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Natural Infrastructure Investments: Financing Smart Solutions to Meet Water & SDG Priorities Todd Gartner | Senior Associate, WRI WWW, Stockholm | August 29, 2017

Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

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Page 1: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Natural Infrastructure Investments:

Financing Smart Solutions to Meet Water & SDG Priorities

Todd Gartner | Senior Associate, WRI

WWW, Stockholm | August 29, 2017

Page 2: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Source: IUCN 2015

WHY GREEN + GRAY?

Reduce capital expenses and

treatment costs

Page 3: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Source: IUCN 2015, App Developer

WHY GREEN + GRAY?

Improve climate resilience &

business flexibility

Page 4: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Source: IUCN 2015

WHY GREEN + GRAY?

Meet SDG, urban-rural development and

water stewardship goals

Page 5: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Catastrophic Events Pipeline of Investable Projects

Page 6: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Know Your Watershedvisualize critical watershed related

information

Identify Watershed Risksunderstand type and severity of

threats to watershed health

Plan for Actionobtain recommendation on natural

infrastructure solutions and applicable

guidelines and decision-support tools

Page 7: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline
Page 8: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline
Page 9: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

BETA

U.S. DOD Installation Water/Watershed Risk Prioritization

Page 10: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

U.S. DOD Installation Multi-Benefit Approach

Mission Readiness

Water Security

HabitatProtection

Compatible Land Use

Page 11: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Source: US Forest Service Photo Credit: Jim; The Oil Drum

2017 on Pace for Worst US Fire Season on Record

Page 12: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

PROBLEM:OVERGROWN FORESTS

1929 Today

• Overgrowth intensifies drought and wildfire• Water quality threatened• Hydropower generation severely affected• US Forest Service facing rising suppression costs

Photo Credit: US Forest Service, Viewing Forests Through a Historical Lens, Fall 2009

Western Forests in Crisis

Page 13: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Present value of investments over 20 years, Base Case Scenario

172

15239 4 367

198 565

GI scenario

fire costsThinning,

prescribed

fire,

restoration

Fuel

breaks

Road

decommissioning

and maintenance

Total

Green

Savings Baseline

Fire

costs

Preliminary summary financials for natural infrastructureApproaches for managing fire risks in Northern Front Range, CO

US

D m

illio

ns

Source: Talberth, J. et al. 2014. Analysis of the Cache la Poudre and Big Thompson

Watersheds of Colorados Front Range – Preliminary Report: WRI and CSE

The Business Case: Northern Front Range, CO

35% Savings

Page 14: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Source: Talberth, J. et al. 2014. Analysis of the Cache la Poudre and Big Thompson

Watersheds of Colorados Front Range – Preliminary Report: WRI and CSE

Preliminary summary financials for Northern Front Range, CODistribution of (real-time) Savings, USD millions

Fire Suppression$124 , 42%

Insured Property Loss

$73 , 25%

Carbon Emissions$37 , 12%

Dredging Costs$30 , 10%

Burned Area Rehabilitation

$17 , 6%

Lost Recreation$11 , 4%

Turbidity$2 , 1%

Base Case Scenario

The Business Case: Northern Front Range, CO

Page 15: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Source: Vail Resorts

Recreational Values and Connection to Place

Page 16: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Source: , Community Stewardship Project, 2011; Economic Development Authority Director for Tuolumne County,

Restoration Solution = Jobs in the Forest

1,000 acres (405 ha) = 15 new forest

positions & another 30 spin-off jobs

Goal to decrease local unemployment

rate 2% over 10 years (450 jobs)

Page 17: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Moving from Pilot to Policy - AB 2480

Moving from Pilot to Policy - AB 2480

Page 18: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

San Francisco Public Utility Commission - $350M

Page 19: Natural Infrastructure Investments: Financing Smart ... · Source: IUCN 2015 WHY GREEN + GRAY? Meet SDG, urban-rural development and water stewardship goals. Catastrophic Events Pipeline

Todd Gartner

Senior Associate, WRI

[email protected]