priorities, threats and opportuni- impact most on the natural ties in the PA which was being valued. These were identified during environment. intensive 2-day workshops held with PA managers and other local The studies aimed to commu- resource managers, users and experts. After identifying these fo- nicate the value of ecosystem cal areas and issues, stakeholder maps were produced to trace the services to decision-makers dependencies and impacts of various different groups on ecosystem in both environmental and services. Valuation methods were chosen non-environmental agencies, which were appropriate and applicable to and to make the case as to the selected ecosystem services, could Choice of methods why PAS are key to economic generate information that would be con- development. They also served also determined by vincing and relevant to the target groups to build technical capacity in reasearch requirements that the study aimed to influence, and ecosystem valuation within were realistic and achievable in terms of Mexico’s National Commission their data and research requirements. of Protected Natural Areas (CONANP), and to generate For example, in the Cozumel PA complex, the main conservation recommendations about policy management and development planning issue was the threats actions and instruments that posed to coral reefs, mangroves and other natural habitats and might be used to strengthen species by unsustainable tourism and coastal infrastructure devel- PA conservation effectiveness. opment. The key concern was to generate information that could Three PAs were valued. Cabo be used to better align policies and practices in these sectors with Pulmo National Park is a ma- ecosystem services, and improve public budget allocations to PA rine PA on the east coast of conservation activities. Three sets of ecosystem services were the Baja California Peninsula, selected for valuation: recreational and leisure activities (valued Cozumel Reefs National Park by means of choice experiments and benefit transfer techniques), and Cozumel Island Flora and protection against storms and flooding (valued using the spatially- Fauna Protection Area form explicit, map-based InvEST model), and other benefits provided by a PA complex located about mangroves and coral reefs (valued using a combination of different 20 km off the east coast of the Yucatán Peninsula, and techniques). the mountainous Iztaccíhuatl- Although the studies were commissioned by the GIZ-funded EcoV- Popocatépetl National Park is alor Mx project, the actual studies were carried out by an interna- situated just to the south-east tional organisation with wide experience in ecosystem valuation and of Mexico City. Case study 20 Mexico 2 EbA valuation case studies Which methods were used? capacity-building. The main project partner, CONANP, was closely involved in technical aspects of the study, as well as forming one of its main intended target audiences. The studies were carried out over the course of a year and a quarter. How were the results disseminated and what was their impact? The studies confirmed how valuable ecosystem services are, and underlined the importance of the three PAs to local, national and even global economies. In Cozumel, for example, the findings emphasised the significant value that mangrove and reef conserva- tion generates for the tourism industry. It also showed how these natural habitats help coastal settlements and infrastructure to avoid substantial costs, losses and damages from the effects of storms and extreme weather events. It was found that, if well- Coral reefs provide preserved, Cozumel’s coral reefs provide benefits worth benefits worth USD 255 million a year USD 255 million/year for tourists, while their economic value in terms of coastal protection and nutrient cycling is USD 34 million. In total, 65% of Cozumel’s population is less vulnerable to disasters as a result of the presence of coastal-marine ecosys- tems. Based on these results, it was recommended that a priority for decision-makers at all levels of government is to take actions to secure the ecosystem services provided by the PAs, which are the foundation of regional and national economies. The study findings were shared by a variety of means. Short 2-page policy-briefs were prepared, specifically targeting sectoral decision- makers and focusing on the contribution of PA ecosystem services to local and national development processes. A webinar was also held, reaching a wide audience of more than 100 participants. Interestingly, PA Directors took the lead in presenting the valua- tion study findings at this webinar, as part of the project’s capacity- building efforts. Although not yet completed, it is also planned that a guide on best practices in PA valuation will be produced (drawing on experiences and lessons learned during the studies), targeted at decision-makers in CONANP who will take the lead in commissioning and coordinating valuation studies in the future. Case study 20 Mexico 3 EbA valuation case studies How were the results disseminated and what was their impact? The project “EcoValor Mx: Valor- The valuation findings have generally been well-received by deci- ación de Servicios Ecosistémicos sion-makers in CONANP and other conservation agencies, and in the en Areas Naturales Protegidas” sectors that depend and impact on PA ecosystem services (such as fisheries, tourism, agriculture, climate change, water, construction, aims to enhance awareness of the etc.). While the studies have undoubtedly served to raise aware- value of Mexico’s protected area ness of the economic importance of PAs, they did not aim to directly ecosystem services and incorpo- influence policy in these sectors. The main impact is in building rate valuation into public policies technical capacity and making available tools to assist CONANP to and programmes. It is funded by better represent their interests as regards PA conservation and to the German Ministry of Environ- mainstream ecosystem values into sectoral policy and planning. ment, Nature Conservation, Build- ing and Nuclear Safety BMUB, and operates in partnership between GIZ, Comisión Nacional de Áreas What are the key insights and Naturales Protegidas (CONANP) lessons learned on valuing and Secretaría de Medio Ambiente EbA-relevant benefits? y Recursos Naturales (SEMAR- NAT). One of the most successful aspects of the valuation exercise was For further information see http:// that it combined information-generation with capacity-building. The www.ecovalor.mx/ aim was to equip the main project partner – CONANP – with the means to use ecosystem valuation as a tool to assist in PA planning and management. Establishing long-term valuation capacity and awareness at the institutional level should also help to secure the sustainability of the study results, and ensure they have a lasting impact. It is important to emphasise that the intention was not to create a body of staff that were technically trained to conduct eco- system valuation, but rather to provide conservation managers and decision-makers with the knowledge and understanding that would enable them to identify, commission and supervise valuation studies to assist them in their work. Another key lesson learned was the importance of phrasing informa- tion about ecosystem values in practical, policy-relevant and jargon- free terms, and to express it through indicators that were of interest and concern to the target audience that the studies aimed to influ- ence. The main concern was to demonstrate to sectoral decision- makers that PAs made a tangible contribution to output, income and employment. The focus of the studies, and the IES framework that they were based on, was on showing how ecosystem services offer development opportunities and can act as an engine for economic growth. This kind of orientation to real-world issues and needs ensured that the valuation studies were of credible, relevant and useful, rather than being purely academic exercises to generate numbers. Case study 20 Mexico 4 EbA valuation case studies Bibliography This case study is based on informa- tion provided by Celia Pigueron Wirz (Asesora Principal, GIZ/EcoValor Mx: Valoración de Servicios Ecosistémicos en Areas Naturales Protegidas) and presented in the following documents: CSF (2017) Valuation of ecosystem services provided by Cabo Pulmo National Park. Report prepared by Conservation Strategy Fund (CSF) for the National Commission on Natu- ral Protected Areas of Mexcio in the context of the Project Valuation of Ecosystem Services of Natural Pro- tected Areas of Mexico (EcoValor Mx), Mexico City. http://www.ecovalor.mx/ pdf/ECO_caboPolicyBriefFL_ing.pdf CSF (2017) Valuation of ecosystem services provided by Cozumel Reefs EbA National Park and Cozumel Island Flo- ra and Fauna Protection Area. Report prepared by Conservation Strategy Fund (CSF) for the National Commis- sion on Natural Protected Areas of Mexcio in the context of the Project Valuation of Ecosystem Services of Natural Protected Areas of Mexico (EcoValor Mx), Mexico City. http:// valuation www.ecovalor.mx/pdf/ECO_cozumel- PolicyBriefFL_ing.pdf CSF (2017) Valuation of ecosystem services provided by Iztaccíhuatl–Po- pocatépetl National Park. Report pre- pared by Conservation Strategy Fund (CSF) for the National Commission on Natural Protected Areas of Mexcio in the context of the Project Valuation of Ecosystem Services of Natural Pro- tected Areas of Mexico (EcoValor Mx), Mexico City. http://www.ecovalor.mx/ pdf/ECO_popoPolicyBriefFL_ing.pdf case studies Kosmus, M., Renner, I. and S. Ullrich Published by On behalf of the Federal Ministry for Contact the Environment, Nature Conservation, Dr. Arno Sckeyde (2012) Integrating Ecosystem Services Building and Nuclear Safety (BMUB) Deutsche Gesellschaft für Inter- into Development Planning: A step- nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author wise approach for practitioners based GmbH Use of Natural Resources Lucy Emerton on the TEEB approach. Deutsche Global Project „Mainstreaming Addresses of the BMUB offices: Layout Gesellschaft für Internationale Zusam- EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula menarbeit (GIZ) GmbH, Eschborn Based Adaptation in Planning and Decision Making Processes“ Robert-Schuman-Platz 3, http://www.aboutvalues.net/data/ As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 six_steps/integr_ecosys_serv_in_dev_ BMUB Berlin: 53175 Bonn, Germany The geographical map is for planning_en.pdf Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Morocco Case study 21 Multi-stakeholder cost-benefit analysis and contingent ranking of climate adaptation in Morocco’s irrigation sector This case study evaluates economic aspects of adaptation inter- EbA ventions in the irrigation sector in Morocco. It employs a cost- benefit analysis focused, multi-stakeholder approach which takes account of the wider effects of adaptation measures on different sectors and groups, as well as the potential synergies and trade- offs between them. The intention was to provide a fuller picture of adaptation impacts as well as to generate information that could be used to make the case for adaptation and encourage valuation uptake. case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study methodology combined cost-benefit analysis with a more assess the economic costs and participatory stakeholder analysis. To these ends, two data collec- benefits of irrigation adapta- tion and analysis methodologies were used: structured interviews tion interventions in the Tadla for the cost-benefit analysis and rapid rural appraisal for stakeholder region of central Morocco. As analysis. well as more conventional financial cost-benefit tech- Data for the cost-benefit analysis were collected through a survey of niques, participatory, stake- 50 farmers. This collected information on the costs of establishing holder-based method were a drip irrigation network, the water use for drip irrigation technol- applied which could identify ogy at farm level and the yields for different irrigated crops. The cross-sector benefits and high- increase in gross and net income as a result of conversion to drip ir- light areas of mutual interest rigation was estimated. This enabled an analysis of the financial fea- among different stakeholder sibility of conversion to drip irrigation, yielding measures of the net groups. present value of interventions. This was modelled with and without The reason for the study was the subsidy that the government currently provides to drip irrigation to provide decision-support (set at 80 per cent of the initial investment). information and demonstrate evaluation methodologies For the contingent ranking-based stakeholder analysis, four main which would have application categories of stakeholders were identified: private sector drip ir- to Morocco’s climate adapta- rigation companies, public sector agricultural and water agencies, tion strategy. With water and farmers and agricultural workers, and agriculture having been identi- agricultural/environmental researchers. fied as two of the most vulner- A total of 36 stakeholders were consulted Ensure full aware- able sectors to climate change, with, contributing a variety of different ness of all options the main adaptation strategy information. A list of farmers’ benefits and before ranking is the conversion from sur- costs was drawn up, including both mon- face, or flood, irrigation to drip etary and non-monetary variables. Farmers irrigation. Yet, even though were asked to confirm the reported costs many different groups and sectors stand to be affected and benefits by providing details of each in the context of their by these adaptation interven- specific circumstances (crop mix, farm size, etc.), and percentage tions, no stakeholder-focused measures of monetary benefits where applicable. The purpose of cost-benefit analysis had been this was to ensure full awareness of the options, in order to provide conducted. The study thus a meaningful basis for carrying out a contingent ranking exercise. sought to assess what the The ranking exercise then ranked all the relevant benefits in order benefits and costs of drip ir- of importance, thereby eliciting the value of non-monetary impacts rigation were so as to provide and providing an estimate of their relative magnitude for different a fuller picture of the impacts stakeholders. of adaptation in the irrigation sector, as well as to generate information that could be used to make the case for adapta- tion and encourage uptake among potential beneficiaries. Case study 21 Morocco 2 EbA valuation case studies What were the findings? The cost-benefit analysis showed that considerable water savings were associated with the uptake of drip irrigations. Although opera- tions and maintenance costs were found to be lower, and – after a small time lag — crop yields to be higher than surface irrigation systems, the fixed costs for drip irrigation are typically larger due to the greater initial investment required to purchase and install them. Only with a government subsidy is the switch to drip irrigation fi- nancially viable to farmers. Yet, despite this negative financial return, drip irrigation can provide opportunities to improve both farm-level net returns and net public benefits in areas with limited water resources. Possible farm-level benefits include reductions in water and labour costs, higher crop yields and a broader set of production opportunities. Potential public benefits include higher farm-level net returns and the net values generated by agriculture and the other uses for water made avail- able when farmers replace flood irrigation with drip irrigation. Public benefits can also arise when drip irrigation reduces or eliminates negative impacts such as inefficient water use, nutrient leaching, and the rapid depletion of non-renewable groundwater resources. EbA All stakeholders agreed that conversion from flood irrigation to drip irrigation system is the only solution to the irrigation water deficit partly caused by the observed climate changes. The stakeholder analysis identified that all the primary stakeholders of the adapta- tion project were also experiencing non-monetary welfare gains, as is commonly observed in adaptation projects that aim to build adaptive capacity. Some groups of private and public stakeholders valuation favoured these non-monetary gains over the monetary ones, with small-scale farmers the most reliant on the non-monetary benefits of adaptation. The majority of farmers were however not aware of the non-monetary benefits of the drip irrigation system. case studies Case study 21 Morocco 3 EbA valuation case studies EbA valuation Bibliography Boughlala, M. (2013) Better eco- nomics: supporting climate change adaptation with stakeholder analysis: a case study of Morocco. International Institute for Environment and Devel- opment (IIED), London. http://pubs. iied.org/pdfs/G03523.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Myanmar Case study 22 Using InVEST to conduct a natural capital assessment of ecosystem service values and trade-offs in Myanmar This case study describes work carried out in Myanmar to map EbA and value natural capital at the national level and in Tanintharyi Region. A broad range of ecosystem services were considered, including sediment retention, waterflow regulation, flood attenu- ation and coastal protection. Future climate impacts were in- corporated into the valuation scenarios that were modelled.. The information was intended to feed into various land use planning applications, including understanding trade-offs and identify- valuation ing options for protected areas, infrastructure development and climate adaptation. case studies Published by What was being measured, and why? Which methods were used? This key sheet reports on a The assessment was based on InVEST (integrated valuation of natural capital assessment ecosystem services and trade-offs). This is a spatially-explicit, carried out to measure ecosys- software-based tool for modelling ecosystem service values and tem service values and trade- trade-offs that uses maps as information sources and produces offs in Myanmar. It sought maps as outputs. InVEST has various modules dealing with different to show where the country’s biomes and ecosystem services. These models are based on produc- natural capital is located, what tion functions that define how changes in an ecosystem’s structure benefits it provides to people, and function are likely to affect the flows and values of ecosystem and how those benefits will services across the landscape, expressing the results in either bio- change under different cli- mate change and development physical or monetary terms. scenarios. As well as produc- The natural capital assessment was initially carried out in Tanin- ing national-level data, the tharyi Region, focusing on carbon, water yield and soil retention study had a special focus on services. It was then scaled up to the country level, and extended to land use change in Tanintharyi Region in the southern part incorporate climate change, considering sediment retention for wa- of the country, in which the ter quality, regulation of dry-season water availability, reduced flood Dawei Special Economic Zone risk and protection from coastal storms. These particular ecosystem Development Project plans services was chosen based on their relevance in Myanmar, and the to establish a large industrial availability of the necessary data and models to evaluate them at a zone and transport infrastruc- national scale. ture network linking across the Myanmar-Thai border. Climate Inputs into the model combined physical, biological, and socio- adaptation was a special focus economic data, including aspects such as land use, vegetation type, in the assessment, which soils, climate, infrastructure, and demographics. These were all sought to provide guidance on obtained from secondary sources. InVEST strengthening the resilience software was then then used to map and of natural ecosystems, and quantify the biophysical provision of eco- safeguarding the services they InVEST software system services, and the results were com- provide in strengthening the bined with data on the location and needs was used to map resilience and adaptive capac- and quantify of people and infrastructure, so as to as- ity of human systems. sess demand for and delivery of ecosystem The intention was to gener- service benefits. Climate information came ate information that could be from downscaled projections for Myanmar used by decision-makers when on temperature, precipitation and sea-level rise. To capture uncer- formulating plans and policies tainty in climate projections, a high and low climate scenario was related to economy, energy, evaluated for each time period. agriculture, land use, foreign investment, climate adaptation No monetary estimates of natural capital or ecosystem service val- and more. The main target ues were produced. The main outputs were a series of maps show- audience was decision-makers ing ecosystem service provision under different future development and planners in Myanmar at and land use scenarios, and indicating the spatial overlap between both national and sub-national levels, including public and private sector investors in- ...contd. overleaf Case study 22 Myanmar 2 EbA valuation case studies ...contd. Which methods were used? volved in land, resource and areas of high ecosystem service provision and important biodiversity infrastructure developments conservation sites. The assessment was carried out over a period of in the . Dawei corridor and about a year, involving a multidisciplinary team of GIS specialists, elsewhere. The information biologists, ecologists, climate specialists and conservation planners generated by the study was drawn from international institutions (WWF, Columbia and Stanford envisioned to have the poten- Universities) as well as local universities and government conserva- tial to feed into a wide range tion agencies. of land use and development planning applications, includ- ing understanding the trade- offs and identifying alternative options for protected areas, infrastructure development and climate adaptation, as well as providing inputs to strategic environmental assessments How were the results disseminated and environmental impact and what was their impact? assessments and developing sector-specific guidelines for investments. The assessment generated new quantitative and visual data on the scope, nature and location of ecosystem service provision in Myan- mar. It showed where and how Myanmar’s natural capital contrib- utes to clean and reliable drinking water sources, reduced risks from floods inland and storms along the coasts, and to maintaining the functioning of reservoirs and dams by preventing erosion. The findings of the assessment were disseminated through a num- ber of channels. A series of technical reports and a consolidated synthesis document were produced, the latter in both Myanmar and English languages. Results were primarily presented on maps, showing ecosystem service provision under different future development and climate scenarios as well as the overlap Campaign with of important ecosystem service-producing exhibition, school areas with the country’s network of pro- displays and articles tected areas and key biodiversity areas. A website was also set up, providing a means of presenting these visualisations in order to highlight key findings. These various communications products were launched at a formal event, as well as through a media campaign, photo exhibit, displays at schools and TV and newspapers articles. Case study 22 Myanmar 3 EbA valuation case studies What are the key insights and The study was carried out joint- lessons learned on valuing ly between WWF-Myanmar, EbA-relevant benefits? WWF-US, Stanford University and Columbia University and Although it is too early to generate any substantive lessons learned the Government of Myanmar, (the assessment had only recently been completed and released at with funding support from the the time of putting together this case study), a number of interest- Helmsley Charitable Trust. It ing insights arise from the process of carry- forms a part of This study was ing out the study and presenting its find- carried out as part of WWF’s ings. One is the importance of stakeholder programme in Myanmar, which Ministry and participation. Both the Ministry of Natural aims to support Myanmar’s Resources and Environmental Conservation universities involved development ambitions with a in data collection and local universities were closely involved focus on spatial planning and in the assessment process, and participat- biodiversity conservation in pa- ed in the technical studies to generate the rallel with ecosystem services data it used. The assessment process also protection and sustainable emphasised training and skill-sharing, with the aim of generating a livelihoods. permanent capacity to use and apply InVEST. These high levels of involvement of Myanmar partners made a significant contribution For further information see towards increasing national acceptance and buy-in to the study find- http://www.myanmarnatural- ings. capital.org/en, http://www. naturalcapitalproject.org/ A great deal of effort was invested into the presentation and com- invest/ munication of the study findings. Considerable thought was also given to ensuring that both the study scope and its results would be considered nationally-relevant, and were tied to priority information and decision-making needs in Myanmar. Maps and visual presenta- tions, in particular, provide to be a popular and interesting way of communicating the findings to a wide audience. Case study 22 Myanmar 4 EbA valuation case studies Bibliography This case study is based on informa- tion provided by Manishka De Mel (Research Staff Associate, Center for Climate Sysems Research, Earth Institute, Columbia University) and presented in the following documents: Horton, R., Lesk, C., Peters, d., De Mel, M., Bader, D., Helsingen, H., Bartlett, R., Martin, S. and C. Rosenzweig. (2016) Climate Risk Information for Myanmar. Center for Climate Systems Research, Columbia University, New York. http://www.wwf.org.mm/en/ news_room/publications/?295290/ EbA AssessingClimateRiskinMyanmar- Summary Mandle, L., Wolny, S., Hamel, P., Hel- singen, H., Bhagabati, N. and A. Dixon (2016) Natural connections: How natural capital supports Myanmar’s people. WWF-Myanmar, Yangon. valuation https://wwf-myanmar.objects.frb.io/ uploads/1360892026575ae004e8493. pdf Sharp, R., Tallis, H.T., Ricketts, T., A.D. Guerry et al. (2016) InVEST User’s Gui- de. The Natural Capital Project, Stan- ford University, University of Minneso- ta, The Nature Conservancy and World Wildlife Fund. http://data.naturalca- pitalproject.org/nightly-build/invest- case studies users-guide/InVEST_+VERSION+_Do- cumentation.pdf Wolny, S., Hamel, P. and L. Mandle Published by On behalf of the Federal Ministry for Contact the Environment, Nature Conservation, Dr. Arno Sckeyde (2016) Myanmar national ecosystem Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) service assessment technical report. nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author Natural Capital Project, Stanford. GmbH Use of Natural Resources Lucy Emerton http://www.naturalcapitalproject.org/ Global Project „Mainstreaming Addresses of the BMUB offices: Layout wp-content/uploads/2017/04/Myan- EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Based Adaptation in Planning and mar_national_natural_capital_assess- Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany ment_technical_report_2016_06_06. Heinrich-von-Stephan-Straße 7-9 December 2017 BMUB Berlin: pdf 53175 Bonn, Germany Stresemannstraße 128 – 130, The geographical map is for T +49 228 4460-1535 informational purposes only 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Nepal Case study 23 Integrated biophysical, social and economic assessment of ecosystem- based disaster risk reduction approa- ches to road construction in Nepal This case study describes a cost-benefit analysis to compare EbA green and grey options for road development in Nepal. This integrated biophysical, social and economic methods in order to cover a wide range of different effects and values. The main aim was to generate evidence to make the case for bio-engineering and ecosystem-based disaster risk reduction to planners, budget holders and policy makers at both district and national levels. valuation case studies Published by What was being measured, and why? Which methods were used? This case study reports on a The study followed an integrated methodology that brought to- study to compare the biophysi- gether biophysical measurements, social impact assessment and cal, social and economic costs economic valuation. These involved primary data collection via field and benefits of different road surveys and consultations in the demonstration sites, as well as the engineering options in three use of secondary data sources and existing statistics. districts of Nepal’s Western Development Region (Kaski, The biophysical component involved assessing the erosion occurring Parbat and Syangja Districts). around different types of road. LIDAR was used to measure rates The study had a particular of soil loss both before and after the monsoon. Surveys were also focus on the use of bio-engi- carried out to assess plant survival and root structure. The social neering techniques to deliver component used a combination of methods, A social vulnerability ecosystem-based disaster assessment was carried out by means of a household survey, and risk reduction outcomes. This a variety of participatory techniques were used to elicit community is because roads are one of opinions and knowledge on road-related costs and benefits. These the major causes of shallow included focus group discussions, participatory mapping, problem landslides in rural Nepal. It compared ‘grey’ engineering and solution analysis. options (earthen or unman- The economic component looked at the direct costs and benefits of aged roads) with ‘green’ roads road construction and maintenance, as well as valuing the ecosys- (eco-safe infrastructure which tem services generated in terms of erosion control and protection involves soil bio-engineering along the roadsides and makes against landslides. It compared grey and green roads over a use of natural vegetation to 40 year time frame, modelling five scenar- stabilise soils and slopes). ios based on different patterns of rainfall, labour costs, benefit generation and dis- The study aimed to show how count rates. Unlike the other two compo- Desk study supple- bio-engineering techniques nents of the study, this was based mainly mented by focus could be adapted to the local on secondary data gathered through a group discussions environment and serve to re- desk study, supplemented by focus group duce landslide instabilities. The main objective was therefore discussions. The main components in the not to build eco-safe roads or costs-benefit analysis were road establish- reduce community vulnerabil- ment and maintenance, income from the sale of products derived ity in the demonstration sites from soil-stabilising plants and enhanced access to markets, other per se, but rather to show how facilities and services. knowledge could be generated, shared and upscaled. The case The study components were undertaken by an interdisciplinary team study had three major intend- composed of soil scientists, (bio)engineers, economists and rural ed target audiences and levels sociologists. This combined national and international consultants of influence. One was to com- and university researchers. Field surveys were carried out over the municate the multiple benefits course of two monsoon seasons in 2015-16. of bio-engineering approaches to local community members who are involved in building and maintaining green roads. ...contd. overleaf Case study 23 Nepal 2 EbA valuation case studies ...contd. How were the results disseminated The second was to influence and what was their impact? national decision-makers to integrate bio-engineered road The main finding of the study was that investing in bioengineered or approaches at the policy level. eco-safe roads is the most cost-effective means of road construc- The third was to promote the tion. It also generates substantial co-benefits in terms of livelihood integration of ecosystem- support and disaster-risk reduction. In addition, it shows the highest based approaches into global rates of success and sustainability at the local level, with high levels policy instruments and multi- of uptake and ownership by communities. lateral environmental agree- ments. These results were disseminated through various means. In Nepal, findings were shared at the community level through a series of consultations and dialogues. This was accompanied by the provision of training in green road construction techniques, with practical ex- ercises using locally appropriate low cost bioengineering techniques. A training manual on roadside bio-engineering which was used and distributed at each training and workshop opportunity. A short policy brief was produced which was targeted at planners and decision- makers, and two national workshops and two regional workshops were held to raise awareness about ecosystem-based disas- Parliamentarians ter-risk reduction, using the specific case and decision-makers of ‘green’ roads. These workshops were attend workshops attended by journalists, parliamentarians and decision-makers, who were brought to the field so as to be directly exposed to practical knowledge of the issues and solutions. Considerable time was invested in media outreach, involv- ing TV and newspaper articles as well as training and education for journalists. At the global level, presentations were made at vari- ous workshops and conferences, and several peer-reviewed articles were produced targeting researchers and the scientific community. The study generated considerable interest, particularly because it was able to offer ‘hard’ evidence of the efficacy of green roads and ecosystem-based measures for disaster-risk reduction in biophysi- cal, social and – especially – economic terms. At the global level, the case study offered valuable information to assist in making the case for integrating ecosystem-based approaches into the Sendai Framework for Disaster Risk Reduction, as well as the dialogues and processes surrounding the Convention on Biological Diversity. Within Nepal, the Department of Soil Conservation and Watershed Manage- ment have already taken up much of the learning generated by the case study, and have increased the priority given to bioengineered options for road development. Plans are underway, to incorporate environmental criteria into road planning and selection, and to undertake additional cost-benefit analyses of green roads. Efforts Case study 23 Nepal 3 EbA valuation case studies How were the results disseminated and what was their impact? This case study was carried out are also being made to mainstream ecosystem-based approaches in as part of the project “Ecosys- national policies related to road construction, land management and tems Protecting Infrastruc- disaster risk reduction. ture and Communities (EPIC)”, funded by the German Fed- eral Ministry of the Environ- ment, Nature Conservation and Nuclear Safety (BMUB) under the International Cli- mate Initiative (IKI). EPIC is co-ordinated by IUCN, work- ing in partnership with with the University of Lausanne (Swit- What are the key insights and zerland), l’Institut National de lessons learned on valuing la Recherche Agronomique EbA-relevant benefits? (France), the Mangrove Action Project (Thailand) and the One unique feature of the case study, and important lesson learned, Swiss Federal Institute for For- relates to the importance of taking an integrated approach to as- est, Snow and Landscape Re- sessing ecosystem-based approaches. This exercise combined search. EPIC is a global project biophysical, social and economic measures, involving six countries (Nepal, and thus considered multiple benefits and Peru, Thailand, Senegal, China costs. Most studies look only at one aspect and Burkina Faso), which seeks Integrated approach or dimension. Three aspects of the study to demonstrate the multiple combined to create a more comprehensive appeals to various benefits and effectiveness of interest groups picture of the relative merits of green road environmental management as approaches over grey ones, that also reso- a potentially important Disas- nated with different sectors and interest ter Risk Reduction (DRR) strat- groups. egy in vulnerable communities. The issue of co-benefits was particularly important. Many stud- For further information see ies only look at the direct benefits and costs of ecosystem-based https://www.iucn.org/theme/ measures, and thereby under-represent their value. In addition to ecosystem-management/ protecting against landslides (and thus contributing towards disas- our-work/environment- ter-risk reduction), green roads also create benefits for communities and-disasters/ecosystems- through the generation of extra income. In this instance, investing protecting-infrastructure-and- in ecosystem-based disaster risk reduction and adaptation was per- communities-epic/nepal ceived as a ‘no-regrets’ solution: in addition to reducing erosion and landslide risk, it was seen to create multiple benefits to populations and increases resilience during droughts and other climate vagaries. The example of green roads was a good one to make the case for ecosystem-based disaster risk reduction more generally. Because both roads and landslides are considered a high local and national priority, the case study attracted a lot of interest from many differ- ent groups, and was considered both relevant and useful. Case study 23 Nepal 4 EbA valuation case studies Bibliography This case study is based on informati- on provided by Karen Sudmeier-Rieux (Senior Researcher, University of Lau- sanne) and presented in the following documents: Devkota, S., Sudmeier-Rieux, K., Penna, I., Eberle, S., Jaboyedoff, M., Adhikari, A. and R. Khanal (2014) Community-based bio-engineering for EbA eco-safe roadsides in Nepal. Univer- sity of Lausanne, Department of Soil Conservation and Watershed Manage- ment, Kathmandu and International Union for Conservation of Nature, Gland. https://www.iucn.org/sites/ dev/files/content/documents/bioen- gineering_brochure_hr.pdf valuation IUCN (2016) Policy Brief: Ecosystems Protecting Infrastructure and Com- munities (EPIC)- NEPAL. University of Lausanne, Department of Soil Conser- vation and Watershed Management, Kathmandu and International Union for Conservation of Nature, Gland. https://www.iucn.org/sites/dev/files/ content/documents/epic_policy_ brief_29_sep_4.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Niger Case study 24 Extended social cost-benefit analysis to evaluate ‘hard’ and ‘soft’ community-based adaptation measures in Niger This case study evaluates community-based adaptation measures EbA in Niger. Unlike more conventional cost-benefit analysis tech- niques, it incorporated a wide variety of quantified indicators to measure changes in communities’ economic, social and environ- mental capital. The study sought to demonstrating the effective- ness of community-based adaptation approaches for building re- silience and adaptive capacity across a broad range of outcomes. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out The study evaluated CARE International’s Adaptation Learning Pro- to compare and contrasts gramme activities carried out in Dakoro, Niger. These combined a the benefits and costs of a variety of ‘hard’ solutions (including small-scale infrastructure and package of ‘hard’ and ‘soft’ physical measures) and ‘soft’ approaches (such as livelihood inter- community-based adaptation ventions, environmental measures, capacity-building and empower- interventions in Dakoro, Niger. ment). The extended social cost-benefit analysis techniques that It applied extended social cost- were used merged traditional cost-benefit analysis with the princi- benefit analysis techniques ples that underpin social return on investment. This followed a three which take account not only pronged approach: building theories of change; measuring quantita- of direct physical expenditures and income, but also mea- tive social and economic capital outcomes; and assessing quantita- sure the broader evolution of tive environmental capital evolutions and climate variability. It had a community economic, social strong focus on community engagement and participation, reflecting and environmental capital. the principles of the community-based adaptation measures that it The study thus aimed to ac- was evaluating. counting for triple bottom-line impacts, unlike conventional First of all, a theory of change was developed through community economic appraisal techniques focus groups, in order to understand the impact of climate change which look at a much narrower before the interventions, and the strategies and outcomes expe- range of financial and econom- rienced from the adaptation measures. ic benefits. Then, indicators for the main social, eco- nomic and environmental outcomes were The study was prompted by Theory of change selected, based on empirical research with the need to be able to identify helps understand primary stakeholders (these are described which adaptation strategies in the paragraphs below). Tools to collect climate impacts are most likely to build resil- ience and enhance societal ca- the data were developed, piloted, refined pabilities to deal with adverse and modified. Extensive empirical research climate evolutions and shocks, was then undertaken to collect qualitative particularly in rural communi- information and quantitative data directly from a sample of partici- ties of the Global South. Its pating households. Literature reviews and secondary, desk-based primary focus was on demon- research was undertaken to fill any remaining data gaps. strating the effectiveness of community-based adaptation Data analysis and interpretation involved two main components: approaches. The study thus modelling communities’ resilience to shocks relative to a business- aimed to address the ques- as-usual trend, and then modelling how this resilience impacts on tion of whether, and to what their longer-run prospects. It explored how the adaptation inter- extent, community-based ventions had created value, relative to investment, on three forms adaptation is an efficient and of capital: economic, social and environmental. A questionnaire to effective strategy for building measure quantitative change in key economic, social and environ- local resilience and adaptive mental indicators was drafted and applied. capacity, measured through a broad range of outcomes. Case study 24 Niger 2 EbA valuation case studies Which methods were used? The economic capital outcomes measured included crop and live- stock income (both cash income and the value of subsistence consumption), as well as the value of savings (both monetary and in-kind). Various indicators were used to quantify social capital outcomes. These include quality-adjusted life years (for health), school attendance and length of schooling (education) and number of persons in household solidarity networks (social capital), as well as ranked scales of women’s influence and participation in decision- making (gender) and perceptions of capacity and knowledge to es- tablish resilience strategies (community empowerment and adaptive capacity). Environmental capital outcomes were evaluated according to two variables relating to desertification: sustainable land man- agement and restoration of degraded lands, and avoided defores- tation and reforestation. These were measured in terms of trees planted or maintained, and hectares of land restored. Adaptation outcomes were measured in absolute terms (‘gross impact’), as well as relative to a business-as-usual scenario (‘net/ additional impact’). Importantly, to deal with the challenge of attri- bution, information was also collected on other trends and variables that might also have contributed towards changes in economic, social and environmental capital. This allowed for the net, or ad- EbA ditional, impact of the interventions to be calculated not only by comparing the ‘with adaptation’ situation with business as usual, but also by attempting to assess what proportion of the change observed could be attributable to other actors or factors in the area. Communities were asked to list the organisations and actors that contributed to the outcomes observed, and estimate the propor- tion of contribution from these different actors to the outcomes. valuation In addition, regression analysis was carried out to understand the extent to which evolving climate patterns might have determined any increase of crop and livestock production and productivity in the beneficiary communities. The extended social cost-benefit analysis yielded three main mon- etary indicators: net present value, benefit:cost ratio and value for money (benefits generated per unit of spending). These were measured over the duration of the project (four years). In addition, in order to capture the future value of community-based adaptation in these communities, the evaluative model was further extended case studies to forecast capital evolutions to 2020. This required the use of three core climate scenarios (worst, moderate and best cases), as well as comparison of ‘with’ and ‘without’ project scenarios. A sensitivity analysis was also undertaken, to gauge the effect that changing key cost and benefit variables would have on the results. Case study 24 Niger 3 EbA valuation case studies What were the findings? The results of the study suggested that the community-based climate adaptation interventions carried out in Dakoro had yielded high returns. They had managed to increase the economic capital of communities in terms of revenue and savings, as well as ‘soft’ social and environmental capital measured in terms of health, education, empowerment, reforestation and avoided land degradation. Just taking into account the benefits generated to date, since the inter- ventions were initiated, every GBP 1 invested in communities has leveraged a return of more than GBP 4. Over a longer-term sce- nario, even under a high discount rate, results remain positive and returns are high. The study makes the point that it is also important to compare Bibliography these returns with others’ experiences and evaluation figures, so as to get a sense of scale. One of the aims of the study was to demon- Vardakoulias, O. and N. Nicholles strate the effectiveness of community-based adaptation approaches. (2014) Managing uncertainty: An eco- A review of previous economic analyses nomic evaluation of community-based of adaptation and disaster risk reduction adaptation in Dakoro, Niger. Report interventions showed that the returns Community-based prepared for CARE International by that had been calculated for Dakoro were adaptation yields New Economics Foundation (NEF), comparatively high. The returns on in- London. http://www.careclimat- high returns vestment to community-based adaptation echange.org/files/Managing_Uncer- appear higher than returns on investment on investment tainty_CARE_nefc_email_version.pdf to interventions that focus only on disas- Vardakoulias, O. and N. Nicholles ter risk reduction. This was reinforced by (2014) Simplified guidelines for Social the results of the sensitivity analysis, which also indicated positive Cost-Benefit Analysis of Climate returns even if benefits were reduced. The study thus showed that Change adaptation projects on a lo- there is a strong rationale for designing holistic adaptation interven- cal scale. Report prepared for CARE tions that serve to enhance long-run adaptive capacity, and that International by New Economics community-based measures can be a promising avenue for building Foundation (NEF), London. http:// cost-effective adaptation strategies to climate change. careclimatechange.org/wp-content/ uploads/2014/08/CostBenefit.pdf Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Peru Case study 25 Physical impact assessment and cost-effectiveness analysis of green water interventions in Peru This case study valued both the physical and economic impacts of EbA ecosystem-based water supply interventions in Peru. This yielded indicators of potential effects on baseflow and cost-effectiveness. The aim was to make the case for integrating and prioritising green options into water planning and investments, at the same time as developing and demonstrating a practical assessment methodology that could be applied more generally to infrastruc- ture in other sectors. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to First of all, a scoping exercise was carried out, involving the study assess the economic desirabil- team, National Water Authority and other regional stakeholders. ity of various ecosystem-based This defined the main parameters to be investigated, including the infrastructure options to ame- hydrological benefit metric, interventions to be considered and liorate and overcome Lima’s geographic scope. Baseflow was selected as the criterion against dry-season water shortages, which the performance would be assessed when reservoirs, streams, and (the lowest rate of surface water flow in rivers run low because of low the year, expressed in cubic metres per Rather unrealistic seasonal rainfall. The interven- second). Four interventions were selected: tions centred around improv- exclusion of livestock from overgrazed measures discarded ing land and resource manage- grasslands, introduction of rotational from the study ment in the upper watershed. grazing practices on currently overgrazed They were evaluated in both grasslands, hydrological restoration of biophysical (potential impact drained wetlands and restoration of an- on baseflow) and economic cient infiltration infrastructure (amunas). Several other measures (cost-effectiveness) terms. were identified as relevant (including reforestation, riparian buffers, improvement of irrigation systems and restoration of pre-Incan ter- The study was prompted by races) but were excluded due to a lack of data or low likelihood of the need to generate evidence implementation. The geographical boundaries of the study were set on the effectiveness of ecosys- as the Chillon, Rimac, and Lurin watersheds, which together supply tem-based approaches. While almost all of Lima’s water. substantial built or ‘grey’ in- frastructure projects had been The potential hydrological performance of different interventions planned and implemented to was based on causal relationships recorded for agricultural pro- address the water crisis in grammes and credited watershed services markets in the United Lima, green interventions were States, as well as local projects where possible. A variety of water- still not yet routinely consid- shed mass equations and simple mass balance equations were ap- ered as a part of the solution. plied to estimate improved baseflow for specific site-level sub-proj- The study therefore aimed ects. The potential impact of each intervention was then estimated to make the case for invest- by projecting site-level baseflow benefits across the entire area of ing in ecosystem-based water the watershed that each intervention would cover. Cost calcula- infrastructure solutions, and tions looked at expenditures made on materials, labour and project provide the information that management (including community engagement and quality assur- would be required to integrate ance). Because nearly all of the costs would be incurred in the early them into project planning stages of establishing the measures, they were not discounted. Cost and selection frameworks. In calculations also did not include any estimates of the local opportu- addition, the study sought to nity costs of land and resource uses foregone. develop and demonstrate a The cost-effectiveness analysis brought these two measures togeth- methodology that could be er. In order to calculate the marginal cost of each intervention, the applied and used in infra- annualised cost of the project was divided by the baseflow benefit, structure investment planning and presented as USD cost per m3 of waterflow. These indicators of elsewhere. cost-effectiveness were compared with 11 projects that are under- way or planned for increasing water supply to Lima. Absolute Case study 25 Peru 2 EbA valuation case studies EbA Which methods were used? figures on the monetary value of costs and volume of added water benefits were also presented. The study was designed and implemented by a consortium of part- ners including US-based non-governmental organisations and con- sulting companies, Aquafondo (the water fund for Lima and Callao) and a Peruvian non-governmental organisation focused on sustain- valuation able development in the Andes. What were the findings? The main finding of the study was that green interventions could case studies substantially contribute to addressing Lima’s dry season waterflow deficits, at costs that are competitive with the grey infrastructure options considered (well within a $0.25/m3 price point). The total potential impact on baseflow of the four interventions considered, if implemented at full-scale, was shown to be consider- Promising impacts able, offering the potential to reduce up from restoration of to 90 per cent of Lima’s baseflow deficit. ancient infrastructure At a total annual volumetric impact of 2.74 m3/s, this translates into a best es- timate of more than 58 million cubic me- tres of dry season flow. The restoration of ancient infiltration infrastructure had the greatest potential impact and also stood out as being particularly cost-effective intervention, and the contribution of improved pasture management was also demonstrated to be significant. In addition, although not quantified in the study, it was pointed out that Implementing these types of ecosystem-based interventions in Lima’s upper watershed can result in additional social, cultural, and environmental benefits. These are particularly important in remote, underprivileged areas such as the upper watersheds, where lo- cal communities face limited and insecure livelihood opportunities. Ecosystem-based options (unlike grey measures) also offer possi- bilities to increase local income, environmental conditions and water security, to engage upstream communities in supporting manage- ment efforts and even to investigate new markets and payments for ecosystem services. Case study 25 Peru 3 EbA valuation case studies Bibliography EbA Fang, A., Klang, J. and M. Kieser (2014) Restoration of Puna Grass- lands: Quantifying Potential Baseflow Improvements. A Technical Primer on Quantifying Benefits of Watershed Interventions. Kieser & Associates, Kalamazoo. http://www.forest-trends. org/documents/files/doc_4897.pdf valuation Gemmie, G. and B. De Bievre (2015) Assessing Green Interventions for the Water Supply of Lima, Peru: Cost-Effectiveness, Potential Impact, and Priority Research Areas. Forest Trends, Washington DC. http://www. forest-trends.org/documents/files/ doc_4896.pdf (English), http://www. forest-trends.org/documents/files/ doc_5230.pdf (Spanish) case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Philippines Case study 26 Cost-benefit analysis and total economic valuation to make the case for ecosystem-based coastal adaptation in the Philippines This case study describes two climate adaptation-related ecosys- EbA tem valuation exercises carried out in the Philippines. One com- pared the relative costs and benefits of grey and green coastal adaptation options, while the other was a broader exercise that looked at both adaptation and non-adaptation related benefits of ecosystem restoration and conservation at the river-basin level. It makes the point that both targeted and general information on ecosystem values can help to make the case for green adaptation valuation measures. case studies Published by What was being measured, and why? Which methods were used? This case study reports on a The valuation study described in this key sheet was coordinated by case study which examined IUCN, and synthesised others’ work. It thus involved no primary or different approaches to us- secondary data collection. It merely compiled and interpreted two ing ecosystem valuation to already-existing data sets and published reports. generate economic evidence to support and encourage The first of these studies had been carried out by Conservation investments in ecosystem- International Philippines. It was an economic analysis of three dif- based adaptation (EbA) in ferent adaptation options in Calapan City, Mindoro Oriental Province the Philippines. One exercise which aimed to enhanced coastal protection. Two EbA measures assessed the costs and ben- were assessed (mangrove protection and mangrove rehabilitation) efits of managing mangroves and one grey option (building a seawall). These were compared for coastal protection relative with a business as usual scenario, where no new coastal protection to built engineering measures. measures would be undertaken. The study was entirely based on The other involved a total secondary data sources. economic valuation exercise carried out across an entire The economic analysis of coastal protection measures in Calapan river basin. had three components. First of all, a least-cost analysis was under- The objective of the case study taken to show which of the three adaptation options was the most was to increase the knowledge cost effective. This used data obtained from existing mangrove and base regarding the effective- coastal engineering projects to cost each ness of EbA, by collecting evi- intervention. Secondly, a damage costs dence from the field. It sought avoided technique was applied to estimate What costs arise from to make the case for EbA, in the monetary value of the benefits of the comparison to other adapta- floods, storm surges different adaptation measures. This looked tion activities, by generat- and typhoons? at the costs associated with floods, storm ing evidence of its economic surges and typhoons. These included dam- benefits. The reason for the ages to local housing, lost fisheries income analysis was to encourage dis- and recreational revenues, and monetary course between both national and global decision-makers on expenditures that would have to be made by local government to the merits of EbA and other provide relief and other services to affected populations. They were integrated nature-based solu- estimated based on records of actual costs from other coastal flood- tions, in terms of their utility in ing and storm events in the locality. Hypothetical estimates were dealing with climate impacts, made of the carrying levels of storm and flood protection that could as well as their broader social be attributed to the different adaptation options. Third, a cost- ben- and economic co-benefits. efit analysis was undertaken, which yielded estimates of the overall The main target audience was benefit-cost ratio and net present value of each coastal adaptation development donors, planners option. and policy-makers both within and outside the environment The second study had been conducted by the Department of Eco- sector. nomics of Xavier University-Ateneo de Cagayan. It comprised a total economic valuation of the Cagayan De Oro River Basin in Mindanao, covering water regulation, flood control, fishing and tourism ser- Case study 26 Philippines 2 EbA valuation case studies Which methods were used? vices, as well as existence, bequest and other non-use values. A variety of valuation techniques were used including market price techniques (for marketed goods and services such as fisheries and tourism), contingent valuation methods (for non-market goods as well as water services) and damage costs avoided (for flood con- trol). This yielded ‘snapshot’ estimates of the absolute value of river basin ecosystem services. How were the results disseminated and what was their impact? The review of the two valuation exercises yielded a number of use- ful findings. The common theme was the extremely high economic value of ecosystem services. Overall, the rehabilitation and preser- vation of the Cagayan De Oro Basin was shown to be worth between USD 2.4-3.5 million a year to local households. Mean- Ecosystem services while, in Calapan City, mangrove-based worth USD 2.4-3.5 adaptation options were demonstrated million to households to be highly cost-effective as compared to grey engineering measures, as well as providing the highest economic benefit in terms of avoided damages. A country-level technical report was published on the findings of these two valuation exercises, the main points from which were also incorporated into a larger global synthesis report on making an economic case for investing in nature based solutions for climate change. The global synthesis report was one of the outputs of a bigger initiative by IUCN to compile and showcase other’s work on the economics of EbA. The Philippines work formed one of six case studies considered in the global initiative – the other case studies were compiled from work carried out in Costa Rica, India, Mexico, Peru and Tanzania to measure and identify the economic costs and benefits associated with EbA adaptation. The main focus of the dissemination and communication strategy was therefore at the global level, and on awareness-raising and information-sharing, targeting international policy-makers and Case study 26 Philippines 3 EbA valuation case studies How were the results disseminated and what was their impact? This work was carried out as donors. There were no expectations that concrete policy or decision- part of an IUCN study iden- making changes would arise as a result of the valuation exercises. tifying the economic costs The case studies were launched together with the project donor, the and benefits associated with French Ministry of Foreign Affairs and International Development, at ecosystem-based adaptation. a series of high-level meetings in Paris and at other global events The intention was to identify (such as the World Conservation Congress). Representatives from knowledge gaps and gener- the Philippines government and other national-level institutions, ate lessons learned which will as well as community leaders from the sites in which the valuation make it easier for policy mak- studies were carried out, attended these meetings. ers to compare EbA options The meetings prompted active dialogue on the topic of EbA, and the with engineered solutions. study findings stimulated a great deal of interest among all levels of The study was carried out with participants. While monetary estimates of costs and benefits helped the financial support of the to attract people’s attention, it was the overall political and develop- French Government, and re- ment arguments about the social and economic benefits of nature- viewed projects and assessed based solutions to climate adaptation that provide most convincing existing data from Costa Rica, (for example saved lives, support to poor fishermen and protection India, Mexico, Peru, the Philip- of vulnerable communities). pines and Tanzania. The case study was based on compil- ing and interpreting work that had already been carried out by Xavier University-Ateneo de Cagayan and Conservation In- What are the key insights and ternational, funded from other lessons learned on valuing sources. EbA-relevant benefits? For further information see Two key insights and lessons emerge from the case study. One https://www.iucn.org/theme/ concerns the value of bringing together different information and ecosystem-management/ institutions in order to make the case for EbA. The case study in- our-work/ecosystem-based- volved a number of different partners, projects and processes. While adaptation-and-climate- IUCN took the lead in compiling and synthesising the information to change, https://www.iucn. present at the global level, the actual valuation exercises had been org/content/ecosystem- carried out by two national-level institutions in order to guide and based-adaptation-knowledge- inform site-level development and conservation planning (one the gaps-making-economic-case- country programme of an international conservation NGO, Conser- investing-nature-based vation International, and the other the Economics Department of a local university). The relatively small amount of funding that was available to produce the case studies was able to leverage a fairly high level of cooperation and exposure, created synergies between a number of different organisations, and built a larger process and influence than any one of the three partners would have been able to accomplish alone. The juxtaposition of two valuation exercises that were quite dif- ferent in their focus, methods and spatial scope also generated Case study 26 Philippines 4 EbA valuation case studies What are the key insights and lessons learned Bibliography on valuing EbA-relevant benefits? This case study is based on informa- interesting learning. It showed that, even when data do not exist tion provided by Ali Raza Rizvi (Pro- to permit a cost-benefit analysis of specific adaptation measures gramme Manager, Ecosystem-based (such as in the Calapan City case study), ecosystem valuation can Adaptation, IUCN) and presented in still provide a useful tool. More general valuation exercises, which the following documents: look at a broad range of ecosystem services over a relatively wide area (such as the Cagayan De Oro River Basin study), can provide Baig, S., Rizvi, A., Pangilinan, M. and information about the economic productivity of natural ecosystems R. Palanca-Tan (2016) Cost and Ben- which is relevant to making the case for EbA. efits of Ecosystem Based Adaptation: The Case of the Philippines. Inter- national Union for Conservation of Nature (IUCN), Gland. https://portals. iucn.org/library/sites/library/files/ documents/2016-009.pdf Chico-Almaden, C., Navarro, K., Obedencio, M. and C. Serenas (2015) The Total Economic Value (TEV) of the Cagayan de Oro River Basin. Unpub- lished Research Report. Department of EbA Economics, Xavier University-Ateneo de Cagayan, Cagayan de Oro. Nunez, E., Ferrer, A and D Cagayan de Oro. Hole (2015) Evaluating the Cost Effectiveness of Ecosystem based Adaptation Actions for Coastal Protection: Mangrove Restoration and Rehabilitation in the Philippines. valuation Conservation International Philip- pines, Manila. Rizvi, A., Baig, S., and M. Verdone (2015) Ecosystems Based Adapta- tion: Knowledge Gaps in Making an Economic Case for Investing in Nature Based Solutions for Climate Change. International Union for Conservation of Nature (IUCN), Gland. https://por- tals.iucn.org/library/node/45156 case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Philippines Case study 27 Integrated ecosystem accounting in the Philippines This case study describes how ecosystem accounts were devel- EbA oped for two sites in the Philippines. The aim was to demonstrate to local decision-makers the environmental and economic con- sequences of various land use trade-offs for different groups and sectors, so as to help to inform the development of strategies for managing competing claims on natural resources. The study adopted the UN System of Environmental-Economic Accounting, combining spatial, biophysical and economic data and integrating valuation various ecosystem valuation tools. case studies Published by What was being measured, and why? Which methods were used? This case study reports on the The studies followed the System of Environmental-Economic Ac- development of ecosystem counting (SEEA) developed by the United Nations Statistics Division. accounts at two sites in the This provides a framework for producing internationally comparable Philippines. Ecosystem ac- statistics on the environment and its relationship with the economy, counts provide a way of inte- following a similar accounting structure to the System of National grating environmental infor- Accounts that is used in most countries of the world (including the mation into standard measures Philippines) to measure national economic activity. of economic activity. In the Philippines, an overriding aim Having selected the two pilot sites, scoping visits were made to was to provide information to determine which ecosystem services to include in the accounts. One decision-makers about how requirement was to be able to generate the information needed to different land use and devel- address key development challenges and environmental trade-offs. opment choices would impact Practical considerations such as the availability of data and statistics on the provision of ecosystem were also important. services and the economic Following SEEA technical guidelines, a hierarchy of spatial, physical wellbeing of different groups. and economic accounts were constructed, looking at the extent of Working in two sites, Laguna ecosystems, their condition and changes over time, as well as the Lake (located east of Metro stock, flow and use of ecosystem services. The Lake Laguna eco- Manila) and Southern Pala- system account provided information on flood mitigation capacity, wan (in the southwest of the water quality and supply and fisheries resource management. In country, between the South Southern Palawan land, forest and carbon accounts were developed China Sea and the Sulu Sea), at various levels of scale, alongside ecosystem service condition, the studies sought to provide supply, use and asset accounts. A number of scenarios were mod- inputs into local development elled for each site, based on two period assessments and reflecting planning by articulating the alternative development paths (for example the expansion of cash environmental and economic crops and mining in Southern Palawan, and increasing urbanisation consequences of different land around Lake Laguna), their effects on ecosystem services (for ex- use trade-offs, and helping to ample changes in waterflow and quality, flood protection or fisheries identify strategies for man- productivity) and impacts on ecosystem accounts. aging competing claims on Environmental-economic accounting sys- natural resources. In Lake La- tems are usually based on existing data. guna, the key concern was the Although both studies depended heavily on Existing data management of the broader already-available statistics and secondary turn out watershed to maintain down- sources (for example satellite imagery and stream water quality, fisheries insufficient land cover data, hydrological and meteo- production and flood mitigation rological records, reports on resource use services. In Southern Palawan and users), it was soon found that these a number of alternative devel- were not sufficient. Certain key information opment paths and demands was not available. In addition, existing statistical collection method- over land and resources ologies were not always consistent with SEEA requirements, mean- involving the expansion of ing that not all of the available data was actually useable. It was tourism, mining and industrial therefore also necessary to carry out some primary data collection, agriculture were considered, for example fisheries surveys were carried out at both sites, and especially in relation to needs of local indigenous groups. At ...contd. overleaf Case study 27 Philippines 2 EbA valuation case studies Which methods were used? ...contd. consultations with farmers in Southern Palawan provided informa- tion on water needs and availability for different crops. a broader level, the results of the ecosystem accounting ex- The process of constructing ecosystem accounts took several years, ercises were intended to feed and was guided by multi-agency national and local Technical Work- into government strategies ing Groups. At the site level, data collection and analysis was led by being considered in the next the Laguna Lake Development Authority and, in Southern Palawan, Philippine Development Plan. the Provincial Environment and Natural Resources Office and the Palawan Council for Sustainable Development. National government agencies (such as the National Economic and Development Author- ity, Department of Environment and Natural Resources and Philip- pine Statistics Authority) played a key technical and facilitating role. As ecosystem accounting is a relatively new technical area which requires a specialised skillset, additional support was provided by national consultants, the World Bank and international experts. How were the results disseminated and what was their impact? The studies yielded a number of important findings for decision- makers. In Laguna Lake, the study showed that land conversion due to urban sprawl and industrial development is causing a decline in forest cover, which is in turn impacting on soil erosion, downstream flooding, declining water quality and re- duced fisheries production. This provided information to assist in identifying prior- Study detects ity areas for habitat protection, pollution decline in regulation and erosion control, as well as mangroves inputting into water pricing and sustain- and coral reefs able urban and industrial development planning. In Southern Palawan, it was found that even though forest cover has been restored over recent years, changes in land use are threatening water supplies and irrigated crop pro- duction, while the dramatic decline in mangroves and coral reefs that has occurred has implications for coastal protection, fisher- ies and tourism prospects. Various policy recommendations were drawn relating to the management of competing land and resource demands between protected areas, indigenous communities and industrial activities such as mining and commercial cash crops. Case study 27 Philippines 3 EbA valuation case studies How were the results disseminated and what was their impact? Wealth Accounting and the This information was shared through detailed technical reports and Valuation of Ecosystem short policy briefs, as well as via a series of policy dialogues, stake- Services (WAVES) is a World holder consultations and workshops at both site and national levels. Bank-led global partnership The results of the studies were also presented to the various com- that aims to promote sustain- ponent bureaux of the Department of Environment and Natural Re- able development by ensur- sources Presented, explaining both the methodology and the policy ing that natural resources are conclusions. Decision-makers were for the most part interested in mainstreamed in development and convinced by the findings of the ecosystem accounting exer- planning and national eco- cises, at least towards the latter part of the exercise. It did however nomic accounts. It currently take some time for key stakeholders to become fully engaged, and operates in 8 core implement- to understand the new approach of ecosystem accounting. ing countries in Africa, Asia One of the main factors that contributed towards this support and and Latin America. WAVES interest from decision-makers was that key government agencies also partners with UN agen- had been directly involved in the study. At the national level, the cies – UNEP, UNDP, and the Department of Environment and Natural Resources, National Eco- UN Statistical Commission – nomic and Development Authority and Philippine Statistical Author- that are helping to implement ity participated in technical activities. This fostered a sense of own- natural capital accounting. ership and a stake in the process which was particularly important WAVES is funded by a multi- to institutionalising ecosystem valuation and accounting approaches donor trust fund resourced by (it is these agencies that are responsible for environmental and eco- Denmark, the European Com- nomic planning, and for the generation and analysis of development mission, France, Germany, statistics). Similarly, at the site level, the participation of Laguna Japan, The Netherlands, Lake Development Authority and the Palawan Council for Sustain- Norway, Switzerland, and the able Development has proved instrumental in the study findings be- United Kingdom. In the Philip- ing taken up at a policy level. In addition, the fact that the studies pines, the lead government were explicitly targeted towards addressing real-world environmen- agency for WAVES activities tal and economic issues that key stakeholders considered a priority is the National Economic (and were mandated to deal with), and offered a concrete method- and Development Authority ology for doing this, meant that decision-makers and planners were (NEDA), assisted by a steering for the most part very receptive. committee composed of rep- resentatives from the Depart- The studies have already had a number of impacts on planning and ment of Budget and Manage- policy-making. Laguna Lake Development Authority continues to use ment (DBM) – designated as these approaches to inform planning decisions – one example is the vice-chair; Department of use of ecosystem accounting results to measure the performance Finance (DOF); Department of of local government, via institutional and water quality scorecards. Environment and Natural Re- A Province-wide ecosystem accounting exercise is being considered sources (DENR); Department in Palawan, and there are plans to scale up the pilot case study ap- of Agriculture (DA); Philippine proaches across other sites and to the national level. An ecosystems Statistics Authority (PSA); accounting task force has been created within the Department of Climate Change Commission Environment and Natural Resources, and the Philippine Statistical (CCC); Office of the Presiden- Authority has set up an environmental and natural resources ac- tial Adviser on Environmental counting division. The National Economic and Development Author- Protection (OPAEP); and the ity is currently weighing up the possibility of institutionalising the Union of Local Authorities of ecosystem accounts methodology. the Philippines (ULAP). For further information see https://www.wavespartner- ship.org/en/philippines Case study 27 Philippines 4 EbA valuation case studies Bibliography What are the key insights and lessons learned on valuing This case study is based on informa- EbA-relevant benefits? tion provided by Marian Delos Angeles and Gem Castillo (both of Resources, One of the most insights from the Philippines ecosystem account- Environment and Economics Center for ing experience is the importance of engaging stakeholders from the Studies — REECS) and presented in the start. The local and national government agencies responsible for following documents:ments: economic and environmental planning and decision-making took a Phil-WAVES TWG-LLDA (2016) Pilot technical and administrative lead in the accounting exercises. This Ecosystem Account for Laguna de Bay meant that they were closely tailored to addressing real-world de- Basin. WAVES Technical Report, Lake La- cision-making priorities. It also resulted in decision-makers having guna Development Authority Technical a clear understanding and sense of ownership of what the findings Working Group for Wealth Accounting meant and how they had been generated. These aspects of credibil- and the Valuation of Ecosystem Services (WAVES) project, World Bank, Manila. ity, legitimacy and relevance are key to policy-uptake and influence, https://www.wavespartnership.org/en/ and require strong government ownership and a robust participatory knowledge-center/pilot-ecosystem- and consultative process. account-laguna-de-bay-basin A second important lesson is the importance of allowing sufficient Phil-WAVES TWG-Southern Palawan time to develop the capacities, processes and data required to intro- (2016) Pilot Ecosystem Account for duce a novel approach such as ecosystem accounting. Capacity- Southern Palawan. WAVES Technical building formed a cross-cutting and con- Report, Southern Palawan Technical tinuous theme throughout the project, Working Group for Wealth Accounting and was required to create a permanent and the Valuation of Ecosystem Services capability to undertake ecosystem account- Capacity-building (WAVES) project, World Bank, Manila. https://www.wavespartnership.org/en/ ing. New protocols and systems for data throughout knowledge-center/pilot-ecosystem- collection, analysis and sharing also had to the project account-southern-palawan be created. The process of institutionalis- ing approaches was however slow – both UNSD (2014) The System of Environ- in terms of establishing the responsibilities mental-Economic Accounts (SEEA): Measurement Framework in Support and capacities to continue to undertake ecosystem accounting, and of Sustainable Development and Green in mainstreaming its additional activity and staffing costs into exist- Economy Policy. Briefing Note, United ing budgets. Nations Statistics Division, New York. https://unstats.un.org/unsd/envac- counting/Brochure.pdf World Bank (2015) Ecosystem Accounts Inform Policies to Manage Compet- ing Demands on Southern Palawan‘s Resources. WAVES Policy Briefing, Wealth Accounting and the Valuation of Ecosystem Services (WAVES) project, World Bank, Manila. https://www.waves- partnership.org/en/knowledge-center/ policy-briefing-ecosystem-accounts- provide-inputs-decisions-making-and- Published by On behalf of the Federal Ministry for Contact policy the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) World Bank (2016) Ecosystem Accounts Author nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Inform Policies for Better Resource GmbH Lucy Emerton Use of Natural Resources Management of Laguna de Bay. WAVES Global Project „Mainstreaming Addresses of the BMUB offices: Policy Briefing, Wealth Accounting and Layout EbA — Strengthening Ecosystem- the Valuation of Ecosystem Services BMUB Bonn: ECO Consult, Oberaula Based Adaptation in Planning and (WAVES) project, World Bank, Manila. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany https://www.wavespartnership.org/ December 2017 Heinrich-von-Stephan-Straße 7-9 en/knowledge-center/policy-briefing- BMUB Berlin: 53175 Bonn, Germany The geographical map is for Stresemannstraße 128 – 130, ecosystem-accounts-inform-policies- T +49 228 4460-1535 informational purposes only 10963 Berlin, Germany better-resource-management F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Portugal Case study 28 Cost-benefit analysis of coastal protection interventions to safeguard ecosystem services in Portugal This case study adopts a spatially-explicit approach that allows EbA for both the physical and financial-economic assessment of coastal protection investments options at the local scale in Central Portugal. This uses a shoreline evolution model is used in combination with a benefits transfer approach for the valuation of coastal ecosystems to assess the costs and benefits of a wide range of types, locations and combinations of coastal protec- tion investment options. The aim was to make the case that it is valuation worthwhile to undertake investments to protect natural, as well as settled, coastal areas. case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study involved an interdisciplinary team of civil engineers, assess the costs of past coast- environmental economists and geographers, working together as al erosion and the potential an integrated team. This reflected the integrated, spatially-explicit benefits of future coastal pro- approach that allowed for both the physical and financial-economic tection interventions along the assessment of coastal protection investments options at the local stretch of coastline between scale.The first stage in the study was to estimate how ecosystem between Porto and Nazaré in values had been impacted over time by coastal erosion. This was central Portugal. Coastal ero- done based on historical coastal land use maps (to determine sion in this area mainly results historical land use losses) and benefit transfer techniques (to value from sea-level rise, increas- ing storm surge frequencies, coastal ecosystem services). reduced sediment delivery to Next, the study involved identifying and the coast and human-induced analysing of the costs and benefits of a modifications of natural coastal areas. Addressing these im- wide range of types, locations and combi- Shoreline evolution nations of coastal protection investment model demonstrates pacts therefore forms a key part of adapting to climate options. The shoreline evolution model future land use loss change. LTC (Long-Term Configuration) was used to assess future erosion-related land use To date, most investments in losses as a function of coastal protection coastal protection have tar- interventions. As in the previous stage, geted strategic protection, the use of benefit transfer techniques allowed for the valuation of emergency interventions and coastal ecosystem services as well as investment. rehabilitation works for urban territory protection. The study Cost-benefit analysis was then used to compare the costs and aimed to make the case that benefits of a number of different protection options. These includ- it would also be worthwhile ed groynes, longitudinal revetments and artificial nourishments, to extent this protection to constructed in addition to existing coastal protection interventions. natural areas along Central Both physical measures of the effectiveness of different measures in Portugal’s coastline, given the important ecosystem service halting erosion (area of land losses avoided), and financial-economic values they provide. In addi- measures of the return on investment (net present value and inter- tion, it sought to contribute nal rate of return) were calculated and compared. The cost-benefit towards the goals of the larger analysis was performed relative to the base situation, meaning that project under which it was car- costs related to establishment and maintenance of extended or ried out (“Mitigation of Spatial new coastal defence interventions, while the benefits related to the Relevant Risks in European ecosystem service values from the area not (yet) lost due to these Regions and Towns”): to gen- interventions. This yielded measures of the net present value and erate knowledge, experiences internal rate of return of each intervention option being considered. and lessons learned on risk mitigation in spatial policies that could be shared with other EU member states and beyond. Case study 28 Portugal 2 EbA valuation case studies What were the findings? The study found that the value of coastal ecosystems in the study area had declined over the last 30 years, from about 290 m€/year in 1975 to under 245 m€/year in 2006. The cumulative loss over this period amounts to more than 1 billion €. Nearly 10 per cent of these losses (3.5 m€/year or 80 m€ in total) were due to coastal erosion. Meanwhile, from a physical perspec- tive, it was shown that all of the coastal protection interventions assessed would Longitudianal lead to reduced erosion and land losses. revetments: effective Longitudinal revetments and artificial and safe investments nourishments were the most effective in biophysical terms. From a financial and economic perspective, the construction of new groynes was not found to be attrac- tive, while artificial nourishments, the extension of existing groynes and (especially) the construction of longitudinal revetments provid- ed positive returns to investment. EbA valuation case studies Case study 28 Portugal 3 EbA valuation case studies Bibliography EbA MiSRaR (undated) Good practice: Cost-benefit analysis of (past) coastal erosion and (future) coastal protec- tion interventions in Central Portugal. Mitigation of Spatial Relevant Risks in European Regions and Towns Project. http://www.cesam.ua.pt/files/Good_ valuation practice_Aveiro_CBA%20coastal%20 erosion%20&%20protection_03_final. pdf Roebeling P., Coelho C. and E. Reis (2011) Coastal erosion and coas- tal defense interventions: a cost- benefit analysis. Journal of Coastal Research 64: 1415-1419. http:// www.ics2011.pl/artic/SP64_1415- 1419_P.C.Roebeling.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Saint Lucia Case study 29 Cost-benefit analysis of the adaptation benefits of climate-proofing community infrastructure in Saint Lucia This case study describes efforts to value the adaptation benefits EbA arising from climate-proofing a community centre in Saint Lucia. A cost-benefit analysis was carried out which looked both at the direct costs of retrofitting and the foregone damage costs and various other social and environmental benefits. The aim was to show how economic analysis can be used to guide decision-mak- ing, as well as to convince policy makers that investments in adaptation can be worthwhile. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out The intervention that was being assessed was a retrofitting of the to assess the costs and ben- Marchand Community Centre to withstand categories four and efits of carrying out works to five hurricanes. Additional features to enhance adaption were also climate-proof a community added, including rainwater harvesting and water storage capacities, centre in Saint Lucia. This water conservation technologies, solar energy generation and food involved upgrading structural and emergency items storage. The costs and benefits associated aspects so that the building with the climate-proofed building were compared with a ‘do noth- could withstand hurricanes, ing’ scenario where no emergency shelter was in place to protect as well as adding other facili- community members against hurricane impacts, and the continued ties and features which aimed to reduce community vulner- dilapidation of the centre would hinder community activities. ability and enhance adaptive The study was carried out as part of a capacity. broader project to use cost-benefit analy- The study aimed to set out the sis to assess climate adaptation interven- Most data were practical application of cost- tions in the Caribbean region (case studies retreived from benefit analysis to help clarify were also carried out in other parts of secondary sources and guide decision making Saint Lucia, as well as St. Vincent and the within highly climate vulner- Grenadines and the Commonwealth of Do- able countries of the Carib- menica). It followed a five step approach bean to build resilience, both that was common to all the case studies: economically and socially, and examining the adaptation objectives, reviewing the ‘without inter- to cope with the impacts of vention’ baseline, quantifying and aggregating the costs, quantifying climate change. Specifically, and aggregating the benefits, and calculating net benefits. The an‑ it was hoped that the applica- tion of cost-benefit analysis to alysis relied primarily on secondary sources, although some primary adaptation interventions would data was gathered via observations and interviews. Secondary data convince policy makers that was obtained from various project documents, accounting records, the investment in such options previous surveys and studies, journals articles and other published can be worthwhile. reports and statistics. Retrofitting the community centre and establishing associated hybrid rainwater, sewerage and irrigation systems would incur ad- ditional design, building, outfitting and maintenance costs. These were calculated at existing market prices. Various benefits were calculated. Implementation of climate- proofing would result in significant reductions in health, mortality and other social costs, as well as providing a model for replica- tion elsewhere in Saint Lucia and the Caribbean. These were esti- mated by looking at the frequency and impact of different classes of hurricanes in Saint Lucia, and the damages that these gave rise to. Benefit transfer techniques were then applied to calculate avoided losses due to hurricane winds, using secondary informa- Case study 29 Saint Lucia 2 EbA valuation case studies Which methods were used? tion from reports of the United Nations Economic Commission for Latin America and the Caribbean (UNECLAC).The electricity gener- ated by the solar system was valued at 70 per cent of the market value of a unit Water rate charged of electricity in Saint Lucia. The benefit of to government used housing and storage was estimated as the as basis for valuation expenditures forgone in not having to rent that space, costed at local rental prices. Rainwater harvests were valued at the going water rate charged by the Water & Sewerage Company to government buildings. The new building code developed and demonstrated for this project was assumed to have far-reaching benefits, and a rate of 50 per cent of estimated cost for damages associated with the earlier Hurricane Dean was used to value the avoided loss in building infrastructure after a hurricane if the new building code is adapted by schools, hospitals, other public buildings, businesses and private individuals on the island. The analysis combined cost and benefit information, projected into the future. Discount rates of 2%, 4.5% and 7%, were applied based on benchmark rates established for Saint Lucia by the Caribbean Community Climate Change Centre to reflect the social rate of time preference. Various scenarios for maintenance costs were also modelled. This provided lower bound, midpoint and upper bound estimates of the project’s net present value (NPV), benefit cost ratio (BCR) and the internal rate of return (IRR). What were the findings? The analysis generated positive net present values for the project under all discount rate scenarios and maintenance regimes. The desirability of the project was however found to be sensitive to the inclusion of the benefits associated with the wider effects of devel- oping and demonstrating a new building code. When these values were excluded, the net present value became negative under all maintenance regimes. Case study 29 Saint Lucia 3 EbA valuation case studies EbA Bibliography Bynoe, M., Cain, D. and A. Peralta (2014) The use of Benefit Cost Analysis to assess Adaptation and Mitigation Interventions in the Caribbean: Case valuation Studies. Caribbean Community Clima- te Change Centre, Belize case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Samoa Case study 30 Cost-benefit analysis of community-level coastal protection measures in Samoa This case study carried out an economic assessment of a seawall EbA and associated ‘green’ and ‘soft’ adaptation measures to pro- tect a coastal village in Samoa against erosion and storm surges. Cost-benefit analysis techniques were used, looking at direct expenditures on constructing and maintaining the measures, and on avoided damages to land and infrastructure. The aim was to determine whether the adaptation intervention represented a worthwhile use of funds and should be scaled up elsewhere. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study followed a standard cost-benefit analysis framework. It assess the economic benefits measured the costs and benefits of a package of ‘hard’ and ‘soft’ ad- and impacts of a pilot adapta- aptation options implemented in Tafitoala Village on the south coast tion project in Samoa, and in of Upolu. Island. This aimed to protect lowland areas from extreme particular to measure the ef- sea surges and coastal erosion, and compared them with a no fectiveness of the investment. project situation. The main adaption measure was a stone seawall, The project being evaluated which was supplemented by the replanting of salt-tolerant coastal consisted of a ‘hard infra- plants to create natural barriers along the coastline and reforesta- structure’ sea wall to protect tion of riparian buffers with community capacity-building, aware- a vulnerable coastal village against coastal erosion and ness-raising and formulation of water resource management laws. sea surges, combined with The first step was to list all the project costs and benefits. On the a variety of ‘soft’ adapta- cost side these included the capital and recurrent costs of build- tion strategies which combine ing and maintaining the sea wall, as well as impacts of the sea ecosystem-based interventions ecosystem (with consequent impacts of fisheries) and alteration of measures with capacity-build- ing and governance measures. long-shore drift patterns (affecting neighbouring villages). Of these, only the direct physical costs of construction and maintenance were The aim of the study was to quantified in monetary terms, based on actual data from the project assess whether the construc- and other projects. The lack of data, time and resources available to tion of the sea wall represent- the study meant that it was not possible to carry out more complex ed a worthwhile use of funds, valuation techniques. and ascertain whether it would be justified to be scaled up A wide variety of project benefits were identified. These included elsewhere in Samoa. A sec- avoided coastal erosion, which was measured by looking at the ondary objective was to estab- reduced levels of land and infrastructure lish a methodology to evalu- loss. The expected coastal erosion area ate the effectiveness of hard (in the absence of the project) was mea- adaptation strategies such as Some parameters sured by comparing satellite images and the construction of sea walls. aerial photos, and local land prices and only receive quali‑ The intention was that the methodologies, lessons learnt asset values were applied to calculate the tative description and results would provide be avoided damages. The reduced damages to a helpful tool for policy mak- infrastructure caused by cyclones and sea ers in future decision making surges, along with reductions in associ- processes. ated clean-up costs, foregone income, lost revenues and decreased stress and trauma, were described in qualitative terms, but not val- ued. In addition, no attempt was made to measure the co-benefits and ecosystem service values associated with the revegetation of coastal and riverine areas. The cost-benefit analysis then brought these figures together. Costs and benefits were modelled over a 25-year period (the assumed Case study 30 Samoa 2 EbA valuation case studies Which methods were used? lifespan of the seawall), and an eight per cent discount rate (as rec- ommended by the Samoan Ministry of Finance was applied) to come up with estimates of the net present value and benefit:cost ratio for the project. In order to account for uncertainty, a sensitivity analy- sis was conducted. This was done in order to assess the robustness of the results and hence the confidence that can be placed in them for informing decision-making. What were the findings? The study indicated that the project was a worthwhile use of funds. It had a positive net present value of just under USD 400,000, and a benefit:cost ratio of 2.25. These results were however moderately sensitive to the price of land, and highly sensitive to the assumed future rate of coastal erosion. EbA valuation case studies Case study 30 Samoa 3 EbA valuation case studies EbA valuation Bibliography Arena, M. (2012) Tafitoala Coastal Management Demonstration Project (Samoa): Cost benefit analysis. Samoa Pacific Adaptation to Climate Change (PACC), Apia. http://www.adaptation- undp.org/sites/default/files/down- loads/samoa_pacc_cba_final_report. case studies pdf Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye South Africa Case study 31 Assessment of the employment benefits of climate adaptation in South Africa This case study describes work carried out to measure how EbA climate change affects employment prospects in South Africa. This involved modelling both climate-related job losses and the employment-creation potential of climate adaptation and mitigation measures. The effects were modelled for major sectors of the economy, and at the national level. The intention was to better understand the labour impacts of climate change and climate-change responses, so as to guide the development valuation of policy responses to sustain and enhance jobs. case studies Published by What was being measured, and why? Which methods were used? This case study reports on a The study had two parts. First, a national employment vulnerabil- study to measure how climate ity assessment was carried out. This looked at the likely impact of change would affect employ- climate change on jobs in key sectors of the economy and at the na- ment in key sectors of the tional level. It considered both direct and indirect, and positive and South African economy, and to negative, effects. For example, the study investigated how projected identify how adaptation mea- reductions in farming possibilities or declines in coal mining and sures contribute generate job- steel production might lead to job losses, as well as how adaptation related benefits. It was carried and mitigation actions could result in employment creation. out to inform the Government of South Africa on the labour The national employment vulnerability assessment model depended impacts of climate change and entirely on existing work and secondary information sources. The climate-change responses, and focus was on reinterpreting and reanalysing these data to calculate to guide the development of climate-related employment costs and policy responses to sustain and benefits. For example, a mitigation poten- tial analysis had been carried out the year enhance jobs. The study also Job creation offers a methodology and data before which involved modelling job cre- ation prospects, and detailed studies were prospects had been which can assist in monitoring and evaluating the national already available on climate impacts in modelled before climate change programme. key sectors such as agricultural, water and mining. In order to assess the employment The study represents an in- effects of adaptation measures, the study novative approach to valua- used job indicators based on projected costs, and translated this tion and impact assessment. into an average number of jobs per unit of spending. For instance, It attempts to move beyond in the case of ecosystem-based adaptation measures, it was pos- the conventional emphasis on sible to look at past and current biodiversity-related interventions monetary cost-benefit mea- (such as the Working for Water and Working for Ecosystems Pro- sures, and instead looks at grammes). Recent work by the Development Bank of South Africa broader indicators of economic on the potential for the green economy to create jobs also provided impact and performance which a source of data. have a significance influence on people’s social and eco- The main output of this first stage of the study was estimates of nomic wellbeing. The issue of the numbers and types of jobs created and lost in different sectors policy relevance is also key. and at the national level as a result of climate change and climate The focus on job impacts was change responses. The broader linkages within the economy were chosen because employment also analysed. Indices of vulnerability were also generated, which is a major priority in South measured the severity of these different effects and showed which Africa’s development and kinds of jobs would be affected and for whom. economic policy, and is consid- The study did not however stop at generating numbers. It also ered to be a particularly critical sought to inform the development of policy responses. Having vulnerability that could be identified which sectors or sub-sectors needed special attention, severely worsened by climate the next stage focused on informing the development of Sector Job change. One of the key goals Resilience Plans. These are public sector programmes which aim to of the National Climate Change incentivise employment creation for sectors that are most vulner- Response is to reduce the im- pact of job losses and promote ...contd. overleaf Case study 31 South Africa 2 EbA valuation case studies ...contd. Which methods were used? job creation, for example able to climate change, and to support the creation of sustainable through using adaptation investments and jobs. Based on the information yielded from the actions to new jobs to which vulnerability assessment on potential gainers and losers (both from workers can migrate from climate change impacts, and from the measures that might be used affected sectors. Job creation and loss is also one of the to mitigate and adapt to them), the study now focused on policy core indicators in the national responses to enable affected workers to shift jobs. It investigated climate change monitoring and mechanisms for enhancing the job-creation potential of adaptation evaluation system. and mitigation interventions. The work was led by the Department of Environmental Affairs (DEA) in partnership with the Economic Development Department (the section of the South African government responsible for economic policy, planning and development). Technical support was provided by a multidisciplinary team of national consultants, consisting of economists and climate change experts. The study was carried out over the course of a year. How were the results disseminated and what was their impact? The key findings of the study were that climate change is likely to give rise to significant employment effects in the South African economy, particularly affecting agricul- ture, coal mining, water, electricity and Climate change may gas sectors. While these outcomes were have considerable not unexpected, the value of the study was that it provided concrete figures and employment effects ‘hard’ evidence. It also provided a more nuanced understanding of these job im- pacts (for example, that grape-growing showed a much higher vulnerability than other agricultural sub-sectors, or that changes in crop-growing po- tential would have further, knock-on effects on the consumption of fertilisers and other agro-chemicals). The data also showed that adaptation measures would likely have positive consequences for employment. The anticipated contribu- tion of ecosystem-based approaches was identified to be particularly high, both in terms of the number of jobs created and in their po- tential to absorb unskilled or rural workers who might be displaced through climate-change impacts on farming and mining. Case study 31 South Africa 3 EbA valuation case studies How were the results disseminated and what was their impact? This study was carried out as The findings have so far been presented only as a written report, part of the Climate Support aiming to provide information to the Department of Environmental Programme, funded by the Affairs and Economic Development Department that can be used in German Federal Ministry for wider discussions with other decision-makers from affected sectors, the Environment, Nature Con- including representatives from trade unions, companies and busi- servation, Building and Nuclear nesses. A series of multi-stakeholder forums are planned to share Safety (BMUB) under the In- these findings. At the time of compiling this case study, the draft ternational Climate Initiative report had only just been released, and the process of dissemination (IKI), and carried out in part- had only just commenced. nership between GIZ and the South African Department of Environmental Affairs (DEA). This programme supports the government of South Africa in implementing its national climate policy and playing a leading role in international climate negotiations. What are the key insights and For further information see lessons learned on valuing https://www.giz.de/en/world- EbA-relevant benefits? wide/17807.html One key lesson learned from the study was that the process of design, data collection and analysis often takes much longer than planned. The topic it addressed represented a completely new area of study in South Africa, for which no prior methodology or case history existed. The process of coming up with a methodology Study covered an and set of indicators that were technically sound, relevant and credible to decision- innovative area of makers, and could be accomplished on expertise in RSA the basis of existing data, was not an easy one. In particular, early parts of the study required lengthy discussions about what the study focus would be, and how the study should be carried out. Another important realisation was that information on the employ- ment effects of adaptation measures is still patchy and partial. Ad- aptation plans are only in the early stages of being initiated. It will probably be necessary to update the study once these programmes and projects have progressed further, and have generated more on- the-ground data. Case study 31 South Africa 4 EbA valuation case studies EbA Bibliography This case study is based on informati- on provided by Hugo Van Zyl (Director valuation and Lead Consultant, Independent Economic Researchers). case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye South Africa Case study 32 Cost-effectiveness analysis to value rangeland rehabilitation measures in Namaqualand, South Africa This case study describes efforts to assess the relative desirability EbA of rangeland rehabilitation as compared to other grey and hy- brid adaptation measures to control erosion an floods in South Africa. It aimed to provide an evidence base which could be used to make the case to support the implementation of ecosystem- based adaptation strategies. Cost-effectiveness analysis was used to value the different adaptation measures in terms of their im- pacts on rangeland productivity, livestock production and dam- valuation ages to road infrastructure. case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The three adaptation options considered were an engineering sce- assess the cost-effectiveness nario (all roads would be upgraded, but fodder assistance would of climate adaptation mea- continue to be provided to livestock), EbA scenario (a quarter of sures based on undertaking rangelands were rehabilitated) and a hybrid scenario (fifty percent rangeland rehabilitation for of roads would be upgraded and fifty per cent of rangelands would erosion control in Namaqual- be rehabilitated). The continuation of the status quo reflected exist- and, South Africa. This sought ing infrastructure and fodder assistance. to address two notable climate change vulnerabilities in the Each scenario implied differential levels local municipalities: the det- of costs for road construction and main- rimental impact of floods and tenance, rehabilitation maintenance, as Less erosion — soil erosion on road infra- struct-ure, and a reduction well as the provision of fodder assistance less cost for road to livestock. Under the EbA and hybrid construction and in rangeland productivity and scenarios, road maintenance costs would thus livestock production. maintencance decline due to a reduction in erosion and The study compared three flooding, fodder assistance would reduce packages of adaptation mea- or become unnecessary, livestock productivity would increase as a sures combining different com- result of improved water availability and plant cover, and ecotour- binations of green and grey ism co-benefits would be generated. The engineering scenario would options with a continuation of see opposite trends, with increases in road maintenance and fodder the status quo. The basic aim assistance costs, coupled with reduced livestock productivity. The was to provide an evidence cost effectiveness analysis came up with net present value (NPV) base which could be used to estimates as well as least-cost indicators. make the case to support the implementation of ecosystem- The study was based primarily on secondary data, sourced from based adaptation strategies. consult-ing technical heads of local municipalities, experts of related fields, and the available documentation and literature. It was carried out by an expert consultant on behalf of Conservation South Africa. Case study 32 South Africa 2 EbA valuation case studies What were the findings? The study found that none of the adaptation options were cost- effective. All of the scenarios considered returned negative net pres- ent values with benefit:cost ratios of less than one. The lowest cost option was a continuation of the status quo, while the full ecosys- tem-based adaptation option was the most expensive. Despite these results, the study recommended that investments should be made in the hybrid scenario, or some variation of it, to address both the ecological and socio-economic needs of the study area. Livestock is of key importance to Namaqualand's local economy, and the biodi- versity in the area is globally significant. Any further decline in these important assets will incur considerable costs to repair, underlining the importance of taking proactive steps to curb land degradation before it progresses and is intensified under conditions of future climate change. A key message from the study is that even when adaptation is not cost-effective, and EbA is the more expensive than grey options, there is still a broader social, economic and environ- mental justification for taking action. EbA valuation case studies Case study 32 South Africa 3 EbA valuation case studies Bibliography De Villers, A. (2013) Ecosystem-based EbA valuation Adaptation to climate change in Namaqualand, South Africa. Cost- effectiveness of rangeland rehabili- tation for erosion control. Technical Report prepared for Conservation South Africa, Cape Town. http://www. conservation.org/publications/Docu- ments/CI_Ecosystem-based-Adapta- tion-South-Africa-Cost-Effectiveness- Rangeland-Report.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Sudan Case study 33 Simplified cost-benefit analysis techniques to evaluate drought- related disaster risk reduction measures in Sudan This case study measured the costs, benefits and impacts of EbA drought-related disaster risk reduction measures in Sudan. Sim- plified, rapid cost-benefit techniques were used to weigh up the physical costs and outputs from interventions, and show their relative return on investment. Quantitative and qualitative com- munity-based indicators of resilience were also developed. The aim was to evaluate the site-specific effects as well as to con- tribute towards global efforts to improve disaster risk reduction valuation performance measurement and impact analysis. case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study considered a variety of disaster risk reduction measures assess the economic efficiency that had been implemented in Red Sea State. These included hand- and community resilience pumps, wells, underground rain water storage reservoirs (hafirs), impacts of drought-related di- earth dams, embankments and terraces, as well as ‘soft’ measures saster risk reduction measures such as agricultural livelihood diversification, construction of class- undertaken in Sudan’s Red Sea rooms and health centres, support to education and women’s cen- State. It involved a qualitative tres. This study had three stages or components. The first observed examination of intervention the impact of the interventions undertaken, the second attempted impacts, monetary cost-benefit to undertake a cost benefit analysis to determine whether the in- analyses and the development terventions undertaken were economically efficient, and the third of community-based indica- determined community based indicators of resilience by engaging tors of resilience. Together, with local beneficiaries. these three tools can provide First of all, the impacts of the interventions were assessed by con- a relatively holistic and bal- ducting field visits involving observations, key informant interviews anced picture of the local-level and focus group discussions. Then, simple cost-benefit analyses effects and performance of were carried out, relying data that were readily-available at the local disaster risk reduction mea- level or from secondary sources. These involved comparing the ef- sures. fects of drought hazards on the community under ‘with project” and The study aimed to generate ‘without project’ situations. project-specific information on Mainly because of data constraints, it was however only possible qualitative and quantitative to do a cost-benefit analysis of four interventions: terraces, earth aspects of the extent to which dams and embankments, community vegetable gardens and hafirs. a given set of disaster risk re- The direct physical costs of constructing and maintaining the mea- duction interventions had con- sure as well as the material benefits and damages avoided were tributed towards reducing the calculated. These included, for example, increased income and vulnerability of the indigenous reduced food and medical expenditures arising from enhanced and nomadic Beja pastoralist com- more secure crop production, time and munity to recurrent droughts, cost savings permitted by more accessible and had assisted in building their resilience to disasters by water sources, increased herd productivity Five indicators to and reduced mortality resulting from new protecting community assets. measure community livestock watering points. Each calculation At a more global level, it was resilience generated a benefit-cost ratio, showing the also intended to contribute to amount of benefits that had been gener- an effort across the Interna- ated for each unit of expenditure made. tional Federation of Red Cross and Red Crescent Societies The study team also identified, through consultations and dialogues (IFRC) to improve disaster risk with the beneficiary population, five context-specific indicators of reduction performance mea- community resilience which could be measured through either quan- surement and impact analysis. titative or qualitative means. The first indicator selected, terms of trade, was measured via the ratio of sale of livestock to purchase of cereal grain. The second, involuntary slaughter of animals, was measured against a reference point of no slaughter of animals apart Case study 33 Sudan 2 EbA valuation case studies EbA Which methods were used? from social and religious occasions. The third and fourth quantitative indicators were rates of household migration to urban centres and the ratio of the casual labour wage rate to cereal purchase price. The fifth indicator, ability to meet social obligations, was purely qualitative. valuation What were the findings? The cost benefit analysis provided ample economic justification for the disaster risk reduction interventions studied. It indicated that case studies these measures were economically efficient, with benefit to cost ratios of 2 or more. This provided a quantitative, monetary metric that had previously been lacking to judge the success and impact of disaster risk reduction interventions. The study also showed the importance of incorporating community perceptions Study showed how and ownership of the results. By develop- ownership of the ing context-specific indicators of com- munity resilience, it offered a means of results is essential representing local needs, aspirations and goals in the project design and evaluation process. The community-based indicators allowed for local-level perceptions of costs and benefits to be weighed up against those used by project devel- opers and implementers in cost-benefit analysis calculations. The study also revealed the difficulties of comparing cost efficiency between different disaster risk reduction measures. This is a par- ticular challenge in integrated multi-sectoral programming, because individual measures are designed to work together, in tandem, towards the overarching goals of reduced vulnerability and improved resilience. It is much easier (and in most cases more useful) to measure the cost efficiency of the whole package of interventions. Despite the advances made in measuring and quantifying the costs and benefits of disaster risk reduction interventions, the study was unable to quantify most social impacts. This is because social ben- efits typically have a non-tangible nature, and are often transmitted outside of the direct beneficiary community. This makes it difficult Case study 33 Sudan 3 EbA valuation case studies What were the findings? to track their effects and economic value. For example, as is often the case with rural communities, Beja pastoralists rely heavily on social obligations and kinship networks for their survival, especially in times of stress and emergency. Many respondents suggested that their ability to draw on social obligations was the fundamental determinant of their ability to prepare for and cope with risk and disasters. Bibliography EbA valuation Khogali, H. and D. Zewdu (2009) Impact and Cost Benefit Analysis: A Case Study of Disaster Risk Reduction Programming In Red Sea State, Sudan. Sudanese Red Crescent Society, Khar- toum. http://www.preventionweb.net/ files/globalplatform/entry_bg_paper~ sudanredseaimpactandcostbenefitana- lysis2009.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Tanzania, Indonesia Case study 34 Technical suitability and physical impact assessment of community- level flood adaptation measures in Tanzania and Indonesia This case study describes a study carried out to measure the tech- EbA nical suitability and physical effectiveness of community-initiated flood adaptation interventions in informal urban settlements in Tanzania and Indonesia. The methodology combined qualita- tive and quantitative techniques to investigate and measure the extent to which adaptation measures conformed to engineering standards, and were effective in protecting against flood impacts. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study sought to answer four basic questions, namely: Are there assessing and comparing the adaptation strategies at household level? Are adaptation strategies technical suitability of adap- employed by households technically suitable? What factors con- tation strategies to flooding tribute to technical suitability not being achieved? How do different in the informal settlements adaptation strategies compare in terms of relevance to flood risk re- of Surakarta, Indonesia and duction? And how might adaptation strategies in flood-prone urban Dar es Salaam, Tanzania. This informal settlements be improved? was because many informal settlements in Indonesia and First of all, the study sites were selected in each city. Five crite- Tanzania (as in other develop- ria were developed in order to identify and select cases that were ing countries) are located in suitable for conducting the study. These high risk areas (for example were: existence of informal housing devel- deep gullies, river banks opment, settlements traversed by rivers, Formula helps and low-lying lands such as settlements that experienced the problem floodplains and wetlands). An of intensified flooding over time, residents determine adequate approach combining dialogue, who demonstrated effective responses for size of samples observation and physical mea- containing flooding and settlements which surements was employed to needed critical intervention in terms of gauge the physical effective- flood control measures. Then the sample ness and benefits of different of households to be surveyed was determined using qualitative flood adaptation interventions procedures, which were then checked with a mathematical formula undertaken by communities designed to establish whether or not the determined sample size themselves. was adequate and representative. This resulted in a sample size of The aim of the study was to 70 households in each study site. provide an answer to why the vulnerability of people The study was based mainly on qualitative assessment methods. and properties in informal These included household interviews, mapping, physical observa- settlements is increasing, even tions (involving visual inspections for signs of damage and deterio- though residents have taken ration such as cracks and dampness), photographing and in-depth to the use of various struc- interviews with selected respondents. Household interviews were tural adaptation strategies as held with flood victims to identify which adaptation strategies were a means of reducing impacts being used, as well as to establish whether or not technical factors of flooding. By doing this, it (for example the use of experts, flood damage-resistant materials, sought to make recommenda- standard measurements and proper maintenance) had been incor- tions and enhance awareness porated into the design and implementation of the flood protection amongst residents, public structures. The only quantitative assessment technique was to take organisations and government simple measurements of the structural height of retaining walls, agencies about viable options plinths, raised pit-latrines, raised foundations and raised stairs. for mitigating flood-related risks and improving adaptation The study identified a number of adaptation strategies that local strategies in urban informal residents had chosen to apply to protect against flooding, compris- settlements. Another impor- ing both structural and non-structural measures. These included tant aspect that that study the use of sandbags, protective walls, raised foundations and stairs, sought to fill a key information placing properties over blocks or raised plinths, use if water-resis- gap: the dearth of technical tant materials, elevated pit latrines, boiling and chemical treatment information on the physical benefits of flood adaptation strategies in informal settle- ments. Case study 34 Tanzania, Indonesia 2 EbA valuation case studies Which methods were used? of drinking water, seasonal migration, the use of manual drainage and outlet pipes. Various verbal, visual and written information was collected about these different adaptation strategies and how they had been undertaken. Measurements of the structural height of flood control structures were taken for retaining walls, plinths, raised pit-latrines, raised foundations and raised stairs. The technical suitability of these dif- ferent adaptation strategies to protect against flooding was then assessed – in other words the extent to which they met formal engineering criteria. This was measured via a series of indicators of biophysical effectiveness and benefit, including the use of experts or professionals in design and construction, use of flood damage- resistant building materials, use of standard measurements (such as height in relation to base flood elevation) and proper maintenance. What were the findings? EbA The study found that in both sites, flood mitigation and risk mini- misation interventions through structural adaptation strategies were ineffective in technical terms. The measures were constructed with little or no attention to acceptable technical considerations. There was limited or no use of experts for structural design, and the choice of building materials and construction techniques did not meet basic flood control specifications. valuation Financial constraints were identified to be a major factor contribut- ing to this situation. The decisions made by flood victims to employ adaptation measures of different standards depend on their level of income and the construction cost. With limited financial resources, priority is normally given to other, more immediate needs, such as food, education and health. For most people in informal settlements, little money remains for investing in flood control infrastructure. In addition, at the institutional and capacity level, both countries face critical shortages of trained workers on disaster issues. Lo- cal bodies or committees for disaster management – where they case studies exist – were generally not adequately equipped to deal with either preventing or dealing with the effects of flooding and other extreme weather events. Consequently, flood victims did not get sufficient Case study 34 Tanzania, Indonesia 3 EbA valuation case studies What were the findings? help and guidance in dealing with flooding situations nor did they receive guidance and education about the most effective adaptation strategies. Bibliography Sakijege, T., Sartohadi, J., Marfai, M., EbA valuation Kassenga, G. and S. Kasala (2014) Assessment of adaptation strategies to flooding: A comparative study between informal settlements of Keko Machungwa in Dar es Salaam, Tanzania and Sangkrah in Surakarta, Indonesia. Jàmbá: Journal of Disaster Risk Studies, Vol 6, No 1. http://www. jamba.org.za/index.php/jamba/artic- le/viewFile/131/262 case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Thailand Case study 35 Biophysical and economic evaluation of climate adaptation options in Thailand’s watersheds This case study describes biophysical-economic evaluations of EbA climate adaptation options at the watershed level in two of Thai- land’s key river basins. The focus was on assessing the potential of ecosystem-based approaches to protect against extreme weather events, as compared to conventional ‘grey’ options. The aim was to support local water planners and national decision-makers to design and implement effective measures for the prevention of flooding and drought in the face of climate change. valuation case studies Published by What was being measured, and why? Which methods were used? This sheet reports on studies The studies had three, iterative, components: biophysical vulnera- to assess the biophysical and bility analysis, scoping of engineering design options, and economic economic value of alternative appraisal of costs and benefits. The vulnerability analysis looked at climate adaptation measures the biophysical characteristics of each basin (including land use, soil in two key watersheds in Thai- characteristics, natural ecosystems, meteorology, hydrology, water land: the Huai Sai Bat River use, infrastructure, demography and existing water resources engi- sub-basin in Khon Kaen Prov- neering). Using secondary data and field observations, it traced the ince and Tha Di basin in Na- proximate to the root causative factors behind the priority concerns khon Si Thammarat Province. to be addressed, and proposed options for potential policy interven- The proposed interventions tions. Leading on from this, engineering design studies were carried aimed to minimise the effects out to preselect potential adaptation measures and locations across of extreme weather events the whole river basin. such as floods, low river flows and droughts. Various ecosys- Economic evaluations then took up the identified EbA measures as tem-based approaches were well as the ‘business as usual’ grey engineering options that were considered, including the man- already being implemented in the pilot river basins. In the Huai Sai agement of natural floodplains Bat basin, water scarcity during the dry and wetlands as silt traps, season was considered a major threat, and living weirs, riparian zone a comparison was made of natural flood- Study considered conservation as well as erosion plain and wetland-based sediment traps, ri- parian zone improvements and convention- six grey and green control and forest rehabilita- al dredging techniques. In the Tha Di basin adaptation measures tion in upstream areas. These were compared with the grey the main challenges were flooding during measures specified in existing the rainy season, water scarcity during the river basin and infrastructure dry period and water quality deterioration plans, such as physical control due to human activities. Six different grey and green adaptation structures and dredging. measures were considered, including living weirs, flood control with wetland development, constructed wetlands, riparian zone improve- The reason for carrying out ment, concrete weirs and a wastewater treatment plant. the studies was that local water management institutions Three economic appraisal techniques were used: least-cost analysis, lacked technical capacity and cost-effectiveness analysis and cost-benefit analysis. First the direct innovative concepts to address investment and recurrent costs of each adaptation measure were extreme weather events in an calculated, using actual market prices. This enabled a least-cost effective, low-cost manner analysis to be carried out which showed which intervention options that can also generate broader were the cheapest to implement. Next, benefit data was computed, benefits to society and the using a combination of market prices, effects on production and economy. Water-providing and damages avoided valuation techniques. This looked at the benefits regulating ecosystem services (or avoided damages) associated with each adaption option in offer a set of untapped adapt‑ terms of changes in water quality and supply as well as crop yields ation potentials which in many and income. The broader ecosystem service co-benefits from the cases outperform more con- selected EbA measures were also estimated, using benefit transfer ventional grey engineering op- techniques calculated for each hectare of wetlands and forests. tions in terms of both technical and economic performance. ...contd. overleaf Case study 35 Thailand 2 EbA valuation case studies Which methods were used? ...contd. Various scenarios were developed, representing different combina- tions of ecosystem-based and grey engineering measures. A time The studies sought to make horizon of 25 years was considered, and a discount rate of 3 per the case to provincial and cent was applied to future cost and benefit streams. Cost-benefit national decision-makers for analysis were carried out to indicate net present values and cost- investing in ecosystem-based benefit ratios, as well as show annual and overall costs avoided, and adaptation options. The target cost advantage per 1 m3 of water (cost-effectiveness). audience included the Depart- ment of Water Resources and The vulnerability analyses and scoping of engineering design op- the Royal Irrigation Depart- tions took around six or seven months in each site, while the two ment, as well as farmers and economic appraisals were carried out together over a period of six the general public in the dem- months. Both involved international consultants, working with Thai onstration sites. and German Universities and technical counterparts from govern- ment partner agencies. A diverse range of expertise was involved, including economists, hydrologists, climate change experts, water planners, private sector, engineers, civil society. How were the results disseminated and what was their impact? The overarching finding of the studies was that a number of technically- feasible EbA options existed for each basin, which could help to address the identified needs to protect against extreme weather events, and which also made sense in economic terms. For example, in the Huai Overall costs for Sai Bat basin the overall costs for water stor- water storage could age could be reduced by up to 65%, and in the be reduced by 65% Thad Di basin EbA options displayed benefit:cost ratios over 25 years of between 2 to 6 as com- pared to 1.4 for a conventional waste water treatment plant. Results were shared through both Thai and English language reports and verbal briefings. Both national and regional events were organised to discuss and disseminate the study findings, involving an estimated 2,000 participants. As the study took place as part of a longer-term project, based within the Department of Water Resources and Royal Irrigation Department, there were also many opportunities to communicate and learn on a day-to-day basis, and to influence ongoing decision-making processes. Case study 35 Thailand 3 EbA valuation case studies How were the results disseminated and what was their impact? The project “Improved man- Initially, there was less interest in the findings of the cost-effec- agement of extreme events tiveness analysis and cost-benefit analyses. Efforts were therefore through ecosystem-based made to make the results more relevant and applicable to decision- adaption in watersheds (ECO- makers’ priorities, mandates and concerns, by communicating the SWat)” is implemented by GIZ implications in terms of the effects of different adaptation options on in partnership with the Depart- water costs and on economic damages and losses. This also helped ment for Water Resources of to foster a much greater sense of institutional ownership over the Thailand. It is funded by the study findings in the Department of Water Resources. German Federal Ministry for The studies helped to convince decision-makers of the gains from the Environment, Nature Con- investing in natural solutions, and the Royal Irrigation Department servation, Building and Nuclear has now officially changed their strategy to accord a greater priority Safety (BMUB) under the In- to EbA measures. Reviews are being undertaken of existing plans ternational Climate Initiative for grey engineering projects, with the aim of integrating green (IKI). The project operates in measures. However, at the regional level, water and infrastructure two pilot watersheds that are planning is still carried out based on grey measures. It will take threatened by the impacts of time to extend and deliver this strategy, and to move from a policy climate change. To improve statement to the level of actual implementation. adaptive capacities in the two watersheds, the project ad- vises experts from government bodies and universities on how to combine their knowledge, What are the key insights and activities and sources of infor- lessons learned on valuing mation. The involvement of EbA-relevant benefits? the local population in stake- holder platforms ensures their inclusion in the process. The A key aspect of the studies was the fact that they were both itera- project is implementing inno- tive and integrated, and dealt with biophysical, engineering and vative ecosystem-based ad- economic aspects of adaptation planning and design. Each of these aptation approaches, comple- components fed information into the next stage of the process: for mented with training courses. example the engineering design was based on the findings of the Building on the experiences vulnerability assessments, while the cost-benefit analysis weighed gained in the pilot watersheds, up the economic implications of the different design options that these approaches are had been proposed. This meant both that being fed into national each stage of the integrated assessment strategies and policies. was well-informed and well thought- Study could convince through, and that the overall study was For further information because it was rooted directly rooted in tangible solutions. As see https://www.giz.de/ in tangible solutions such, it was possible to present a strong en/worldwide/29951. and convincing case for EbA to decision- html, http://ecoswat- makers from different sectors and agen- thailand.com/ cies. Often, evaluations of adaptation options look only at social, technical or economic feasibility and impacts, and remain largely hypothetical: they do not give this kind of holistic, practice-oriented picture. Case study 35 Thailand 4 EbA valuation case studies What are the key insights and lessons learned Bibliography on valuing EbA-relevant benefits? This case study is based on infor- Another important lesson concerned the need to tailor valuation mation provided by Roland Treitler approaches and methodologies to the practical purpose of the (Project Director, GIZ-ECOSWat) study, the context in which it is being carried out, and the decision and presented in the following (and decision-makers) that it aims to influence. This learning arose documents: particularly in relation to the economic component of the study. The initial approach was based on prior experiences and applications ITTrms (2016) Economic Evalua- in Germany, and focused on national measures of Gross Domestic tion of Proposed Ecosystem-based Product (GDP). The on-the-ground conditions and priorities in rural Adaptation Measures in Tha Di Thailand however proved to be very different, demanding a set of and Chi River Basins. Report to approaches and indicators that were geared to the local context. GIZ project “Improved Manage- Coming up with a meaningful, convincing approach and data re- ment of Extreme Events through quired detailed expert consultation and dialogue at the community Ecosystem-based Adaptation in level. Watersheds (ECOSWat)” by ITTrms e.V., Cologne. http://ecoswat- thailand.com/download/itt_eco- swat_economicevaluation_finalre- port_16022016.pdf Lohr, H. (2015) Pre-selection and EbA Preparation of Ecosystem-based Measures in the Pilot Areas Huai Sai Bat and Tha Di for discussion and final decision-making in col- laboration with local water com- mittees. “Improved Management of Extreme Events through Ecosys- tem-based Adaptation in Water- sheds (ECOSWat)” project, GIZ and valuation Department of Water Resources, Bangkok. http://ecoswat-thailand. com/download/2015_05_25_eco- swat_eba_preselectionreport.pdf Lohr, H. (2015) Vulnerability analy- sis for the river basins of Huai Sai Bat, Tha Di and Trang. Improved Management of Extreme Events through Ecosystem-based Adapta- tion in Watersheds (ECOSWat)” case studies project, GIZ and Department of Water Resources, Bangkok. http:// ecoswat-thailand.com/down- load/2015_01_16_ecoswat_vul- Published by On behalf of the Federal Ministry for Contact the Environment, Nature Conservation, Dr. Arno Sckeyde nerabilityanalysis_finalreport.pdf Building and Nuclear Safety (BMUB) Deutsche Gesellschaft für Inter- nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author Treitler, R. (2016) Economic GmbH Lucy Emerton Use of Natural Resources benefits of EbA measures to assure Global Project „Mainstreaming Addresses of the BMUB offices: water security case study: EbA sed- Layout EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula iment trap versus dredging. Paper Based Adaptation in Planning and Decision Making Processes“ Robert-Schuman-Platz 3, presented at conference on Water As at 53175 Bonn, Germany Security and Climate Change: Heinrich-von-Stephan-Straße 7-9 December 2017 BMUB Berlin: Challenges and Opportunities in 53175 Bonn, Germany The geographical map is for Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only Asia, Bangkok. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Uganda Case study 36 Cost-benefit analysis of farm-level adaptation measures in Uganda This case study involved an economic assessment of different EbA project options for farm-level adaption measures addressing crop production, livestock production and water management. It used standard cost-benefit analysis techniques. The aim was to assist in prioritising the interventions according to their relative eco- nomic viability and profitability under different climate futures. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The first stage of the analysis was to choose the adaptation options appraise alternative farm-level that would be subjected to economic anlaysis. These were selected adaptation options in Uganda, according to a list of criteria relating to their relative costs, benefits, comprising various climate- community acceptability and long-term applicability as well as data smart measures and associat- needs and availability. This yielded a list of nine priority interven- ed water management prac- tions: cover crops, agroforestry and climate-smart agriculture for tices. This built on the findings Coffea arabica, improved maize varieties, improved rice varieties, of an earlier vulnerability improved cassava varieties, improved beans varieties, zero grazing assessment that had been livestock production, water harvesting and low cost drip irrigation carried out to identify potential adaptation options in Uganda’s systems. agriculture, water and the The methodology was based on a conventional financial cost-benefit environment sectors. It car- analysis approach. It considered four climate/adaptation scenarios: ried out cost-benefit analyses without climate change or adaptation (the ‘business-as-usual’ to assess the net benefit and return on investment for these baseline), with climate change and without adaptation, with cli- different measures. The aim mate change and adaptation, and without was to assist in prioritising climate change but with adaptation. First the interventions according to of all, current and future costs and benefits were modelled for each of these scenarios. Benefit:cost ratios their relative economic viability and profitability under differ- Next, these streams of costs and benefits for each option under ent climate futures. were discounted to give present value esti- different scenarios mates and benefit:cost ratios for each ad- aptation option under different scenarios. Finally, the findings were brought together and synthesised, and potential impacts of non-quantified costs and benefits were described. For the crop and livestock interventions, estimates of baseline ‘business-as-usual’ costs and benefits were based on actual data on production, yields, prices and farm budgets. Climate change impacts on crop yields were taken from four climate models (CNRM, CSIRO, ECHAM and MIROC) for the A1B emissions scenario only. For live- stock production, climate impacts were estimated based on informa- tion provided in other studies. The incremental impact of the new varieties or techniques introduced under the adaptation interven- tions on inputs, yields, costs and income were assumed based on field visits made under the study as well as secondary field trial and survey data. Data on the direct costs of implementing the specified adaptation intervention, including ‘soft’ measures (such as train- ing), were taken from other projects as well as budgets constructed under the current study. For water harvesting, water was valued at market price, and additional value of time calculations were incorpo- rated to account for improved access to a nearby water source. Case study 36 Uganda 2 EbA valuation case studies What were the findings? Although all of the adaptation options assessed were profitable in the sense that the benefits generated outweighed the costs in- curred, the study underlined that their eco- nomic viability varies both with and without climate change. Most of the interventions Cassava shows assessed were robust in the face of climate particularly high change, and many were shown to be both benefit:cost ratio viable and profitable even under a continua- tion of current conditions. Improved variet- ies of maize and rice and, to a lesser extent, cassava showed particularly high benefit:cost ratios. Drip irrigation also returned a favourable result, with the added advantage of being able to combine with providing water during periods of drought. EbA valuation case studies Case study 36 Uganda 3 EbA valuation case studies EbA valuation Bibliography Baastel (2016) Cost Benefit Analysis (CBA) of Climate Change Adaptation and Prioritization in Agriculture, Envi- ronment and Water Sectors in Uganda. CBA Case Studies Report. Submitted to Food and Agriculture Organisa- tion of the United Nations (FAO) Le Groupe-conseil baastel sprl, Brussels. case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye United Kingdom Case study 37 Bayesian Belief network to assess the water quality and flood mitigation benefits of riparian buffer strips in the UK This case study describes the application of a Bayesian Belief EbA Network approach to assess the effectiveness of different riparian buffer strip management options in delivering water quality and flood risk mitigation services in the UK. The aim was to develop and demonstrate the ecosystem approach via a joint model which integrated biophysical and socioeconomic aspects, and was geared towards generating results that are of use to decision- making. valuation case studies Published by What was being measured, and why? Which methods were used? This study developed an The study uses a Bayesian Belief Network approach, a graphical ecological-economic model representation of a probabilistic dependency model which describes based on the application of the probability of an outcome occurring by considering both the pro- a Bayesian Belief Network to cess that leads to that event and the state of information describing assess and value the delivery the process. It assigns subjective probabilities to express a degree of water quality and flood risk of belief in events (and thus particular outcomes) occurring, thereby mitigation services from ripar- offering a framework into which decision-makers, beneficiaries or ian buffer strips. It was used other stakeholders can input their knowledge, and assess the impli- to explore the effectiveness of cations for the rest of the (linked) system. different agricultural land man- In this study, the model was developed through a series of work- agement options at a regional shops held under the UK Valuing Nature Network, involving natural scale in the East and West of and economic scientists interested in identifying approaches for England. valuing the provision of ecosystem services across agricultural and The study explicitly sought to aquatic ecosystems. These resulted in the choice to focus on water respond to the complexities quality and flood risk mitigation as two and interdependencies among high-profile services which are a particular components within and be- concern of the European Water Framework tween ecosystems which make Directive and Floods Directive. Buffer strips Study lined up with describing and quantifying were identified as a relevant management priority concerns of their interactions a consider- instrument, already widely employed in European Directives able challenge. It also recog- the UK through various agri-environment nised that there was a need schemes for the delivery of these two ser- for methods which recognised vices. that policy decisions affecting The first workshop included a broad group of science and policy any part of those interactions, stakeholders, and produced a complex mapping of ecosystem pro- be they economic or ecologi- cess and service linkages for services in agricultural and freshwater cal, can cause changes across systems. A second, smaller, workshop then focused on the specific multiple services and ecosys- management intervention of riparian buffer strips on agricultural tems. By capturing the inter- land, and explored the use of a Bayesian Belief Network approach to actions underlying ecosystem model the interactions between improving water quality and miti- processes and the delivery of gating flood risk. A final workshop was held to review the model and services, the study attempted explore how it could be further developed to integrate a valuation to demonstrate and further component and include a wider range of socio-economic drivers. operationalise an ecosystem services approach within a First of all, a conceptual model was constructed to specify the joint model which integrated cause-and-effect relationships among the system components. The biophysical and socioeconomic objectives (the physical output nodes) of the model were defined; in aspects and was geared to- this case: flood risk and water quality. The policy tool (buffer strip wards generating results that node) was also described. Various other system variables and inter- are of use to decision-making. relationships were elaborated, grouped into four categories: states of nature, terrestrial processes, management interventions and aquatic processes. The Bayesian Belief Network was then created Case study 37 United Kingdom 2 EbA valuation case studies Which methods were used? using Netica software, and was further developed to include deci- sion, nature and utility nodes. The next step was to populate each conditional probability table with probability values. This involved evaluating general patterns of riparian ecosystem functioning relevant to buffer strips, based on data drawn from the literature and from expert knowledge. A satisfaction or utility index of between 0-100 was constructed which showed the benefits associated with different com- Utility values binations of states for the flood risk and enable prioritization water quality outcomes. The model was of solutions then compiled and the decision network ‘solved’, showing the satisfaction or utility values associated with each management action, and allowing the ‘optimal solution’ to be identified. For each land use and buffer strip management op- tion a utility score was calculated as the sum of utility values associ- ated with each combination of flood risk and water quality outcome, EbA multiplied by the probabilities of those outcomes occurring. Alternative scenarios relevant to the East and West of England were developed, offering contrasting climatic, topographic and land use conditions. Three scenarios were examined relative to ‘no buffer strips’ (the status quo or baseline): ‘grassland’, ‘natural vegetation’ and ‘mixed’. The results presented both the utility or satisfaction values associated with each of the scenarios for the different buffer valuation strip management options, and the changes in the probabilities of the management objectives occurring under each of these options. What were the findings? The study generated findings on two levels: conclusions about the effectiveness of different riparian buffer strip management options in delivering water quality and flood risk mitigation services in the case studies UK, and insights on the application of a Bayesian Belief Network to capture the interactions underlying ecosystem processes and the delivery of ecosystem services. All of the scenarios modelled indicated natural vegetation as the optimal buffer zone management practice on arable land. This held both scenario A, representing the East of England where there is low Case study 37 United Kingdom 3 EbA valuation case studies What were the findings? rainfall, light soils with high infiltration capacity and a relatively flat landscape, and for scenarios B and C, representing a higher level of overland flow. It is however for scenario C, representing the highest overland flow and steepest slopes, has the highest relative impact on utility as compared to the no action baseline (even though it is associated with the lowest absolute levels of utility). Two potentially important gaps in the model were highlighted. One was that it did not consider the costs or (perhaps more importantly) opportunity costs of the different buffer strip options. These would be needed to fully evaluate whether the gains in utility or changes in the probabilities of water quality and flood risk are sufficient to justify investing in particular land management interventions. The study also highlighted uncertainty as a major issue. This has par- ticular implications for the approach to valuation, especially where preferences might exhibit non-linearities or thresholds. The inter- action between probabilistic outcomes and the statistical nature of EbA valuation estimates suggests the need for further exploration of sensitivity in these kinds of models. Bibliography valuation McVittie, A., Norton, L., Martin- Ortega, J., Siameti,I., Glenk, K. and I. Aalders (2015) Operationalizing an ecosystem services-based approach using Bayesian Belief Networks: an application to riparian buffer strips. Ecological Economics 110: 15-27. http://nora.nerc.ac.uk/506020/1/ N506020PP.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye USA Case study 38 Contingent valuation techniques to measure the public benefits of wetland restoration in the USA This case study measures public perceptions of the benefits of EbA wetland restoration in the USA, and analyses these values by assessing their willingness to pay to mitigate the negative con- sequences of wetland loss. The aim was to overcome current methodological and knowledge gaps about the general public’s perceptions of wetland values, including storm protection, eco- system services and recreational benefits. The study demon- strates the importance of including public opinion, as well as valuation scientific ‘expert’ data, in coastal decision-making. case studies Published by What was being measured, and why? Which methods were used? This study was carried out to The study used a referendum-style contingent-valuation survey. investigate public perceptions Contingent valuation is a non-market valuation method that speci- of wetland restoration benefits, fies a good or service to be supplied at a payment, and asks respon- and analyse willingness to pay dents to choose between making this payment and continuing with for large-scale coastal resto- the status quo. ration in Louisiana, USA. It evaluates the extent to which A questionnaire was compiled containing 37 questions about general the general public is aware of awareness of wetland loss and restoration efforts, the perceived (and convinced by) the ben- relationship between wetland loss (and wetland restoration) and eficial functions of wetlands increased (decreased) storm risk, willingness to pay for wetland restoration, and assesses the restoration projects in Louisiana to prevent expected future losses, levels at which they are willing as well as individual demographic information. to financially support wet- Respondents’ willingness to pay for wetland restoration was elicited land restoration projects. This by asking them to vote on a proposed coastwide restoration proj- willingness to pay serves as ect to preventing expected future land losses in coastal Louisiana, an indicator of the value that which would involve a additional tax on the general public ascribes to households for the next 10 years (ranging maintaining wetland ecosys- between USD 50 to USD 1,189 per year, tem services. computed based on the actual costs of Survey explores The rationale for the study wetland restoration projects in Louisiana). readiness to pay spe- was that, although coastal Some respondents were also asked if they cial restoration tax wetlands have long been would be willing to accept a tax refund in recognised as one of the most lieu of the project going ahead. productive kinds of natural The survey was mailed to a random sample ecosystems because of the of 3,000 Louisiana households. Each questionnaire included a pre- services and functions they paid USD 1 cash incentive with the first mailing, and a replacement provide, they are particularly survey was sent 1 month later. This yielded 681 useable responses. vulnerable to the natural ef- Ordered probit and binary probit regression models were run to fects of erosion, subsidence, analyse the responses, and show the effect of different participant storms and hurricanes, and characteristics and variables. Welfare estimates were generated sea-level rise exacerbated by which expressed willingness to pay and willingness to accept com- climate change. To protect pensation. these valuable and vulnerable coastal areas, wetland restora- tion has been cited as a critical component of Louisiana’s com- prehensive coastal protection plan. Yet little or no research exists which investigates the general public’s perception of restored wetland benefits, even though it is perception that dictates people’s prefer- ences and behaviour. Decision- making continues to be in‑ ...contd. overleaf Case study 38 USA 2 EbA valuation case studies What were the findings? ...contd. formed mainly by ‘expert’ sci- That study found that the vast majority of respondents (about entific opinion. By making pub- 90 per cent) were aware of the wetland loss problem in Louisiana. lic benefits and values explicit, The most popular cause of wetland degradation was cited as be- and demonstrating a meth- ing the impact of storms and hurricanes, followed by subsidence/ odology that can be used to erosion, dredging of navigation channels, sea-level rise and oil/ assess them, the study aimed gas exploration. A reduction in hurricane protection functions was to fill this research gap, and perceived as the leading consequence of coastal wetland loss, fol- provide practical and relevant lowed by impacts on ecosystems/biodiversity and settlements/infra- information to coastal policy- structure. The majority of respondents (94 per cent) stated that the makers and planners. State of Louisiana should address wetland loss immediately. The analysis also indicated that the public perceives both a strong relationship between increased wetland loss and an increased storm risk, and a substantial likelihood of increased storm-protection benefits from wetland restoration. However, even though almost 90 per cent of respondents thought that there was a very or some- what strong relationship between wetland loss and increased risk of storm impacts, only 60 per cent perceived that wetland restora- tion could reduce tropical storm impacts “where they live”. Overall, more than three quarters of people surveyed were willing to pay for EbA Average household wetland restoration measures via an ad- ready to pay as ditional tax, regardless of their perceived much as USD 580 likelihood of storm protection benefits. The average willingness to pay was USD 580 per household per year, and aver- age willingness to accept compensation (through a tax refund) was USD 1,042. In total, this translates into an aggregate public value for wetland valuation restoration across Louisiana ranging from USD 0.4 billion to USD 4.1 billion. case studies Case study 38 USA 3 EbA valuation case studies EbA valuation Bibliography Kim, T. and D. Petrolia (2013) Public perceptions of wetland restoration benefits in Louisiana. ICES Journal of Marine Science 70(5): 1045–1054. https://academic.oup.com/icesjms/ article-pdf/70/5/1045/1811199/ fst026.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye USA Case study 39 Integrated biophysical and economic valuation to weigh up coastal adaptation options in the USA This case study investigates the effectiveness of different adapta- EbA tion options in addressing coastal erosion, flooding hazards and sea level-rise in the USA. An integrated valuation methodology was applied which combined hazard projections with biophysical modelling and economic analysis. The aim was to provide deci- sion makers in the region with the tools they need to compare a suite of possible adaptation strategies to combat accelerating coastal erosion in their jurisdictions. valuation case studies Published by What was being measured, and why? Which methods were used? This study provides a de- The analysis considered a variety of different sites, adaptation op- tailed, integrated analysis tions and climate/hazard scenarios. These were defined based on of the costs and benefits stakeholder input. These consultations resulted in the division of the of various different coastal study area into four reaches (based on geomorphology), within each climate change adaptation in of which a discrete shoreline management strategy was investi- the southern Monterey Bay, gated. Several different coastal protection measures were identi- USA. Physical process model- fied, both structural and non-structural (land use based), including ling projected how the coast beach nourishment, shoreline armouring, would change in response to the implement-ation of each of elevating infrastructure, property acquisi- these strategies, considering tion and conservation easements. Three Shoreline manage- different rates of coastal ero- to five of these adaptation intervention ment strategy ex- sion and flood hazards as well were assessed for each of the four study as sea level rise. The economic reaches. The analysis had two, sequential, plored in four reaches analysis then considered the components: physical process modelling market and non-market costs and economic cost-benefit analysis. Hazard and benefits arising from the projections and biophysical models were adaptation interventions, in- applied to each coastal reach, and economic analysis was carried cluding measuring the damag- out for each adaptation approach at each site. es avoided to grey infrastruc- ture, private and public assets, The first step was to examine the physical impact of different strate- commerce and industry, as gies, as well as of the baseline 'do nothing' situation. The response well as natural ecosystems. of shoreline change, beach width, coastal erosion and storm event The aim of the study was to hazards was modelled over time under a range of sea level rise pro- provide decision makers in jections (based on the high and medium projections recommended the region with the tools they in the IPCC Fifth Assessment Report, using time horizons of 2010, needed to compare possible 2030, 2060 and 2100). This allowed the dynamics of beach erosion, adaptation strategies to com- beach nourishment and other physical processes to be modelled. bat accelerating coastal ero- sion. It explicit-ly aimed to go The physical costs of implementing different adaption options were beyond conventional appraisal estimated using market prices and budgets from actual projects. and evaluation models which This incorporated a number of elements. For structural interven- consider only a very narrow tions, construction and maintenance costs were included for new range of direct, physical costs engineering measures, as well as the costs of structural modification and benefits and which there- of roads and buildings and replacement costs for any infrastructure fore may not give an accurate (such as sewer lines and pump stations) that would be damaged or picture of the relative viability and profitability of different have to be moved. For the land use-based alternatives, the costs adaptation options. The in- associated with the purchase of property or a right to that property tegrated model allows deci- were used. sion makers to compare how different adaptation strategies Benefits were calculated by looking at damage costs avoided. This will impact their jurisdiction was based on an economic analysis of the private and public proper- economically as well as physi- ty, infrastructure, recreational and ecosystem service values associ- cally. ated with the coastal and inland resources that would be affected by coastal hazards. This process was also informed by stakeholder con- Case study 39 USA 2 EbA valuation case studies Which methods were used? sultation, via a stakeholder workshop which asked participants to note areas, assets, and issues of particular concern on large maps of the study area illustrating sea level rise and coastal hazard flood- ing projections for 2100. An asset register was compiled, and GIS to evaluate the exposure of assets to coastal hazards described above, under current and future conditions, and under each adaptation scenario. The GIS analyses were used to develop an asset expo- sure inventory, to determine the timeline and ‚trigger points‘ where replacement would occur. The economic damages from storm events EbA were estimated using US Army Corps of Engineers (USACE) depth- damage curves, coastal erosion damages were estimated by relating the landward extent of erosion to the market value of the land and/ or structure at each exposed parcel. Losses to physical property and infrastructure (such as buildings, roads and water supplies) were valued at replacement cost, applying actual market prices. valuation What were the findings? The study demonstrated the value of taking a wide perspective, and of considering both biophysical and economic impacts, market and case studies non-market values. The analysis presented a much fuller picture of the consequences, strengths and disadvantages of alternative adap- tion interventions than do the methods that are commonly used by coastal planners. It showed that only considering the direct physical costs and benefits of coastal protection measures excluded a very large component of value, especially that associated with broader public benefits and ecosystem services. As such, this kind of ap- proach which integrates the economic value of property and grey infrastructure with estimates of the value of coastal recreation and ecology has far greater potential to lead to better-informed and more inclusive decision-making in coastal areas, which can serve the interests of a far greater proportion of the population. The specific results generated by the analysis for southern Monterey also called into question the conventional wisdom that coastal ar- mouring is the best response to coastal erosion. The study showed that when judged in these broader terms, coastal armouring was in Case study 39 USA 3 EbA valuation case studies What were the findings? fact the least economically-beneficial alternative, especially over the long-term. Rather, the scheduled nourishment option (which in- volves much smaller projects scheduled over a longer time period), showed the highest net present value and the greatest cost-effec- tiveness. EbA valuation Bibliography TNC (2016) Economic Impacts of Climate Adaptation Strategies for Sou- thern Monterey Bay. Report prepared for the California State Coastal Con- servancy by The Nature Conservancy, San Francisco. http://www.slc.ca.gov/ Info/AB691/2016_TNC_EconomicIm- pactsAdaptationSMontereyBay.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye Viet Nam Case study 40 Saved health, saved wealth approach to compare the benefits of coastal adaptation options in Viet Nam This case study describes how a “saved health, saved wealth” EbA approach was used to weigh up the benefits and impacts of grey and green coastal adaptation options in southern Viet Nam. Two alternative interventions were considered: a concrete dyke and mangrove rehabilitation. The methodology compared economic assets and life expectancy under a baseline business-as-usual scenario with the economic damages, illnesses and mortality that would be avoided through undertaking adaptation measures. valuation case studies Published by What was being measured, and why? Which methods were used? This study was carried out The study used an innovative valuation framework: the “saved in Viet Nam’s Mekong Delta wealth, saved health” approach. This represents a move beyond to compare the benefits of the sole reliance on monetary-based measures which character- different coastal adaptation ises conventional economic approaches to measures. The study site, investment appraisal and project analysis. Soc Trang Province, suffers The aim is to measure the benefits and Challenge to from severe shoreline ero- impacts of adaptation activities in terms sion, leaving coastal villages of metrics that are both standardised and find comparable vulnerable to the effects of universally comparable. The reason for metrics tidal surge, storms and floods. rselecting health and wealth indicators is to These effects are expected to reflect issues that are of primary concern worsen with climate change to decision-makers in developing countries. and accompanying processes The study first of all established a baseline scenario (a continuation of sea level rise. Two adapta- of business as usual), and computed the percentage of wealth and tion options were considered: health projected to be lost over time due to climate change. Two al- a concrete dyke (the grey ternative adaptation intervention scenarios were then modelled: the option) and a combination of actual mangrove rehabilitation programme, combined with an exist- an earth dyke and mangrove ing earth dyke, and a hypothetical concrete dyke upgrade. Saved rehabilitation measures (the wealth, saved health and environmental benefits and impacts were green option). calculated for each scenario, as compared to the baseline. The aim of the study was to Both monetary and non-monetary metrics were used to measure communicate the concept of these impacts. Saved health looked at avoided disease, disability quantifying adaptation benefits and life loss, measured through DALYs or disability-adjusted life to project developers, policy- years. Saved wealth was measured in terms of (avoided) expen- makers and related stakehold- ditures, incorporating damages to private property, public infra- ers, provide a methodology structure, agricultural and fisheries income, as well as the costs of for doing this, and show how erosion control and land desalinisation. Environmental co-benefits it could be applied to weigh were described (but not quantified) via a checklist of indicators such up different adaptation option. as air quality, water quality, soil conditions, biodiversity, quality of It also sought to demonstrate employment, livelihoods of the poor and cultural heritage. how ecosystem-based adapta- tion approaches could gener- The study relied on a combination of primary and secondary data ate a return as compared to to describe and project local demographic and socioeconomic condi- grey measures, and to thereby tions, sources of income and livelihoods, land use and land cover, help to justify project invest- ecosystem services and the costs of the adaptation measures be- ments in mangrove rehabilita- ing considered. In order to model the effects of extreme weather, tion. historical data from the study village and other parts of the country were also collected on the frequency, incidence and impact of both periodic and severe storm and flood events. The data were inputted into two comprehensive spreadsheets (included in the methodology), consisting of pre-defined formulas and databases which performed the calculations that were neces- Case study 40 Viet Nam 2 EbA valuation case studies Which Methods were used? sary to compute saved health and saved wealth results. A damage frequency function of flood events was the main tool underlying these calculations. As future conditions are highly uncertain, the methodology also included a sensitivity analysis. This explored the implications of changes in key parameters such as the intensity, du- ration and frequency of extreme weather events, value of public and private property, number of deaths and incident cases, and annual maintenance costs of the adaptation measures. How were the results disseminated and what was their impact? The study found that the mangrove-based adaptation option gave a high return in terms of both saved wealth and saved health. The wealth benefits for the local population were almost five times higher than for the dyke upgrade option, which was unable to gen- erate a return to even justify its investment. In addition, mangroves were found to offer a wide range of co-benefits which would not be provided by the concrete dyke. These include providing fuelwood, and serving as habitat and breeding grounds for commercially and nutritionally important fish, crustaceans and snails. In addition, the protection against salinity offered by mangroves meant that land would be able to be returned to agriculture, something that would not be possible with the dyke option. The study’s main target audience was coastal planners and develop- ers at national, provincial and local levels. These include the govern- ment agencies that are mandated to manage coastal zone devel- opment and disaster-risk reduction in Soc Trang Province and Viet Nam, as well as private sector investors and development donors. The main mech- anisms used to share information were Info shared by way of technical reports, workshops and web- reports, workshops based resources. Although the intention and web resources was not to change or influence coastal adaptation planning at the study site (this was an ex-ante study), the findings con- firmed and reinforced the project’s deci- sion to invest in mangrove rehabilitation, and helped to demonstrate evidence of its impact in health, economic and environmental terms. Case study 40 Viet Nam 3 EbA valuation case studies What are the key insights and lessons learned on valuing The study was carried out un- der the project “Management of EbA-relevant benefits? natural resources in the coastal zone of Soc Trang Province” The methodology applied in Soc Trang Province addressed one of which ran between 2011 and the key challenges facing adaptation project developers: how to 2014. The project supported In- consistently estimate, monitor and evaluate the outcomes of ad- tegrated coastal zone manage- aptation activities from different project types in different sectors ment with a focus on adaptation and geographies. The saved wealth, saved health approach is able to climate change, including ap- to directly compare the benefits of competing projects by using an proaches based around man- identical set of applied indicators. This standardisation and compa- grove rehabilitation and commu- rability, as well as the use of wealth and health indicators, resonated nity co-management. Funded by with coastal planners and decision-makers in Viet Nam and helped the German Federal Ministry for to ensure that they considered the study findings to be interesting, the Environment, Nature Con- useful and credible. servation, Building and Nuclear Safety (BMUB) under the Inter- Although the methodology was relatively national Climate Initiative (IKI), straightforward to apply, and had the the project was implemented by advantage of being accompanied with a Detailed local level GIZ in partnership with People’s spreadsheet model which performs most of information proved Committee of Soc Trang Prov- the calculations that are necessary to gen- difficult to assess ince; Sub-department of Forest erate results, the quality and availability of Protection; Sub-department of the data it required posed something of a Aquaculture; Sub-department of challenge. Whereas national data for natu- Capture Fisheries and Resource ral disasters and extreme events as well as Protection; Sub-department of predictions of increased exposure are available, detailed local-level Rural Development (Department information for areas such as Soc Trang Province is more difficult for Agriculture and Rural De- to access. This may have compromised the precision of results, velopment); Sub-department of and also means that it is difficult to compare adaptation options or Environmental Protection (De- transfer study results between sites. The high levels of uncertainty partment of Natural Resources concerning climate change and ecosystem impacts/causality give and Environment); Department particular cause for concern, and can hamper the accurate quantifi- of Education and Training and cation of adaptation benefits. District; Commune People’s Committees; Women‘s union and village-level farmers associa‑ tions. The second phase of the Integrated Coastal Management Programme continued this work between 2014 and 2017, aim‑ ing to institutionalise and scale up the solutions that had already been developed, in order to en- sure their full impact on a broad- er scale. For further information see https://www.giz.de/en/world- wide/18661.html, http://daln. gov.vn/en/icmp.html Case study 40 Viet Nam 4 EbA valuation case studies Bibliography This case study is based on informa- tion provided by Michel Köhler (inde- pendent climate policy consultant and Founding Partner, the greenwerk) and presented in the following documents: GIZ (2013) Saved health, saved wealth: an approach to quantify- ing the benefits of climate change adaptation: Practical application in coastal protection projects in Viet Nam. GIZ GmbH, Bonn and Eschborn. https://gc21.giz.de/ibt/var/app/wp- 342deP/1443/wp-content/uploads/ filebase/me/me-guides-manuals-re- ports/giz_2013_Saved_health_saved_ wealth_-_an_approach_to_quantify- ing_the_benefits_of_climate_change_ adaptation.pdf Köhler, M. and Michaelowa, A. (2013) EbA Saved Health - Saved Wealth: Excel Tool for the Dyke Case. Prepared by Perspectives GmbH for GIZ. http://www.adaptationcommunity. net/?wpfb_dl=134 Köhler, M. and Michaelowa, A. (2013) Saved Health - Saved Wealth: Excel Tool for the Mangrove Case. Prepa- red by Perspectives GmbH for GIZ. valuation http://www.adaptationcommunity. net/?wpfb_dl=135 Stadelmann, M., Michaelowa, A., Butzengeiger-Geyer, S. and M. Köhler (2011) Universal metrics to compare the effectiveness of climate change adaptation projects. Paper presented at 7th Meeting of the OECD Joint DAC-EPOC Task Team on Climate Change and Development Co-operati- on, Bern. https://www.oecd.org/env/ cc/48351229.pdf case studies Published by On behalf of the Federal Ministry for Contact Imprint the Environment, Nature Conservation, Dr. Arno Sckeyde Deutsche Gesellschaft für Inter- Building and Nuclear Safety (BMUB) nationale Zusammenarbeit (GIZ) Division: Environment and Sustainable Author This series of 40 case studies is Lucy Emerton GmbH Use of Natural Resources part of the publication Valuing the Benefits, Costs and Impacts Global Project „Mainstreaming Addresses of the BMUB offices: Layout of Ecosystem-based Adaptation EbA — Strengthening Ecosystem- BMUB Bonn: ECO Consult, Oberaula Measures – A sourcebook of Based Adaptation in Planning and methods for decision-making. Decision Making Processes“ Robert-Schuman-Platz 3, As at 53175 Bonn, Germany Heinrich-von-Stephan-Straße 7-9 December 2017 To obtain a copy of the book BMUB Berlin: 53175 Bonn, Germany The geographical map is for please contact the publisher under Stresemannstraße 128 – 130, T +49 228 4460-1535 informational purposes only the address on the right. 10963 Berlin, Germany F +49 228 446080-1535 and does not constitute E arno.sckeyde@giz.de poststelle@bmub.bund.de recognition of international I www.giz.de/climate-change www.bmub.bund.de borders. © GIZ/Ira Olaleye