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Floodplains are also widely used as grazing grounds, feeding animals that subsequently provide draught power and manure for fuel, and fertile floodplains can be used for biofuel production. · Coastal wetlands, mangroves, barrier reefs and islands protect inland areas against erosion and storm damage and also attenuate tidal and storm surges, as witnessed in the Asian tsunami of 2004, where damage from coastal inundation was reduced where mangroves were intact (UNEP-WCMC, 2006). Mangrove forests can, if exploited wisely, serve as sustainable providers of firewood and protect critical energy and transport infrastructure (Chong, 2006; Macintosh and Ashton, 2002). Analytical tools can be used to quantify the services provided by ecosystems and estimate their economic value (TEEB, 2010). An ecosystems approach increases understanding of the interlinkages between water and energy and provides support to decision-making processes, which is fundamental to charting a course to a green economy (UNEP, 2011b, pt 1, ch. ‘Water’). Economic valuations of the infrastructure benefits of ecosystem services can include market prices for products (e.g. wetland fisheries), the cost of replacing ecosystems through engineering (e.g. water filtration) or the costs of damage avoided (e.g. flood attenuation) (Emerton and Bos, 2004). In some cases, natural infrastructure can be integrated within financing for engineered infrastructure. In many cases, natural ecosystems can provide ecosystem services at a lower price or with higher economic returns than hard engineered approaches, as in the case of wetland restoration (Russi et al., 2013). 9.3.2 Payments for ecosystem services The approach of payments for ecosystem (or environmental) services (PES) has often focused on supporting watershed protection and water quality Ongoing degradation of water and land resources in river basins threatens energy provision. It could be reversed through protection and restoration initiatives. enhancements that help water supply by regulating flows (Wunder et al., 2008). It has been suggested that farmers should receive payments or ‘green water credits’ from downstream water users for good management practices that support and regulate ecosystem services, thereby conserving water and increasing both water availability and quality for downstream users (ISRIC, 2007). Environmental service fees encourage individuals and businesses to internalize the value of ecosystem services. These fees have been established in a number of places around the world, particularly in Latin America (Smith et al., 2006). For example, in the Sarapiqui watershed in Costa Rica, a hydropower company pays US$48/ha per year to upstream landowners for forest management and restoration. The payment is based on the costs of reservoir dredging that the company avoids and the operational benefits of more reliable stream flow that can be used for hydropower (Hanson et al., 2008). The success of PES schemes depends to a large extent on access to a secure source of funding. This is the case when schemes are operated on the basis of a mutual agreement on the specific ecosystem services required and a price agreeable to the providers and the users. As most government-financed schemes depend on general revenues, typically cover large areas, and are subject to political risks, these are likely to be less efficient and less sustainable (Pagiola and Platais, 2007; Wunder et al., 2008). 9.2 Sustainable dam management for fish and hydropower ‘On Maine’s Penobscot River (USA) abundant fisheries were the cultural foundation for the Penobscot Indian Nation and the economic driver of the local economy. A series of hydropower dams built over the past century contributed to the decline of the river’s overall health, blocking access for salmon and other species. The power company, the Penobscot Indian Nation, environmental groups and numerous state and federal agencies and riverside communities joined forces to restore more than 1,000 miles [1,600 km] of river habitat without diminishing hydropower generation in the basin ... [by] removing two dams in the lower river, installing a state-of-the- art fish bypass to a third dam further upstream and increasing energy production at dams elsewhere in the basin where impacts on fish are low.’ Source: UNEP, from Krchnak et al. (2011, p. 7). 82 CHAPTER 9 THEMATIC FOCUS BOxPDF Image | Water and Energy
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