A Sustainable Asset Valuation Assessment of Nature-Based Solutions in the Dechatu River Catchment in Dire Dawa, Ethiopia

The report evaluates the impact of SUNCASA-implemented nature-based solutions (NbS) in Dire Dawa, Ethiopia, focusing on the Dechatu River Catchment. Using the SAVi methodology, it projects that interventions including afforestation, agroforestry, and urban tree planting will generate a discounted net benefit of ETB 101.6 million from 2025 to 2050, with a benefit-cost ratio (BCR) of 1.36. The primary economic driver is the avoidance of flood-related infrastructure damage, valued at ETB 188.1 million. The assessment also highlights significant intangible benefits, such as avoided health costs from water pollution (ETB 65.8 million) and carbon sequestration (ETB 54.2 million). Sensitivity analyses indicate the project remains viable even with a 94% tree survival rate or under higher carbon pricing scenarios.

• The NbS interventions in Dire Dawa are projected to be economically viable, generating a cumulative discounted net benefit of ETB 101.6 million and an integrated benefit-to-cost ratio (BCR) of 1.36 over a 25-year period (2025–2050).
• The most significant individual impact of the NbS scenario is the reduction of tangible costs associated with flood damage to infrastructure, valued at a cumulative discounted ETB 188.1 million.
• Substantial intangible societal values are generated, including avoided health costs from water pollution (ETB 65.8 million), carbon sequestration (ETB 54.2 million), and avoided health costs from floods (ETB 33.3 million).
• Spatially explicit analysis using InVEST models indicates that the 'Restored LULC scenario' will increase carbon storage by approximately 25.12% (175,000 tons), increase mean habitat quality by 16%, and increase runoff retention by roughly 4% (278,000 m3).
• Sensitivity analysis shows that the project remains economically viable under a 94% tree survival rate, with net benefits of ETB 78.6 million and a BCR of 1.28.
• Applying a higher shadow price for carbon (USD 40/ton) significantly increases the projected economic value of carbon sequestration to ETB 312.4 million, raising the overall BCR to 2.28.

APA

Kapetanakis, M. (2025). A Sustainable Asset Valuation Assessment of Nature-Based Solutions in the Dechatu River Catchment in Dire Dawa, Ethiopia. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-11/nature-based-solutions-dire-dawa.pdf

Chicago

Kapetanakis, Michail. A Sustainable Asset Valuation Assessment of Nature-Based Solutions in the Dechatu River Catchment in Dire Dawa, Ethiopia. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-11/nature-based-solutions-dire-dawa.pdf.

Wikipedia

{{cite report |last1=Kapetanakis |first1=Michail |title=A Sustainable Asset Valuation Assessment of Nature-Based Solutions in the Dechatu River Catchment in Dire Dawa, Ethiopia |publisher=International Institute for Sustainable Development |date=November 2025 |url=https://www.iisd.org/system/files/2025-11/nature-based-solutions-dire-dawa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kapetanakis2025sustainable, author = {Kapetanakis, Michail}, title = {{A Sustainable Asset Valuation Assessment of Nature-Based Solutions in the Dechatu River Catchment in Dire Dawa, Ethiopia}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = nov, url = {https://www.iisd.org/system/files/2025-11/nature-based-solutions-dire-dawa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }