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Balancing water needs: the experience of the IUCN Water and Nature Initiative Danièle Perrot-Maître Seminar on “Ecosystems as Water Suppliers” UNECE-BUWAL, Geneva, 13-14 December 2004. The Water and Nature Initiative: A Learning Initiative. - PowerPoint PPT Presentation
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Balancing water needs: the experience of the IUCN Water and Nature Initiative
Danièle Perrot-Maître
Seminar on “Ecosystems as Water Suppliers”UNECE-BUWAL, Geneva, 13-14 December 2004
The Water and Nature Initiative: A Learning Initiative
GOAL :To improve watershed ecosystems health and livelihoods
PURPOSE: To learn and demonstrate how to apply the ecosystem approach into river basin planning and management
HOW TO ACHIEVE THIS?
Governance and Law Participation and Empowerment Economics and Finance Information and Knowledge Learning and Communication
The Water and Nature Initiative in Figures
– 5-year (2001 - 2006)– US$ 80 million budget– 80 partner organisations– 30 projects– 30 countries– 10 river basins
The Workspace (www.waterandnature.org)
The ToolsCHANGE-Adapting to climate
change
FLOW - The essentials of environmental flows
VALUE-Counting ecosystems as water infrastructure
What is an environmental flow?
Environmental flow is the water regime provided within a river, wetland or coastal zone to maintain ecosystems and their benefits where there are competing water uses and where flows are regulated.
The outcome is an improved management regime that guarantees the longevity of the system and finds the optimal balance between the various uses.
Source: FLOW, The Essentials of Environmental Flows, IUCN-WANI, 2003
How to establish environmental flows ?
• Define water requirements (defining objective, selecting trade offs scenarios and EF method)
• Modify water infrastructure• Finance• Create a policy and legal framework• Generate political momentum
• Build capacity for design and implementation
Applying environmental flow in the Water and Nature Initiative
1. Toolkit “FLOW”
2. Training, field application and testing of toolkits in 4 regions:
Tacana riverbasin, Guatemala, Mexico. allocation
Pangani River basin, Tanzania and Kenya: water pricing
Huong River Basin, Vietnam: importance of wetlands for shrimp aquaculture and local livelihoods
Volta River Basin, Ghana and Burkina Faso
3. Develop case studies and lessons learned
4. Building a global and regional community of practice
What is the economic value of ecosystems?
Direct values Outputs that can be consumed directly,
such as fish, medicines, wild foods,
recreation, etc.
Indirect values Ecological services, such as catchment
protection, flood control, carbon sequestration, climatic control, etc.
Option valuesThe premium placed on maintaining resources
and landscapes for future possible direct and
indirect uses, some of which may not be
known now.
Existence valuesThe intrinsic value of
resources and landscapes, irrespective of its use such
as cultural, aesthetic, bequest significance, etc.
Non useUse
Total economic value of ecosystems
Economic value of ecosystems: what does it tell us?
• How much does an ecosystem contribute to economic activity or society? Ex. forests in Med countries provide at least US$50 annually per capita. On average forest benefits in the region amount to about 1 percent of GDP. Indirect use value such as watershed protection contributes about 35% of total estimated value. Or:Wild forest-based pollinators increased coffee yields by 20% on farms located within 1 km of forest in Costa Rica and in 2002-03, pollination services from two forest fragments (46 and 111 ha) translated into about US$60,000 per year for one study farm in Costa Rica.
• What would be the benefits and costs of an intervention that alters the ecosystem (conservation investment, development project, regulation or incentive)?
• How are costs and benefits of a change in ecosystem distributed?
• How to make conservation financially sustainable?
Ecosystem valuation results can provide valuable input into many types of water management decisions
• Investing in infrastructure development (design, management, investment appraisal) taking into account the cost of ecosystem maintenance
• Allocating water to various economic users including the ecosystem
• Land use planning: investing in ecosystems for water supply and quality
• Accounting for cost of ecosystems protection in water prices and price of water-based products
• Designing incentives mechanisms such as payments for ecosystem services (and removing inadequate incentives)
• Designing new financing mechanisms
Applying ecosystem valuation in the Water and Nature Initiative
1. Toolkit “VALUE”
2. Training and field application and testing of toolkits in 5 regions:
Costa Rica: hydropower development and public budget allocation
Mekong: livelihood impacts and co management Huong River Basin, Vietnam: importance of
wetlands for shrimp aquaculture and local livelihoods Sri Lanka, Kola Oya Basin: investment decision for
irrigation, water supply and sanitation infrastructure Okavango Delta, Botswana: livelihoods impacts Pangani River basin, Tanzania and Kenya: water
pricing
3. Case studies and lessons learned
4. Building a global and regional community of practice
Lessons and challenges of ecosystem valuation
• Most published studies focus on the direct use values of marketed products
• Non-use values (existence values) are even harder to capture, due to high uncertainty
• Economic valuation handles very large scale and long term problems rather poorly (analysis less robust as scale increases and role of discounting increasingly determinant)
• Valuation runs into trouble when environmental change is irreversible or when resources have no acceptable substitutes
• Economic valuation not always useful for managers and policy makers because Conducted as snap-shot rather than with comprehensive time series Total valuation studies say nothing about values of marginal changes
linked to realistic alternatives Ecosystem services are rarely valued or unreliably valued, due to poor data on
biophysical relationships
Watershed services: supply and demandSupply of services:Upstream land uses affect the Quantity, Quality, and Timing of water flows
Demand for services:Possible downstream
beneficiaries:• Domestic water use• Irrigated agriculture• Hydroelectric power• Fisheries• Recreation• Downstream ecosystemsSource: World Bank 2003
Applying ecosystem valuation to payment for ecosystem service: simple in theory
Benefits to producers
Costs to offsite populations
Conventional resource use
Conservation with payment
for service
Payment
Conservation without
payment
Minimum payment
Maximum payment
Source: World Bank 2002
In practice not so simple…
complex biophysical linkages (Brand 2003)
In practice still not so simple…valuing effects of change in ecosystem conditions on agricultural production
Impact on ecological function & service
Physical impact of change in functions
Socio-economic effects of physical impact
Overall impact of Socio-economic effects
Intervention
Reduction in water: floods & drought
Increased erosion
Increase in crop damage (in kg)
Decrease in crop yield (in US$)
Increase use fertiliser & pesticides (in kg)
Increase productioncosts (in US$)
Increase in crop production (in kg)
Increase in crop yield (in US$)
Reduction of forest cover
Reduced pest-control &
pollination
DeforestationChange in Economic Value of Agriculture
(in US$)
Impact on ecological function & service
Physical impact of change in functions
Socio-economic effects of physical impact
Overall impact of Socio-economic effects
Intervention
Reduction in water: floods & drought
Increased erosion
Increase in crop damage (in kg)
Decrease in crop yield (in US$)
Increase use fertiliser & pesticides (in kg)
Increase productioncosts (in US$)
Increase in crop production (in kg)
Increase in crop yield (in US$)
Reduction of forest cover
Reduced pest-control &
pollination
DeforestationChange in Economic Value of Agriculture
(in US$)
Ecosystem valuation in practice
An example: Application to payments for watershed protection
US$10-42 per ha per year in Costa Rica US$100 per acre per year in the USA (Catskills case)US$230 per ha per year in France (Vittel case)$AUD 85/ha/yr for forest conservation or $AUD 17 per
million liters of transpired water in Australia (New South Wales)
Putting IWRM in practice: a balancing act….