Key outcomes from the pre-workshop on Economic valuation


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Key outcomes from the pre-workshop on Economic valuation

  1. 1. 7th Biennial GEF International Waters Conference Bridgetown, Barbados Key outcomes from the preworkshop on Economic valuation Eduard Interwies, InterSus
  2. 2. Aim of the presentation • Present briefly the key outcomes of the preworkshop • “Set the scene” for the upcoming table dialogues on economic valuation
  3. 3. The pre-workshop: • Sat & Sun 26 & 27.10 • Centered on economic valuation as a tool to link sciencebased 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
  4. 4. The background/basis: • 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
  5. 5. Ecosystem Services: (MEA, TEEB)
  6. 6. An example: Various ecosystem services related to wetlandsestuaries, 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)
  7. 7. Economic valuation of ES Decision-making needs to integrate a variety of socioeconomic 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)
  8. 8. Economic valuation of ES - methods • 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?)
  9. 9. Economic valuation of ES 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
  10. 10. Regarding market-based instruments… ..and the links to economic valuation:
  11. 11. 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, liabilitybased, voluntary • FIRST SLIDE BY MARK???
  12. 12. Regarding PES – and use of valuation • 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 commodity Role 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 TDASAF-process) to promote and use PES-schemes
  13. 13. Linking valuation to policy-making 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
  14. 14. 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 (qualitativequantitative) of options – for the SAP
  15. 15. 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”)
  16. 16. 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 valuationprocess
  17. 17. 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: Hotspot and small demonstration projects in national diagnostic analysis/TDA/SAP formulation – with strong decision maker & stakeholder involvement
  18. 18. Special thanks to: • 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!