Proposed Principles on Investment and Financing for Water-related Disaster Risk Reduction. Goal of the Principles

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1 Proposed Principles on Investment and Financing for Water-related Disaster Risk Reduction 1 Goal of the Principles Double the financing and investment for water-related disaster risk reduction The proportion of financing for disaster risk reduction/preparedness and that for emergency response/rehabilitation will shift from the current 10%:90% to 90%:10%. 2

2 I. Water-related disaster risk reduction is indispensable for socio-economic development. 1. Water-related disasters can be prevented by disaster prevention infrastructure, including levees, reservoirs, resilient infrastructure, or green infrastructure. 2. Countermeasures implemented in advance against waterrelated disasters are not a cost, but an investment in the future. 3. Water-related disasters are caused by too much or too little water. Water-related disaster risk reduction should be a key component of Integrated Water Resources Management, providing multi-faceted benefits, such as efficient water use and enhanced biodiversity. 3 Effect of Preventive Measures The case of Tokai Storm on September 11-13, Billion Effectiveness of preventive project: 550 billion Effectiveness 7.7 (=550/71.6) 120 Billion 71.6 billion Actual Damage Simulated Damage for same heavy rain after the completion of Preventive Measures Cost of Preventive Measures after disaster Inundation in Nishibiwajima Town 4

3 II. Pre-disaster prevention measures should be prioritized. 4. Frequent water-related disasters should be forestalled by preventive measures. 5. While prioritizing the protection of human life, devastating damages to society and economy should be also prevented. 6. Build Back Better approach should be incorporated into the recovery and reconstruction. 7. Climate change is predicted to intensify disaster damages. Investment should be enhanced for adaptation measures. 8. Investment for the maintenance and management of infrastructure should be secured to cope with its aging issues and the loss of functionality. 5 Management of Aging Infrastructure Ratio of River Facilities that Passed over 40 years Year % 60% 80% As the number of aging infrastructure is rapidly increasing, disaster risk is growing. Problems Caused by Aging Infrastructure Collapsed Bridge (2007) Sinkhole Caused by Damaged Sewer (2009) 6

4 III. Governments should improve their fiscal systems and secure sufficient budget. 9. The central government must prepare the legal, budgetary and administrative systems for disaster risk reduction. 10. Responsibilities of all stakeholders, including residents, local and central governments should be defined, empowering local governments and communities. 11. The central government should assist local governments whose capacities are overwhelmed by disasters. 7 Effect of Flood Management Investment Fatalities by Floods, GDP, and Flood Management Budget Number of fatalities (people) 10,000 Flood manegement cost (Nominal) (hundred of million ) GDP(nominal) <billion > 30,000 <600,000> 25,000 <500,000> 1,000 20,000 <400,000> ,000 <300,000> 10 Flood Management Cost (Nominal) GDP (Nominal) Number of Fatalities 10,000 <200,000> 5,000 <100,000> <0> *Number of fatalities exclude those who dead by tsunami *GDP : (2000 price), (1990 price)

5 IV. Various funding sources should be explored and mobilized. 12. Mobilization of private fund is essential to support increasing demand for resilient infrastructure. Cooperation with other sectors, such as water resources management and urban planning, could attract private funds. 13. Flood insurance is effective for the speedy recovery of daily life. However, it does not physically reduce the risk of flood damages. 9 High-Standard Embankment Developed with Private Sectors High standard embankments Scheme of city development along the super embankment Before project Arakawa River and Shinden districts in Adachi City After project 10

6 V. International community should expand financial assistance for disaster risk reduction. 14. Even a single disaster in one country creates ripple effects on the world through supply chains, migration, etc. International society should coordinately increase assistance for disaster risk reduction. 15. Unspent emergency assistance should be utilized for disaster prevention measures. 11 VI. Science and technology should support decision making on better investment. 16. Data quality and knowledge on disaster losses and impacts should be improved to evaluate the effectiveness of investment. 17. Cooperation and alliances among science communities should be strengthened. 12

7 Roadmap for Principles for Financing and Investment for Water-related Disaster Risk Reduction Drafting & Discussion HELP10 Sep APWS3 Dec Launch WWF8 Mar International Decade ( ) for Action Water for Sustainable Development HLPF Aug Monitoring 13