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Benefit Accounting of Nature-Based Solutions for WatershedsBenefit Accounting of Nature-Based Solutions for Watersheds
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Benefit Accounting of Nature-Based Solutions for Watersheds

  • Project Overview
  • Stage 1 Resources
  • Stage 2 Resources
  • Stage 3 Resources
  • Webinars

Project Overview

Project Background

Watersheds around the world are in peril and risk further decline from climate change and human impacts, like pollution, land degradation, and unsustainable resource use. These impacts have inhibited the ability of ecosystems to sustainably provide the ecosystem services that humans rely on, such as regulation of water flow, carbon sequestration, biodiversity, and temperature regulation. Climate change is exacerbating these impacts through shifting weather patterns and increasing the recurrence and severity of natural disasters. Urgent action is needed to address these impacts by implementing nature-based solutions (NBS).

Nature-based solutions (NBS) provide mechanisms to work with nature, not against it, to adapt to and even reverse the impacts of climate change and other human activities. NBS has been defined by the IUCN as:

Actions to protect, sustainably manage, and restore natural or modified ecosystems, that address societal challenges, effectively and adaptively, simultaneously providing human well-being and biodiversity benefits.

NBS can help uptake and store carbon; manage floods, droughts, and extreme weather events; restore watershed and ecosystem health; increase biodiversity; improve agricultural production; and provide a wide range of socio-economic benefits. Additionally, NBS (including green infrastructure) can be more flexible, resilient, and cost-effective than conventional engineered solutions (gray infrastructure).

While investments in NBS have grown significantly over the last decade, several barriers hinder widespread implementation.

  • Lack of awareness about the potential benefits of NBS, from an ecosystem perspective, and from a business perspective;
  • Lack of resources including under-investment by both the private and public sectors and time and land constraints;
  • Lack of long-term planning (which NBS requires), and a focus on developing and implementing “bankable projects” as quickly and efficiently as possible
  • Lack of policy and governance frameworks to incentivize investments in NBS;
  • Path dependency of organizational decision-making; and
  • Lack of standardized methods and tools to identify, account for, and value NBS benefits.

To address many of these barriers, and specifically the last one, the Pacific Institute and CEO Water Mandate have partnered with several organizations to help scale up and mainstream investments in NBS for watersheds.

Stage 1 Resources

Stage 1 (Jan 2020 – June 2021)

This multi-phased stage of work had several key activities, comprising the drafting of relevant documents, method and tool development, communication, stakeholder engagement and capacity building, pilot testing, and dissemination. Key outputs include:

NBS benefit-identification method

This project has developed a standardized method to identify the stacked benefits of NBS for watersheds. This method is designed to align with existing tools and resources for NBS benefit accounting and incorporate lessons learned from NBS case studies globally.

By promoting the quantification of stacked benefits of NBS, this method can help to:

  • Identify opportunities and trade-offs among different NBS project beneficiaries;
  • Demonstrate the business case for NBS projects;
  • Increase transparency associated with decision-making, through a clear and standardized method;
  • Demonstrate the effectiveness of NBS to deliver multiple benefits; and
  • Broaden support for NBS policies, programs, and projects.

Landscape assessment

A landscape assessment was undertaken to understand the contemporary thinking around NBS and identify key opportunities and challenges faced by decision-makers, practitioners, and researchers. Interviews conducted with businesses, civil society, and academia who have already implemented NBS projects (or were looking to do so) yielded responses to complement or contrast the findings from the literature review. A review of NBS case studies from the private sector was also conducted.

The landscape assessment:

  • Explores the concept, definitions, and classifications of NBS;
  • Identifies barriers and opportunities to scaling NBS;
  • Reviews available frameworks or methods for evaluating, measuring, and demonstrating the value of NBS benefits; and
  • Examines opportunities to scale NBS.
Download Paper
Portuguese Translation

NBS Guide

This guide provides a key starting point to identify and measure the multiple benefits accruing from NBS investments. The guide indicates which specific NBS activities can be implemented in various habitats and suggests methods for estimating or measuring the benefits. Accounting for NBS benefits will improve a company’s impact monitoring and help build the business case for these “green” solutions, thereby supporting widespread implementation. Specifically, the guide helps users account for and measure the stacked water, carbon, and biodiversity benefits, as well as additional socio-economic benefits. The guide also presents the various methods developed for benefit identification, forecasting, and valuation.

Download Guide

User-friendly tool

The final product from Stage 1 is an online tool, the NBS Benefits Explorer, which adopted the method developed for benefit identification. This highly intuitive and user-friendly tool offers practitioners a simple way to identify and project benefits from NBS investments across multiple habitats, offers appropriate indicators and calculation methods to quantify and qualify benefits, as well as providing a return-on-investment estimate.

Access Tool

The Team

Stage 1 was developed by a multi-stakeholder project team including the following organizations:

Funding support

Funding for Stage 1 was generously provided by the following organizations:

Stage 2 Resources

Stage 2 (Nov 2021 – April 2023)

Stage 2 of this project built on the Stage 1 outcomes and outputs and comprised several key areas of work.

Benefit Forecasting

Benefit identification is the first step along the NBS journey and informs investors of the multiple benefits accrued from NBS. Benefit forecasting builds on this and presents activity-benefit linkages across multiple temporal and spatial scales. These forecasts inform investors and practitioners of when maximum benefit accrual can be expected, based on different habitat and intervention types.

Benefit Valuation

During this stage, a benefit valuation method was developed using economic and social metrics, to measure, model, and report on the value accrued from a potential investment in NBS. Global databases, academic literature, and NBS case studies provided quantification and qualitative estimates used to perform meta-analyses and assess the social and economic value of NBS benefits. These valuation outcomes help support the case for NBS investment.

Stakeholder Engagement Guidelines

One of the key findings from Stage 1 was the lack of stakeholder engagement in existing NBS projects, particularly with vulnerable, disadvantaged, or marginalized communities. Results from the pilot testing showed that stakeholders are often only engaged at specific points along the project (mostly at the end of the project). In Stage 2, NBS-specific stakeholder engagement guidelines were developed to guide investors and practitioners to make stakeholder engagement a more inclusive and equitable process to ensure that all voices are heard around the NBS decision-making table.

Download Guide

Further development and refinement of the guide and tools

The project team has incorporated all the elements developed in Stage 2 into version 2 of the guide and tool. This would include benefit forecasting methods, revised indicators and calculation methods for benefit accounting, benefit valuation techniques and stakeholder engagement considerations.

The Team

Funding support

Funding for Stage 2 was generously provided by the following organizations:

Stage 3 Resources

Stage 3 (May 2023 – Dec 2025)

Stage 3 looks to further the functionality and global applicability of the NBS Benefits Explorer tool. The following components make up the latest stage of work:

Geospatial Analyses

Using global data sets, satellite imagery, and AI, the project aims to be able to project benefit accrual across water quality, water quantity, carbon, biodiversity, and socioeconomics to provide local, accurate forecasts of NBS benefits and value. These outputs will be based on a variety of context-specific parameters and will add an additional layer of granularity to the tool. This means that whether you are in Cape Town, South Africa or Columbo, Sri Lanka, you can determine NBS benefit accrual that is relevant to your local context.

Expert interfaces

A key addition to the tool would be the inclusion of an expert interface that would allow academics, technical experts, and habitat specialists to refine linkages between habitats, interventions, activities, processes, and benefits, improve benefit forecasts and valuations, and suggest additional indicators and methods for benefit accounting. This interface will allow for greater rigor and verification of tool developments as well as bringing the best available science into the tool in real-time.

Thematic deep-dive capabilities

In Stage 3, the tool will be adapted to offer deep-dive capabilities, allowing users the opportunity to assess, measure, and model benefit accrual at the site level (post-NBS implementation). Benefit accrual will be assessed by thematic area, covering water quality, water quantity, carbon, biodiversity, and socioeconomics. The initial scope will consider volumetric water benefits. Strategic partnerships will be created to undertake this component of work.

The Team

Funding support

Webinars

Webinars

Nature Based Solutions Webinar Series 1: How to Identify and Account for the Benefits of Nature-Based Solutions for Watersheds

 

Nature-Based Solutions Webinar Series 2: From Theory to Practice

 

Nature Based Solutions Webinar Series 3: Benefits Explorer Tool

 

Tools of the trade: Benefit accounting of nature-based solutions

 

The Natural Benefits of Including Nature in Water Business Strategy – Uniting Business Live 2021

Our Vision

This initiative is developing a standardized method, guidance and tool to identify, account for, and value the stacked water, carbon, biodiversity, and socio-economic benefits of NBS for watersheds (Figure 1). This initiative demonstrates how accounting for stacked benefits quantitatively and qualitatively can build the business case and show the investment potential of NBS for watersheds, as well as build awareness of their value.

Audiences

The primary audience of the guide, method, and tool is expected to be private sector decision-makers (e.g. corporate sustainability practitioners, water stewardship teams, and financial officers) involved in the implementation and evaluation of NBS interventions. Specifically, the guide, method, and tool will be most useful for companies interested in responding proactively to shared sustainability challenges, as well as companies that are implementing or considering investing in NBS and would like to estimate and demonstrate the potential benefits of NBS interventions.

The secondary audience includes public sector actors, NGOs, investment organizations, development banks, academia, civil society groups and local communities involved in supporting and/or developing effective policies, programs and projects to incentivize greater implementation of and investment in NBS.

Credibility and robustness

Expert advisory groups (EAGs) provide strategic and technical input into the direction of the project and review the various project outputs to ensure that these are robust, credible, and defensible. These EAGs comprise representatives from the public and private sectors, development banks, NGOs, and academia. Other stakeholder engagement supports the uptake, socialization, and refinement of project outcomes and outputs.

Get Involved

If you’d like to discuss how you and your organization can get involved with this NBS initiative or to hear more about project-related reports, upcoming events, or how to sign up to be a case study, fill out the form below.

Gregg Brill

Pacific Institute
Project Lead

Contact

CEO Water Mandate

UN Global Compact | Pacific Institute

ceowatermandate@unglobalcompact.org

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