This is blog #2 in our series about Natural Infrastructure. Written by Maria Albuquerque.
Natural Infrastructure means using the goods and services that ecosystems provide to meet targeted infrastructure needs. Not only does it support our environment, provide habitat, and improve ecological function, natural infrastructure is also cost-effective! In this blog, we will explore the economic value of natural infrastructure with examples from Alberta and Canada’s prairie region.
Valuing Natural Assets
Natural infrastructure can meet infrastructure needs and be cost-effective (low investment costs and high outcome value). Ecosystem services are provided free of charge; investing in natural infrastructure can boost these services and reduce the expenses incurred by grey (human-built) infrastructure.
Traditional knowledge has recognized nature's services and goods for millennia, and Indigenous peoples have cared for forests, grasslands, and other ecosystems across the globe. In fact, the leadership and participation of Indigenous peoples in conservation efforts, including natural infrastructure, are critical to sustaining their services and benefits (Artelle et al., 2019). We benefit from ecosystem services regardless of their economic impact; still, researchers, governments, and organizations have been calculating natural assets to understand their economic value and reinforce the protection of natural habitats.
Police Outpost Natural Area / Wetland. Photo by Debby Gregorash.
The Natural Assets Initiative, a Canadian non-profit, helps governments and municipalities inventory the natural assets of their regions. This information can be used to value the services provided by natural infrastructure on its own or combined with grey infrastructure. Researchers also develop and share modelling tools to evaluate scenarios where natural infrastructure is restored, enhanced, and/or conserved, and how they meet the needs of local and downstream communities. Calculating the economic impacts of natural infrastructure requires time and resources, but it is worth the investment in the long run.
Natural Infrastructure Numbers
National Scale: Canada
The International Institute for Sustainable Development has estimated that each year, Canada’s wetlands provide an estimated $201 million in water filtration services including water supply and wastewater treatment.
Canada’s prairies offer prestigious ecosystem services worth millions of dollars a year. Prairie grasslands capture, store, and filter water through their deep roots, while recharging groundwater and providing drinkable water. The Smart Prosperity Institute and Nature United released a 2024 report highlighting the value of grasslands. Alberta has 45% of the total grasslands in Canada, which provide habitat for wildlife and pasture for livestock. In Manitoba, benefits from this ecosystem are valued at more than $15 million per year. In total, healthy grasslands contribute over $5 billion to the national economy each year.
Photo by Maria Albuquerque.
Provincial Scale: Alberta
Alberta’s remaining wetlands provide a wide range of ecosystem services that are also worth billions of dollars. Recent studies indicate that the total value of protecting Alberta’s wetlands is between $31 and $66 billion annually. In central Alberta, the Camrose Creek Research Project by Ducks Unlimited Canada estimates that its wetlands provide $1.2 million in flood protection, $300,000 in carbon sequestration, and nearly $250,000 in nitrogen and phosphorus control each year. That is money that municipalities don’t have to spend on water treatment plans and flood control.
Restoration is also economically beneficial. Upstream from Edmonton, Parkland County evaluated the economic benefits of investing in natural infrastructure for road maintenance and water treatment. The goal was to enhance road functionality and reduce sediment in waterways by restoring riparian areas and wetlands. The model predicted a 13% to 55% reduction in water flow from restoring natural infrastructure, with restoration costs similar to fixing a single culvert! This approach would decrease sediment runoff and alleviate road stress, lowering maintenance needs.
Photo by Brandon Regier.
Watershed Scale: North Saskatchewan
The North Saskatchewan Watershed Alliance (NSWA) measured the ecosystem services in the North Saskatchewan Watershed compared to economic activities in the region. The value of ecological services was estimated to be $17.7 billion, or about $3,652 per hectare of ecological land (i.e. land that is not built up or developed or consists of rock or ice). In half of the sub-basins, the value of ecosystem services produced by natural infrastructure was greater than that of economic activities. For the five sub-basins upstream of Edmonton, the value of ecosystem services ($10.2 billion) was actually twice that of economic activities ($5.0 billion). Downstream from Edmonton, the value of ecosystem services ($4.9 billion) was 80% of the value of economic activities ($6.0 billion).
Natural Infrastructure = More Jobs!
In 2022, the International Institute for Sustainable Development reported that Alberta's natural infrastructure sector supported 21,823 direct jobs and generated $2,955,881 in direct GDP, along with 39,489 indirect and induced jobs totaling $5,116,665 in indirect and induced GDP.
Wetlands and natural infrastructure managed by DUC create about 12.8 person-years of employment (PYEs) for every $1 million invested in conservation. This is significantly higher than other sectors, such as agriculture (6.5 PYEs), forestry (6.4 PYEs), mining (2.8 PYEs), and oil and gas extraction (2.1 PYEs).
Photo by Leta Pezderic
Oldman in the Works
You might be asking, “What about the Oldman watershed?” While our watershed is home to numerous natural infrastructure projects, their economic contributions have yet to be fully assessed and made accessible to the public. Nevertheless, organizations like OWC, Cows and Fish, Freshwater Conservation Canada (formerly Trout Unlimited Canada), Miistakis Institute, and Nature Conservancy Canada have joined forces with landholders, municipalities, First Nations, and volunteers to restore natural infrastructure like riparian areas, wetlands, and native grasslands. The investment in NI projects is critical for the ongoing work and to expand capacity and resources for measuring the ecosystem services they provide.
Restoration site in the Oldman watershed. Photo by Shannon Hart.
Conclusion & Stay Tuned!
It may be challenging to measure the monetary value of ecosystem services, but there are clear examples of the economic benefits of natural infrastructure in Canada and Alberta. Natural infrastructure can support grey infrastructure, create jobs, and provide water-related services. By conserving and restoring grasslands, wetlands, and riparian areas, municipalities, governments, and landholders can benefit from these services while saving money. We need to better understand these natural assets to quantify their economic value, and reinforce investments in natural infrastructure. In an upcoming blog, we will showcase OWC’s work in restoring natural infrastructure in the Oldman’s watershed and how you can get involved.
This blog series is part of a project that is funded in part by a grant from the Watershed Resiliency and Restoration Program (Government of Alberta) and the ACA Conservation, Community, and Education Grant.
Banner photo by Connie Simmons.
