Sustainable Asset Valuation (SAVi) of Agroforestry Nature-Based Infrastructure in Welkenraedt (Belgium)

The report assesses the economic and environmental viability of an agroforestry project in Welkenraedt, Belgium, using the SAVi methodology and Copernicus Climate Data Store (CDS) data. The analysis finds that the project, involving approximately 100,000 m2 of hedges and trees, generates net benefits of EUR 3.9 million over 20 years against an investment cost of EUR 607,629. Key benefits include increased agricultural yields via windbreak effects, reduced heat stress for livestock, and enhanced ecosystem services such as carbon sequestration and nutrient removal. Climate projections under RCP 4.5 and RCP 8.5 suggest that increasing temperatures and precipitation will make the project more economically attractive by increasing the value of avoided flood damage and water treatment costs.

• The agroforestry project in Welkenraedt is estimated to generate net benefits of EUR 3.9 million over a 20-year period, with total investment and operation and management (O&M) costs amounting to EUR 607,629.
• The project's financial viability varies significantly based on the valuation approach: while it is hardly investment-worthy based only on fodder and milk production (IRR of 1.22%), the sustainable internal rate of return (S-IRR) rises to 27.85% when all revenues and externalities are included.
• Climate change is expected to increase the economic attractiveness of the project. Higher temperatures will enhance the value of the cooling effect on livestock, and increased precipitation and runoff will increase the value of avoided wastewater treatment and flood damage costs.
• The windbreaker effect of tree rows is a major revenue driver, contributing an estimated EUR 1,384,659 in additional agricultural production revenues.
• Spatially explicit analysis using the InVEST model indicates that the project will lead to a 0.5% increase in carbon sequestration and a 1.8% improvement in habitat quality in the region.
• The project is expected to reduce nutrient exports in the watershed, specifically decreasing nitrogen exports by 377 kg and phosphorus exports by 102 kg compared to a business-as-usual scenario.
• The analysis identifies several other direct revenue streams, including wood pellet production (EUR 348,976), tourism and landscape value (EUR 832,705), and fodder production (EUR 635,891) over 20 years.

APA

Uzsoki, D. (2021). Sustainable Asset Valuation (SAVi) of Agroforestry Nature-Based Infrastructure in Welkenraedt (Belgium). International Institute for Sustainable Development. https://www.iisd.org/system/files/2021-04/savi-welkenraedt-belgium-en.pdf

Chicago

Uzsoki, David. Sustainable Asset Valuation (SAVi) of Agroforestry Nature-Based Infrastructure in Welkenraedt (Belgium). International Institute for Sustainable Development, 2021. https://www.iisd.org/system/files/2021-04/savi-welkenraedt-belgium-en.pdf.

Wikipedia

{{cite report |last1=Uzsoki |first1=David |title=Sustainable Asset Valuation (SAVi) of Agroforestry Nature-Based Infrastructure in Welkenraedt (Belgium) |publisher=International Institute for Sustainable Development |date=April 2021 |url=https://www.iisd.org/system/files/2021-04/savi-welkenraedt-belgium-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{uzsoki2021sustainable, author = {Uzsoki, David}, title = {{Sustainable Asset Valuation (SAVi) of Agroforestry Nature-Based Infrastructure in Welkenraedt (Belgium)}}, institution = {International Institute for Sustainable Development}, year = {2021}, month = apr, url = {https://www.iisd.org/system/files/2021-04/savi-welkenraedt-belgium-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }