The document summarizes key outcomes from a pre-workshop on economic valuation held prior to the 7th Biennial GEF International Waters Conference in Barbados. Over 100 participants attended presentations and breakout groups to discuss economic valuation methodologies and examples. Participants explored how valuation can help link science-based management with policy decisions. Valuation is one tool among many socioeconomic factors that should be integrated into the Transboundary Diagnostic Analysis and Strategic Action Program process used by GEF International Waters projects. The pre-workshop highlighted the importance of selecting valuation methods appropriate for the policy question, stakeholder engagement, and effective communication with decision-makers.

1. 7th Biennial GEF International
Waters Conference
Bridgetown, Barbados
Key outcomes from the preworkshop on Economic
valuation
Eduard Interwies, InterSus

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. 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. 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. Ecosystem
Services:
(MEA, TEEB)

7. 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)

8. 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)

9. 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?)

10. 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

11. Regarding market-based instruments…
..and the links to economic valuation:

12. 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???

13. 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

14. 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

15. 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

16. 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”)

17. 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

18. 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

19. 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!