counting ecosystems as river basin infrastructure

Transcription

1 counting ecosystems as river basin infrastructure

2 ecosystems are essential and profitable components of river basin infrastructure

3 Keynote Address Asia-Pacific Business Forum 2006: Vice President - Operations, Asian Development Bank To say that infrastructure development has impact is to state the obvious. No industrial country has advanced to such status without developing solid infrastructure facilities. And no low-income country has managed to escape poverty in the absence of infrastructure. There is no question that, for a developing country, infrastructure investment will pave the way for growth and thus poverty reduction

4 defining infrastructure the stock of facilities, services and equipment that are needed for the economy and society to function properly

5 an incomplete definition conventional definitions of infrastructure, and investments in it, miss a critical component natural ecosystems

6 ecosystems and well-being ECOSYSTEM SERVICES HUMAN WELL-BEING Provisioning Security Supporting Nutrient cycling Soil formation Primary production etc. Food Fresh water Wood and fibre Fuel etc. Regulating Climate regulation Flood regulation Disease prevention Water purification etc. Cultural Aesthetic Spiritual Educational Recreational etc. Personal safety Secure resource access Security from disasters Basic material for good life Adequate livelihoods Sufficient nutritious food Shelter Access to goods Health Strength Feeling well Access to clean air & water Good social relations Social cohesion Mutual respect Ability to help others Freedom of choice and action Opportunity to be able to achieve what an individual values being and doing Source: Millennium Ecosystem Assessment 2005

7 ecosystems as infrastructure provide basic life support services and facilities which help to underpin human production and consumption, and afford protection against hazards and disasters inseparable from many other parts of water infrastructure maintenance and upkeep require an equal or even greater investment priority

8 the costs of underinvestment ecosystem degradation leads to real losses and costs has tangible impacts on economic functioning and social wellbeing undermines profits and growth at all levels and for all sectors typically has disproportionate impacts on poorer and more vulnerable groups

9 recalculating profit and loss problem is not that ecosystems have no value rather that these costs and benefits are not adequately reflected in decisions, policies, prices and markets gives a false picture and confused signals about private and public profits, losses and trade-offs

10 changing business as usual counting ecosystems as river basin infrastructure modifying the way that profit, returns and trade-offs are calculated providing the right arguments and incentive structures to stimulate public and private investment in ecosystem services

11 ecosystems as water infrastructure Shivapuri National Park Nepal Waza Logone Floodplain Cameroon Nakivubo Swamp Uganda Tana-Grand Falls Hydro Scheme Kenya

12 ecosystems as water infrastructure Shivapuri National Park Nepal Waza Logone Floodplain Cameroon Nakivubo Swamp Uganda Tana-Grand Falls Hydro Scheme Kenya

13 Waza Logone, Cameroon 8,000 km 2 floodplain in dry northern region of Cameroon 1972 rice irrigation scheme drastically curtailed flooding undermined livelihoods of 150,000 of the poorest people, including pastoralists, agriculturalists and fisherfolk need to provide rationale for using poverty reduction funds to undertake civil engineering works to restore flood regime

14 Waza Logone, Cameroon 8,000 km 2 floodplain 220,000 people (pastoralists, floodplain farmers, fisherfolk) Project Area Logone Original flooded area: 3,400 km 2 Reduced flooded area: 2,200 km 2 Lake Maga Lorome Matya Logomatya Mayo Vrick Lake Maga

15 Waza Logone, Cameroon Livelihood costs of floodplain degradation $0.5 mill $1 mill $1.5 mill $2 mill $2.5 mill Pasture Fisheries Agriculture Grass Water

16 Waza Logone, Cameroon Returns to floodplain restoration works Physical effects Incremental costs and benefits Additional flow Flood recovery Capital costs Net livelihood benefits m 3 3 /s /s 90% $11.26 mill mill $2.32 mill/yr Indicators and measures of profitability Net present value Benefit:cost ratio Development payback $ 7.76 mill mill 6.5:1 5 years

17 Waza Logone, Cameroon demonstrated a positive economic return from investing in flood restoration works presented the justification for allocation of funds on development and poverty alleviation grounds

18 Tana-Grand Falls, Kenya one of Kenya s 5 major river basins, contributing 75% of hydro-power key feature is bi-annual floods flooding supports downstream human populations and freshwater ecosystems new hydroelectric dam planned last of 5 dams: final stage in control of Tana flow and floods project cost-benefit analysis favours most destructive dam option

19 Tana-Grand Falls, Kenya UGANDA SUDAN Catchment area (100,000 km 2 ) River-adjacent area (18,000 km 2 ) Hydroelectric dams ( ) TANZANIA Nairobi ETHIOPIA Proposed Grand Falls Dam ( MW) Tana River (1,000 km) Mount Kenya & Aberdares Range SOMALIA Indian Ocean Tana Delta (1,300 km 2 ) Mombasa Affected flood-dependent downstream ecosystems Floodplain Floodplain grasslands grasslands Recession Recession agriculture agriculture Mangroves Mangroves Freshwater Freshwater wetlands wetlands Riverine Riverine forest forest Surface Surface and and groundwater groundwater

20 Tana-Grand Falls, Kenya Floodplain grasslands Dry-season grazing US$16.5 mill 120,000 people Riverbank flood fields Lakes and wetlands Riverine Forest Floodplain agriculture Wetland, riverine and marine fisheries Forest utilisation US$0.8 mill 25,000 people US$14.0 mill 55,000 people US$1.5 mill 25,000 people 275,000 people US$47 million Surface and groundwater Domestic water supplies US$14.2 mill 100,000 people

21 Tana-Grand Falls, Kenya enables recalculation of dam economic appraisal integrating ecosystem values changes measures of profitability dam option with highest financial profitability shows negative NPV and low IRR most economically desirable dam option becomes that which builds in downstream flood simulation

22 Shivapuri NP, Nepal as well as high biodiversity and cultural importance, protects the watershed for Rivers Bagmati, Bishnumati, Yashomati contributes about a fifth of piped water supply to Kathmandu studies show appreciable role of forest cover for water supply and quality critical lack of funding for Protected Area management from public budgets needs to identify new, and sustainable, sources of finance for maintaining Shivapuri

23 Shivapuri NP, Nepal Shivapuri National Park Kathmandu

24 Shivapuri NP, Nepal Shivapuri National Park Sundarijal subwatershed Kathmandu Bagmati watershed

25 Shivapuri NP, Nepal

26 Shivapuri NP, Nepal incremental water benefits from ecosystem conservation $5.44 million/year ecosystem management costs $0.43 million/yr

27 Shivapuri NP, Nepal scenario analysis provides the figures and workings to demonstrate the net water benefits from forest conservation indicates both the current resource gap in finance needs, and the relative costs and benefits of managing Shivapuri for water services Introduces payment for water ecosystem services as a potential source of Park funding

28 Nakivubo, Uganda wetland area in central Kampala ongoing urban planning designates development and protection zones in municipality Nakivubo zoned for reclamation for industrial and housing development need to influence urban zoning designations

29 Nakivubo, Uganda Ggaba Water Works Nakivubo Channel Bugolobi Sewage Nakivubo Swamp Lake Victoria

30 Nakivubo, Uganda Net Value (US$/year) Whole Wetland Per Hectare Crops 85, Papyrus 14,000 1,900 Bricks 25,000 1,700 Fish 5, Water treatment 5,100,000 2,700

31 Nakivubo, Uganda underlines value of wetland s valuable role as urban infrastructure fills the gap between basic services required by urban dwellers, and those that the government is currently able to provide high values justify re-zoning Nakivubo as part of urban greenbelt

32 investing in ecosystems as river basin infrastructure there is a need for a shift in the economic calculations that inform river basin planning and management counting ecosystems as economic users of water, and economic components of water supply investing in ecosystems as natural infrastructure to ensure their continued productivity and support to river basin development, ecosystems need to be maintained and improved just like any other component of infrastructure

33 Thank You