Greening Water Risks: Natural Assurance Schemes

Contents
Chapter 1: Concepts in Water Security, Natural Assurance Schemes and Nature-Based Solutions
	1.1 Introduction
	1.2 The Evolution of the Concept of Water Security
		1.2.1 The Assurance and Insurance Value of Ecosystems
		1.2.2 The Concept of Natural Assurance Schemes
	1.3 Readiness Level Concepts to Overcome Barriers and Implement NBS and NAS
		1.3.1 Technology and Knowledge Readiness
		1.3.2 Institutional Readiness
		1.3.3 Investment Readiness
	1.4 Main Questions to be Addressed by the Book
	References
Chapter 2: A Reader’s Guide to Natural Assurance Schemes
	2.1 Introduction
	2.2 A Technical Expert and Researcher’s Guide to Natural Assurance Schemes: The Assessment Frame
	2.3 A Planners, Business and Financial Guide: Integration of the Assessment Frame into Real Cases
	2.4 A Practitioner’s Guide: Applied Case Studies
	2.5 A Policy Maker’s Guide: Policy Uptake of Natural Assurance Schemes
	2.6 Conclusions
	References
Chapter 3: Insurance and the Natural Assurance Value (of Ecosystems) in Risk Prevention and Reduction
	3.1 Introduction
	3.2 Evaluation of the Natural Assurance Value (NAV) Integration within the (Re)Insurance Industry for Now and for the Future
		3.2.1 Methodology
		3.2.2 Fit for Today?
		3.2.3 Fit for the Future?
			3.2.3.1 The French Example to Mainstream Insurers’ Involvement into Loss Prevention: The Barnier Fund and the GEMAPI Policy
	3.3 The Different Roles of Insurance
		3.3.1 Insurers as Service Providers
		3.3.2 Insurers as Investors
		3.3.3 Insurers as Innovators
		3.3.4 Insurers as Partners
	3.4 Conclusion
	References
Chapter 4: Methodologies to Assess and Map the Biophysical Effectiveness of Nature Based Solutions
	4.1 Introduction: Understanding the Biophysical Effectiveness of Nature Based Solutions
	4.2 The Eco:Actuary Toolkit
		4.2.1 Introduction
		4.2.2 The //Smart: Tools for Monitoring NFM Effectiveness
			4.2.2.1 The //Smart:River System
			4.2.2.2 The //Smart:Soil System
		4.2.3 The Eco:Actuary Investment Planner
			4.2.3.1 Using the EIP to Assess the Effectiveness of NBS Investment
		4.2.4 The Eco:Actuary Spatial Policy Support System (PSS)
			4.2.4.1 Purpose of Eco:Actuary
			4.2.4.2 Using Eco:Actuary to Assess NBS Effectiveness under Different Scenarios
	4.3 Challenges in Assessment of NFM Effectiveness
		4.3.1 Data Availability and Uncertainty
			4.3.1.1 The Complex Drivers of Flooding
			4.3.1.2 Model Uncertainty
			4.3.1.3 Where the Assets at Risk Are
			4.3.1.4 Asset Valuation Uncertainty
			4.3.1.5 The Scale of NBS
		4.3.2 Ways Forward
	4.4 Conclusion
	References
Chapter 5: Participatory Modelling for NBS Co-design and Implementation
	5.1 Introduction and Conceptual Frame
	5.2 Applied Tools and Methods
		5.2.1 Individual Risk Perception and Co-benefits Definition
		5.2.2 Detection of the Barriers Hampering NBS Co-design and Implementation
		5.2.3 NBS Scenario Simulation and Trade-Offs Analysis
	5.3 Concluding Remarks
	References
Chapter 6: Economic Assessment of Nature-Based Solutions for Water-Related Risks
	6.1 Introduction
	6.2 Methods
		6.2.1 Overall Methodology of the Economic Assessment
		6.2.2 Implementation Costs and Opportunity Costs Assessment
		6.2.3 Assessment of Avoided Damages
			6.2.3.1 Overall Approach to the Assessment of Avoided Damage
			6.2.3.2 Estimating the Relation Between Hazard and Damage Costs: The CAT Model Framework
			6.2.3.3 Estimating the Impact of NBS on Hazards
			6.2.3.4 Assessing Avoided Damages
		6.2.4 Co-benefits Assessment
	6.3 Key Results of the Economic Assessment of NBS for Natural Assurance Schemes
	6.4 Discussion-Conclusion
	References
Chapter 7: Designing Natural Assurance Schemes with Integrated Decision Support and Adaptive Planning
	7.1 Introduction: Integration of DRR, WRM and Climate Change Adaptation Planning
		7.1.1 DRR in a Nutshell
		7.1.2 Integrated Water Resources Management (IWRM) in a Nutshell
		7.1.3 Climate Change Adaptation in a Nutshell
		7.1.4 Integration: Merging Approaches and Different Policies
	7.2 Strategic Planning Framework
		7.2.1 Definition and Main Steps
		7.2.2 Towards the Strategic Planning of NBS for Adaptive Management
		7.2.3 Towards Implementation: Financing Framework for Water Security
	7.3 Tools and Methods Used in the Planning Phases
		7.3.1 Why Do We Need Tools for Planning?
		7.3.2 Finding the Right Tool at the Right Phase
			7.3.2.1 Inception/Scoping
			7.3.2.2 Situation Analysis
			7.3.2.3 Strategy Building
			7.3.2.4 Action Planning
			7.3.2.5 Implementation
		7.3.3 Linking Case Studies to the Planning Framework
	7.4 Lessons Learned and Recommendations
	References
Chapter 8: NAS Canvas: Identifying Business Models to Support Implementation of Natural Assurance Schemes
	8.1 Introduction
	8.2 The NAS Canvas Conceptual Framework
	8.3 Applied Tools and Methods: How the NAS Canvas Is Used
	8.4 A Staged Approach in the NAS Canvas Implementation
	8.5 Common Factors and Lessons Learnt from NAS Canvas Application to Case Studies
		8.5.1 Lessons Learnt from the Case Studies
		8.5.2 Lessons Learnt from the Modular Co-design Process: Transferability of the Method
	8.6 Conclusions
	References
Chapter 9: Closing the Implementation Gap of NBS for Water Security: Developing an Implementation Strategy for Natural Assurance Schemes
	9.1 Introduction and Conceptual Frame
	9.2 Financing Framework for Water Security
	9.3 Green Versus Grey Infrastructure Projects: Structuring Investable NBS Propositions
		9.3.1 Cost-Effectiveness of NBS Versus Grey Infrastructure
		9.3.2 Cash Profiles of Green Versus Grey Infrastructure
		9.3.3 Specifying Multiple Levels of Service: A Hierarchy of Functions to Guide Trade-Offs
	9.4 Spain, Medina Del Campo Aquifer Recovery as Illustration
		9.4.1 Strategic Case: Theory of Change and Enabling Environment
		9.4.2 Economic Case: Winners and Losers
		9.4.3 Commercial, Financial and Management Cases
	9.5 The Way Forward
		9.5.1 The Missing Link: A Full Business Case
		9.5.2 New Partnerships and Expertise Required
		9.5.3 Mosaic and the Need for Innovative Contracting Practices
		9.5.4 Policy Recommendations
	References
Chapter 10: Reducing Water Related Risks in the Lower Danube Through Nature Based Solution Design: A Stakeholder Participatory Process
	10.1 Introduction
	10.2 Case Study Characterisation and Physical Risk Assessment
	10.3 Nature Based Solution Design Process
		10.3.1 Main Beneficiaries and Regulatory Framework
		10.3.2 Stakeholders Engagement Process
		10.3.3 Proposed NBS Scenarios for the Case Study Area of the Dabuleni-Potelu-Corabia Enclosure
	10.4 Economic Assessment
		10.4.1 Literature Review on 2006 Flood Damage
		10.4.2 GIS-Based Indicators
	10.5 Conclusions and Lessons Learned
	References
Chapter 11: Multidisciplinary Assessment of Nature-Based Strategies to Address Groundwater Overexploitation and Drought Risk in Medina Del Campo Groundwater Body
	11.1 Introduction
	11.2 Biophysical Characterization and Assessment of the MCGWB
		11.2.1 Improvement of Geological, Geophysical and Hydrogeological Knowledge
		11.2.2 Assessment of Groundwater-Related Ecosystem Services
		11.2.3 Assessment of Managed Artificial Recharge (MAR)
		11.2.4 Hydrological and Water Allocation Assessment
	11.3 Risk Assessment of Natural Hazards in MCGWB
	11.4 Social Assessment: Risk Perception and Selection of NAS Strategies
	11.5 Economic Assessment of NAS Effectiveness
	11.6 Integration of Results from the Biophysical, Social and Economic Assessments
		11.6.1 Qualitative Integration of Results in Medina Del Campo-Drought
		11.6.2 Quantitative Integration of Results: Effectiveness of NBS for Strategic Adaptive Planning in Medina Del Campo
	11.7 Conclusions and Lessons Learnt
	References
Chapter 12: Natural Flood Management in the Thames Basin: Building Evidence for What Will and Will Not Work
	12.1 Introduction
	12.2 Study Site: Thames Basin Context
	12.3 Risk Assessment
	12.4 Natural Flood Management (NFM) Effectiveness
		12.4.1 Ability of NFM Interventions to Hold Water in the Landscape
	12.5 Cost Effectiveness of NFM
	12.6 Co-benefits of NFM
	12.7 Lessons Learned and Advice
	12.8 Practical Advice for those Intending to Deploy //Smart: Sensors
	12.9 Achievements and Remaining Barriers to NFM in the Thames
	12.10 Conclusion
	References
Chapter 13: Giving Room to the River: A Nature-Based Solution for Flash Flood Hazards? The Brague River Case Study (France)
	13.1 Introduction
	13.2 Risk Assessment
	13.3 Evaluation of Protection Strategies
		13.3.1 Tailoring Protection Strategies
		13.3.2 Costs of Strategies
		13.3.3 Estimating Physical Efficacy for Hazard and Risk Reduction
			13.3.3.1 Protection Efficacy of Small Natural Water Retention Measures
			13.3.3.2 Protection Efficacy of Large Dams and Giving-Room-to-the-River
		13.3.4 Co-benefit Estimations
			13.3.4.1 Top-Down Approach
			13.3.4.2 Bottom-Up Approach
		13.3.5 Cost-Benefit Analysis (CBA) to Assess Strategy Efficiency
	13.4 Lessons Learnt and Replication/Scaling/Re-scaling Issues
		13.4.1 Should We Perform Top-Down or Bottom-Up CBA or Both?
		13.4.2 Evidence of the Importance to Give Room to Rivers Prone to Flash Floods
	13.5 Conclusion
	References
Chapter 14: Can NBS Address the Challenges of an Urbanized Mediterranean Catchment? The Lez Case Study
	14.1 Introduction
	14.2 Overall Methodology
		14.2.1 Identification of NBS Strategies
		14.2.2 Active Management of the Karst
		14.2.3 Urbanization Strategies
		14.2.4 Green Infrastructure Strategies
	14.3 Risk Modelling and the Impact of NBS Strategies
		14.3.1 The Impact of the Active Management of the Karst on Overflow Risk
		14.3.2 The CCR Risk Modelling Approach and Its Use to Evaluate the Impact of NBS Strategies
			14.3.2.1 General Overview
			14.3.2.2 Calibration of Damage Curves in the Lez Watershed
			14.3.2.3 Impact of Urbanization Strategies on Runoff Hazard
			14.3.2.4 Impact of Climate Change on Flood Risk
			14.3.2.5 Impact of GI Strategies on Urban Flood Risk
	14.4 Economic Valuation of NBS Strategies
		14.4.1 Assessment of Implementation and Opportunity Costs of NBS Strategies
			14.4.1.1 Method
			14.4.1.2 Results
		14.4.2 Economic Valuation of Co-benefits
			14.4.2.1 Method
			14.4.2.2 Results
			14.4.2.3 Integration of the Economic Assessment
	14.5 Towards Implementation of NBS Strategies in the Lez Catchment
	Appendix A: Sources for the Estimation of GI Costs
	References
Chapter 15: Glinščica for All: Exploring the Potential of NBS in Slovenia: Barriers and Opportunities
	15.1 The Glinščica Catchment Characterization
	15.2 Risk Assessment and Perception
		15.2.1 Physical Flood Risk Assessment
		15.2.2 Risk Perception
	15.3 The Participative Search for Solution
		15.3.1 Identifying Potential Solutions
		15.3.2 Identifying and Modelling Co-benefits
		15.3.3 Identifying and Selecting Indicators
		15.3.4 Freestation as a Multi-functional Monitoring Tool
	15.4 Developing, Testing and Selecting the Most Suitable Strategy
	15.5 The Road to Implementation (E/Valuation)
		15.5.1 Economics of Glinščica for All Strategy
		15.5.2 Co-benefits
		15.5.3 Costs of Strategies
	15.6 Conclusions and Lessons Learnt
		15.6.1 Barriers to Implementation
	Supplementary Material (Tables 15.8, 15.9 and Fig. 15.9)
	References
Chapter 16: The Opportunities and Challenges for Urban NBS: Lessons from Implementing the Urban Waterbuffer in Rotterdam
	16.1 Introduction
		16.1.1 Background
		16.1.2 The Case Study Area: Spangen Neighbourhood
		16.1.3 Chapter Outline
	16.2 Lessons from the Rotterdam Case Study
		16.2.1 The NBS Implementation Was Driven by Its Ability to Address Multiple Challenges Integrally
			16.2.1.1 Drivers of the Implementation Process
			16.2.1.2 Stakeholder Perception Analysis
		16.2.2 Current Planning Regulations and Policy Making Do Not Facilitate the Uptake of NBS
		16.2.3 NBS Can Compete on Life Cycle Cost with Grey Solutions, Though Strategies Must Be Carefully Designed and Assessed per Location
		16.2.4 Monitoring Co-benefits Is Critical to Support the Wider Uptake of NBS
		16.2.5 If There Is Space, Full NBS Is Ace; if Space Is Tight, Hybrid Might Be Right
		16.2.6 Multi-functionality of NBS Allows for the Development of New Business Cases
		16.2.7 Implementing NBS Is Needed to Catalyse Wider Acceptance, Interest and Future Uptake
	16.3 Conclusions
	References
Chapter 17: Urban River Restoration, a Scenario for Copenhagen
	17.1 Introduction and Characterization
	17.2 Case Study Area and Methodology
		17.2.1 Hydrological Model
		17.2.2 Assessment of Management Alternatives Using Model Scenarios
		17.2.3 Assessment of Avoided Damages
	17.3 Integrating Stakeholder’s Knowledge in the NBS Designing Process
		17.3.1 Fuzzy Cognitive Maps as a Tool for Trade-Offs Identification
		17.3.2 Fuzzy Cognitive Map Development
	17.4 Results and Discussion
		17.4.1 Hydrological Modelling and Damage Functions
		17.4.2 Participatory Modelling
		17.4.3 Uncertainties and Usefulness of the Approach in Assessing NAS Effectiveness
	17.5 Conclusion
	References
Chapter 18: Enabling Effective Engagement, Investment and Implementation of Natural Assurance Systems for Water and Climate Security
	18.1 Introduction
	18.2 Overview of Key Challenges and Enablers for NBS and NAS
		18.2.1 Connecting an Evidence-Base to an Experience Gap
		18.2.2 Capturing Full Value in Cost-Benefit Assessment
		18.2.3 Capitalizing on Existing and Potential Investor Demand
		18.2.4 Creating an Enabling Regulatory Environment
	18.3 Enabling Conditions for NAS – Learning from Case Studies
		18.3.1 Lessons from Glinščica, Slovenia – Overcoming Political Challenges to Considering Nature’s Solutions
		18.3.2 Lessons from Brague, France – A Strong Enabling Environment Still Requires Political Will
		18.3.3 Lessons from the Lower Danube in Romania: How to Confront Overly Optimistic Risk Perception?
	18.4 Priorities to Promote Uptake of NBS and NAS
		18.4.1 Solutions to De-risk Private Sector Investment in NBS
		18.4.2 Quotas for Financing Natural Infrastructure Projects in Initiatives and Funds
		18.4.3 Placing Explicit Criteria for NBS, DRR and Adaptation in Green Finance
	18.5 Enabling Effective Engagement with the Insurance Sector
		18.5.1 Scientific Exchange and Joint Action to Raise Awareness on Climate Risks
		18.5.2 Policy Dialogue on Risk Reduction and Environmental Regulation
		18.5.3 Guidance for Insurance Companies to Contribute to Resilience Planning and Investment
		18.5.4 Capitalize on the Insurance Sector as Investors
		18.5.5 Leverage Loss Data for More Resilient Municipalities
		18.5.6 Ensure Institutional Investors Underwriting Risks Fully Consider Climate
	18.6 Conclusion
	References
Chapter 19: The Natural Assurance Schemes Methodological Approach – From Assessment to Implementation
	19.1 Introduction: NBS and NAS Implementation Readiness
	19.2 NAS Approach: From Assessment to Implementation
		19.2.1 Participatory Adaptive Planning Framework and Readiness Levels
		19.2.2 NAS Framework and Selection of Methods/Tools
		19.2.3 Stakeholder Engagement at the Core of the NAS Approach
	19.3 Methods: Ex-post Analysis of NAS Using an Integrated Readiness Framework
		19.3.1 Selected Case Studies
		19.3.2 Checklist of Questions
	19.4 Results: Assessment of Readiness and Its Increase Using the NAS Approach
		19.4.1 Urban Water Buffer, The Netherlands
		19.4.2 Copenhagen City Plan, Denmark
		19.4.3 Lez Basin, France
		19.4.4 Glinciska River Basin, Slovenia
		19.4.5 Medina Aquifer, Spain
		19.4.6 Danube Floodplain, Romania
	19.5 Discussion
		19.5.1 The NAS Toolbox and Contribution of Methods and Tools to Technology and Investment Readiness
		19.5.2 Importance of Capacity Building and Stakeholder Engagement for Institutional Readiness
		19.5.3 Lessons Learned for NAS Building in Europe and Other Contexts
	19.6 Conclusion and Recommendations
	References
Chapter 20: Looking into the Future: Natural Assurance Schemes for Resilience
	20.1 Introduction
	20.2 Conceptual Framing: What Added Value Does a Natural Assurance Scheme Bring into the Picture?
	20.3 Physical Assessment
	20.4 Codesign and Stakeholder Participation: Lessons Learnt and Next Steps
	20.5 Economic Valuation of NBS for Risk Reduction and Co-benefits
	20.6 Decision Making Processes
	20.7 Business Models, Enabling Frameworks and Investments for Risk Prevention and Reduction Through Nature Based Solutions
	20.8 Capacity Building and Additional Resources – Do Your Own NAS
	20.9 Lessons Learnt and Main Conclusions
	References