Co-benefits and Resilience Dividends
Climate adaptation and resilience strategies are critical responses to the growing threats of human-induced climate change. However, resilience building is not only about better preparing for risks — it also unlocks development benefits and shared prosperity.
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Co-benefits
Resilience Dividend
Co-benefits and resilient dividends are extremely useful for prioritizing the most effective plans or actions, but only if their value is adequately assessed and accounted. The quantification of co-benefits is a fundamental challenge because it may help decision-makers in incorporating the full potential of climate-resilient investments. In fact, while the co-benefits of adaptation and resilience are generally well-known and accepted, their quantification and measurement remain challenging. Traditional cost-benefit analysis (BCA) rarely captures the full range of benefits, losses and costs associated with a project or initiative. Consolidated approaches exist in the assessment of ecosystem services and the functions they perform (provision, regulating, cultural and supporting services). Cost-effectiveness and multi-criteria analysis have also been used to assess the viability of climate adaptation projects. In the context of financing climate adaptation and resilience projects, the expected positive impacts of co-benefits are considered as future costs saving and, hence, can be monetized as future revenues.
The right identification of co-benefits is also critical to align different policy objectives, improve collaboration between departments and promote wide adoption by policy makers.
Nature-Based Solutions: An Example
Nature-Based Solutions (NBS) are climate adaptation strategies that go beyond environmental benefits, offering multiple co-benefits and resilience dividends.
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Heat Mitigation and Air Quality
Water Management
Biodiversity Preservation
Social and Economic Benefits
Case Studies
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Case Study 1: Resilient BoTu 2028 Program (Rotterdam)
Background:
Bospolder-Tussendijken (BoTu) is a district in Rotterdam that faces challenges related to social cohesion, security, and climate adaptation. The district ranks low in the municipality’s social index, highlighting the need for targeted interventions.
Objective:
To transform BoTu into the first resilient district of Rotterdam by improving quality of life, community participation, and capacity-building through collaborative initiatives.
Key Interventions:
- Redesign of public spaces and squares.
- Capacity-building activities, including training energy coaches for solar panel installations.
- Collaborative approach with residents and multiple stakeholders.
Co-Benefits:
- Climate Adaptation: Improved public spaces designed for climate resilience.
- Economic Growth: Creation of job opportunities through capacity-building initiatives.
- Community Building: Strengthened social cohesion and increased resident engagement.
- Energy Transition: Adoption of renewable energy through solar panel installations.
- Social Impact: Increased neighborhood participation and improved living conditions.
Case Study 2: Greater Cape Town Water Fund
Background:
Cape Town faces multiple shocks and stresses, including rapid population growth, informal settlements, high unemployment, poverty, and food insecurity. In 2018, the city declared “Day Zero” due to a severe water crisis, which highlighted the need for urgent intervention.
Objective:
To restore water security by clearing invasive alien plant species that reduce water flow and aquifer recharge in the city’s sub-catchment areas.
Key Interventions:
- Removal of invasive alien plants in water catchments.
- Collaborative efforts through the Greater Cape Town Water Fund, initiated by The Nature Conservancy (TNC).
- Financial and technical support from water users and stakeholders.
Co-Benefits:
- Increased Water Supply: Enhanced water availability by clearing invasive plants.
- Wildfire Mitigation: Reduced frequency and severity of wildfires.
- Soil Ecology Maintenance: Preservation of soil health and aquifer recharge.
- Employment Creation: New job opportunities for local communities.
- Stakeholder Engagement: Strong partnerships between government, private sector, and community members.
Summary
Reflection
1. What is the concept of “resilience dividend”?
2. What are the challenges in quantifying co-benefits and resilient dividends?
3. Can you think of examples or “resilient” projects at the city level which target multiple stakeholders and achieve multiple benefits at the same time?
