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Celebrating World Water Day 2021: Examples of How the GEF IW Portfolio is Valuing Water

GEF-UNDP/UNEP-IOC GEF IW:LEARN

By IW:LEARN

March 22^nd, 2021

GEF IW:LEARN World Water Day 2021 Special Bulletin

“Ignoring the value of water is the main cause of water waste and misuse”, is one of the key messages from this year’s The United Nations World Water Development Report. The 2021 World Water Development Report on “Valuing Water” assesses the current status of and challenges to the valuation of water across differing sectors and perspectives and identifies ways in which valuation can be promoted as a tool help achieve sustainability. Recognizing, measuring and expressing water’s worth, and incorporating it into decision-making, are fundamental to achieving sustainable and equitable water resources management and the Sustainable Development Goals (SDGs) of the United Nations’ 2030 Agenda for Sustainable Development.

The UN WWD report groups current methodologies and approaches to the valuation of water into five interrelated perspectives: valuing water sources, in situ water resources and ecosystems; valuing water infrastructure for water storage, use, reuse or supply augmentation; valuing water services, mainly drinking water, sanitation and related human health aspects; valuing water as an input to production and socio-economic activity, such as food and agriculture, energy and industry, business and employment; and other sociocultural values of water, including recreational, cultural and spiritual attributes. These are complemented with experiences from different global regions; opportunities to reconcile multiple values of water through more integrated and holistic approaches to governance; approaches to financing; and methods to address knowledge, research and capacity needs. There are several different views and perspectives of what ‘value’ specifically means to various user groups and stakeholders

After 27 years of GEF investment, significant progress and results have been delivered by the IW focal area. The GEF, together with its implementing and executing partners, has made investments in at least 23 large marine ecosystems, 47 river basins, 15 lakes, and 13 aquifers. For several years now, the GEF International Waters Focal Area has embraced different methodologies and approaches for valuating water and the services it provides. More than a decade ago, the first ecosystem-wide valuations of both freshwater and marine ecosystems (or sub-units) were conducted by GEF IW projects. These valuations were undertaken with gusto by the marine portfolio, in particular by the Bay of Bengal, Benguela Current, Canary Current, Guinea Current, and Humboldt Current Large Marine Ecosystem projects. Some freshwater projects such as the Dniester River Basin (Lower Dniester wetlands only) and Drin River Basin (Lake Ohrid only) also undertook valuations.

On the occasion of World Water Day 2021, the following examples from the GEF International Waters project portfolio illustrate how projects are valuing water.

Lower Dniester Wetlands Provides Environmental Services Worth 39 Million Euros Annually

The GEF funded, UNDP implemented and OSCE executed project “Enabling Transboundary Cooperation and Integrated Water Resources Management in the Dniester River Basin” conducted one of the most recent economic valuation exercises of natural resources in the GEF IW freshwater portfolio. The “Assessment of Ecosystem Services in the Lower Dniester Basin” study was conducted as part of the preparation of the Dniester River Transboundary Diagnostic Analysis, completed in 2020. The study “Assessment of Ecosystem Services in the Lower Dniester Basin”, based on the GEF methodology and considering studies carried out in the Republic of Moldova and Ukraine, as well as abroad. The study took into account the following ecological services: tourism and recreation, water purification, fisheries, building materials, climate regulation, medicinal plants, biodiversity support, education and science. The study covers three Ramsar wetlands: the Lower Dniester in Moldova, the Dniester-Turunchuk Crossrivers Area, and the Northern Part of the Dniester Liman in Ukraine. The main conclusion of the work is that the annually wetlands of the Lower Dniester provide services equal to 10.2 million EUR in Moldova and 29 million EUR in Ukraine. Even a small share of these funds, if effectively involved in the economy of the region, could contribute to the growth of the local population’s welfare and improve state of the environment in the Lower Dniester region.

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

Celebrating World Water Day 2021: Examples of How the GEF IW Portfolio is Valuing Water

Implementing Nature-Based Solutions to Create Value from Wastewater in the Caribbean

The GEF funded CReW+ project is highlighting the multidimensional value of wastewater this World Water Day. Globally, as much as 70% of domestic wastewater flows into the environment untreated, resulting on the one hand in an untenable waste of resources and, on the other hand, in an uncontrollable threat for public and environmental health. Furthermore, many disease-causing viruses, parasites, and bacteria also are present in wastewater, contaminating drinking water sources and fish. The project aims to turn the hazardous flow of sewerage and non-residential wastewater into a valuable source of nutrients, potable water and energy by applying the IWRM approach. The CReW+ project will implement small-scale nature-based solutions such as constructed wetlands, to retrieve precious by-products from its treatment. Once treated, sewerage can be used to replace freshwater for irrigation, industrial processes, or recreational purposes and biosolids can be used to extract nutrients that can be used fertilizers and for energy generation.

For more details, including links, documents, project contacts and further information about the project please read see the full article here .

Partnering with the Private Sector to Incentivize Valuing Water in the Kura Basin

As the world reels from the effects of COVID-19, it is unsurprising that travel and tourism are among the economic sectors most deeply affected by the pandemic. Finally, at a time when the private sector is deeply concerned about its bottom line, conserving water helps hotels to save money and appeal to a growing customer base demonstrating a preference for hotels that minimize their environmental impact. Initiated by the GEF UNDP Kura II project, the H2Otel Water Saving Awards was unveiled as a pilot program demonstrating how public-private partnerships between governmental ministries and the hospitality industry can incentivize water conservation. The awards program celebrated hotels in Azerbaijan and Georgia for undertaking innovative measures to reduce water use and water pollution, and was the first of its kind in the South Caucasus. The winners of the H2Otel Water Saving Awards, Why Me Hostel and Rooms and the Pullman Baku Hotel, exemplify how hotels can help preserve precious natural resources, save money by saving water, and appeal to the growing number of sustainability-minded tourists. As the hospitality sector moves forward under the new circumstances created by the pandemic, public-private partnerships between government ministries and industry such as the H2Otel Water Saving Awards can play a key role in promoting water conservation as part of a sustainable tourism revival.

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

Valuing the Benefits of Cooperation, the ISWEL Project

The value of cooperation for sustainable development in transboundary river basins was addressed by the ISWEL project which concluded in December 2020. As a result, a rich body of research and insights have been published in numerous journals over the last few years. In addition, the project’s outputs include visualization tools such as the Scenario Explorer, which facilitates understanding of the economic, societal and environmental implications of different development pathways in the two basins; the Global Hotspots Explorer, which can be used to identify multisectoral risks and populations exposure under different global warming scenarios; as well as guidelines for researchers and practitioners on the co- development of sustainability pathways. The project’s findings show that investing in a sustainable development pathway will not compromise economic returns but will instead deliver large social and environmental benefits. Recommendations for stakeholders and policymakers have now been summarized in easy to use policy briefs respectively focusing on the Zambezi and the Indus Basins, due to be released on 22 March 2021 in celebration of World Water Day.

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

Lake Ohrid Watershed Provides Environmental Services Worth 295 Million Dollars

Lake Ohrid, shared by the Republic of Northern Macedonia and Albania, sustains economic activities such as fishing, agriculture, hydropower and tourism and hosts more than 300 endemic species. However, in recent years the Lake faces a number of challenges such as declining fish stocks, eutrophication, habitat destruction and poor water status. To address these challenges, the transboundary Lake Ohrid Watershed Management Plan was developed under the coordination of Global Water Partnership – Mediterranean (GWP-Med) in the frame of the GEF funded, UNDP implemented Drin Project, which promotes improved transboundary water management in the Drin River basin. The development of the Management Plan was the result of a two-year process, informed by transboundary data gathering, including the joint Lake Ohrid water quality surveillance monitoring campaign, an economic analysis and an analysis of ecosystem services in the region.

The results of the Ecosystem Services valuation are summarized below. The total value – expressed in monetary units – of the ecosystem services of the Lake Ohrid Watershed in 2017 was estimated at $295.1 million. The unit value per area, taking into consideration the entire area of the watershed, equals $2,102/ha. Within this, the value of services of Lake Ohrid is $63.3 mill, or 21.4% of the total value; the value of services of forests, protected and agriculture areas within the watershed is $35.52 mill. (12% of the Total Economic Value); and the value of services that are related to the entire watershed is $196.55 mill, or 66.6% of the total value.

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

IWEco Bolstering Earnings and Natural Habitats in the Bahamas

The GEF-funded, UNEP and UNDP implemented project “Integrating Water, Land and Ecosystems Management in Caribbean Small Island Developing States” (IWEco) is supporting restoration of major natural habitats in the Bahamas to increase residents’ earnings through ecotourism and strengthen environmental monitoring and evaluation. Developing resilience is at the heart of a three-year project which has been launched to restore major natural habitats in East Grand Bahama to increase residents’ earnings through ecotourism and strengthen environmental monitoring and evaluation. For The Bahamas, the Department of Environmental Planning and Protection (DEPP), the Forestry Unit, the Ministry of Public Works and Bonefish & Tarpon Trust are the leading partners.Under the IWEco The Bahamas project, in conjunction with the Ministry of Works, three major tidal creek systems have been identified for restorative work including the West Gap Creek, Snapper Island and McLean’s Town causeways at August Creek, and Ridge Creek. A critical component also involves creating an inventory of all species in the area and developing a plan for managing water resources.

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

Cage Aquaculture on Lakes Albert, a Ray of Hope for Artisanal Fishers

The Buhuka Albert Fishers Association (BAFA) group began engaging in cage aquaculture in 2020, with support from the Multinational Lakes Edward and Albert Integrated Fisheries and Water Resources Project (LEAF II) that is funded by the African Development Bank (AfDB) and the Global Environment Facility (GEF) and is implemented in collaboration with the Governments of Uganda and DRC. As of mid-March 2021 the fish from the three cages were 3.5 months old and were each weighing close to 100 grams. Each of the three groups hope to harvest a minimum of 3-4 tons of fish per cage and expect to make minimum of 15 million UGX (USD, 4,200) per cage. The group has so far spent 4 million UGX (USD 1,100) and expect to spend another 2.6 million UGX (USD 450) on feeding the fish for the next three months and by the time they mature will have spent a total of 6.6 million UGX (USD 1,800).

In 2019 LEAF II project conduced a research on the potential of Cage Aquaculture on the two transboundary lakes Edward and Albert and this research informed the current pilot cage aquaculture projects. The research revealed among others, the probable areas best suited for the aquaculture project and their carrying capacity. The groups have been receiving capacity building and supervisory visits by the LEAF II Project, the local District Fisheries and Sub County Fisheries Officer who visit the groups more than once a week to oversee their progress. Within a month, the project will hand over the cages to the groups to fully manage going forward. The groups will be responsible for feeding their fish for the next two to three months after the formal handover.

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

Valuing Water as the SADC region is struggling with the impacts of Climate Change

SADC-GMI has a mandate to provide innovative solutions to groundwater challenges in the region to support the Regional Strategic Action Plan V (RSAP V). In line with the RSAP V and theme of this year’s World Water Day “Valuing Water”, SADC-GMI has implemented an array of activities that promote water accessibility to vulnerable communities. Such activities were implemented in 10 SADC Member States and ranged from Installing Groundwater Monitoring Systems, Exploring Deep Aquifers as a source of water supply to the communities, Groundwater Mapping and Wellfield Development and Integration of Groundwater Resource Data Management Systems. Through these activities SADC-GMI has been able to bring safe water, improved sanitation and proper hygiene to rural communities. Thousands of people in SADC Member States have benefited from these initiatives. The primary objective of these projects is to help Member States meet water demands that keeps escalating every year.

In fulfilling its mandate, SADC-GMI constantly strive to demonstrate the invaluable role played by groundwater to build resilience through its sustainable use in the community’s livelihood and WASH activities. SADC-GMI’s work goes beyond creating enabling frameworks for sustainable groundwater management initiatives to piloting innovative infrastructure projects necessary for communities to access the resource. SADC-GMI believes that sustainable groundwater management is one of the answers to resolve water-based challenges in the SADC region and the continent at large.

All activities completed were part of the Sustainable Groundwater Management in SADC Member States Project funded by the Global Environmental Facility (GEF) and Cooperation in International Waters in Africa (CIWA) through the World Bank Group.

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

Valuing water means tackling the nitrogen challenge

The ‘Towards INMS’ (INMS) project is tackling the issue head on by bringing together scientists and policymakers to address the nitrogen issue in an integrated way. This avoids issues such as ‘pollution swapping’ for example through support in the development of documents such as the UNECE Guidance Document on Integrated Sustainable Nitrogen Management. This document, adopted by the Executive Body of the UNECE Air Convention in December 2020 gives policymakers the science and management options to inform extension agencies and farmers on how to manage nitrogen in such a way that it mitigates both water AND air pollution.

As well as supporting the work of the UNECE the INMS project will also deliver a number of guidance documents for policymakers later this year, on how to assess and manage nitrogen pollution, including in regional contexts. INMS has 7 regional demonstrations underway which are utilising the INMS methodology ‘an integrated approach to assessing and mitigating for nitrogen issues in collaboration with local stakeholders’. This will ensure that best practice can be shared and solutions proposed are fit for purpose.

Furthermore the INMS is engaged in two initiatives to ensure that the value of water can be addressed, through its links to the nitrogen challenge. INMS scientists and the wider community are working on the ‘International Nitrogen Assessment’, the first global look at the nitrogen issue, science to solutions. The INA is due to be published in 2022. However, without the mechanisms and willingness to tackle nitrogen in existing multi-lateral environmental agreements (including those which address drinking water quality and ecosystem health), the messages of the assessment could go unheard. Therefore INMS is working with UNEP, with country level engagement in the ‘Nitrogen Working Group’ to develop an ‘Interconvention Nitrogen Co-ordination Mechanism’ (INCOM).

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

Valuing water in practice for the Mesoamerican Reef Ecoregion. The case of Manchaguala watershed in Honduras.

"The Central American Commission on Environment and Development (CCAD) is implementing the Integrated Ridge to Reef Management of the Mesoamerican Reef Ecoregion project (MAR2R) in coordination with the ministries of the environment of Belize, Guatemala, Honduras and Mexico. MAR2R is a Global Environment Facility (GEF) project, with WWF as implementing agency. The project, in coordination with the Alliance for the Water Security of San Pedro Sula (ASHSPS), are supporting the design of a public-private mechanism in Honduras as part of its results that will contribute to the management of the Manchaguala watershed (lower part of the Chameleon watershed). One of the principles underlying the design of the mechanism is the recognition that the water represents an ecosystem service of the forests located in the upper watershed. This valuation makes it feasible to formalize a mechanism to collect, manage and prioritize investments for the protection of forest ecosystems that provide the ecosystem service of water, not only for human activities (agriculture, industry, domestic consumption, etc.), but also for the ecosystems of the watershed and the coastal marine zone, such as the Mesoamerican Reef Ecoregion". In addition, the MAR2R project is executing a demonstration project on good practices for the management of water resources in the Manchaguala watershed.

For more details, including links, documents, project contacts and further information about the project please read see the full article here.

GEF IW:LEARN Strengthens the GEF IW Portfolio’s Capacity on Economic Valuation

The GEF International Waters Focal Area’s knowledge management mechanism, IW:LEARN, contributed to the portfolio’s capacity to value its transboundary waters and oceans through programmatic guidance and training. In 2019, the project launched, under the leadership of UNIDO, and in partnership with GRID-Arendal, IUCN, UNECE and UNEP, the GEF Guidance Document for Economic Valuation in IW Projects, The Guidance Document is a reference source and a guide for GEF IW projects and contains step-by-step guidance on the economic valuation of ecosystem services of inland and marine "wet" ecosystems, with a focus on easily applicable and pragmatic valuation approaches. The guidance is usable for both screening and in-depth analyses, and supports the stepwise process leading from Transboundary Diagnostic Analysis (TDA) to the Strategic Action Programme (SAP).

Ecosystem services are crucial for the well-being of people, but their contribution to economic systems is difficult to quantify in monetary terms. Since some of them are not traded in commercial markets, they are often given too little or no weight in decision making. Thus, final decisions may favor outcomes which do have a commercial value, turning unsustainable use of ecosystems more profitable in a short term while having considerable economic long term costs. Economic valuation also promises to help bridge the gap between science and policy-making by communicating the importance of ecosystems in terms of their economic value to a variety of sectors. While the GEF IW portfolio historically has made use of economic valuation studies (in the Guinea Current and Benguela Current Large Marine Ecosystem projects, for example), the tool has not been applied in a systematic or widespread manner, as economic valuations are resource-intensive, and expert´s knowledge is generally needed to conduct an analysis "from scratch". Besides, the Guidance Document contains templates for reports, ToRs for experts to support the valuation work, a checklist for the valuation itself, and a full set of training materials including exercises for a better understanding of crucial steps in the economic valuation methodologies.

Click here to download the Guidance Document. Numerous supporting documents can be found on the GEF IW economic valuation website. please read see the full article here.

For more information on the GEF IW:LEARN project kindly contact the Project Manager, Mish Hamid (mish@iwlearn.org). Additional resources and information about the entire GEF International Waters Portfolio can be found on the GEF IW:LEARN website.