Sustainable Asset Valuation Tool

The document defines natural infrastructure (NI) as ecosystems providing infrastructure services and distinguishes between 'natural' (e.g., wetlands) and 'green-grey' (e.g., permeable pavements) types. It argues that NI is generally more cost-effective than grey infrastructure, offering co-benefits in land security, climate regulation, and water security. However, adoption is hindered by high transaction costs, long time horizons for full capacity, and a lack of standardized quantitative evaluation tools. The report provides specific cost data for artificial wetlands and restoration projects, while identifying policy interventions—such as rating systems and market instruments—to incentivize investment.

• Natural infrastructure (NI) is generally more cost-effective than grey infrastructure over its full life cycle, particularly in coastal protection where typical costs for a natural shoreline range from USD 0 to USD 6,562 per metre, compared to seawalls which typically cost between USD 6,500 and USD 9,800 per metre.
• NI provides critical co-benefits that grey infrastructure cannot, including carbon sequestration, global cooling, and biodiversity preservation. For example, urban forests in Houston provide cooling valued at USD 131 million annually, and San Francisco's canopy saves an estimated USD 27 million in natural gas and USD 305 million in electricity.
• Constructed wetlands can serve as a cost-competitive alternative to mechanical wastewater treatment. In one case, a constructed wetland in North Seadrift, Texas, met all discharge requirements for total suspended solids (TSS) and eliminated algal blooms, while another project in Washington, DC, saved USD 26 million in construction and USD 1.6 million in annual operational costs.
• Green roofs offer significant energy and stormwater benefits, with energy consumption savings between 15–45 per cent and annual stormwater management reductions up to 60 per cent. Their net present value is approximately 40 per cent higher than typical grey roofs.
• Several systemic roadblocks hinder the adoption of NI, including the inability to quantitatively compare project costs due to site-specific nature, high transaction costs from multi-stakeholder coordination, and long time horizons before NI reaches full ecological capacity.
• Permitting for NI is often more complex and time-consuming than for grey infrastructure. In North Carolina, policies for coastal protection require different permits for NI that are more expensive and slower to secure than those for hard infrastructure.
• Artificial wetlands exhibit a trend where earthwork costs per acre decrease exponentially as the total water surface area of the wetland increases. Earthworks typically constitute about 42 per cent of total installation costs.
• Mangroves provide substantial economic value; in Thailand, they provide approximately USD 10,821/ha in coastal protection, USD 987/ha for fish nurseries, and USD 584/ha for timber and non-timber forest products.

APA

Bassi, A. M., Pallaske, G., Wuennenberg, L., Garces, L., & Silber, L. (2019). Sustainable Asset Valuation Tool. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/sustainable-asset-valuation-tool-natural-infrastructure.pdf

Chicago

Bassi, Andrea M., Georg Pallaske, Laurin Wuennenberg, Lidia Garces, and Lydia Silber. Sustainable Asset Valuation Tool. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/sustainable-asset-valuation-tool-natural-infrastructure.pdf.

Wikipedia

{{cite report |last1=Bassi |first1=Andrea M. |last2=Pallaske |first2=Georg |last3=Wuennenberg |first3=Laurin |last4=Garces |first4=Lidia |last5=Silber |first5=Lydia |title=Sustainable Asset Valuation Tool |publisher=International Institute for Sustainable Development |date=March 2019 |url=https://www.iisd.org/system/files/publications/sustainable-asset-valuation-tool-natural-infrastructure.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bassi2019sustainable, author = {Bassi, Andrea M. and Pallaske, Georg and Wuennenberg, Laurin and Garces, Lidia and Silber, Lydia}, title = {{Sustainable Asset Valuation Tool}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = mar, url = {https://www.iisd.org/system/files/publications/sustainable-asset-valuation-tool-natural-infrastructure.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }