by Viktor Roezer | Swenja Surminski | Finn Laurien | Colin McQuistan | Reinhard Mechler | Anna Svensson
Disaster Risk Reduction investments bring a wide variety of benefits, including economic, ecological, and social, but in practice these multiple resilience dividends are often not included in investment appraisals or are not recognized by those making funding decisions. How do we change this?
With investments in disaster risk reduction (DRR), where community resilience is enhanced these negative impacts can be reduced and savings can be made. It’s more cost effective to invest in pre-event resilience than post-event response and recovery.
So why is disaster risk reduction so difficult to finance?
The problem with estimating the direct benefit of disaster risk reduction interventions is that you only see the benefits when an event which would otherwise have turned into a disaster occurs and is successfully mitigated.
This makes cost-benefit analysis and other decision-making methods difficult to carry out, and makes the costs of doing something more aligned to the probability of the event, rather than the lives and economic costs saved, thus changes to policy and practice are slow to materialize.
What are the multiple dividends of resilience?
The multiple dividends of resilience refer to positive socioeconomic outcomes generated by, and co-benefits of, an intervention beyond, and in addition to, risk reduction.
It’s an approach aimed at making DRR investments more attractive as the multiple dividends of an investment may help identify win-win-win situations (as well as trade-offs), even if no hazard event occurs. Co-benefits can be intended, or unintended.
1. The avoided losses and damages in case of a disaster
For example, how bio-dykes in Nepal prevent river bank erosion, which reduces the risk of flooding, and associated sand deposits that ruin the fertility of agricultural land.
2. The economic potential of a community that is unlocked through the intervention
This includes ecosystem-based adaptation solutions in Vietnam where mangrove plantations create new habitats for fish, leading to improved livelihood opportunities for those making their living from fishing.
3. Other development co-benefits
Transition to solar stoves in rural Afghanistan does not only protect natural capitals from degradation, but also empowers women and girls, reduces in-house smog pollution, and fosters technological innovations.
Rongali next to his community’s bio-dyke. Photo by Sanjib Chaudhary, Practical Action.
What are the challenges?
The triple resilience dividend approach is often linked to new and innovative solutions like ecosystem based adaptation, where the benefits can be wider, but when and how they will materialize is more uncertain than with traditional, hard infrastructure solutions.
Although many developing countries have policies that align DRR, climate change adaptation, and sustainable development, sadly, in practice, local decision makers assume that multiple resilience dividends will only accumulate over the long term. This often leads them to select traditional, hard infrastructure solutions that offer quick and more visible protection.
We need more success stories. Pilot interventions can be shared and shown to community members and decision makers to overcome their skepticism but this require better and more comprehensive evidence than we have today.
We also lack decision-making frameworks that can include and monitor multiple resilience dividends. Frameworks that support planners as they navigate the decision-making process, and help generate the evidence needed.
Community members in the Peruvian Andes working at a local tree nursery. Photo by Giorgio Madueño , Practical Action
As we suggest, instead of maximizing resilience dividends based on a specific, one dimensional, metric (e.g., monetary benefits) decision-making approaches need to identify those dividends that are most needed and demanded by the community and the solutions, novel or local in nature, best suited to generate these.
A structured approach in combination with participatory decision making allows for a tailored approach where community buy-in is achieved by prioritizing the resilience dividend(s) that matter most to them, while at the same time contributing to the evidence base for multiple resilience dividends.
This is urgently needed to highlight the fundamental challenges with the existing planning and decision-making system and therefore generate demand to deliver more effective solutions at scale.
Cleaning waste from river in Penjaringan Urban Village, Jakarta, Indonesia. Photo by Piva Bell, Mercy Corps.
Read the working paper this blog is based on here.
Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
By Julian Joseph, research assistant in the Water Security Research Group
Julian Joseph explains the concept of the triple dividend of disaster risk reduction investments based on the application of a novel economic model applied to a case study undertaken in Tanzania and Zambia.
What are the benefits of Disaster Risk Reduction (DRR) investments such as dams and the introduction of drought-resistant crops in agriculture for an economy? They are threefold and called the “triple dividend” of DRR investments. The first dividend comprises the direct effects of DRR investments, which limit damage to houses, infrastructure, and other physical assets and prevent death and injury. The second dividend unlocks the economic potential of an economy because risk reduction drives people and businesses to invest more, as they expect less of what they invest in to be destroyed by disasters, while the third dividend is comprised of development co-benefits through other uses the investments provide.
Using a new macroeconomic model called DYNAMMICs, my colleagues and I have found that there is often a significant growth effect for the economy attached to investing in mitigation measures like dams and drought resistant crops, which is commonly underestimated in traditional models. One reason for this is the focus of other models on only the first, direct dividend. We specifically looked into the examples of Tanzania and Zambia, which show that governments and other stakeholders in developing countries can spur economic growth by investing in DRR measures, thus increasing future earnings and creating a safe environment for investments into other economic activities.
In Tanzania and Zambia, floods affect tens of thousands of people each year (on average 45,000 or .08% of the population in Tanzania and 20,000 or .11% of the population in Zambia). Droughts have more widespread consequences and already affect 11.8% of the population in Tanzania and 19% of Zambians who often lose all or parts of their harvest. This poses an imminent threat to food security in countries where substantial shares of the population rely on subsistence farming as their primary source of income. Given the effects of climate change, these numbers and their ramifications are bound to become ever more pressing issues. However, policymakers, institutions, enterprises, and individuals tend to underinvest in adaption measures.
A promising avenue for demonstrating the potential of DRR investments is offered by including all economic growth effects they invoke into policy analysis, thus showing that besides risk reduction and post-disaster mitigation of destruction, investing in DRR measures can help countries achieve many of their other development goals as well.
We tend to only think of the first dividend of DRR investments, the direct effects of which stop people from being immediately affected by disasters. In the case of Tanzania and Zambia, we examined, among others, the benefits of constructing additional dams. The direct benefits of dams lie in the safeguarding of livelihoods, infrastructure, housing, and agricultural production. These are seen as the first dividend, called the ex-post damage mitigation effect. There are however also additional co-benefits.
In both Tanzania and Zambia, large shares of the population are heavily dependent on agriculture, which makes the introduction of drought-resistant crop varieties such an additional benefit. These crop varieties do not only help farmers preserve their yields in times of disastrous droughts, but additionally support farmers by generating higher yields, even in the absence of disaster. This effect is boosted by the lowered risk for the loss of crops, which spurs investment into farming activities and inputs. Farmers who do not fear losing their entire harvest can, and generally will, invest more into the production of this crop – an example of the second type of dividend, the ex-ante risk reduction effect. This type of economically beneficial effect materializes regardless of the onset of disaster.
The same is true for the third type of dividend, the co-benefit production expansion effect, which is especially relevant for the advantages of dams. The power generation capability of dams, leads to much larger economic gains than the two other dividends combined. In countries such as those at hand with frequent power cuts and comparably low levels of electrification, especially in rural areas, the additional electricity generated can lead to particularly pronounced positive effects by supplying economic actors with access to power. In other scenarios, the provision of ecosystem services is also an important effect falling into this category.
The results we obtained using the DYNAMMICs model are promising: Constructing only two additional dams leads to a 0.3% increase of GDP growth in Tanzania for the next 30 years (0.2% in Zambia) with results largely (97%) driven by the co-benefit production expansion effect. Similarly, the introduction of drought resistant crops and exposure management (i.e., land use restrictions) significantly boost economic growth perspectives. Finally, introducing insurance is a driver for a reduction in the variance of GDP growth, which helps to reduce uncertainty for everyone in the economy. Modeling in such a fashion is therefore an important means of weighing policy options for DRR against each other and for determining optimal levels of investment.
Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
By Husam Ibrahim, International Science Council (ISC)
The IIASA-ISC Rethinking Energy Solutions Report identifies the negative and positive lessons learnt from the ongoing COVID-19 pandemic in relation to energy consumption and demand, and recommends several immediate actions.
Credit: Adam Islaam – IIASA
As a result of the pandemic’s confinement and containment policies, energy demand and resulting energy-related carbon emissions declined by an estimated 2.4 billion tonnes in 2020 – a record drop according to researchers at Future Earth’s Global Carbon Project. However, the reduction is likely to be short-lived if structural changes do not occur.
The COVID-19 pandemic has caused foreseeable positive and negative disruptions to the global energy sector. This has revealed opportunities that can be learnt from to meet Sustainable Development Goals (SDGs) and the Paris Agreement pledges, with the positive disruptions showing us the possibility of a more sustainable and resilient future.
The IIASA-ISC Rethinking Energy Solutions Report recommends actions based on the opportunities and vulnerabilities in energy systems that the COVID-19 pandemic has brought to light.
“The pandemic is a threat, but also an opportunity, because it showed that the system we have spent a lot of money and resources on is not working the way it should, so the crisis should be used to draw up new budgets, take new actions, and rebuild society.”
– Behnam Zakeri, Research Scholar, IIASA
The report highlights that solutions previously thought to be out of reach are far more possible than expected. One such positive outcome is the digitalization of physical activities, such as attending work, schools, conferences, and other gatherings online. This has resulted in short-term lifestyle changes — introducing and normalizing digital solutions for a mass audience — which the report recommends capitalizing on in a post-COVID society.
Some companies, like Spotify, a music streaming service, have announced that they will let their employees work remotely from anywhere after the pandemic. The report suggests that more companies and governments should do the same, as digitalization offers opportunities to use resources more efficiently, and so has the potential to make consumption more sustainable and to reduce carbon footprints.
Efforts to digitalize and reduce the population’s carbon footprint work hand-in-hand with the need to reinvent urban spaces to reach the SDGs and combat climate change.
Cities consume 60-80% of global energy and produce more than 70% of carbon emissions. What’s more, 70% of the world’s population is projected to live in urban areas by 2050.
The report proposes that cities should be redesigned into more sustainable ‘urban villages’ so that they are optimized for energy efficiency. One way to do this would be to redesign cities into compact neighborhoods where all amenities (shops, offices, schools, etc.) are within walking distance. Paris, France, for example, promotes self-sufficient neighborhoods, with all the essential amenities placed within a 15-minute radius. Several other cities like Melbourne, Australia, with its “20-minute neighborhoods” and the Nordhavn “5-minute neighborhood” in Copenhagen, Denmark, are promoting this new standard for the use of space and sustainable mobility.
Another key approach to reinventing urban spaces is prioritizing nature-based solutions by using parks, green roofs, green walls, and blue infrastructure to combat climate change and connect the population back to nature. This also means centering public spaces around people, by converting street spaces from car use to sidewalks and bike lanes, and enhancing the quality and safety of walking and biking infrastructures.
The report also recommends that cities be rebuilt to incorporate renewable energy. The costs for renewable technologies are declining quite fast, but Zakeri explained that the problem with moving to renewable energy is not the cost but a lack of understanding. Consumers, experts, and governments lack the knowledge to distribute, access and install these technologies. However, in recent times, scientists and other experts have brought more awareness to them and are helping the trend move forward.
The report states the importance of developing net zero-energy communities that have a holistic approach to energy-efficient building renovation and construction of new buildings. The net zero-energy design must consider the energy interactions between individual buildings and the broader energy system on a local level.
These recommended actions aren’t just about energy efficiency but about creating a more fulfilling life for all.
“Rebuilding cities to be more sustainable and resilient [to future crises] not only has the potential to reduce energy consumption but also create a more joyful lifestyle that improves the wellbeing and experience of people living in a city.”
– Behnam Zakeri, Research Scholar, IIASA
For more information on rebuilding urban spaces, and addressing energy lessons from the COVID-19 pandemic read the IIASA-ISC Rethinking Energy Solutions Report.
You can also watch the discussion on Rethinking Energy Solutions as part of the launch event for the Bouncing Forward Sustainably: Pathways to a post-COVID World, which explores the key themes of Sustainable Energy, Governance for Sustainability, Strengthening Science Systems and Resilient Food Systems.
This blog post was first published on the website of the International Science Council. Read the original article here.
Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
By Husam Ibrahim, International Science Council (ISC)
The IIASA-ISC Resilient Food Systems report looks at the vulnerabilities in the food system and recommends changes to move forward through COVID-19 recovery plans that prioritize society’s least protected.
Credit: Adam Islaam – IIASA
The COVID-19 pandemic has amplified and brought to the fore existing vulnerabilities and global interdependency in societal institutions, including the food system. The pandemic has exaggerated the scarcity in some areas’ food supplies and highlighted the divide between the haves and have-nots.
The number of people suffering from poverty had been on a steady decline, going from 2 billion people in 1990 to 740 million in 2015. However, for the first time in decades, the global poverty rate is once again increasing due to the pandemic. Early estimates suggest that an additional 88 million to 115 million people may suffer extreme poverty, with the total rising to as many as 150 million by 2021.
The socioeconomic impacts of the pandemic are further exacerbating inequalities within and between countries, and intensifying the rise in food insecurity observed since 2014. It has been estimated that the effects of the pandemic could have longer-term repercussion for low-income countries, greatly undermining their development prospects, unless sufficient international support is provided.
Transformations within reach:
Pathways to a sustainable and resilient world
While the pandemic exerted supply and demand shocks across economic sectors, the report highlights that the food system was particularly affected by impacts on employment and income in relation. This is because international food supply has been strong, and the supply-demand ratios have remained stable throughout the pandemic. However, job and income losses, insufficient safety nets, and constraints on local access to food created conditions for food insecurity.
Therefore, the report argues that the emphasis on efficiency – which has in large part been driving the evolution of food systems – must be balanced with an emphasis on concerns related to resilience and equity. With this, the food system can combat future crises while serving society’s most vulnerable. The recovery process should be harnessed to strengthen the preparedness of the food system to manage multiple risks.
As highlighted by the pandemic, this would entail expanding the scope and reach of social safety nets and protection schemes. Future food systems should be characterized by better pricing-in of environmental externalities. The sustainable management of natural resources should be seen as an integral part of strengthening the resilience of food systems, recognizing also the close linkage between human and planetary health concerns.
‘ In light of resilience and sustainability concerns the focus should be on using agricultural areas that we already have, rehabilitating degraded environments, and looking into the potential of diversification of practices and technologies.’
Frank Sperling, Senior Project Manager, IIASA
The role of different agricultural practices in building resilience needs to be looked into. This includes high-tech solutions like biotechnology, as well as an increase in the trade of agricultural goods, a sustainable increase in crop yields, and using underutilized crops to their full potential.
This also means protecting biological diversity, minimizing the destruction of pristine natural environments and focusing on the regeneration of natural ecosystems.
The report also states that strong international institutions are necessary to coordinate policies and limit tensions between multiple social, economic, and environmental interests represented within food systems internationally. Further funding, integration, and emphasis on context-specific solutions can help make changes, and emerging action-oriented knowledge and funding platforms are being used to help transform the food systems.
‘It is very important that these reforms are characterized by global collaboration, keeping nutritional security at the forefront with society’s most vulnerable people in mind, so that no one gets left behind.’
Frank Sperling, Senior Project Manager, IIASA
For more information on how COVID-19 is impacting the food system, and the lessons learned from the pandemic, read the IIASA-ISC Resilient Food Systems Report.
You can also watch the discussion on Strengthening Science Systems as part of the launch event for the Bouncing Forward Sustainably: Pathways to a post-COVID World, which explores the key themes of Sustainable Energy, Governance for Sustainability, Strengthening Science Systems and Resilient Food Systems.
This blog post was first published on the website of the International Science Council. Read the original article here.
Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
By Husam Ibrahim, International Science Council (ISC)
The IIASA-ISC Consultative Science platform has engaged transdisciplinary global thought leaders to produce four reports that focus on a more sustainable pathway to a post COVID-19 world. This blog post looks at the report on Strengthening Science Systems.
Credit: Adam Islaam – IIASA
Science has spoken reason to power and politics, expanded open science practices, and found a vaccine in record time during this pandemic, yet perceptions of how science has responded overall to the current crisis still vary. There is a broad consensus that there is considerable room for improvement in science systems in the general context of rapidly evolving global exogenous shocks.
“The COVID-19 pandemic is a cautionary tale about the importance and necessity of science: we will face crisis, we know that, and we will best address it through science, but science itself stumbles along and science needs to be more humble, be better educated and not only communicate their knowledge but also communicate the limitation of their knowledge so that science systems can move towards a better frontier.”
– David Kaplan, Senior Research Specialist, ISC
In 2020, IIASA and the International Science Council (ISC) combined their strengths and expertise to define and design sustainability pathways that will help all levels of global governance be better prepared and more resilient in protecting from future systemic shocks.
In these testing times, policymakers and the general public have looked to science for insight, reliable solutions, and actionable advice. The Strengthening Science Systems report addresses how science systems can be better prepared when an inevitable crisis hits again.
The report puts forward a large number of recommendations, grouped under five interrelated major transformative changes:
Strengthen transdisciplinary research and networking on critical risks and systems resilience
As seen with the COVID-19 pandemic, risks can spread globally regardless of their origin. It is in the interests of all countries to work together and provide support to one another. Most notably, developed countries need to help further strengthen scientific capacities with financial support, technology support and technology transfer for developing countries.
On the other hand, while risks may be global, the manner in which they play out and particularly the way in which different societies respond, show considerable variation. Local scientific capacity has the ability to address the local context and develop effective strategies to address risk. This will allow local scientists to put knowledge on disaster risks at the core of disaster risk reduction policies.
Enhance communication of scientific knowledge, public understanding, and trust in science
Trust in science and in the recommendations emanating from scientists are key to the effectiveness of science-based policies. This is especially important as science denial and misinformation have increased during the pandemic. Communication, transparency, and broad public understanding of how science works are three foundations which will enhance trust in science.
Scientists themselves should therefore be incentivized to play a more active role in combating misinformation in their fields, as they are best equipped with the facts. Alongside that, easily accessible sources of scientific results that are simpler for a mass audience to understand should be created in a wider array of languages.
Enhance knowledge diffusion within the science system
Peer-review systems have been shown to be somewhat inadequate in the face of the COVID-19 pandemic. Peer-review systems need to be more agile, international, rigorous, and inclusive in terms of access and avoiding bias if science is to meet the challenges of future crises.
International organizations of science, including the ISC and UNESCO, can take a lead in devising a more effective system of peer review through dialogue with international disciplinary bodies, national academies, publishers, and national research councils.
Increase the capacity of the science system to respond rapidly to crises with high-quality research
Some countries lack adequate disaster research institutions. These institutes cannot be created in a short period of time and need prior infrastructural efforts, so there needs to be ample support and funding of smaller research institutions in advance of possible disasters. Collaborative efforts between big and small research institutes on a global and local scale are highly recommended. Governments also need researchers who can be on standby and they need to allocate funds that are easy to access during a crisis.
Improve the quality and efficacy of science-policy interfaces at national, regional, and global levels
Science advice has moved to center stage when dealing with policies to respond to the COVID-19 pandemic, which has challenged national science–policy systems. Lessons have been learned about how science can become a more effective input into policy. This involves further international scientific cooperation among institutions engaged in science-policy advice, to enhance the quality of science inputs to policy.
International collaboration allows for sharing of evidence and the emergence of a scientific consensus. This consensus can then be communicated to policymakers who, in turn, need to interact more with the wider academic community to systematically review their country’s policies.
These are some of the conclusions from the five lessons on interrelated transformative changes for the science system cited in the report. They show three axes of improvement that are required to ensure that science can react more efficiently to such exogenous shocks: increased agility, enhanced reliability, and a more effective science-policy-society interface. The main overarching objective is to simultaneously improve all three axes, thereby moving science systems to a new frontier.
You can also watch the discussion on Strengthening Science Systems as part of the launch event for the Bouncing Forward Sustainably: Pathways to a post-COVID World, which explores the key themes of Sustainable Energy, Governance for Sustainability, Strengthening Science Systems and Resilient Food Systems.
This blog post was first published on the website of the International Science Council. Read the original article here.
Note: This article gives the views of the author, and not the position of the Nexus blog, nor of the International Institute for Applied Systems Analysis.
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