This case study illustrates how the Sustainable Asset Valuation (SAVi) methodology was used to assess the project "Maintaining and Enhancing Water Yield Through Land and Forest Rehabilitation" (MEWLAFOR) in the Brantas River Basin on the island of Java (Indonesia). SAVi is an assessment methodology that provides policy-makers and investors with a comprehensive analysis of costs of environmental, social, economic, and governance risks throughout the projects' lifecycles. To do so, SAVi uses a combination of system dynamics and project finance modeling.

Steps and outputs of a SAVi valuation. Source: Nature-Based Infrastructure Global Resource Centre

The agriculture sector is an essential source of income for local communities in the Brantas River Basin. However, it contributes to environmental issues such as soil erosion and biodiversity loss. The project MEWLAFOR aims to restore degraded land in the Brantas River catchment by implementing nature-based infrastructure such as agroforestry systems.

The SAVi methodology was used to assess the MEWLAFOR project to quantify the ecosystem services of the reforestation initiative and the implementation of water retention wells, as well as its economic impacts and co-benefits. Thus, by incorporating world-class climate data into the valuation, SAVi helps to understand the climate adaptation benefits of nature-based infrastructure.

Read the full case study here.