Integrated Cost-Benefit Analysis for Nature-Based Solutions

This handbook provides a step-by-step guide for integrated cost-benefit analysis (CBA) of nature-based solutions (NbS) using the Sustainable Asset Valuation (SAVi) methodology.

Who is the target audience of the handbook? 

The target audience of the handbook includes infrastructure planners, policy-makers, analysts, researchers, decision-makers, and financial institutions involved in project evaluation and sustainability assessment. The handbook is meant for professionals who are new to the concept of CBA and for experienced practitioners.

How can integrated CBAs help scale NbS and provide societal benefits? 

CBAs are important because they help to understand the economic, social, and environmental value of NbS and enable informed infrastructure decisions. By quantifying the monetary value of ecosystem services and co-benefits, decision-makers can better compare NbS with traditional infrastructure. Integrated CBAs offer a comprehensive framework for evaluating both tangible and intangible benefits.

What is the SAVi methodology? 

The SAVi methodology is a robust approach developed by IISD for creating integrated economic valuations of infrastructure projects, particularly NbS. It offers a systemic, step-by-step process for assessing NbS, encompassing systems thinking, climate data analysis, quantitative modelling, and financial modelling. SAVi aims to provide a comprehensive understanding of the value of NbS by considering their economic, social, and environmental impacts.

Based on the handbook, what are the seven steps for developing a CBA?

1. Preparation for NbS valuation
2. Systemic contextualization of NbS
3. Identifying costs and benefits for quantitative analysis
4. Analyzing the climate context
5. Quantifying and monetizing the costs and benefits
6. Identifying potential financing structures
7. Communicating the findings of NbS

What key concepts and methods are covered in the handbook? 

The handbook explains how to identify costs and benefits for a CBA through systems thinking, how to quantify and monetize these costs and benefits, and how to analyze the climate context of NbS projects. Various modelling techniques are explored, including spatial modelling, Excel-based modelling, and system dynamics modelling. The handbook also discusses potential financing structures and strategies for effectively communicating the findings to various stakeholders. It emphasizes the importance of systems thinking and includes case studies of NbS projects around the world.

Where can readers learn more about CBAs for NbS? 

IISD has developed the SAVi methodology for NbS and applied it to diverse projects as part of the Nature-Based Infrastructure (NBI) Global Resource Centre. Additional SAVi case studies and learning materials are available on the NBI Global Resource Centre and NBI Academy websites.