10 February 2016: Engineering and insurance models should be used to reevaluate the benefits of habitats like mangrove forests and coral reefs, rather than building walls against floods and rising seas, according to a technical report published by Wealth Accounting and the Valuation of Ecosystem Services (WAVES). Titled ‘Managing Coasts with Natural Solutions: Guidelines for measuring and valuing the coastal protection services of mangroves and coral reefs,’ the report aims to demonstrate to an array of decision makers how important mangroves and reefs are as a first line of defense to natural disasters.
The report highlights how the protective characteristics of mangroves and coral reefs can be incorporated into decision-making processes supporting development and disaster risk and coastal zone management planning, as well as economic planning tools like natural capital accounting (NCA). When it comes to protecting coasts, the report contends that the best solutions depend less on modern infrastructure and more on rethinking how existing natural resources are valued. It emphasizes the cost-benefit analysis between built or ‘gray infrastructure’ and ‘green infrastructure’ based on natural or environmental processes.
The report applies assessment techniques often used in the engineering and insurance sectors, and compares expected flood damages with those that would occur if the reefs and mangroves were lost. Known as the ‘Expected Damage Function,’ this approach determines the value of having those resources in place. The report demonstrates the ecological value, as well as the social and economic significance, of mangroves and reefs, including the provision of services, such as fish production and timber.
The publication underscores that with the economic cost of damages rising, (insurers have paid out more than US$300 billion over the last 10 years just for coastal losses from storms) that momentum is growing in favor of restoring habitats to reduce risks from flooding and erosion.
The report highlights over 20 case studies where policy decisions reflect the protective roles of mangroves and reefs, including: 9000 hectares of reforested mangroves having substantial benefit-cost ratios in Viet Nam; the Government of the Philippines pledging US$8 million for a cash-for-work programme to restore mangroves and beach forests following Typhoon Haiyan; and reef and mangrove restoration being one of the most cost-effective approaches to coastal risk reduction and adaptation, according to the Caribbean Catastrophic Risk Insurance Facility (CCRIF).
The report includes sections on: coastal defense systems provided by mangroves and coral reefs; ecosystem service and coastal engineering tools for coastal protection and risk reduction, including appendices comparing ecosystem service tools and approaches, and describing coastal engineering models and tools; approaches for valuing coastal protection services in a natural capital accounting framework; case studies regarding coastal protection services in policy and practice; and recommendations regarding the evidence base and data gaps, models and methods, and building public and governmental support.
WAVES is a World Bank-led global partnership that aims to promote sustainable development by ensuring natural resources are mainstreamed into development planning and national economic accounts. [World Bank News] [Publication: Managing Coasts with Natural Solutions: Guidelines for measuring and valuing the coastal protection services of mangroves and coral reefs]