Community Based Adaptation Costing (SROI)


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This presentation outlines the methodology for applying Social Return on Investment (SROI) as a community based climate change adaptation costing tool. It contains photos and activities from the CIAT-CCAFS pilot test of the approach in Kochiel Kenya in July 2011.

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Community Based Adaptation Costing (SROI)

  2. 2. ADAPTATION COSTING EVOLUTION<br />There have been several attempts to provide agricultural sector decision makers with the empirical tools necessary to estimate the ‘cost’ of adaptation and select from competing adaptation strategies…<br />Computable General Equilibrium <br />-& -Integrated Assessment Models (IAM)<br />IFPRI IMPACT (1990s), World Bank EACC (2009), UNEP (2010), FAO-MOSAICC (2011)<br />National Adaptation Programs of Action (NAPA)<br />Investment and Financial Flows (IFF)<br />UNFCCC (2007), World Bank (2006), UNDP (2006), Stern (2006), Oxfam (2001)<br />Brings the CC adaptation discussion to the local level, and utilizes grass root participation to identify concrete adaptation strategies.<br />First generation: provide suitable baseline figures for total adaptation costs. <br />Allows for cross-sector analysis and provides concrete empirical tools for measuring both climate change adaptation costs and economic effects . <br /><ul><li> No estimation of benefits/results
  3. 3. Multiple Sector
  4. 4. Quality varies between country</li></ul>-Top-down-Applied arbitrary markup on “climate- sensitive” investments, <br />-Global in scope<br />-Multiple sector<br />-Top-down<br />-Black-Box<br /><ul><li>Requires available time-series data
  5. 5. Relies on market assumptions-Multiple sector</li></ul>JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  6. 6. FUNDS<br />‘COSTS’<br />And the UNFCCC has identified sources for potential adaptation funding…<br />These efforts have yielded estimates for total CC adaption costs in developing countries…<br />-World Bank (2006) 9-41 Billion<br />-Stern (2006) 4-37 Billion<br />-Oxfam (2007) >50 Billion<br />-UNDP (2007) 86-109 Billion<br />-Global Environment Facility Trust Fund (GEF)- Least Developed Countries Fund (LDCF) <br />-Special Climate Change Fund (SCCF)<br />-Adaptation Fund (AF) under the Kyoto Protocol<br />?<br />?<br />?<br />?<br />BUT WHAT DOES THAT MEAN FOR ME?<br />JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  7. 7. >>To make adaptation costing studies more relevant…<br />(1) They should assist in the prioritization of adaptation interventions (how do we choose from so many options?)<br />(2) They should use high resolution, pragmatic costing (and benefit) approaches that value impacts that are most important to stakeholders. <br />JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  8. 8. >>CCAFS, together with Oxford University, is investigating one potential option for improved adaptation cost analysis… <br />SOCIAL RETURN ON INVESTMENT (SROI)<br />“SROI is an approach to understanding and managing the social, economic and environmental outcomes of a project, organization or policy. It is based on stakeholders and uses financial proxies to reveal the value of outcomes that do not have direct market values” SROI is built upon these seven principles:<br />Involve stakeholders<br />Understand what changes<br />Value the things that matter<br />Include only what is material<br />Do not over-claim<br />Be transparent<br />Verify the results<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  9. 9. Figure 1: SROI framework visualization<br />A<br />C<br />Workshop + SROI Interviews<br />B<br />Technical Design Inputs <br />T= technical Benefit | $ = Monetary Benefit | S= Social Benefit | E = Environmental Benefit<br />>> What makes SROI unique as a cost-benefit platform is the way that data is collected (through direct participation with stakeholders) and the type of data collected (not only economic indicators but social and environmental impacts).<br />Figure 1: Every adaptation strategy has know technical benefits (A) - these are taken in to account in the SROI analysis (traditional cost-benefit data on income and productivity, for example). But through individual interviews SROI aims also to discover and document new benefits that are of importance to stakeholders (B) (Including social and environmental impacts that are not easily valued). Finally, once a measure has been implemented, SROI measures its success according to stakeholder criteria, tracking technical benefits to their final welfare impacts (C).<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  10. 10. >> With SROI as the foundation, this new approach to cost-benefit analysis goes further than just numbers. It is a holistic, participatory framework that aims to first discover how communities can best adapt to climate change, and then measures the costs and benefits of the priority intervention(s). Here’s how it works…<br />1<br />Technical Design Inputs <br />Stakeholder Analysis<br />2<br />3<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | VALUATION <br />
  11. 11. >>The pilot program begins with a workshop (2-3 days) designed to help the research team understand the environmental challenges facing the community* and to select the most appropriate adaptation strategies according to the community's development goals and aspirations.<br />*the pilot is designed to be applied in an inclusive village setting; 20-30 households<br />The methods and activities used in the SROI workshop will be determined through preliminary stakeholder analysis conducted in cooperation with a local partner. The following slides outline several of the activities (not exhaustive) used in the first SROI pilot in Kochiel , Kombewa, Kenya .<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  12. 12. WORKSHOP PART 1: Community value mapping, perceptions of environmental change and coping mechanisms<br />Activity: What is important to you? (Clustering and ranking exercise) <br />Note: Largest group possible 10 minutes for reflecting and writing on post-its. 1 hour for clustering and discussing<br />What is important to you?<br />Clustering what is important...<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  13. 13. WORKSHOP PART 1 CONT’D : Community value mapping, perceptions of environmental change and coping mechanisms<br />Activity: What environmental challenges are you facing/have you faced in the past? How have you coped so far? <br />Note: Post- it notes (challenges and possible responses). 1.5 hours for clusteringand ranking of challenges and responses . If time allows, supplement with ‘event ecology’ narratives in story circles (1.5 hours).<br />Response Clustering<br />Challenge- Response <br />Prioritizing challenges & responses<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  14. 14. A variety of activities are used during this phase of the workshop:<br />Collages of visions and aspirations (1 hour 10 people)<br />Maps: What will your village look like in 20 years? What do you want your village to look like in 10-15 years? (1.5 hour 10 people)<br />Reflective exercises:<br />When you think about the future how far ahead do you think? Do you think about your grandchildren’s futures? Etc (1 hour)<br />WORKSHOP PART 2: Visions and Aspirations for the future <br />Aspirations Collage<br />Village Future Map<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  15. 15. WORKSHOP PART 3: Back Casting – How do we reach our vision of the future?<br />Activity: List adaptation strategies and tools which can take us from where we are now to where we want to go<br />(3 groups, 20 minutes reflection ,40 minutes clustering)<br />ASK: Who will decide which strategies who uses? Why?<br />ASK: Where will we seek knowledge? <br />ASK: Where should resources come from to implement each strategy?<br />ASK: How do you see these interventions being situated in space and time?<br />Activity: Brainstorm all of the possible positive and negative impacts (inc environmental) of these strategies, assign costs, identify barriers and opportunities ( 1hour)<br />Back-casting of strategies in space and time…<br />…and identifying barriers and costs<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  16. 16. WORKSHOP CONCLUSION: Combining results of back casting. Voting on priority strategies.<br />Activity: Each group presents the results of their back casting exercise, including adaptation strategies proposed, costs and barriers to implementation. (1.5 hours) <br />Adaptation strategies listed and community votes on top priorities. Top measure is selected for detail SROI cost analysis.<br />Priority list<br />Group back casting<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  17. 17. SROI INTERVIEWS<br />>>With a self identified, community appropriate adaptation strategy selected, a series of interviews with community members is conducted. The interviews build on the costs and barriers identified during the workshop back casting exercises.<br />Having conducting the workshop first ensures ease of communication between interviewer and interviewee. There is also a strong sense of ownership over the selected adaptation strategy, improving the data on cost and benefits. <br />Individual Interviews…<br />…differentiated by gender <br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  18. 18. SROI ANALYSIS<br />>>Using the data collected during the individual interviews, combined with the workshop results, a thorough costs-benefit analysis of the priority adaptation measure(s) can be completed. <br />The results of the analysis are displayed in a SROI impact map (below). The map is a visualization of the inputs necessary from each stakeholder to implement the intervention (corrected for potential barriers) together with an assessment of the projected benefits, using success indicators identified by the stakeholders themselves.<br /> JUSTIFICATION | WHAT IS SROI? | WORKSHOP | SROI INTERVIEWS | ANALYSIS<br />
  19. 19. RESOURCES<br />The SROI Network: <br /><br />For more information on CCAFS community based adaptation costing with SROI contact:<br />Chase Sova (<br />SROI - Kochiel, Kenya – July 2011 (All photos by Anna Wikman)<br />