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Todd Gartner, M.F.
Senior Associate
Conservation Incentives and Markets
Financing Watershed Conservation:
Using Incentives to Connect Forests, Water & Communities
Ecosystem Restoration Conference
August 4, 2011
Help Me Impress Them!
World Resources Institute
The World Resources Institute has four programs
World Resources Institute
Future of US Forests Rests in the Hands
of Private Landowners
Source: American Forest Foundation
World Resources Institute
Remembering Aldo Leopold
“Conservation will ultimately boil down to rewarding the private landowner who conserves the public interest.”
“Emerging markets….will provide landowners with expanded economic incentive to maintain and restore our forests”
•Source: University of Wisconsin Digital Collections Center •Source: United States Department of Agriculture
World Resources Institute
Payments for Nature’s Benefits…Arrangements for placing economic value on natural assets normally “outside the market”
Environmental services not properly valued systems become degraded
Forests becoming recognized as an asset (monetarily);
provide clean air, water, habitat
Financial systems that enable people who produce products and services to be compensated by those who benefit
•Source: University of Hawaii
World Resources Institute
Cost Share
Wetland restoration and
Water quality trading
Sustainable
forestry/agriculture
Imagine…
The portfolio approach to
forest management:
multiple income streams
Species recovery
•Source: Adapted from the Willamette Partnership
Conservation easement
Carbon sequestration
Recreation
leases
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“The water we drink and utilize may be our
most important connection to the forest.”
Source: Trust for Public Lands
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Vision of a Watershed
Services MarketplaceUsers
• Water District/Utility
• Rate Payers
• Industry
• Recreation
Government• EQIP
• Dedicated Pool
Land Use Planning
• Current Use Tax
• Zoning/TDR
• Easements
Philanthropy
• Program related investment
• Grants
• Revolving Loans
Sellers
Buyers/
$ Sources
•Restoration
•Improved Practices
•Preservation
Products
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GIS Threat Assessment
Watershed Prioritization
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Crooked River Watershed, Portland, ME
•THE WESTERN FOOTHILLS LAND TRUST
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Impact of Forest Cover on Chemical Treatment
Costs
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
0 20 40 60 80 100
Percent Forest in Drainage Area
Ch
em
ica
l co
st/M
G
Less Forest Cover = Higher Treatment Costs
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Beneficiaries
Making the Business Case
• Demand created by law/regulation
voluntary drivers (business case)
• ID Beneficiaries
Who uses the water
How they use it
How they benefit from “clean” water
Opportunities & Risks
• Green vs. Grey
Infrastructure Analysis
• Engage Beneficiaries
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Where should we focus our $ and effort?
Conservation Priority
Index (CPI) -
Prioritization of parcels
Conducted By -
• Bill VanDoren, Craig
Nicolson, and Paul
Barten, Umass
• AMC
Landscape
characteristicWhy is it important?
3 2 1 0
Land useIn the northeast, forest provides the best
source water qualityForest/wetland — — All others
Distance to streams
(feet)Vegetated, and especially, forested
riparian buffers are a ―last chance‖ to
absorb nutrients and trap sediment;
forested riparian areas also provide key organic and structural inputs
0-100 100-200 200-300 > 300
Distance to
ponds/wetlands (feet)0-100 100-200 200-300 > 300
Soils
(1/2
wei
ght) Depth to water table
Removing forest cover can increase soil
water, increasing the likelihood of
overland flow.
shallow moderate deep —
Permeability
Soils through which water infiltrates
slowly readily exhibit overland flow, which
decreases water quality
poorly drained moderate well drained —
Slope
Steep slopes are more at risk for erosion
when deep-rooted trees that anchor soil
are removed
steep
(> 15%)
moderate
(5 – 15%)
gentle
(< 5%)—
Water – Forest –
Roads
Roads are a source of sediment, and a
forested buffer can mitigate sediment and
pollutants
yes no no no
Increasing
importance
Decreasing
importance
Landscape
characteristicWhy is it important?
3 2 1 0
Land useIn the northeast, forest provides the best
source water qualityForest/wetland — — All others
Distance to streams
(feet)Vegetated, and especially, forested
riparian buffers are a ―last chance‖ to
absorb nutrients and trap sediment;
forested riparian areas also provide key organic and structural inputs
0-100 100-200 200-300 > 300
Distance to
ponds/wetlands (feet)0-100 100-200 200-300 > 300
Soils
(1/2
wei
ght) Depth to water table
Removing forest cover can increase soil
water, increasing the likelihood of
overland flow.
shallow moderate deep —
Permeability
Soils through which water infiltrates
slowly readily exhibit overland flow, which
decreases water quality
poorly drained moderate well drained —
Slope
Steep slopes are more at risk for erosion
when deep-rooted trees that anchor soil
are removed
steep
(> 15%)
moderate
(5 – 15%)
gentle
(< 5%)—
Water – Forest –
Roads
Roads are a source of sediment, and a
forested buffer can mitigate sediment and
pollutants
yes no no no
Increasing
importance
Decreasing
importance
World Resources Institute•Manomet Natural Capital Initiative
What can we do on the ground?
Example Best Management PracticesRiparian Buffer
Culverts and Drainage Improvements
Vegetative Cover
Road Retirement
Silvicultural Practices
Road Network
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Figure 1. Illustrative example of green vs. gray
$10 billion
$2 billion
New water filtration plant
Forest conservation
Filtering drinking water for city X
$8 billion
$1 billion
New sea wall
Mangrove restoration
Shoreline protection for city Y
$6 billion
$1.5 billion
New canals and dikes
Wetland restoration
Flood prevention for region Z
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World Resources Institute
$1 for Tap Water?
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Online Marketplace & Landscape Auction
Existing crowdfunding inspirations include IOBY.org and Kickstarter.com
Orange County
Headwaters
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Yes
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Thanks!
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Questions and Discussion
Todd GartnerWorld Resources Institute
Source: Margaret Munford, American Forest Foundation
To contact me after my presentation,
text GON to INTRO (46876)