Strategic Framework for Estimating the Economic Value of an Urban Ecosystem

Water is the primary medium through which the impacts of climate change are felt, with cities worldwide facing increased flooding, water scarcity, and related challenges. In India, urban areas experience frequent floods alongside growing summer water shortages, making water security central to climate adaptation strategies. 

The National Institute of Urban Affairs (NIUA), with support from the International Union for Conservation of Nature (IUCN), implemented the “Proliferating Ecosystem-based Adaptation (EbA) Practices in Indian Cities” (EPIC) project under the Global EbA Fund. Using Bhubaneswar, Odisha, as a pilot city, the project demonstrates how ecosystem-based adaptation can help cities address flooding and water scarcity. A key component of this effort is the economic valuation of urban ecosystems—such as wetlands, forests, floodplains, and riparian buffers—to highlight their tangible benefits for climate resilience. This Strategic Framework simplifies the process of valuing ecosystem services, providing a step-by-step methodology for policymakers, urban planners, and practitioners to make evidence-based decisions, strengthen ecosystem-based planning, and integrate nature into urban water management.