eduard interwies, intersus
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Eduard Interwies, InterSus
7th Biennial GEF International Waters Conference
Bridgetown, Barbados
Key outcomes from the pre-workshop on Economic
valuation
• Present briefly the key outcomes of the pre-workshop
• “Set the scene” for the upcoming table dialogues on economic valuation
Aim of the presentation
• Sat & Sun 26 & 27.10• Centered on economic valuation as a tool to link science-based
management & policy• Aims:
• Raising capacity among GEF project managers and partner organizations representatives on the topic
• Better use & integration of valuation approaches and methods during GEF IW project implementation (esp. TDA-SAP process)
• More than 100 registered participants• Presentations, 3 breakout groups, facilitated discussions etc. –
conveying economic valuation methodologies and practical examples – what worked, what not
The pre-workshop:
• Management of aquatic resources based on the ecosystem understanding!
• Multiple uses…limited resources…• ...ecosystem services (ES) approach fosters
understanding and integration• Variety of objectives and underlying conditions
per ecosystem
The background/basis:
Ecosystem Services: (MEA, TEEB)
Various ecosystem services related to wetlands-estuaries, e.g.:
Provisioning:• Food, water (direct values)Regulating:• Climate regulation, moderation of extreme events (indirect
values)Habitat:• Maintenance of life cycle of migratory species (indirect
value)Cultural:• Aestetic and religious role (non-use values)
An example:
Decision-making needs to integrate a variety of socio-economic factors & issues:
• Economic growth needs/related investments;• Livelihood & distributional issues;• Costs and benefits of specific policy decisions…• but also how a policy decision influences the ES
functioning & the related values! Valuation of ES only one part of socio-economic
consideration for policy making has its specific role to play within the different steps of the
policy cycle (analysis & advice – decision making – implementation – Review/evaluation & monitoring)
Economic valuation of ES
• Various approaches & methods for economic valuation exist
• Many options for managers, but: “you need first to be clear on what question you want to answer”
• Very case specific No silver bullet: method selection should be “purpose driven, objective specific” (what question, policy, sector, stakeholders, scale, timeline, data available?)
Economic valuation of ES - methods
Variety of examples available, some presented & discussed (both LMEs and River Basins)Key insights on successful link to policy-making:• Valuation only one of the tools supporting better decision
making• Do it at the scale of the policy question• Strong local partnership & stakeholder engagement• Local demand for valuation• Opportunities of revenue raising• Effective communication & access to decision makers –
integration, not “stand alone”• Clear presentation of methods, assumptions & limitations
Economic valuation of ES
..and the links to economic valuation:
Regarding market-based instruments…
..and the links to economic valuation:• Relevant for Payments for Ecosystem Services
(PES)-schemes, but also other market-based instruments e.g. taxes, quantity-based, liability-based, voluntary
• FIRST SLIDE BY MARK???
Regarding market-based instruments…
• Promising, good examples of work done so far• Specific “do´s and dont´s” out of this experience• Fundamental concerns: water as a human right
vs. water as a commodityRole of GEF: to be further discussed• Continue exploration:
• how to upscale to national/transboundary level? ”Out-of-box”-thinking – innovative ideas
• Further case study applications (part of TDA-SAF-process) to promote and use PES-schemes
Regarding PES – and use of valuation
GEF-Action points:Broad(er): Incorporate all relevant aspects of social, economic data/analysis as an integral part of the TDA – SAP framework and related documents• Part of effective governance – of the entire policy cycle• Foster indicator use: further develop socio-economic indicators
(linked to data access & availability) & baseline/trends in GEF-SAP results framework
• Use of e.g. Cost-Benefit-analysis/Multi-criteria analysis (quantitative & qualitative information) in the assessment of options throughout the process (not only towards the end!)
• Complements – does not replace – other data and analysis currently used in GEF-projects
Linking valuation to policy-making
GEF-Action points:Incorporate valuation as an integral part of the TDA – SAP framework and related documents• Ecosystem diagnostic analysis (including valuation) to identify
national & regional key issues: for each member country (communication issues, collecting information/data) undertake individual evaluation & then bring together into the TDA-SAP-process
• Causal chain analysis (including valuation) maybe useful earlier in designing the process (in assessment of options) – identifying the key use & methods of ES valuation
• Include values of large ecosystem assets - add information on economic impacts of options - use CBA (qualitative-quantitative) of options – for the SAP
Linking valuation to policy-making
GEF-Action points:Develop guidance for the use of socio-economic assessments, esp. ES valuation:• Guidelines – practical manual• Clear framework for project managers on what is most useful for
their project• Show the needs for socio-economic assessments (CBA etc.) and the
specific use of ES valuation• Use of specific methods (flexible: not all aspects suited to all
projects), considering data availability• Success stories – lessons learned (evidence of approach advocacy)• Improve data availability / accessability for ES valuation (“do it
quicker and easier”)
Linking valuation to policy-making
GEF-Action points:Support capacity building:• Improve capacity (within GEF-projects, but also of
users/authorities)• Creating a critical mass of expertise –
professionalization – community of practice• Support a stronger incorporation of decision
makers & stakeholders in the ES valuation-process
Linking valuation to policy-making
GEF-Action points:Foster practical application of ES-valuation at the project level:• Conduct high-level ecosystem valuation studies (“fast
and cheap”) to kick-start acceptance & understanding – improve “buy-in” by users/authorities through involvement & awareness raising
• Conduct Pilot projects - Demonstration projects: Hot-spot and small demonstration projects in national diagnostic analysis/TDA/SAP formulation – with strong decision maker & stakeholder involvement
Linking valuation to policy-making
• The IWLearn-team• The co-facilitators:
* Mark Smith & Stefano Barchiesi (IUCN)* Christian Susan (UNIDO)* Warwick Sauer (Rhodes University)* Stephen Lutz (UNEP GRID-Arendal - Blue Forest project)* Adrian Cashman & David Gil (University of the West Indies)* Peter Edwards (NOAA)
• The presenters• …and of course the very involved participants!
Special thanks to:
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