Sharing benefits from the riverFrom theory to practice

CONSULTATION COPY

Training Package

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Citation: 2019. Sharing benefits from the river. From theory to practice. Gland, Switzerland: IUCN. 11pp.

Cover photo: Herdiana/Shutterstock, Sinha Vishwajaran/IUCN, Mayer/Shutterstock

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SHARING BENEFITS FROM THE RIVER · OVERVIEW iii

Sharing benefits from the riverFrom theory to practice

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Who is this training package for? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Overview of benefit sharing in river basin management . . . . . . . . . . . . . . 4

Six steps to benefit sharing in river basins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Navigating the training package . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Preparatory Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Abbreviations

BOAT Benefit Opportunities Assessment ToolBRIDGE Building River Dialogue and GovernanceIUCN International Union for Conservation of NatureLAGO Legal Assessment on Water Governance OpportunitiesTIDE Transboundary Instruments Development ToolWANI Water and Nature Initiative

Acknowledgements The development of this training package has been a collaborative effort between many colleagues, partners and basin stakeholders.

From IUCN, many thanks to: Isabelle Fauconnier, Jerome Koundouno, Stefano Barchiesi, Emilio Cobo, Laura Piñeiros, John Owino, Vishwaranjan Sinha, Raphael Glemet, Rebecca Welling, Maria Carreño Lindelien, Claire Warmenbol, Diego Jara, James Dalton, Alejandro Iza, and Phil Riddell (external IUCN consultant).

We are grateful to the Oxfam TROSA Programme and stakeholders of the Meghna Basin, as well as the Sio-Malaba-Malakisi River Basin for participating in the piloting of the benefit-sharing framework under the IUCN BRIDGE project.

Many thanks to Natalie Degger and Mish Hamid from GEF IW:LEARN, and the GEF IW:LEARN Benefit-Sharing workshop participants in Cartagena, Colombia, and Bangkok, Thailand for their participation and feedback on the benefit sharing exercises.

This training package was produced with funding from the Swiss Agency for Development and Cooperation (SDC) under the BRIDGE ‘Building River Dialogue and Governance’ programme.

SHARING BENEFITS FROM THE RIVER · OVERVIEW 1

Introduction

As demand for freshwater increases and climate change affects the flow of water through changes in precipita-tion, snowmelt, and evaporation, there is increased pressure on our freshwater systems from competing needs of wa-ter users for drinking water, food, ener-gy and industrial production as well as environmental needs. Sustained mod-ification of natural landscapes over time has compromised the services and benefits that humans derive from ecosystems – a by-product of popu-lation growth and economic develop-ment coupled with poor environmen-tal stewardship. Nearly the entire world population is serviced by freshwater sources that have been compromised by human activities, with 82% of the population served by rivers that have been exposed to high levels of modi-fication and other associated impacts upstream.

This leaves less water available to sus-tain ecosystem services and the bene-fits they bring to both nature and peo-ple. The benefits at stake include the increased productivity of agriculture, energy and tourism; reduced econom-ic costs of water-related hazards; im-proved health of riverine populations; preservation of aquatic biodiversity; increase in cross-border trade; and re-duced risk of conflict. The need to co-operatively manage shared water re-sources, whether at the local, national

or transboundary level, has thus never been greater. Knowledge, innovative approaches and social capital are vi-tal to drive change in how we share benefits and co-benefits in river basins globally.

Within this context, over the last two decades, IUCN’s Global Water Pro-gramme and Environmental Law Cen-tre has spearheaded work on water diplomacy, exploring the complexities of transboundary river basin govern-ance systems, multi-sectoral opportu-nities for collaboration and the sharing of benefits within and across borders to manage water resources sustaina-bly. Inherent to this work has been the analysis of the associated trade-offs that come with managing multiple and often competing water needs and de-mands. IUCN demonstrates through improved catchment management, stronger cross-sectoral collaboration and more transparent multi-stakehold-er decision-making processes, poten-tial win-win pathways that combine a common vision with mutually recog-nised shared benefits and a rational prioritisation of equitable, economical-ly advantageous and sustainable basin development.

This Benefit Sharing Training Package has been developed out of this wealth of experience and learning in river ba-sin governance and management, at all

SHARING BENEFITS FROM THE RIVER · OVERVIEW2

scales. It provides a process of stake-holder engagement, assessments and knowledge building to enhance co-operation within countries and across borders for sustainable river basin management and the equitable shar-ing of benefits.

Importantly, please note that this is a ‘consultation draft’ of the training package and while parts of it have been piloted and tested in basins glob-

ally through IUCN’s BRIDGE project, the broader package now pieced to-gether still needs to be tested and ap-plied for further learning and tweaking. We are always open to improving our knowledge to increase our effective-ness in supporting benefit sharing pro-cesses in river basin management so we very much welcome feedback and exchange of experience from practi-tioners who have tested this training package.

Traditional Floating Market at Lok Baintan, Indonesia © Sony Herdiana/Shutterstock

SHARING BENEFITS FROM THE RIVER · OVERVIEW 3

Who is this training package for?

This training package provides water governance practitioners with an al-ternative way to promote negotiation and set up benefit sharing exercises, inviting all concerned parties, and ex-ploring the needs and benefit sharing opportunities within and across basins, while facilitating the understanding around the challenges, trade-offs and benefits faced by different stakehold-ers. This is especially helpful to those who find themselves working in com-plex basins where the water is shared between various interests, stakehold-ers and runs over either county, state or national borders.

Taking into account that, globally, ba-sins are all at different levels of devel-opment, with different needs, pressures and demands placed on resources and stakeholders, this training package presents an adaptable process, with the aim of demonstrating a flexibility in approaching the topic of benefit shar-

ing that considers the range of politi-cal, environmental and socio-econom-ic contexts that practitioners will be working in. Critically, a benefit sharing process relies on informed dialogue that requires a minimum level of un-derstanding of the basin dynamics, so-cial-environmental challenges, poten-tial conflicts, interest groups, among others. Such understanding will help the facilitators of the process to better determine the optimal way to engage different stakeholders, to present reli-able information and conduct the pro-cess smoothly. It needs to be said that a poorly prepared use of this training package may pose the risk of exacer-bating conflictive issues and harming dialogue. Hence we recommend to spend enough time to understand the concepts and methodology and draft-ing a clear roadmap that can guide the negotiation in a constructive and inclu-sive environment of dialogue and en-gagement with stakeholders.

SHARING BENEFITS FROM THE RIVER · OVERVIEW4

Overview of benefit sharing in river basin management

Despite the considered pressures riv-er basins worldwide are under from increasing demands for water alloca-tion from multiple users (including ir-rigation, energy, drinking water supply, industrial use, environment, etc.), they are often governed by contradictory rules and mechanisms shared between a range of institutions under different mandates. While some river basins have sound governance structures and legal frameworks to ensure the equi-table and sustainable use of water re-sources, others are working towards tackling the diversity of stakeholder needs and (re)allocation of resources within a context of over-exploitation and degradation.

It can be therefore hard to understand who gets what when water is allocat-ed often inadvertently. This is a nexus challenge; trying to balance the differ-ent demands and trade-offs so that everyone wins. It is important to ex-plore these trade-offs, looking at how water is used and to identify both the positive and negative implications and associated benefits and how these can be distributed under alternative devel-opment scenarios.

Countries and basins can focus on a flexible – and potentially positive-sum – range of benefits from these trade-

offs, derived from alternative patterns and partnerships in water use (Dom-browsky 2009). Benefit sharing rep-resents an alternative approach to ne-gotiation of shared waters according to Sadoff and Grey (2005) who stated that it refers to “any action designed to change (optimize) the allocation of costs and benefits associated with cooperation”. It is a process where ri-parians cooperate in optimising and equitably dividing the goods, products and services connected directly, or in-directly, to the watercourse, or arising from the use of its water (Hensengerth et al., 2012; Sadoff and Grey, 2002). A focus on sharing benefits rather than water volumes can release countries from a zero-sum competition over a single, finite resource.

Benefit sharing is a key instrument for good water governance, as users will share water cooperatively only if, and when, they believe it is their best option. Since benefit sharing looks at a varie-ty of benefits, stakeholders at multiple levels, and local and national interests (Sadoff et al, 2008), it enables a ba-sin-wide planning perspective, which not only allows for better coordination of management and development but also provides a greater scope for op-timising resource use, identifying ways to increase the overall benefits. Bene-

SHARING BENEFITS FROM THE RIVER · OVERVIEW 5

fit sharing can be applied at different levels and for different situations, it can be adapted to analyse a single water project (e.g. a multipurpose dam), or to catalyse agreements in a watershed within a country, or a transboundary basin under a participatory approach (Geneva Water Hub 2016).

However, the management of shared river basins is complex – it must adapt and evolve to multiple levels of gov-ernance, often within changing politi-cal landscapes, socio-economic needs, development priorities, population growth and climate change. Basins are dynamic, and so are benefits and costs from using water in a given ba-sin. Several conceptual frameworks, approaches or tools, with different foci and methodologies have been de-veloped by researchers, donors, riv-er basin organisations and regional economic commissions, to approach benefit sharing in the context of the management of shared waters1,2,3,4. In IUCN’s experience, while such concep-tual frameworks and methodologies,

1 United Nations Economic Commission for Europe, UNECE, 2015., Policy Guidance Note on the Benefits of Transboundary Water Cooperation Identification, Assessment and Communication https://www.unece.org/fileadmin/DAM/env/water/publications/WAT_Benefits_of_Transboundary_Cooperation/ECE_MP.WAT_47_PolicyGuidanceNote_BenefitsCooperation_1522750_E_pdf_web.pdf

2 World Bank http://documents.worldbank.org/curated/en/244761521135162532/Promoting-development-in-shared-river-basins-tools-for-

enhancing-transboundary-basin-management

3 Nile Basin initiative NBI http://documents.worldbank.org/curated/en/244761521135162532/Promoting-development-in-shared-river-basins-tools-for-

enhancing-transboundary-basin-management

4 South African Development Community https://pdf.usaid.gov/pdf_docs/PNADU394.pdf

5 Sharing water and benefits in transboundary river basins 2016 https://www.hydrol-earth-syst-sci.net/20/2135/2016/hess-20-2135-2016.pdf

which can be linked to hydrological and economic modeling5, are extreme-ly useful to orient the thinking of prac-titioners and policy-makers, they must be augmented with practical tools that are easy to tailor to specific basin con-texts and will support stakeholders in dialogue and decision-making. Practi-cal tools are key for action.

IUCN’s training package provides a practical facilitation guide for practi-tioners on how to operationalise ben-efit sharing dialogue across and within river basins. It covers a process of de-veloping a benefit sharing agreement, starting from initial stakeholder and benefits mapping to discussing trade-offs and scenarios as well as providing guidance on how to navigate negotiat-ing benefit sharing in multi-stakeholder contexts. Critically though, this training package can be adapted to all scales, dealing not only with transboundary issues (traditionally where most bene-fit sharing work has focused) but also at sub-national, basin, sub-basin and local levels.

SHARING BENEFITS FROM THE RIVER · OVERVIEW6

Six steps to benefit sharing in river basins

Building on experience and learning from the Water and Nature Initiative (WANI), the toolkit publication SHARE on transboundary benefit sharing, and the Building River Dialogue and Gov-ernance (BRIDGE) initiative, IUCN’s Global Water Programme has devel-oped a Six-Step Framework to op-erationalising benefit sharing that

functions as a roadmap of sequential considerations, and associated practi-cal steps that can be applied in basins at different stages of development, cooperation and shared management. These steps outlined below can be ap-plied in local, national and transbound-ary contexts broadening the concept of benefit sharing out to all scales.

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3Building benefit enhancing scenarios (BOAT - Benefit Opportunities Assessment

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4Quantifying costs and benefits from future

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5Negotiating benefits with a win-win approach (LAGO -

Legal Assessment on Water Governance Opportunities)

6Setting up institutional

arrangements and implementation mechanisms

(TIDE - Transboundary Instruments Development)

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Infographic “Six Steps to Benefit Sharing in River Basins” ©IUCN/Warmenbol

SHARING BENEFITS FROM THE RIVER · OVERVIEW 7

STEP 1: Stakeholder identification and mapping interests and influence

Including all relevant stakeholders in decision-making processes encourages motivation to engage in a constructive dialogue process and changes their be-haviour towards, for instance, reducing water consumption, better agricultural systems, or accepting economic water valuation frameworks from a hydro-logical cycle perspective. Stakeholder identification and mapping interests/influence is a key part of building an

equitable cooperation process, as it ensures from the start that all relevant stakeholders are captured. Reviewing stakeholder groups’ interests and in-fluence is a good way to better under-stand the power dynamics in the basin and associated potential challenges and solutions to sharing benefits. This methodology is tailored to build results into the Step 3 using the Benefit Op-portunities Assessment Tool (BOAT).

STEP 2: Identifying the range of benefits (existing and potential)

River basins offer different types of benefits that can be shared. This goes much beyond the allocation of volumes of water to riparian parties. Instead, it relies on the full identification of spe-cific economic, social, environmental, political, peace, trade and other bene-fits that can be derived from water use and from cooperation in that particu-lar basin. Identifying benefits provides

a more flexible framework and can in-crease possibilities for collaboration. A range of sectors should be represent-ed in the process of identifying bene-fits – such as agriculture, environment, forestry, finance, planning, fisheries, tourism, mining, hydropower etc. This methodology is tailored to build results into the Step 3 using the Benefit Op-portunities Assessment Tool (BOAT).

STEP 3: Building benefit enhancing scenarios using the Benefit Opportunities Assessment Tool (BOAT)

Opportunities for enhancing benefits can be identified jointly. The practical skills associated with this Step involve joint qualitative analysis of benefits and costs from existing and/or proposed new uses of water in a basin and devel-oping a more in-depth and shared un-derstanding of the trade-offs involved in choosing certain projects over oth-

ers or certain combinations of projects, using a multi-scale cooperation per-spective. In this Step the Benefit Op-portunities Assessment Tool (BOAT) is used to facilitate dialogue and joint qualitative analysis of options, to then select preferred stakeholder-validated options.

SHARING BENEFITS FROM THE RIVER · OVERVIEW8

STEP 4: Quantifying costs and benefits from future scenarios

Based on benefit-enhancing scenarios (using BOAT), a quantitative assess-ment of all identified benefits can be undertaken. Several methods to value and distribute benefits and costs exist, with different data needs. Many – but not all – benefits can undergo a quan-titative assessment depending on the

ambition of the cooperation process and the available budget and expertise. Quantifying the costs enables relevant stakeholders to hold the knowledge and tools to better understand and dis-cuss the links between economics and water governance.

STEP 5: Negotiating benefits with a win-win approach using the LAGO tool

Benefit sharing agreements are about achieving an equitable distribution of benefits through consensus and par-ticipatory negotiation. Principles of in-ternational water law such as equitable and reasonable utilisation, ‘no signifi-cant harm’, environmental sustainabili-ty and compensation mechanisms such as Payments for Ecosystem Services are useful tools for negotiation. The Le-

gal Assessment on Water Governance Opportunities (LAGO) tool is a rapid assessment tool that enables its users to understand the characteristics of a State’s water governance regime and to identify any gaps in a State’s nation-al legislation, policy and institutions. This enables its users to develop coun-try-specific action plans to improve the quality of water governance.

STEP 6: Setting up institutional arrangements and implementation mechanisms using the TIDE tool

Implementation of benefit-sharing agreements requires functional insti-tutions. Once an agreement between countries and stakeholders has been developed, an institutional arrange-ment should be envisioned to imple-ment it. Water governance institutions exist at multiple levels and a function-al institutional setup is needed to take full advantage of opportunities identi-fied through the negotiation process and any benefit sharing agreement. The Transboundary Instruments Develop-

ment (TIDE) tool is a guidance tool for the preparation of water cooperation arrangements, which enables its users to identify the type of agreement that would work best, given the context, and what content needs to be included in the text of this arrangement, for dis-cussion among stakeholders. An impor-tant part of any agreement are also the implementation mechanisms, which the TIDE tool supports the stakeholders to identify during the agreement prepara-tion and sign-off process.

SHARING BENEFITS FROM THE RIVER · OVERVIEW 9

Navigating the training packageThe Six-Step framework on bene-fit sharing presents a process for ba-sin stakeholders to engage with. Each Step in this training package consists of a facilitation guide that walks the practitioner through how to undertake the Step with basin stakeholders, in a workshop setting. Template Power-point presentation slides accompany this training package and can be used and adjusted by the practitioner

Practical exercises to carry out with stakeholders, associated support ma-terials to run the training and provide further guidance and support are also included. Suggested facilitation op-tions provide helpful tips on how to steer through discussions and topics that can sometimes be contentious and sensitive. At the beginning of each Step there is a checklist which highlight the perquisite knowledge/prepara-tions/information necessary for com-pleting the Step based on each basin’s entry point into this process, which will depend on several factors:

lBasin context: where the basin is in terms of development – are there investment projects in the pipeline, will they impact differ-ent stakeholders, what are the benefits available to be shared for these plans?

lPolitical landscape: are there po-litical tensions between coun-tries, stakeholders, or parties? How comfortable are the differ-ent stakeholders to come to-gether to take about basin devel-opment? Are there sensitivities?

lStakeholders: what knowledge and capacities do the relevant stakeholders have? What are the desired outcomes of benefit sharing?

lDesired outcome: there are choices in the Steps between hy-pothetical “fictional” examples to build capacity on benefit sharing and “real-application” which uses real data, knowledge and devel-opment plans to deliver a benefit sharing vision and plan for that particular basin and set of stake-holders.

These factors need to be taken into ac-count when working through the Steps to best determine where to begin the training ‘journey’ and what (if any) pri-or work is needed. As much as possi-ble, this training package is designed to be flexible in is use, responding to the variety of basin contexts, needs and desired outcomes of both practi-tioners and stakeholders.

SHARING BENEFITS FROM THE RIVER · OVERVIEW10

Preparatory Work Before starting the Benefit Sharing pro-cess, make sure you have collected all the necessary baseline information re-garding the biophysical characteristics of the basin, ecology, economic con-text, investment plans, relevant techni-cal assessments, climate change infor-mation, main challenges and potential conflicts. An updated map showing

the main features of the basin will be a helpful tool when working through the steps and carrying out the various group work exercises. However, please note that under Step 3, when the fic-tive scenarios are used to discover the Benefit Opportunities Assessment Tool (BOAT), maps are provided as part of the training materials.

ReadingDombrowsky, Ines (2009). Revisiting the potential for benefit sharing in the management of trans-boundary rivers. Water Policy, Vol. 11, Pages 125-140

Hensengerth, O. Dombrowsky, I., Scheumann, W (2012): Benefit-Sharing in Dam Projects on Shared Rivers. Discussion Paper 6/2012. Bonn: Deutsches Institut für Entwicklungspolitik (DIE). available from: http://www.die-gdi.de/discussion-paper/article/benefit-sharing-in-dam-projects-on-shared-rivers/

Kramer, A., Pohl, B. (2016) Discussion note prepared by the Geneva Water Hub, the Secretariat of the Global High-Level Panel on Water and Peace, as an input for the second session of the Panel which will take place on April 5-6, 2016 in Dakar, Senegal. Adelphi, the Geneva Water Hub, the Swiss Agency for Development and Cooperation (SDC). https://www.genevawaterhub.org/sites/default/files/atoms/files/hlp_brief_-_benefit-sharing-opportunities.pdf

Mekong River Commission Initiative on Sustainable Hydropower (2012): Knowledge base on benefit sharing. available from: http://www.mrcmekong.org/assets/Publications/Manuals-and-Toolkits/knowledge-base-benefit-sharing-vol1-of-5-Jan-2012.pdf

Sadoff, C. W. & Grey, D. (2002). Beyond the river: the benefits of cooperation on international rivers. Water Policy, 4, 389–403.

SHARING BENEFITS FROM THE RIVER · OVERVIEW 11

Sadoff, C. W. & Grey, D. (2005). Cooperation on international rivers. A continuum for securing and sharing benefits. Water International, 30(4), 420– 427.

Sadoff, C., Greiber, T., Smith, M. and Bergkamp, G. (2008). SHARE – Managing water across boundaries. Gland, Switzerland. https://portals.iucn.org/library/sites/library/files/documents/2008-016.pdf

Soliev, I. Wegerich, K. and Kazbekov, J. (2015) The Costs of Benefit Sharing: Historical and Institutional Analysis of Shared Water Development in the Ferghana Valley, the Syr Darya Basin, Water,7, 2728-2752; doi:10.3390/w7062728

Phillips, David et al. 2008: The TWO Analysis: Introducing a Methodology for the Transboundary Waters Opportunity Analysis. Report Nr. 23. Stockholm: SIWI. available from: https://www.siwi.org/wp-content/uploads/2018/01/Report23_TWO_Analysis.pdf

United Nations Economic Commission for Europe, UNECE, 2015: Draft policy guidance note on identifying, assessing and communicating the benefits of transboundary water cooperation. ECE/MP.WAT/WG.1/2015/4 http://www.unece.org/fileadmin/DAM/env/documents/2015/WAT/06Jun_24-25_IWRM_Geneva/ECE_MP.WAT_WG.1_2015_4_Benefits_policy_guidance_ENG.pdf

United Nations Economic Commission for Europe, UNECE, 2015., Policy Guidance Note on the Benefits of Transboundary Water Cooperation Identification, Assessment and Communication https://www.unece.org/fileadmin/DAM/env/water/publications/WAT_Benefits_of_Transboundary_Cooperation/ECE_MP.WAT_47_PolicyGuidanceNote_BenefitsCooperation_1522750_E_pdf_web.pdf

Winston Yu, “Benefit Sharing in International Rivers: Findings from the Senegal River Basin, the Columbia River Basin, and the Lesotho Highlands Water Project”, World Bank AFTWR Working Paper 1, 2008 Available from documents.worldbank.org/curated/en/2008/11/10019058/benefit-sharing-international-rivers-findings-senegal-river-basin-columbia-river-basin-lesotho-highlands-water-project