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Climate Adaptation in Coastal Caravan Parks
Economic Value and Equity Decision Support FrameworkReport 3
Third Report of the ‘Value and Equity Framework for Climate Adaptation:Coastal Caravan and Camping Parks Case Study’ Project
Prepared for the Western Coastal Board by: Carolyn TsioulosElements Strategic and Risk Management
Published by the Western Coastal Board© The State of Victoria, November 2012
This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968.
ISBN: 978-1-74287-684-9 (online)
For more information contact:Western Coastal BoardPO Box 103 Geelong VIC 3220Phone: 03 5226 4008www.wcb.vic.gov.au
DISCLAIMERThis publication may be of assistance to you but the State of Victoria and its employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or consequence which may arise from you relying on any information in this publication.
This report has been prepared for the Western Coastal Board, an independent advisory body established under the Coastal Management Act, 1995. The views expressed in this document are those of the Western Coastal Board and have not been endorsed by the Victorian Government.
Acknowledgement of Country and Indigenous Australians The Western Coastal Board respectfully acknowledges the original custodians of the Western Coastal Region of Victoria; their rich culture, deep affinity with the land and spiritual connection to it.
Cover Photo:Returning from the surf at Surfside Holiday Park in Warrnambool. (Photo courtesy Warrnambool City Council)
This project was developed through the funding contributions of the following organisations:
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Table of Contents
Executive Summary 5
1. About This Document 7
2. Introduction 8
2.1. Purpose 8
2.2 Audience 9
3. How to Use This Document 11
4. CCPs and Climate Change 13
4.1 Coastal CCPs on Crown Land 13
4.2 Climate Change and Coasts 14
4.3 Climate Change Issues for CCPs and Environs 16
5. Climate Change Adaptation 18
5.1 Best Practice Climate Change Adaptation 18
5.2 Climate Change Adaptation for CCPs 19
6. Key Decision Support Concepts 22
6.1 What is Economic Value? 22
6.2 What is Social Equity? 24
6.3 Value and Equity in CCP Adaptation Decision Making 25
6.4 Obtaining Economic Value and Social Equity Information 26
6.5 How is Economic Value and Social Equity Information Applied to Decision Making for CCPs? 29
7. Key Decision-Making Legislation, Policy and Tools 31
7.1 Key Legislation 31
7.2 Key Policy Inputs 32
7.3 Key Decision-Making Tools 35
8. Decision Support Framework for Adaptation 39
8.1 The Decision-Making Pathway 39
8.2 Decision Support Framework 41
Stage 1: Adaptation Options Assessment 42
Stage 2: Decision-Making Support 53
9. Opportunities and Limitations 61
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9.1 Limitations 61
9.2 Opportunities 61
10. References 63
Appendices 65
Appendix 1: CCP Adaptation Options 66
Appendix 2: Examples of Developing Risk Assessment Criteria 68
Appendix 3: State Planning Policy Framework and Local Planning Policy Framework 69
Appendix 4: Risk Assessment Process Diagram 76
Appendix 5: Cost-Benefit Analysis Process Diagram 77
Acknowledgements:Elements Strategic and Risk Management greatly appreciates the support and active participation of a wide range of people. This project could not have been completed without the support and funding from the Australian Government’s Department of Climate Change and Energy Efficiency’s Coastal Adaptation Decision Pathways program. Thanks are extended to the previous and current Western Coastal Board members and the Reference Group and Steering Committee. I would also like to thank the members of the Project Team:
• Steve Blackley (Executive Officer, Western Coastal Board);
•Alain Purnell (former Western Coastal Board member);
•Helen Scarborough (Deakin University and former Western Coastal Board member);
•Carlee Hamilton (Program Support Officer Western Coastal Board); and
• Leanne Khan (Bellarine Bayside Foreshore Committee of Management).
And the consultants who worked as a part of the Project Team:
•Christine Walker (Alliance Strategic Research);
• Boyd Blackwell (AquaEquis Consulting); and
•Dr John Rolfe (R and Z Consulting).
I would also like to offer a particular thank you to Steve Blackley, the Executive Officer of the Western Coastal Board whose conception of the project with Helen Scarborough and his drive and commitment to the project has resulted in unique and important project outputs that have significant application to coastal climate change adaptation.
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This Decision Support Framework aims to improve climate change adaptation planning by articulating why social and economic information is essential for effective adaptation for coastal caravan and camping parks (CCPs) on Crown land and how to include it in decision making.
This is the third document generated through the ‘Value and Equity Framework for Climate Adaptation: Coastal Caravan and Camping Parks Case Study’ project led by Victoria’s Western Coastal Board as a part of the federal Coastal Adaptation Decision Pathways program.
The importance of Caravan and Camping Parks
CCPs on Crown land occupy an important place in the coastal social, economic and environmental landscape, providing multiple benefits to the public and in various forms. They provide affordable holiday destinations, contribute to recreation and tourism and are an important part of the character of the coastal towns in which they are located. Coastal CCPs also play a crucial role in providing funding for the management of Crown land reserves along the Victorian coastline.
These benefits contribute to the high social and economic values CCPs possess for both coastal communities and the wider society that visit the area. Research has demonstrated that there is a strong and important link between the quality of the coastal environment and the quality of life for many Victorians. Access to healthy natural environments is good for mental and physical health and wellbeing (VCC 2008) thus demonstrating their importance in the social landscape.
Potential climate impacts on CCPs
CCPs are typically located close to foreshores, estuaries, bushland or environmentally sensitive areas and are therefore often exposed to potential changes to coastal climate conditions and their associated hazards such as sea level rise inundation, increased coastal erosion and flood
inundation. These impacts will not be evenly spread across the economy or community.
The values of Caravan and Camping Parks
Despite recognition of the importance of CCPs, little is known of the social and total (market and non-market) economic values of CCPs and the coastal reserve. Without full comprehension of the social and economic values of these assets as a baseline for CCP business performance, it is difficult to understand and assess the impacts that climate change, and the impacts of our adaptation responses, may have on CCPs and the adjacent reserve. This gap in important social and economic information affects our ability to address adaptation challenges effectively.
Central to this Framework is an understanding of two concepts:
• Total economic value, which includes market and non-market economic values (ie those not traded in markets).
• Social equity which is derived from a concept of social justice and requires that basic needs be met and that benefits and burdens be spread fairly.
The integration of economic value and social equity considerations in decision-making for adaptation to ensure the ‘fairness’ of adaptation for all groups affected is underpinned by the Victorian Coastal Strategy 2008.
A Decision Support Framework
The Decision Support Framework aims to support the organisations responsible for the planning and management of CCPs make effective adaptation decisions. The focus of the Framework is to establish how economic (market and non-market) values and social equity preferences for CCPs can be obtained, interpreted and applied in climate change adaptation decision-making for coastal CCPs on Crown land.
This Framework does not promote or generate new policy
Executive Summary
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or tools. Instead it encourages the application of a “social and economic lens” to existing decision-making and complements existing legislative and policy requirements, business processes and climate change adaptation planning. It details relevant social and economic concepts, outlines methodologies for generating information, and highlights where and how to apply information to obtain outcomes based on value and equity.
Overall, this Framework can assist CCP managers and decision makers to:
•Develop an understanding of CCP exposure to climate change impacts and potential effects;
•Appreciate some of the types of economic value and social equity information relevant to adaptation responses;
•Understand the importance of this information to effective adaptation decision-making;
•Generate, interpret and apply economic value and social equity information to support adaptation decision-making through a generic coastal adaptation decision-making pathway.
The Framework recognises that CCPs operate as a business by necessity, and that climate change adaptation requires an understanding of business performance as an important attribute of business planning. The more awareness of the total economic value of the CCP, the more complete the understanding of the performance of the CCP as a business. It is therefore important that CCP managers position themselves to understand their holistic baseline performance before commencing adaptation.
Components of the Framework
A generic adaptation pathway provides the core of the Framework and is presented as a two stage process comprising Adaptations Options Assessment and Adaptation Decision Making as shown in Figure A. Each stage includes three steps that capture the suite of activities required for effective adaptation planning.
The Framework recognises that a number of documents and approaches drive the bulk of adaptation decisions. It outlines the relevant legislation, policy and tools that apply to each step which require the consideration of social and economic information. Several of these can be used at different points in the pathway. The Framework illustrates the points along the pathway where the information is required and guides the reader through the process of generating, interpreting and applying the relevant information to the pathway.
Figure A: The decision-making pathway within the Decision Support Framework
The intent of the Steps includes:
1. Climate change implications for CCPs: promotes a comprehensive understanding of the social and economic implications of climate change for both the coast and CCPs.
2. CCP Business Planning: recognises the need to build climate implications into CCP business planning and address the need to invest in developing knowledge and adaptation options.
3. Adaptation options assessment: guides the user through the options assessment process and the use of detailed risk assessment and cost-benefit analysis.
4. CCP Business Planning: revisits the business performance of the CCP with the benefit of new information generated through the options assessment process, and focuses on the needs of CCP managers to plan and obtain funding for approval and implementation of adaptation responses.
5. Coastal Management Act 1995 consent: details the process and requirements for gaining consent for adaptation works or development as required by the Act.
6. Planning Permit: outlines the process for planning approval for adaptation works or development where a permit is required through the local planning scheme.
While the management of coastal reserves and CCPs may be structured differently in different states, the foundations of climate change decision-making rely on the same type of information and decision making processes. The generic nature of the pathway within the Framework may lend itself to other forms of decision-making, land jurisdictions, change management and adaptation challenges.
Decision-Making Pathway
Step 1: Climate change implications for CCPs
Step 2: CCP Business Planning
Step 6: Planning Permit
Step 5: Coastal Management Act 1995 Consent
Step 4: CCP Business Planning
Step 3: Adaptation Options Assessment
Stage 1 – Adaptation Options Assessment
Stage 2 – Adaptation Decision-Making
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The Decision Support Framework provides guidance and direction on incorporating social and economic information into climate change adaptation decision making for coastal Caravan and Camping Parks (CCPs) on Crown land. The structure of the Framework, illustrated in Figure 1, is focussed on how social and economic information can be applied to decision-making tools to meet policy requirements within a core decision-making Pathway that has universal application to adaptation responses.
Figure 1: Structure and components of the Decision Support Framework
1. About this document
Introduction
How to use this document
Decision Support Framework
CCPs and climate change
Climate change adaptation
Key decision support concepts
Key decision support legislation policy and tools
Economic Values (Market & non-market)
Social Equity
Coastal Management Act 1995 Planning & Environment Act 1987
Victorian Coastal Strategy CAPs and CMPs SPPF and LPPF
Decision Support Framework for CCP adaptation
Decision-making pathway Stages 1 & 2
Best Practice Adaptation Adaptation on the coast
CCP Adaptation
CCPs on Crown land Climate change
Climate change impacts on CCPs
PAR
T 1
PAR
T 2
Step 1: Climate change implications for CCPs
Step 2: CCP Business Planning
Step 6: Planning Permit
Step 5: Coastal Management Act 1995 Consent
Step 4: CCP Business Planning
Step 3: Adaptation Options Assessment
Decision-making Pathway
Stage 1 – Adaptation Options Assessment
Stage 2 – Adaptation Decision-Making
Figure 1: Structure and components of the Decision Support Framework
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CCPs on coastal Crown land occupy an important place in the social, economic and environmental landscape, providing multiple benefits to the public in various forms. They provide affordable holiday destinations and access to the coast’s myriad recreation and tourism opportunities. The physical character of many coastal towns and their foreshores is often heavily influenced by their caravan parks, while the summer influx of friends, family and visitors to enjoy the ambience of a beachside holiday has a profound effect on community. Coastal CCPs also play a crucial role in providing the majority of revenue for the day-to-day management of Crown land reserves along the Victorian coastline, and provide a range of flow-on benefits to local communities and their economies.
However, the location of coastal CCPs often renders them physically exposed to the risks associated with climate change, which in turn threatens the benefits and values they provide. Despite widespread recognition of the importance of CCPs, little evidence is available of the social and economic values of CCPs and the foreshore to the wide range of people who use them. Little is also known of community preferences for equitably sharing the burdens of different climate change adaptation options and their implications. Given the focus on risk management in climate adaptation, it is essential that value and equity are properly considered, as these are the primary determinants of consequence.
The Western Coastal Board, as one of Victoria’s Regional Coastal Boards charged with facilitating implementation of the Victorian Coastal Strategy (VCS), has long been interested in promoting full consideration of triple bottom line issues in coastal decision making. The Hierarchy of Principles in the VCS 2008 requires that integrated coastal zone management (ICZM) takes into account the environmental, social and economic implications of decisions, and that seeks to ensure an integrated analysis of economic, social and environmental and cultural heritage implications of decisions.
In response to these issues and the opportunity afforded by the Australian Government’s Coastal Adaptation Decision Pathway program (CADPP), the Western Coastal Board and Deakin University developed the Value and Equity Framework for Climate Adaptation: Coastal Caravan and Camping Parks Case Study’ project (CCPs project). Contributions were received from a range of regional partner organisations.
The CCPs project aimed to generate new information on economic value and social equity and provide guidance on how that can be used to improve decision making for
climate adaptation. The project has been developed in three distinct phases:
•A literature review to assess current knowledge concerning non-market economic value and social equity in caravan parks and adaptation. This informed the development of the methodology for field research and the operation of the Decision Support Framework.
• Targeted field research to estimate market and non-market economic values and generate social equity preferences of campers and residents in adjacent towns.
•A Decision Support Framework to illustrate how to generate, interpret and apply social and economic information in key adaptation decision-making processes.
2.1 Purpose This Framework encourages the application of a “social and economic lens” to decision making. It provides decision support and guidance to decision makers in relation to the often less explored but vitally important fields of economic value and social equity and how they can be considered in relevant assessment and decision-making processes for climate change adaptation for coastal CCPs on Crown land.
This Framework does not promote or generate new policy or tools. Instead it complements existing legislative and policy requirements, business processes and climate change adaptation planning, highlighting where and how to apply social and economic information to obtain outcomes based on value and equity.
Overall, this Framework can assist CCP managers and decision makers to:
•Develop an understanding of CCP exposure to climate change impacts and potential effects;
•Appreciate some of the types of economic value and social equity information relevant to adaptation responses;
•Understand the importance of this information to effective adaptation decision making;
•Generate, interpret and apply economic value and social equity information to support adaptation decision making through a generic coastal adaptation decision-making pathway.
The social and economic information explained and applied in this document are only two of the important elements for analyses in climate change adaptation options assessment. Further analysis may be required of other climate change impacts such as environmental and public health impacts. These may be assessed in conjunction with this Framework, but have not been explored as a part of this report. The
2. Introduction
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flow-on social and economic effects from environmental and public health impacts however can be considered within the steps of the pathway where appropriate.
The decision-making pathway within the Framework contains two stages:
Stage 1 of the Framework pathway provides the foundation for understanding the climate change implications for CCPs and identifying and assessing the appropriate adaptation options.
Stage 2 contains critical decision-making processes that are the important hold points. It is within these processes that decision makers will be deciding whether or not to proceed with and approve adaptation options.
The key decision-making processes in Stage 2 are:
• Business Planning: Critical to ensuring adequate funds are available to enable research into the total economic value of CCPs and social equity preferences for climate change adaptation to support decision making and then fund the investigation and implementation of adaptation options;
•Coastal Management Act 1995 Consent: Consent is required for use, development or works on coastal Crown land associated with climate change adaptation;
•Obtaining a Planning Permit: Where the site of adaptation use, works or development is affected by a local Planning Scheme a Planning Permit may be required to undertake works or development.
Whilst the management of coastal reserves and CCPs may be structured differently in different states, the foundations of climate change adaptation decisions still rely on the same type of decision support information and processes. Understanding the importance of economic values and social equity for coastal Crown land and CCPs is a significant factor and should be considered in coastal adaptation decision making around Australia.
As the decision-making pathway within the Framework is generic, it can prove useful to other organisations managing coastal CCPs on Crown land and may be transferable (where appropriate) to other decision making, land jurisdictions, change management and adaptation challenges. It also has broader application to other areas of change management and even risk management.
2.2 Audience The management of coastal CCPs, and the Crown reserves on which they are located, are structured and funded in different ways around Australia. Crown land in Victoria is defined or set aside under the Crown Land (Reserves) Act 1978 for the enjoyment and benefit of the general public and is protected and managed under various Acts. Along the coast of Victoria, the Coastal Management Act
1995 provides for the strategic planning, coordination and management of the coast and includes special provisions for the management of coastal Crown land.
Decision making regarding coastal management takes place at a number of different levels. Given the implications of climate change for the coast, all agencies need to collaborate to consider the social and economic impacts in making decisions for the future of the Victorian coastline. The following organisations have a role in managing Crown land CCPs and coastal zones or are involved in the decision-making processes that are critical to CCP adaptation.
2.2.1 Committees of Management
Committees of Management (CoMs) are appointed under the Crown Land (Reserves) Act 1978 to manage Crown land in Victoria. This role includes the management of CCPs on coastal Crown land. In performing their duties, CoMs are responsible for protecting the economic, social and environmental values of these reserves for present and future generations (DSE 2012).
CoMs that manage CCPs may be Parks Victoria, a local council or a skills-based committee of local volunteers. Those that directly manage CCPs, operate them as a business, undertaking business planning, financial transactions and operations. Some lease CCPs to private operators.
2.2.2 Department of Sustainability and Environment
High level decisions regarding the policy, strategic planning and management of coastal reserves and CCPs are made by the Department of Sustainability and Environment (DSE) in Victoria. DSE is responsible for overseeing the management of Victoria’s coastal Crown land and marine waters for their social, economic and environmental values. They have responsibility for oversight and administration of the Coastal Management Act 1995 and administer the functioning of CoMs. DSE produces guidelines and policy in relation to the management of CCPs and have delegated responsibility for providing consent required through the Coastal Management Act 1995 for any works on coastal CCPs on Crown land of behalf of the Minister for Environment and Climate Change.
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2.2.3 Department of Planning and Community Development
The Department of Planning and Community Development (DPCD) are responsible for developing long-term plans for Victoria’s regions and cities and land use planning in Victoria including coastal areas. DPCD are responsible for managing the regulatory framework and state-wide planning policy. They also work with local government to develop planning schemes to control land use and development. CCPs are affected by state-wide policy and may be affected by local planning schemes that require planning permits for any works, development or changes in use.
2.2.4 Local Government
Local Government (a municipal council) is the planning authority for planning schemes within its municipality and the responsible authority for administering and enforcing local planning schemes. It is responsible for providing the local planning policy content, including a Municipal Strategic Statement (MSS), and selecting the appropriate zones and overlays from the Victorian Planning Provisions (VPPs), for inclusion in its planning scheme and application to coastal reserves. Local Government is responsible for granting planning permits where works, development or change in use are proposed on land affected by a planning scheme including CCPs on Crown land. Therefore CCP adaptation must also satisfy the needs of the Local Government though meeting the requirements of the planning scheme and other state-wide planning policy.
2.2.5 The Victorian Coastal Council and Regional Coastal Boards
The Victorian Coastal Council (VCC) and Regional Coastal Boards (RCBs) are established through the Coastal Management Act 1995 which provides for Victoria’s coastal governance structure, coastal planning hierarchy and consent process for use and development on coastal Crown land.
The VCC are responsible for state wide strategic coastal planning. They develop and coordinate the implementation of the Victorian Coastal Strategy (VCS) which sets the strategic direction for coastal settlements, reserves and CCPs. RCBs develop Coastal Action Plans (CAPs) and oversee strategic coastal planning within their region. They also facilitate strategic solutions for coastal issues, and work with CoMs, Local Government and agencies to facilitate implementation of the VCS and CAPs. The VCS and CAPs provide the overarching state and regional strategic direction for more detailed planning by appointed CoMs through management plans for coastal Crown land.
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This document is intended as a guide and/or reference for organisations and stakeholders that are involved in climate adaptation decision making for CCPs. This includes a range of functions such as strategic and corporate planning, operations, assessments, approvals and policy making for CCPs and the management of coastal Crown land.
There are two parts to this document. Both parts are essential to understanding and following the decision-making pathway within the Framework (refer Figure 1). They include:
Part 1: Informing the Framework
Part 1 provides the context decision makers need to fully understand the social and economic implications of adaptation options. To do this it, Part 1:
•Outlines the impacts of climate change on the coast and CCPs;
• Explains the social and economic decision support information that could be considered in the decision-making pathway in Part 2;
•Articulates why decision makers should be considering this type of information, how to obtain the information, how to consider it and then interpret it for use;
• Explains the key legislation, policy and tools to in which decision support information needs to be considered utilised as a part of the decision pathway.
Part 2: Using the Framework
Part 2 focuses on stepping the reader through the Framework to apply social and economic information to a generic decision-making pathway for climate adaptation. To do this it, Part 2:
•Guides the reader through six steps in a generic decision-making pathway. Each step in the pathway is informed not only by the social and economic decision support information explained in Part 1, but by the outputs of each preceding step within the pathway. For example: the outputs from Step 1 of the pathway are used to inform Step 2 of the pathway and so forth;
•Highlights that different outputs from steps may also contribute to a feedback process that could inform earlier steps within the pathway and therefore necessitate the need for considering further information, undertaking a review process, or stepping through the decision-making pathway again;
• Provides key questions for CCP managers and decision makers to consider in each Step. These act as prompts to assist in applying the decision support guidance to ensure that key social and economic considerations are
adequately addressed in each step.
Within each section of this document, there are references for managers and decision makers to obtain further information where it is already available and published. These references generally provide more detailed guidance on a particular policy or decision-making tool.
3. How to use this document
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Part 1INFORMING THE FRAMEWORK
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This section of the document intends to provide those using the pathway with relevant climate change information that is important in making decisions. In order to understand and assess the impacts of climate change on a CCP, one must first understand the general climate change projections and the implications of those projections on the coast. This section covers:
•How coastal CCPs function on Crown land and their importance;
•Climate change impacts on the coast; and
•Climate change impacts on coastal CCPs and environs.
4.1 Coastal CCPs on Crown Land
The Minister for Environment and Climate Change is responsible for management of Crown lands. The Minister appoints Committees of Management (CoMs) to undertake day to day management on his behalf under the Crown Land (Reserves) Act 1978. These CoMs generally operate, or administer the operation of CCPs on Crown land.
4.1.1 How CCPs operate
CoMs are responsible for ensuring the land is managed, maintained, improved and controlled to provide environmental, social and economic benefits for the Victorian community. Crown land caravan and camping parks are managed under the Crown Land (Reserves) Act 1978. Neither the parks themselves, nor sites within the parks, can be sold, leased or licensed, except in accordance with their operations. CCPs can be directly managed by CoMs or by private operators under lease arrangements.
Within the limits established by legislation and government policy, CoMs are also able to set their own management rules. The CoMs are empowered to (DSE 2011b):
•Manage and develop reserves;
•Undertake financial transactions;
•Negotiate leasing and licencing;
• Employ people to manage CCPs on their behalf;
• Enforce regulations.
The main guiding principle for CoMs is that that these reserves are for the use and enjoyment of all (DSE 2011b) and are largely self sufficient in their operations.
4.1.2 CCPs supporting Integrated Coastal Zone Management
Coastal CCPs on Crown land play a crucial role in providing funding for the management of Crown land reserves along the Victorian coastline. Revenue generated from CCPs through camping fees, leases, licences and permits is used to manage, maintain, control and improve coastal reserves, not just within the CCPs but on adjacent coastal Crown land.
Those CoMs managing the CCPs and Crown land are also responsible for the development of Coastal Management Plans (CMPs) which set out the land management requirements for the area. CMPs need to align with the Coastal Action Plans that are prepared by Regional Coastal Boards. Actions, decisions and plans regarding the management of CCPs and other reserves are seen as co-dependent and are therefore made giving due consideration to all public uses along coastal Crown land reserves. This supports a more integrated approach to the management of coastal Crown land consistent with the fundamentals of Integrated Coastal Zone Management (ICZM).
ICZM aims to maintain, restore or improve the quality of coastal zone ecosystems and the societies they support. A defining feature of ICZM is that it seeks to address development, use and conservation needs within a geographically specific place – a single community, estuary or nation – and within a specified timeframe (NRMMC 2006) across all levels of government, communities and business.
ICZM also addresses the need to consider social and economic processes within the context of climate change. Of particular relevance to this project are the research priority objectives of the Framework for a National Cooperative Approach to Integrated Coastal Zone Management are (NRMMC 2006):
• To build on knowledge and understanding of key biophysical, social and economic processes operating across the continuum for improving coastal zone decision making;
• Improve understanding of the impacts of climate change on the coastal zone;
•Develop strategies to effectively identify and manage climate change threats and opportunities within the coastal zone.
4.1.3 The importance of CCPs
Coastal CCPs on Crown land occupy an important place in the coastal economic, social and environmental landscape.
4. CCPs and Climate Change
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Camping offers people an opportunity to get together in an enjoyable setting, with facilities and other amenities on site or on adjacent coastal reserve parks or foreshores. CCPs offer multiple benefits to the public in various forms and provide (DSE 2010):
•Affordable holiday opportunities to all Victorians;
• Fair and equitable access to sites;
• Sustainable use of land and natural resources;
•Contribution to recreation and tourism through providing short term access;
• Income to CoM to fund improvements to the parks and adjoining reserves;
• Social, environmental and economic benefits.
Research undertaken through Phase 2 (WCB 2012b) of this project highlights the importance of CCPs. The research shows that campers hold large and significant non-market values for their visits to parks. Campers’ willingness to pay for the experience is beyond that currently charged for average campers who receive substantial benefits from their CCP stay. The CCPs typically offer a mix of accommodation options such as caravan sites, camping sites and cabins and people are willing to travel to stay at such parks and often return to the same park year after year (WCB 2012b).
Surrounding or adjacent communities and residents also derive a benefit from CCPs. These benefits can be financial, such as the direct and indirect income generated by campers’ expenditure in the community and social, such as the social benefits of the CCP itself and recreational amenities that are often contained within the park (e.g. sports ovals).
CCPs are usually located in or adjacent to coastal foreshores, bushland or environmentally sensitive areas, riverfronts and estuaries. These features add to the social amenity of the CCP, but also expose CCPs to the effects of climate variability such as storm surges, flooding, bushfire and rising seas, which are projected to change into the future.
Climate change impacts on CCPs have the potential for social and economic effects on the public. Issues which may at first appear as a physical threat or impact have the potential to generate a cascading effect of consequences that can affect campers, residents or community values and behaviour. It is for this reason that those managing CCPs and making decisions regarding the future of CCPs need to take these cascading social and economic consequences into consideration when undertaking adaptation planning.
4.2 Climate Change and Coasts
Under a changing climate, the environment, landscapes, built form and settlements face an uncertain future. The effects of these changes will be felt across society in many ways, both tangible and intangible. While the physical changes will become more obvious, identifying and measuring the economic and social impacts of a changing climate will require closer and more detailed analysis and research to understand the effects on different communities or groups within society.
4.2.1 Climate change projections
Climate change projections for Australia suggest a hotter, drier climate, rising seas and more intense fires and floods (BOM 2010). By 2070, the western coastline of Victoria is projected to experience (DSE 2008a):
• Increased average temperatures;
•Decreased average annual rainfall;
•Decreased number of rain days;
• Increased number of hot days;
• Increased intensity of extreme heavy rainfall events.
Sea level rise and storm surge projections suggest:
• Increased intensity and frequency of storm surge events (DSE 2011);
•Continued sea level rise (DSE 2011).
4.2.2 Climate change impacts on coasts
Climate change scenarios if realised will fundamentally affect natural, economic and social systems resulting in significant changes to the way the coastal zone is managed and used (DRMMC 2006). Coasts and estuaries are dynamic and are influenced by processes such as tides and the effects of currents, winds, waves, rainfall and river flows. Where these coastal processes are likely to adversely affect life, property or attributes of the natural environment, they create coastal hazards (DSE 2012b).
Climate change impacts all have flow-on effects to other areas of the environment and communities, and there will be some areas or sectors of communities that will be more vulnerable or exposed than others. Coasts are exposed to a significant number of physical and societal risks and will require sophisticated and robust adaptation responses.
The key physical impacts for coastal areas include but are not limited to:
• Sea level rise inundation;
• Increased coastal erosion;
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• Flood inundation.
Table 1 illustrates all of the potential effects of climate change on coastal communities. If social and economic values were to decline as a result these effects, the flow-on or cascading consequences of these impacts have the potential to drive further changes whose effect may be felt beyond coastal communities.
The Victorian Coastal Strategy (VCS) (VCC 2008) is the Victorian Government’s policy commitment in responding to challenges along the Victorian coastline, including climate change.
The VCS acknowledges that plausible estimates for sea level rise based on the modelling of thermal expansion and sea ice indicate that seas are expected to rise by up to 0.8m by 2100 (VCC 2008). This figure does not however consider the additional rise attributed to the potential accelerated melting of the Greenland or West Antarctic Ice Sheet nor the additional extent and destructiveness of storm surge (VCC 2008). On this basis, the VCS recommended that a policy of planning for sea level rise of not less than 0.8m by 2100 should be adopted.
The range of physical impacts on coastal communities due to climate change can be seen in Table 1.
Sea level rise
Coastal erosion
Loss of beachesLoss of Crown landMigration of sand dunesInfrastructure threat or damageAdverse impact on lifestyle or amenity valuesLoss of habitat and biodiversity lossDeclining tourism values (especially iconic beaches)Rising water tables close to the coastLoss of, or threat to private propertyInsurance issues
Frequent storm events
More intense storm events
Decreased rainfall
Flooding and inundation
Damage to infrastructure (energy, water, roads, buildings, telecommunications, coastal ports, jetties, seawalls and access)
Damage to marine and shoreline ecosystems from storm water and agricultural runoff Water shortages (during drought) and contamination (storm events, inundation, flooding, ground
water salination or contamination) Agricultural industry impacts – sudden weather events and long-term events (e.g. drought) Tourism impacts (damage to tourism infrastructure, visitor perception of risk) Recreation impacts Public safety and evacuation capacity Capacity of emergency services – volunteers, infrastructure (hospitals, shelters, supplies)
Warming sea temperatures
Ocean acidification
Threats to marine biodiversity (mangroves, saltmarshes, sea grass) Damage to estuaries – biodiversity, tourism and economic values Threat to fisheries and recreational fishing Threats to port functions Damage to reefs
Increased temperatures
Increased humidity
Increased bushfire frequency and intensity Public health, especially aged community Disease vectors (insects) Food spoilage Capacity of health services Economic impacts of disease Rural industry readjustments Peak energy demand increases
: Adapted from Planning for climate change, National Sea Change Taskforce, 2008 – www.seachangetaskforce.org.au
The policies and actions outlined in this strategy will address the issue of climate change by:
Applying the policy of planning for sea level rise of not less than 0.8 metres by 2100. Completing, as a matter of urgency, a coastal vulnerability study and incorporating the findings into relevant policy, planning and management frameworks. Establishing a climate change scientific research and data system and ensuring planning and management frameworks and actions respond quickly to the best available current and emerging science.
Wind Waves
Storm Surge
Highest Tide
Mean Sea Level
Lowest Tide
Wave runup
Wave setup
Planning and management programs that can help vulnerable habitats to survive and improve the resilience of the coastal and marine environment are preferred. This means working with the scientific community to identify and encourage ongoing research and analysis to inform future planning and management.
The potential climate change impacts for coastal areas are summarised in Table 2.
Policies and actions related to climate change are located in sections:
Table 1: Climate change impacts on coastal communities (Source: VCS & National Sea Change Taskforce 2008)
A discussion on the potential direct social and economic impacts and the flow-on social and economic effects arising from physical impacts on CCPs due to climate change is provided in Section 4.3.
More Information
The Australian Government’s climate change website: http://www.climatechange.gov.au
The Victorian Government’s climate change website: http://climatechange.vic.gov.au
The First Pass National Assessment of Climate Change Risks to Australia’s Coasts http://www.climatechange.gov.au/publications/coastline/climate-change-risks-to-australias-coasts.aspx
The Victorian Government’s Future Coasts Program: www.climatechange.vic.gov.au/home/feature/future-coasts
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4.3 Climate Change Issues for CCPs and Environs
The climate change impacts on coasts could have significant implications for coastal CCPs. Climate change impacts on CCPs will be influenced by a range of physical, social and economic factors, and have the potential to generate far reaching social and economic effects on campers and coastal communities.
4.3.1 Climate change impacts for CCPs
Climate change impacts have the potential to affect the physical assets of a CCP and its ability to continue as a business. A CCP can be affected directly by climate change impacts or indirectly by flow-on effects from physical impacts or impacts from other areas of the community such as tourism attractions and services. Research has demonstrated that there is a strong and important link between the quality of the coastal environment and the quality of life for many Victorians. Access to healthy natural environments is good for mental and physical health and wellbeing (VCS 2008).
It is for this reason that those managing CCPs and making decisions regarding CCPs need to consider the potential impacts of climate change and the social and economic consequences on CCPs, the community and adjacent coastal reserves when planning for the future.
Coastal Inundation effects on CCP due to sea level rise and storm surge
CCPs on Crown land are typically located close to foreshores and/or estuaries; this means that CCPs are often heavily exposed to sea level rise, erosion, and storm surge.
Permanent or temporary inundation of CCPs either by foreshore flooding or via estuaries due to sea level rise and storm surge could result in a reduction in the number of sites available for campers or impact on amenities and facilities of the park. It could also mean loss of beach due to inundation or recession, which is not only important to campers but to the surrounding community.
The social and economic impacts associated with inundation of part or all of the CCP are likely to be broad and could have extensive consequences for those who use the CCP. Depending on the nature of physical impacts, the loss of social space, recreational values, enjoyment and the many other values will drive changes in the value that people derive from the CCP. For example, campers may migrate elsewhere for holidays if sites are permanently affected by coastal inundation as shown in the research conducted through this project (WCB 2012b).
Inundation or loss of the beaches and surrounding coastal
reserve due to inundation could also have significant effects on the enjoyment and benefits people gain from camping at the CCP. These beaches and reserves may not be available in their present form to current or future generations in the manner in which it is today, thereby further reducing current and future use values. Other activities or attractions for campers such as swimming and water-based activities may also be affected due to changes in shallow or safe swimming areas affecting the overall experience of campers. Therefore camping in the CCP may no longer offer the same value or experience.
The loss of the CCP sites themselves could also have dramatic flow-on effects to the community with loss of camper expenditure in the community due to reduced visitor numbers and other flow-on economic effects. Additionally, impacts on the CCP may have direct effects on the social benefits the community derive from the CCP such as loss of meeting places, picnic grounds, sports ovals and other recreational facilities, thereby affecting the social landscape of a community.
Coastal Erosion or Recession effects
Climate change projections forecast an increased intensity and frequency of storm surge events which are likely to exacerbate the impacts of sea level rise. Storm surge events are already considered a risk by many CCP managers, resulting in temporary park and reserve inundation due to storm surge already experienced along the west Victorian coastline. These events may worsen with more damaging wave energy and greater frequency. These events may cut off access routes and cause damage to infrastructure and the coastal environment.
Continuing sea level rise and increased intensity and frequency of storm surge events can lead to erosion issues along a coastline. Depending on the geomorphological and coastal processes of the coastline, some CCPs may be more at risk. Erosion can result in loss of reserve, camping sites, infrastructure and roads in addition to the loss of the amenity of the beach. The social and economic impacts on the CCP will be similar to that of coastal inundation due to sea level rise and storm surge.
Catchment Inundation effects
It is not unusual for storm surge events to occur at the same time as extreme rainfall events, as there are some weather patterns that cause both phenomena (Nicholls 2008). Notwithstanding the need to think about cumulative impacts of extreme events, the risk associated with increased flooding due to increased intensity of extreme rainfall alone presents a risk to CCPs.
Heavy upstream rainfall events can lead to extensive temporary flooding downstream in estuaries and surrounding low lying land upon which CCPs may be
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located. Flooding could cause a temporary reduction in the number of sites available, affecting the camping experience and have economic implications. It can also affect the level of safety and security people are used to experiencing at a CCP and the longer the period of inundation, the greater the social and economic impact.
Flooding can also cause disruption of camper access to community goods and services. This further affects the camping experience and can affect the benefits to the community that is generated by the campers. Effects on access to activities and attractions due to flooding will also affect the recreational values of the camping experience. Although all of these disruptions may be temporary, the flow-on effects due to damage and time spent cleaning up after a flood, and the memory of the experience may deter people from coming back to the same area.
Depending on the type, size and extent of the upstream catchment, the warning time for these events may give people time to prepare and relocate to higher ground. However the interruption is likely to affect camper satisfaction.
Drought
Droughts are not uncommon in Australia, however there is potential for drought to occur more frequently and to last longer. In addition to providing drinking water for campers, water supply is also used to maintain the grounds and parks and any recreations facilities such as grassed ovals, gardens and swimming pools. If these amenities and recreational facilities were restricted or unable to be used any longer, there would be a definite impact on recreational values of the CCP. Restrictions or water saving rules have the potential to inhibit the ability of CCP managers to maintain the amenity of the park. Campers may place a value on the amenity or the landscape of a CCP that is central to their enjoyment, therefore changes to it, or a decline in its condition could affect its value.
Heatwaves and Bushfires
Many coastal CCPs are adjacent to parks, national parks or heavily vegetated land. The projections for an increase in the number of extreme fire danger days (Nicholls 2008) mean that there will be an increase in bushfire risk to some CCPs. This may be exacerbated by increasing average dry conditions due to decreasing average rainfall and increasing average temperature. Another factor affecting the number of extreme fire danger days is the occurrence of extreme hot days (above 35oC).
Campers may feel unsafe or uncomfortable camping in extreme heat or bushfire danger conditions and either shorten stays or avoid camping altogether, which may have flow-on effects to community as visitation rates decline.
Furthermore, fire-affected CCPs could effectively reduce or wipe out the primary source of tourism and income for a coastal community and campers would no longer have a place to visit.
The increase number of extreme hot days per year will also present a health risk to campers and employees alike through heat stroke, sun stroke, dehydration and other heat stress related illnesses.
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Adapting to a changing climate requires a flexible and robust approach. ‘Adaptation means any change in natural or human systems in response to actual or expected climactic stimuli or their effects which moderates harm or exploits beneficial opportunities’ (Climate Change Act 2012 (Vic)).
Not all adaptation is necessarily both effective at controlling the impact of climate change and minimising the impacts of the adaptation option/s themselves. The Productivity Commission defined ‘effective adaptation’ as ‘action taken in response to the impacts of climate change that increases the wellbeing of the community, taking into account all of the positive and negative impacts, the distributional impacts and the timing of the impacts’ (Productivity Commission 2012).
This project encourages ‘effective adaptation’ by providing guidance to decision makers of how to include social and economic considerations of climate change impacts and adaptation, which takes into account wellbeing and sharing of benefits and burdens of adaptation.
There are many different strategic approaches to adaptation; however they all aim to reduce the adverse consequences of climate change. This section introduces the concept of climate change adaptation and its applicability to CCPs. Contents of this section includes:
• Best practice climate change adaptation;
•Climate change adaptation for CCPs.
5.1 Best Practice Climate Change Adaptation
Adaptation planning should be precautionary, that is, planning for likely future circumstances even if full scientific certainty is not possible (VCC 2008). There are a number of high level principles that can be used by CCP managers and decision makers in adaptation planning, many of which emphasise the need to address social and economic implications.
5.1.1 Guiding principles of the Victorian Climate Change Act 2010
Part 2, Division 3 of the Climate Change Act 2010 in Victoria outlines Guiding Principles for decision making in responding to climate change. The Act states that ‘the Minister must have regard to the principles set out in this Division in administering sections 16 and 17 if they are relevant in the circumstances’. They are (relevance to project bolded):
1. Informed decision making — decisions are based on best practicably available information and potential impacts of climate change.
2. Integrated decision making — decisions consider short and long-term environmental, social and economic considerations.
3. Risk management — decisions based on informed assessment and management of risk, applying the precautionary approach.
4. Complementarity — Victorian Government decisions should complement those of the Commonwealth Government.
5. Equity — decisions should increase the capacity of vulnerable groups, future generations and the environment to adapt to climate change.
6. Community engagement — decisions should engage communities.
5.1.2 NCCARF Adaptation Planning Principles
The 8 principles of Adaptation Planning developed by the National Climate Change Adaptation Research Facility (NCCARF) can be used as a guide when consideration adaptation strategies and options. They are:
1. Establish shared responsibility for planning;
2. Be flexible, reflective and iterative;
3. Be consistent in your messaging;
4. Ensure an equitable distribution of risk;
5. Make tradeoffs explicit;
6. Prioritise public goods;
7. Be mindful of greenhouse gas emissions;
8. Recognise that there are limits to adaptation.
Principles 4, 5 and 6 are directly relevant to this project and are expanded below. They encourage the consideration of equity and transparent cost-benefit trade-offs and the need to recognise and prioritise public assets.
4. Ensure an equitable distribution of risk: Climate change impacts everyone. The challenge is in ensuring that the distribution of climate risks and risks and impacts arsing from the adaptation option is not inequitably distributed. This may mean proactive policy – making or developing new frameworks to reduce the burden on the most vulnerable–whether this is individuals, or local government agencies.
5. Make trade-offs explicit: Adaptation will inevitably involve trade-offs. The costs and benefits associated
5. Climate Change Adaptation
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with adaptation decisions need to be acknowledged; and the processes for dealing with trade-offs made transparent.
6. Prioritise public goods: The role of government is to prioritise public goods and services. Therefore, government adaptation response should look to ensure the future viability of these important assets.
5.1.3 UKCIP Adaptation Tool
Responding to climate change also means re-examining the validity of past assumptions and business strategies because their baseline may no longer be static. The typical solution to overcome this, is obtain more information; in the case of this project - social and economic information. Due to the continuing changing baseline however, regular review of information, assumptions and inputs to decision making is required. The Adaptation Tool from the UKCIP (formerly known as the UK Climate Impacts Programme) recognises this continuous loop in climate change adaptation in Figure 2.
Decision makers should be regularly seeking to confirm or identify if information or assumptions used in the earlier steps of decision making for climate change adaptation are still valid or have changed; particularly if the process of adaptation occurs over a lengthy period.
Figure 2: UKCIP Adaptation Tool
In reality, adaptation planning is not a linear stepped process. Furthermore, it is not necessarily a process that should sit outside of existing business processes. Successful adaptation can only be achieved by embedding consideration of climate change within existing business practices and processes. CCP adaptation can also follow this premise using existing CCP business tools and processes and incorporating climate change within them.
5.2 Climate Change Adaptation for CCPs
Due to the exposed location of CCPs, it is likely that as climate continues to change, impacts on CCPs may develop before other sectors of the community are affected. There are a number of broad coastal adaptation options and other complementary CCP specific actions and responses that CCP managers can adopt to minimise the impacts of climate change and the adaptation option/s.
Adaptation options can be physical responses as well as other supporting options such as adaptive capacity, emergency preparedness or even planned retreat and policy options. It is important in considering any adaptation options, that the social and economic impacts of CCP adaptation on campers and the community are also considered.
This section explored the different coastal adaptation options
Getting started
NOYES
1
Am I vulnerable to the current climate?
2
How will I be affected by climate change?
3
What should I do?Do I know enough to act?
4
Identify, assess & implement you adaption options
4a
Find out more4bKeep it relevant5
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and those specifically relevant to CCPs. It also expands on the key decision making processes required for CCP adaptation.
5.2.1 Coastal adaptation options
The three recognised physical coastal adaptation approaches for these impacts are protect, accommodate and retreat.
Protect
Protection decisions largely relate to whether to invest in protective infrastructure, such as ‘hard’ and ‘soft’ engineering works (Productivity Commission 2012). Protection implies using defences or barriers to maintain assets and prevent impacts from occurring due to the threat. Areas where ongoing coastal protection is a long-term option include areas where there is a need to preserve irreplaceable social, cultural, indigenous and heritage values. Protection should only be considered as a long-term option as part of a wider management plan for the area (DCC 2009).
Accommodate
This allows the threat or hazard to occur, but reduces the sensitivity or exposure to the impacts. Accommodation includes a range of usually minor works to allow continued or extended use of at-risk areas. Measures include elevated floor requirements and increased setback requirements. They are suitable for areas with modest to higher value assets where exposure to climate change risk is low to medium (DCC 2009).
Retreat
This generally involves land use changes, relocation or abandonment of assets.
Retreat from a location may be considered where the cost of
protect or accommodate strategies outweighs the value of the
land protected. These costs need to be carefully considered
against the benefits before embarking on a retreat scheme. In
particular, the timing of retreat is important — governments
should not embark on costly retreat schemes before the
benefits and costs of the scheme are apparent (Productivity
Commission 2012).
Planned retreat, which can occur on a range of scales, can involve increased setback provisions, relocation of structures within properties, and rezoning of land. Sea level rise will likely result in some form of retreat along the coastline where settlement and infrastructure cannot be protected and accommodation still results in too greater risk. There are some suggestions that in the longer term, planned retreat often provides the most cost-effective approach to managing risks to medium to high-value assets exposed to inundation or erosion risk (DCC 2009); however these costs
may not take into account the social and economic value of such assets and the impacts of retreat as an adaptation option on these values.
Adaptive Capacity
The three types of physical coastal adaptation options outlined above are also supported by the need to improve adaptive capacity throughout the decision-making community.
Adaptive capacity refers to the ability of a system to change in a way that makes it better equipped to manage its exposure and/or sensitivity to climatic influences (Preston et al 2009). Capacity does not just mean the capacity of people to adapt, but of the economy, governments and technology. The inability of different system components to adapt can expose the vulnerability of a business or community to climate change.
In the context of climate change adaptation for CCPs, it is recognised that adaptive capacity would need to be improved in a number of different areas for CCP management and coastal management. Whilst many of the business practices today may be adjusted to incorporate climate change considerations, it is the understanding and use of social and economic value information in particular, that requires further development. The more research and information that is generated by CCP managers, the better the information that can be used to inform decisions and improve understanding of the economic values and social equity preferences of CCPs, campers and the community.
This project however has highlighted an opportunity. Adaptive capacity can be improved by engaging stakeholders (i.e. campers) and the community to identify economic non-market values and social equity preferences that can support adaptation decision making at all levels: CCP managers and CoMs; Local Government; State Government (e.g. Department of Sustainability and Environment); Catchment Management Authorities and other decision makers. The report titled Barriers to Effective Climate Change Adaptation by the Productivity Commission addressed building adaptive capacity to overcome barriers commenting that:
Governments can improve the adaptive capacity of communities
by implementing measures that enhance economic growth and
improve economic and regulatory flexibility. Such measures can
increase the economic resources available to communities to
adapt, improve the ability of the economy to handle climate
change related shocks, and help to ensure that economic
resources are allocated in the best possible way to undertake
adaptation. Governments can also enhance adaptive capacity
by improving attributes of the provision of climate change
information and other public goods such as infrastructure and
services, and by strengthening institutions and governance
arrangements to better manage climate change (Productivity
Commission 2012)
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5.2.2 CCP adaptation options
CCP adaptation options extend beyond the mix of protect, accommodate and retreat options described above. Adaptation to climate change incorporates any action that builds the resilience of a business or community in response to direct or indirect impacts. This can be through the provision of physical or infrastructure adaptation options or other responses such as changes in planning, policy, knowledge building, economic reform, disaster response and even education and awareness.
Decision making for CCP adaptation will need to take into account the important interrelationships between coastal management, CCPs and the community and the impacts of the adaptation option/s on different groups. In particular, the social and economic effects of each adaptation option under investigation will need to be considered.
The general adaptation options described above in Section 5.2.1 are expanded briefly below to highlight specific CCP adaptation options. These options are discussed in more detail in Appendix 1:
Protect• Sea wall or barrier;
• Riverine or estuarine levees;
• Land management and maintenance.
Accommodate• Beach renourishment;
• Fill pads;
•Dune revegetation or restoration;
• Sustainable water use planning;
•Change accommodation mix;
•Change park amenities.
Retreat• Relocate/Retreat/Expand park;
•Allow nature to take its course (Do nothing).
Residual Treatment• Emergency management;
•Non-physical adaptation for CCPs;
•Drought management;
• Extreme heat response plans;
• Education and awareness.
The impacts of the option/s and how the burden and benefits are shared between campers, residents and the community will play a large role in the effectiveness of the adaptation in protecting the values for which it is intended.
5.2.3 Decision making for CCP adaptation
The Decision Support Framework for adaptation for coastal CCPs contains a number of key decision making processes that are critical to adaptation. The decision-making pathway within the Framework steps CCP managers and decision makers through these processes.
Step 1 of the CCP decision-making pathway identifies why and what risks must be managed. This Step is not a decision making processes itself, but provides basis for identifying the risks that must be managed. There are four key decision-making processes that follow in the pathway about how, why and when to adapt are:
• incorporating the adaptation option/s into CCP business planning (Step 2 and 4);
• undertaking adaptation options assessment (Step 3);
• gaining consent for any works or development on coastal Crown land (Step 5) ;and
• obtaining a planning permit where relevant (Step 6).
These four processes form the Steps 2-6 of the decision-making pathway within the Framework. More detail on these decision-making process and steps can be found in Section 8.
There are tools available to assist CCP managers and decision makers in investigating adaptation options. Tools include:
•Detailed risk assessments that can be undertaken for each adaptation option
•Cost-benefit Analysis
More details on these tools are in Section 7 and how they can be used in Section 8 of the report.
More Information
The National Climate Change Adaptation Framework: http://www.climatechange.gov.au/government/initiatives/~/media/government/initiatives/nccaf/national_climate_change_adaption_framework.pdf
The Victorian Coastal Hazard Guide: http://www.climatechange.vic.gov.au/adapting-to-climate-change/future-coasts/victorian-coastal-hazard-guide
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Climate change adaptation decision making is a comprehensive process. It can encompass assessment of costs, benefits and burdens of impacts and adaptations and the way they are shared across society. Providing decision makers with adaptation options and decision support tools (such as this Framework) may be particularly fruitful for motivating adaptation (Productivity Commission 2012). Informing decision makers with economic and social equity information can help balance outcomes and identify the most suitable means of climate change adaptation.
In order to support a more balanced social and economic assessment of climate change impacts and adaptation options, there are two key concepts that need to be understood and applied in decision making: Economic Value and Social Equity.
These two concepts provide insight into what it is that people value about a good or a service and what they believe to be fair and just in making decisions in relation to that good or service. This is particularly useful in decision making for adaptation where traditionally the information has been almost exclusively unmeasured and uninformed.
This section of the document intends to provide those using the pathway with an understanding of the economic value and social equity concepts that will support decision making for adaptation in coastal CCPs. This section covers:
• The concept of economic value;
• The concept of social equity;
• The importance of economic value and social equity information in decision making for CCP climate change adaptation;
•Obtaining economic value and social equity information;
• Interpreting economic value and social equity information.
Coastal reserves are used by a wide range of visitors and residents for a wide variety of purposes such as camping. However, little is known of the economic market and non-market values of CCPs for people who use them or the coastal reserves. Nor is the importance they place on the various amenities and attributes of CCPs and coastal reserves clearly understood. Furthermore, there is little knowledge of the equity preferences of campers and residents for fairly sharing the burdens of different climate change adaptation options and their implications. These burdens may include social impacts, financial costs, changes in amenity and different opportunities to access the coast.
It is important that these economic values and social equity preferences are considered in assessments and decision-making processes for climate change to ensure that the benefits and/or burdens of adaptation options are shared
in such a way that CCPs can continue to provide affordable camping into the future but not at the expense of other groups across society.
The 2012 report from the Productivity Commission on Barriers to Effective Climate Change Adaptation implies that information for public asset adaptation may be imperfect because of its public good characteristics, which can lead to inadequate information for consumers, the community and the public and private sectors to make well-informed decisions (Productivity Commission 2012). As a public asset, there is certainly a distinct paucity of information on the economic value of CCPs, however this is not due to its public good characteristics; it is due to previous lack of understanding about how to acquire and apply such information. This Framework demonstrates how is possible.
6.1 What is Economic Value?Total economic value is one of many possible ways to define and measure value and is useful to consider when making social and economic choices – and is comprised of:
•Market economic values;
•Non-market economic values.
Measures of economic value are based on what people want i.e. their preferences. Economists generally assume that individuals are the best judges of what they want. Thus, the theory of economic valuation is based on individual preferences and choices. People express their preferences through the choices and tradeoffs that they make, given certain constraints, such as those of income or available time (Ecosystem Valuation 2012).
The economic value of a particular item or good, for example a stay at a CCP, can be measured by the maximum amount of other things that a person is willing to give up to have a camping experience.
Figure 3 illustrates the different components of economic value as they apply to CCPs.
6. Key Decision Support Concepts
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Figure 3: Total Economic Value of CCPs
(Source: Blackwell 2012)
6.1.1 What is market valueA good or a service can have a range of market values i.e. goods or services that can be traded in a market) including:
• The net returns (i.e. revenue less operating costs);
• The value of built assets;
• The value of land;
• The direct expenditure or investment in the good or service.
There are other market values including the ‘multiplier effect’ of expenditure, whereby consumer spending produces increased income and consumption within a community or wider economy.
6.1.2 What is non-market value?
It is often incorrectly assumed that market price is economic value. However, the market price only tells us the minimum
amount that people who buy the good or service are willing to pay for it.
When people purchase a marketed good or service, they compare the amount they would be willing to pay for that good or service with its market price. They will only purchase it if their willingness to pay is equal to or greater than the price. Many people are actually willing to pay more than the market price for a good or service, and thus their values exceed the market price (Ecosystem valuation 2012). The amount of money that people would be willing to pay on top of the market value is referred to as the consumer surplus. For a good or service which is not traded in a market and therefore does not have a market price, this is also a ‘non-market value’.
Although not all non-market values are measurable they include (refer Figure 3):
•Use values: Derived from the use of a good or service such as passive and recreational use, option value or future
Total Economic Value
Use value
Market value(captured by the
market)
Non-Market value(not captured by the
market)
Non-use value
Indirect use value• e.g. impact buffer for
surrounding properties
Existence value• knowing the CCP
exists although no use is intended
Option Value• future ability to use or
conserve site
Bequest value• Providing a quality
CCP for future generations
Passive use value• recreational, CCP and
community
Vicarious value• History, culture, art,
poetry, other media
Direct use valuenet returns to operators from
current use of land• expenditure by users in
economy• CCP land values• CCP asset values
Indirect use valuenet returns from access to surrounding Crown land
• Income flows from original expenditure of users through economy
• amenity value to surrounding properties
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use (i.e. having it there as an option for future use) and indirect use as a buffer or perhaps visual amenity.
•Non-use values: Arise from the existence value (i.e. just knowing that it exists), the bequest value (i.e. leaving it for future generations) and the vicarious value (history, art, culture etc). Non-use values exist because people benefit from things even where they do not ‘use’ them (Tisdell 2005).
6.2 What is Social Equity?Equity is an important consideration in climate change adaptation (Productivity Commission 2012).
Equity derives from a concept of social justice. It represents a belief that there are some things which people should have, that there are basic needs that should be fulfilled, that burdens and rewards should not be spread too divergently across the community and that policy should be directed with impartiality, fairness and justice towards these ends (Falk et al 1993).
Social equity preferences can help guide decision makers in understanding what people consider to most fair and equitable in adapting to climate change. It can also be particularly revealing as to what people consider important social values or attributes and what it is that attracts them to the CCP or coastal region. Equity doesn’t necessarily mean equal burdens and rewards for areas of the community or future generations and instead may consider payoffs, prioritising groups that are most vulnerable or worse off or other reasonable trade-offs.
Benefits may include protection from impacts, minimising costs for different groups, improved facilities and amenity, or even improved non-market values. Burdens may be associated with costs, economic value and change in social characteristics or amenity and could be intergenerational.
Intergenerational equity refers to the fairness and sharing of benefits and burdens between different generations. In terms of climate change adaptation, this means that decisions that are made today, should ensure the needs of the present generation are met without compromising the ability of future generations to meet their own needs (IAIA 2003). Consequently, action or lack of action today will affect the resilience of future generations.
For example; the choice to undertake action today to manage future climate change could result in costs being borne by the current generation, but the benefits of protection being obtained by future generations. And vice versa, where inaction by the current generation means they reap the benefits of not bearing the cost of adaptation, but at the expense of future generations that may be affected by climate change impacts.
It is important also to understand that in this document, the term social impact is used in addition to social equity. Social impact refers to which groups in society will be affected in different ways by climate change impacts i.e. the net effect of a hazard or threat on a community or group and the well-being of individuals and families (Centre for Social Impact 2012).
Social impacts can be changes to one or more of the following (IAIA 2003):
• people’s way of life – that is, how they live, work, play and interact with one another on a day-to-day basis;
• culture – that is, their shared beliefs, customs, values and language or dialect;
• community – its cohesion, stability, character, services and facilities;
• political systems – the extent to which people are able to participate in decisions that affect their lives, the level of democratisation that is taking place, and the resources provided for this purpose;
• environment – the quality of the air and water people use; the availability and quality of the food they eat; the level of hazard or risk, dust and noise they are exposed to; the adequacy of sanitation, their physical safety, and their access to and control over resources;
• health and wellbeing – health is a state of complete physical, mental, social and spiritual wellbeing and not merely the absence of disease or infirmity;
• personal and property rights – particularly whether people are economically affected, or experience personal disadvantage which may include a violation of their civil liberties; and
CCP Examples of non-market economic values: (Research Report - REPORT 2 of this Project)
Non-market economic values can provide a basis for understanding the benefits that people gain by using CCPs above and beyond market value.
Part of these benefits can be represented by:
• The economic value of their CCP recreational experience; and
Additional non-market value information that could prove useful when considering adaptation options can be represented by:
• The economic value derived or preserved due to adaptation to climate impacts for both:
a. Crown land CCP sites; and
b. Beaches adjacent to CCPs on Crown land.
The values above are not necessarily the only means by which non-market values can be expressed.
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• fears and aspirations – their perceptions about their safety, their fears about the future of their community, and their aspirations for their future and the future of their children.
Some social impacts can be measured by changes in economic non-market values or by changes in preferences and what people think is important. Social impacts can also burden some areas of the community more than others i.e. in an inequitable manner. Determining these impacts requires a baseline understanding of existing economic values and social equity preferences. These can be established by undertaking surveys of campers, residents and the community.
Similarly, to understand how these values and preferences change as a result of a climate change impact or adaptation option, additional research and survey of campers, residents and the broader community is required.
6.3 Value and Equity in CCP Adaptation Decision Making
Incorrect assumptions in climate change adaptation regarding people’s values, priorities and preferences can lead to economically inefficient and socially inequitable adaptation. If the social and economic consequences of climate change are not adequately understood then any assessment and adaptation response is fundamentally flawed and is likely to have flow-on effects to the triple bottom line of the business. Incorporating social equity into decision making is fundamentally the role of government and is considered at all levels of government in Australia and overseas and, economic information as part of a triple bottom line assessment will help in providing consistency and an analysis of equitable outcomes (WCB 2012a).
The more information that is obtained regarding the total economic values of the CCP, the more complete the understanding of the performance of the CCP as a business. Understanding business performance is an important attribute of business planning and climate change adaptation. It is therefore important that CCP managers position themselves to understand their baseline performance before considering adaptation.
The incorporation of value and equity in decision making for adaptation to ensure the ‘fairness’ of adaptation for all groups affected is underpinned by the requirements of relevant legislation, policies, strategies and plans. These requirements influence the strategic direction and management of CCPs on coastal Crown land and coastal reserves and recognise in some way the need to consider these social and economic values and impacts in decision making. If a social and economic ‘lens’ is applied to the
key legislation and policy, this can highlight objectives and principles that need to be met in relation to social and economic values.
6.3.1 Which legislative decision-making processes require value and equity?
The key decision-making legislation that requires the consideration of social and economic values or impacts in climate change adaptation or coastal managements include:
•Coastal Management Act 1995
• Planning & Environment Act 1987
The legislation not only provides guidance for what information needs to be considered in decision making such as social and economic impacts, but are also key instruments for adaptation planning decision making. Any works or development on coastal Crown land associated with adaptation requires consent under the Coastal Management Act 1995 and may also require a Planning Permit under the Planning and Environment Act 1987. This legislation provides the platforms for Steps 5 and 6 of the pathway respectively and are explored in more detailed in Section 7 of this document.
6.3.2 Which CCP relevant policies require value and equity consideration?
The Victorian Coastal Strategy (VCS) 2008 is the strategic cornerstone for coastal management and policy in Victoria and a requirement of the Coastal Management Act 1995. The VCS clearly recognises the threat of climate change to the Victorian coastline and the need to adapt. It provides a hierarchy of principles (described in Section 7 of this report) that contain a number of recommendations and policy to consider social and economic values and impacts for planning and decision making in relation to climate change. The VCS underpins ICZM and coastal adaptation decision making in Victoria and hence the Decision Support Framework itself.
Coastal Action Plans (CAPs) and Coastal Management Plans (CMPs) provide the next tier of planning and management direction for coastal CCPs and reserves including the facilitation of recreational use and tourism. These plans are an important foundation of Business Planning for CCPs. Business plans should align with the strategic direction of CAPs and actions in CMPs and are important consideration for climate change adaptation planning.
These legislation and policies and their relevance to the Pathway are explored further in Section 7.
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6.4 Obtaining Economic Value and Social Equity Information
There are a number of established methods for obtaining value and equity information used in this Framework. These methods are used widely to obtain information for studies and assessments such as risk or social impact assessments. Information can be easily obtained through markets, research and survey methods which enables decision makers to identify, define the scope and questions specific to the issue at hand.
Methods for valuing market and non-market public goods are categorized as a market valuation, revealed preference or stated preference. Market values are those values that can be captured by markets. Non-market values are those that cannot be traded or captured by markets.
6.4.1 Methods for obtaining economic market value information
Market valuation considers direct use values from existing market data such as revenue and expenditure, income flows through the local economy or can be derived from inferred sources such as clean up costs, replacements costs or loss in sales.
Methods to obtain a market value would include:
• Land valuation by a qualified and registered valuer;
•Net returns, expenditure and revenue streams;
• The value of built assets which can be obtained by a qualified valuer;
•Replacement value of assets;
•Multiplier values or flow-on effects through the economy.
6.4.2 Methods for obtaining economic non-market value information
Non-market value information is obtained through research and survey methods. This can enable an estimate of the value that people place on these non-markets by observing their actions or asking them how they value non-market goods and services (Productivity Commission 2012).
The two techniques used to estimate non-market values are revealed preference methods and stated preference methods.
Revealed Preference Methods
Revealed preference methods use actual choices made by consumers in proxy or surrogate markets to estimate
the value of the non-market good or service. The proxy or surrogate markets reveal what people actually think and do by their behaviour on the basis that there is some relationship between what you are trying to value and the proxy market. The most commonly used revealed preference techniques are the hedonic price and travel cost methods (Morrison 2009).
Hedonic pricing is based on the idea that a person’s preferences for different goods (such as housing, or holidays) depends on the features or attributes of those goods (Morrison 2009). For example, a person’s willingness to pay for a stay at a CCP may reflect the attributes of that CCP, including the facilities, proximity to beach or surrounding activities.
The basic idea of the travel cost method is that information on travel costs can be used to demonstrate the relationship between the travel cost, number of visits a person makes to a CCP over a year and other factors. This can result in a demand curve for how far people are willing to travel and the costs associated with travel, and thus revealing the recreational use value. This technique is regularly used by Government agencies (Morrison 2009). Examples are:
•Valuing recreation in the Murray: an assessment of the non-market recreational values at Barmah Forest and the Coorong, CSIRO: Water for a Healthy Country National Research Flagship (Dyack et al. 2007).
•Value of the Yanchep Caves: Assessing Yanchep National Park Visitor’s Willingness to Pay for Environmental Improvement to the Caves, CSIRO Land and Water, University of Western Australia (Perriam et al 2008).
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Stated Preference Methods
Stated preference methods have been developed to solve the problem of valuing those non-market goods that have no related markets that reveal people preferences. This technique relies on people expressing or stating what their preference would be based on hypothetical, rather than actual values and behaviour. There are limitations in this method because whilst people may state their preference, they haven’t necessarily been able to reveal it.
Stated preference techniques involve the use of surveys to estimate the non-market values. Interestingly, stated preference techniques can be used in more applications than revealed preference techniques because it can explore more hypothetical scenarios than existing real scenarios or proxy markets. The two main stated preference techniques are contingent valuation and choice modelling (Morrison 2009).
Contingent valuation involves the estimation of non-market values through directly questioning respondents about their willingness to pay for specific goods or services. The basic idea of contingent valuation is that respondents are presented with a description of a hypothetical scenario, and a question is asked to identify their willingness to pay for the scenario. In contrast to contingent valuation, where respondents value single scenarios, choice modelling provides multiple scenarios with different costs and features and respondents were asked to identify which scenarios they prefer.
Example of the travel cost method for CCPs (Research Report – Report 2) (WCB 2012b)
Recreational value: The Travel Cost Method was used to estimate the value of recreational use of CCPs through the non-market benefits associated with recreational visits.
How to obtain it: The method worked by surveying people about annual visits, travel distances and frequency of visits to the site. 388 campers were surveyed (at 5 different CCPs). People were asked their home post codes in the survey instrument. From these postcodes, distances and travel times to the town of the chosen CCP were estimated using www.travelmate.com.au. Travel costs were calculated on a per person per day basis (PPD). Travel time costs were also considered using hourly ‘shadow’ wage rates (household income/median household size) multiplied by the hours spent in return travel to the site. The travel time costs were further divided by the number of days a person stayed for their current visit at the park to calculate travel time cost per day.
Travel time costs were then added to the travel costs of running a vehicle to arrive at total travel cost measures.
Example of Choice Modelling Method (Research Report – Report 2) (WCB 2012b)
Existence value of beach and CCP: A choice modelling exercise was designed for the survey of CCP campers and residents in the nearby town to test how much they would hypothetically be willing to pay to protect each 1% of the beach width and each 1% of CCP sites.
How to obtain it: The survey was framed in terms of a future scenario where the outcomes of climate change and natural processes would reduce the availability of CCP sites and beach access. It was assumed in a base case scenario that 50% of CCP sites and beach access would be lost in the next 30 to 40 years under current policy settings. Increased management and protection measures could be introduced to reduce these predicted impacts, but would come at a cost. The choice scenarios for the visitors (campers) were preceded in the survey instrument with an explanation, which also identified the levels for each attribute included in the choice set.
Scenarios were built from these variables in different combinations with guidance from an economist.
Loss of CCP sites
50% loss of sites
40% loss of sites
30% loss of sites
20% loss of sites
Loss of beach width
20% loss of the beach
30% loss of the beach
40% loss of the beach
50% loss of the beach
The additional ongoing cost
$5 increase per night
$10 increase per night
$20 increase per night
$50 increase per night
$0 increase per night
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6.4.3 Social equity preferences
This social equity preference information demonstrates what people think is most fair and how the benefits and burden of risk or change could be shared across different groups or communities, including intergenerational. This information is obtained by direct questioning i.e. asking people what they prefer or think is fair. This information tends to be fairly qualitative but can be presented with percentages or rankings of preferences.
6.4.4 Important social attributes
This information reveals what social attributes people think are most important to a specific group or community. This information is also obtained by direct questioning i.e. asking people what they prefer or think is important. This information tends to be qualitative but can be presented with percentages or rankings of preferences. It can be important in identifying values to protect or enhance.
6.4.5 Obtaining information through
Benefits Transfer method
Where budgets are constrained or there is limited time available to obtain information, using values obtained in other locations may be considered. Transferring information from one place to another or one project to another is known as benefits transfer. In considering if benefits transfer is appropriate in a project, decision makers need to decide if:
1. The goods and/or service of the studies are similar or comparable to the existing study, research or information.
2. The characteristics or demographics of the new study area and existing study area are comparable.
If the quality of the information and comparison is reasonable, then the information can be adjusted where appropriate to estimate values of the CCP being studied. It should be recognised however; that estimates can only be as accurate as the original study and extrapolation or extending the information beyond what is was intended for is not recommended (Ecosystem Valuation 2012).
Example of obtaining importance of social attributes (Research Report – Report 2) (WCB 2012b)
This information reveals what social attributes campers and residents consider important in relation to the CCP. A number of attributes, which clustered into two groups, were tested in the survey.
• Physical environment and facilities of the CCP
• Social and community aspects of the park
How to obtain it: Campers were asked to rate what was important about the CCP itself. Residents were also asked what they thought campers found important about the CCP. They were presented with a number of aspects to consider and rank: .CCP attributes and amenities, CCP location, environmental and recreational attributes and economic aspects.
Example of obtaining social equity preferences: (Research Report – Report 2) (WCB 2012b)
Three broad areas of equity were thought relevant to CCP adaptation. These related to:
Access to the opportunity to camp near the beach, and the availability of CCPs
Potential changes to the mix of accommodation types that are available, such as cabins and powered sites, to provide increased revenue for management of the coast and adaptation responses
How the financial burden of adaptation responses would be shared
How to obtain it: Residents and campers were asked a series of direct questions about their preferences in relation to the three broad areas, which were broken down into a list of several preferences to pick from.
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More Information
For information of a range of use and non-use non-market values see: http://assets.cambridge.org/97805218/21469/frontmatter/9780521821469_frontmatter.pdf
Further guidance on the different methods of valuation for non-market goods and services can be found in the Handbook of Cost-Benefit Analysis (2006) by the Department of Finance and Administration at http://www.finance.gov.au/publications/finance-circulars/2006/docs/Handbook_of_CB_analysis.pdf
For further information on social equity and the environment go to http://www.uow.edu.au/~sharonb/esd/equity.html
For information on social equity and climate change see http://www.vlga.org.au/Resources/Liveable_Just_Toolkit.aspx
Information on Benefits Transfer: http://www.ecosystemvaluation.org/benefit_transfer.htm and http://www.environment.nsw.gov.au/publications/evri.htm
6.5 How is Economic Value
and Social Equity Information Applied to Decision Making for CCPs?
There are a number of decision-making tools that can aid decision makers in applying social and economic information to climate change adaptation decision making as required by key policy objectives and planning processes. The two main tools within this Framework that support decision making are risk assessments and cost-benefit analysis (CBA).
Risk assessments can use information expressed monetarily, numerically or qualitatively and incorporate economic values, social equity preferences and other relevant socially important considerations. These tools also allow the inclusion of weightings if required to emphasise or give greater importance to particular impacts or consequences.
Cost-benefit analysis requires that all the costs and benefits associated with an adaptation option are identified and converted into dollar values, and thus is different to a simple financial analysis where only direct outlays and income are considered. Non-market values (e.g. recreational) and other willingness to pay values can be identified and incorporated in the CBA. Qualitative social equity information or other intangible social attributes can be used to inform or adjust the weighting of the costs and benefits as appropriate.
This Framework illustrates how social and economic information can be applied through these tools to support sound climate change adaptation options assessment and decision-making.
These tools are discussed in more detail in Section 7 of the document and applied in Part 2.
6.5.1 Interpreting information for decision making
Economic values
The effects on total known economic value due to the impacts of climate change can be calculated by working out the number of CCP sites affected or the reduction in visitor rates and applying those figures to both the non-market values and the profits earned by the park.
A similar theory can be applied to estimate the impacts on CCP non-market values when using the willingness to pay to avoid the loss of the CCP or the beach. This value can also be interpreted as representation of how much campers would theoretically contribute to protect existing assets such as the CCP or beach or how much they value the asset. Therefore in estimating the impacts of climate change of the CCP or beach, this can be used to estimate the value of assets lost.
Limitations to interpreting the willingness to pay include the ability to interpolate results to a larger scale. For example; results – particularly for choice modelling - may look at response to small scale of change e.g. willingness to pay to protect 1% of the beach. It is possible to factor this up by 10 to understand willingness to pay to protect 10% of the beach.
Extrapolating these values to CCPs on all coastal crown land in Victoria and more broadly to Australia, does demonstrate though, the significant value that these coastal assets provide to the community as a measure of their recreational experience. However it must be understood that the larger the extrapolation, the more uncertainty and inaccuracy of the result. Additionally, there are elements of CCPs in other states (except) Victoria where permanent residents are allowed on coastal Crown land CCPs and some consideration of the would be useful to ensure the most economic adaptation option is indentified (WCB 2012a). These factors would need to be considered if applying benefits transfer as a source of information.
Social equity preferences and important social attributes
Social equity information and those social attributes considered important should be explicitly stated and preferably quantified (Productivity Commission 2012) for use
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in decision-making tools such as risk assessments
Surveys revealing what social attributes of CCPs and coastal campers and the community think are important or what distribution of benefits and burdens are fair is likely to be captured as % of people surveyed. Although this information is relative to the area and people surveyed, it can expose what is valued in a non-economic manner by campers, residents and the community and where adaptation can be focused. The loss of these important social attributes would more than likely have a flow-on effect to social and economic values and is therefore critical in decision making.
How these rankings and/or percentages of important social attributes and social equity preferences are used will differ slightly depending on the assessment.
In a risk assessment, preferences and importance can be assessed by applying percentage base criteria or other numerical form (see Appendix 2) or be based on descriptive criteria.
Additionally, any identified intangible social impacts, non-market values or equity issues that are not measurable or quantifiable could be used to apply weightings or adjust to decision-making tools where appropriate.
Regardless of the tool, a systematic approach to assessing the impacts of policy changes improves the process of decision making. With this information, policymakers can at least make a judgment about how they weigh up the positive and negative impacts of adaptation (Productivity Commission 2012).
In addition to using these outputs within practical decision-making tools, CCP managers and decision makers may also choose to use the information as a guide on where to focus further studies or investigations.
6.5.2 Economic value and social equity information for CCPs
Examples of the types of economic value and social equity information that can be obtained and applied to support climate change adaptation for CCPs are:
•Market values of CCPs;
•Money spent in the community by campers;
•Value of CCPs by campers, residents and broader community;
•Value of beach by campers, residents and broader community;
•Value of other tourist attractions or amenities by campers, residents and broader community;
• The important social attributes of CCPs by campers, residents and the broader community;
• Social equity preference for sharing the benefits and burdens of adaptation.
Any necessary research can be undertaken with the assistance of, and analysed by, experienced and qualified researchers. The information obtainable is not limited to the above but can provide a good foundation for CCP managers and decision makers. . Benefits transfer (see Section 6.4.5) also provides opportunities to utilise information generated at locations with similar characteristics.
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The relevant legislation, policy and tools are important in understanding the logic of the Decision Support Framework and the decision-making pathway within it. Within the Framework:
• The legislation provides the foundation for the decision-making processes within Step 5 and 6 of the pathway;
• The key policies outline what social and economic information is required to be considered in decision making and how it can be factored in and interpreted with respect to objectives, decision guidelines, planning and policy;
• The tools provide for the application of the social and economic information required in the key policies in making decisions for adaptation.
There are many different legislation and policies that influence and affect climate change adaptation on the coast in Victoria. This decision-making pathway does not address all of them explicitly and it is recommended that CCP managers and decision makers consider other relevant policy and statutory documents not contained herein.
7.1 Key Legislation Climate change adaptation on Crown land in coastal areas which results in works, development or a change in use is expected to require consent under the Coastal Management Act 1995. Where the land is covered by a planning scheme, a planning permit may also be required under the Planning and Environment Act 1987. These statutory decision-making processes provide the foundation for Steps 5 and 6 within the decision-making pathway respectively.
7.1.1 Coastal Management Act 1995
The Coastal Management Act 1995, (‘the CM Act’) provides for the coordinated strategic planning and management of the Victorian coast.
The relevant objectives of the CM Act listed under Section 4 are:
(a) to plan for and manage the use of Victoria’s coastal resources on a sustainable basis for recreation, conservation, tourism, commerce and similar uses in appropriate areas;
(b) to protect and maintain areas of environmental significance on the coast including its ecological, geomorphological, geological, cultural and landscape features;
(c) to facilitate the development of a range of facilities for improved recreation and tourism;
(d) to maintain and improve coastal water quality;
(e) to improve public awareness and understanding of the coast and to involve the public in coastal planning and management.
Part 3, Division 4, Section 37 of the CM Act requires the written consent of the Minister for Environment and Climate Change for the use and development of coastal Crown land, including reserves, beaches and foreshores and frontages of coastal waterways.
The DSE administers the consent process and generally issues approval via delegation from the Minister. Consent under the CM Act is required in addition to and irrespective of any other consents or approvals that may be required, including a lease, licence or a planning permit.
The VCS is required to be developed under Part 3, Section 14 of the Coastal Management Act 1995, while CAPs may be developed. When exercising a function under an Act or carrying out land management (including climate change adaptation) on behalf of the Crown, relevant decision makers must “take all reasonable steps to give effect to” the VCS and CAPs. The VCS and CAP requirements are discussed further in Section 7.2.1 and 7.2.2.
DSE Fact Sheet: Consent to Use and Develop Coastal Crown Land
A DSE Fact Sheet provides guidance to land managers intending to use or develop Crown land – even in the circumstance of climate change adaptation. It is a useful tool and explains to managers what an application must include and give consideration to.
Prior to writing an application for consent to undertake works or development on a coastal CCP, it is recommended that land managers with the support of the CoM engage DSE to discuss the proposal. Requirements for a formal application are outline in Fact Sheet: Consent to use and develop coastal Crown land (DSE 2004).
Other Acts and Legislation
Other relevant Acts that may need to be investigated as a part of the Coastal Management Act 1995 consent process are:
•Crown Land Reserves Act 1978;
• Land Act 1958;
• Environmental Protection Act 1970;
• Environment Protection and Biodiversity Conservation Act 1999;
•Aboriginal Heritage Act 2006 (Victorian);
7. Key Decision-Making Legislation, Policy and Tools
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•Native Title Act 1993 (Commonwealth);
•Victorian Heritage Act 1995;
• Forests Act 1958;
•National Parks Act 1975
7.1.2 Planning and Environment Act 1987
The purpose of the Planning & Environment Act 1987 (the P&E Act) is to establish a framework for planning the use, development and protection of land in Victoria in the present and long-term interests of all Victorians. The relevant objectives of planning in Victoria as outlined in Section 4 of the P&E Act are:
(a) to provide for the fair, orderly, economic and sustainable use, and development of land;
(c) to secure a pleasant, efficient and safe working, living and recreational environment for all Victorians and visitors to Victoria;
(e) to protect public utilities and other assets and enable the orderly provision and co-ordination of public utilities and other facilities for the benefit of the community;
(g) to balance the present and future interests of all Victorians.
The Victorian Planning Provisions (VPPs) are created and amended under Section 4A of the P&E Act The VPPs provide a consistent and co-ordinated framework for planning schemes in Victoria. and are a the state-wide reference document or template from which planning schemes are sourced and constructed. The VPPs contain State Planning Policy Framework (SPPF), which cover strategic issues of State importance and Local Planning Policy Framework (LPPF) which contains a municipal strategic statement and local planning policies. Refer to Appendix 3 and Section 7.2.4 and 7.2.5 below for detail on the requirements of the SPPF and LPPF.
Each municipality is responsible for applying the VPPs in developing their local planning scheme. A planning scheme created under the P&E Act provides for furthering the objectives of planning in Victoria and local planning policy including policy in relation to social and economic consideration. Planning schemes may make any provision which relates to the use, development, protection or conservation of any land in the area and include strategic plans, policy statements, codes or guidelines relating to the use or development of land and the circumstances in which a planning permit may be required.
Where a planning permit is required under a specific planning scheme, Council must consider the following matter with regards to economic and social equity in their decision making under Section 60 of the P&E Act:
(1A) before deciding on an application, the responsible authority, if the circumstances appear to so require,
may consider-
(a) any significant social and economic effects of the use or development for which the application is made; and
(g) any other strategic plan, policy statement, code or guideline which has been adopted by a Minister, government department, public authority or municipal council; and
Additionally, Section 61 the P&E Act specifies:
(3) The responsible authority-
(a) must not decide to grant a permit to use or develop coastal Crown land within the meaning of the Coastal Management Act 1995 unless the Minister administering that Act has consented under that Act to the use or development
More Information
DSE Fact Sheet: http://www.dse.vic.gov.au/__data/assets/pdf_file/0009/97227/CMA-guid.pdf
7.2 Key Policy InputsThe key policy inputs for the Framework are:
• The Victorian Coastal Strategy 2008;
•Coastal Action Plans and Coastal Management Plans;
• Best Practice Management Guidelines for Committees of Management;
• State Planning Policy Framework;
• Local Planning Policy Framework.
All of the policies have elements that require the consideration of social and economic values and/or impacts in some form and highlight the importance of such in decision making. These policies are considered as inputs into one or more steps of the decision-making pathway. This section discusses the relevance of each of the above policies to the pathway and the way in which social and economic information is referred and required in decision making.
7.2.1 Victorian Coastal Strategy 2008
The VCS recognises climate change as a significant issue that has potential to affect the important social, cultural, economic and environmental values of the coast. The VCS is a requirement of the Coastal Management Act 1995 and is informed by a review of previous VCSs (the VCS is reviewed every 5 years), by social and economic research and by stakeholder and community engagement.
The Hierarchy of Principles within the VCS sets the foundation of the strategy and guides planning and decision-making about land use and development on coastal private and Crown land, as well as in estuarine and marine
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waters (VCC website September 2012). Two of the four principles contain explicit or implicit reference to the need to recognise and address social and economic issues within decision-making. The relevant principles are listed below:
Principle 2 Undertake integrated planning and provide direction for the future is about providing clear direction and resources for the protection, management, development and use of the coastal, estuarine and marine environment in a way that is environmentally sustainable. This principle seeks to:
• Ensure integrated coastal zone planning and management (ICZM) takes into account the environmental, social and economic implications of decisions.
• Ensure that the values of coastal resources are identified and the impacts of any proposed use or development on those values are understood and considered before decisions are made.
•Understand and plan for the environmental, social and economic impacts and risks associated with climate change, coastal erosion, coastal inundation and degradation of estuaries and catchment impacts.
• Require a long-term view when making decisions about coastal and marine environments which are perennial ‘public good’ assets.
•Consider cumulative implications of all decisions and impacts.
•Apply the precautionary principle to decision making, particularly if threats of serious or irreversible environmental damage exist or are unknown.
Principle 3 Ensure the sustainable use of natural coastal resources is about using the coastal, estuarine and marine environment in an ecologically sustainable way and seeks to:
• Ensure an integrated analysis of economic, social, environmental and cultural heritage implications of decisions.
The VCS goes into further detail, outlining 10 policy recommendations in planning for climate change. Any decision made with regards to adaptation on the coast would consider all of the policy recommendations of which four are directly relevant to the consideration of social and economic values on the coast.
More Information
The Victorian Coastal Strategy can be found at http://www.vcc.vic.gov.au/page/victorian-coastal-strategy
7.2.2 Coastal Action Plans and Coastal Management Plans
Coastal Action Plans (CAPs) are developed through Section 22 of the Coastal Management Act 1995 and are intended to provide regional interpretation and implementation of the VCS. CAPs identify strategic directions and objectives for use and development, and provide for detailed planning to facilitate recreational use and tourism and provide for the protection and enhancement of significant features including the marine environment. CAPs must be consistent with the VCS and the purpose for which land was reserved (i.e. Crown land in the case of CCPs).
Management plans for coastal Crown land (or Coastal Management Plans (CMPs)) are developed under Section 30 of the Coastal Management Act 1995. CMPs set out the land management requirements for an area and include a 3 year business plan describing proposed works. CMPs must be consistent with and give effect to the VCS, any CAPs applying to the area and any relevant coastal recommendation. Given the importance of CMPs to the management of CCPs, CMPs could be used as a tool for providing for adaptation options for CCPs (WCB 2012a).
CAPs and CMPs are highly relevant when considering climate change adaptation because they will influence how CCP managers are able to adapt to climate change. Adaptation response options will need to be consistent with both CAPs and CMPs. Both contain detailed strategies and actions that aim to protect, manage and enhance the social and economic values of the coastline and will influence decision makers in assessing adaptation options.
7.2.3 Best Practice Guidelines for Committees of Management
There are two sets of guidelines that provide direction and support to Committees of Management (CoMs) managing Crown land and CCPs:
• Best Practice Management Guidelines (BPMG) for managing CCPs on Crown Land (DSE 2012);
•Committee of Management (CoM): Responsibilities and Good Practice Guidelines (DSE 2011b).
CoMs are responsible for protecting the social, economic and environmental values of Crown land for current and future generations (DSE 2012). These guidelines outline the expectations by the Minister for Environment and Climate Change. These Guidelines are useful resources which contain requirements and recommendations for delegated CoMs to help them manage the Crown land reserves for their intended purpose, including the management of CCPs on Crown land.
The BPMG (DSE 2012) highlight the social and economic
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values of CCPs, recognising the benefits of these pubic assets and the legal responsibilities of CoMs with regards to public safety.
More Information
The DSE Committee of Management Responsibilities and Good Practice Guidelines can be found at http://www.dse.vic.gov.au/__data/assets/pdf_file/0004/108958/CoMGuidelines.pdf
The DSE Best Practice Management Guidelines for Committees of Management Managing Caravan and Camping Park on Crown Land can be found at http://www.dse.vic.gov.au/__data/assets/pdf_file/0006/133962/DSE-Best-Practice-Management-Guidelines-Caravan-and-Camping-Parks-on-Crown-Land.pdf
7.2.4 State Planning Policy Framework
The State Planning Policy Framework (SPPF) contains strategic issues of State importance and are included in local planning scheme. They must be considered when decisions are made. Further details regarding the relevant SPPF clauses relevant to coastal CCP use, works and development can be found in Appendix 3 and are outlined briefly below:
•Clause 11.05-4 Regional planning strategies and principles
Objective: To develop regions and settlements which have a strong identity, are prosperous and are environmentally sustainable.
•Clause 11.05-5 Coastal Settlement
Objective: To plan for sustainable coastal development
•Clause 12.02 Coastal areas
Objective: To recognise and enhance the value of the coastal areas to the community and ensure sustainable use of natural coastal resources
- 12.02-2 Appropriate development of coastal areas Objective: To ensure development conserves, protects and seeks to enhance coastal biodiversity and ecological values.
- 12.02-3 Coastal Crown land Objective: To achieve development that provides an environmental, social and economic balance.
- 12.02-4 Coastal tourism Objective: To encourage suitably located and designed coastal and marine tourism opportunities.
•Clause 13.01-1 Coastal inundation and erosion
Objective: To plan for and manage the potential coastal impacts of climate change.
7.2.5 Local Planning Policy Framework The Local Planning Policy Framework (LPPF) sets a local and regional strategic policy context for a municipality. The LPPF identifies long-term directions about land use and development in the municipality and provides the rationale for the zone and overlay requirements and particular provisions in the scheme. In developing an application for planning permit, CCP managers must consider:
• The Municipal Strategic Statement;
• Zones and overlays;
• Particular provisions;
•General provisions;
• Incorporated documents.
These local planning policies are described briefly below and in more detail in Appendix 3.
The Municipal Strategic Statement (MSS)
The MSS establishes the strategic framework for the municipality and can show how it supports and implements the State Planning Policy Framework. Most MSS describe the specific characteristics of a municipality and the risks or challenges that need to be considered. Many recognise the importance of climate change and the threat of impacts.
Zones & Overlays
Zones and overlays may exist over the site that prohibit particular use or development or specify that that the use or development may need a planning permit.
Zones require a permit for development, work and specific uses; and schedules exist that may exempt particular types of works or development and can vary between municipalities.
The main zone that applies to caravan and camping parks on Crown land along the west Victorian coastline is Public Park and Recreation Zone (PPRZ).
Common overlays that exist on coastal Crown land include:
• Environmental Significance Overlay (ESO);
•Heritage Overlay (HO);
• Significant Landscape Overlay (SLO);
• Land Subject to Inundation Overlay (LSIO);
• Floodway Overlay (FO);
•Wildfire Management Overlay;
• Salinity Management Overlay.
Each overlay provision has a purpose and set of decision guidelines that must be considered in the application for planning permit if it applies to the land.
Particular provisions
Particular provisions apply to specified categories of use and development. There are not many particular provisions that
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are likely to apply to CCPs and any potential adaptation options as they generally refer to specific commercial, industrial or residential use and development.
General Provisions
The decision guidelines that the responsible authority must decide whether the proposal will produce acceptable outcomes are outlined under Clause 65 of the VPPs (Section 60 of the P&E Act):
• 65.01 Approval of an application or plan
Before deciding on an application or approval of a plan, the responsible authority must consider, the matters set out in Section 60 of the Act. (Refer to Section 7.1.1 of this document)
Incorporated Documents
Incorporated documents are documents that need to be read in conjunction with the provisions of a scheme. They are generally codes of practice, standards and design guides. The Schedule to Incorporated Documents contains municipal specific documents that need to be considered such as caravan park or foreshore Incorporated Plans, concept and structure plans.
More Information
Planning Scheme information can be found at http://planningschemes.dpcd.vic.gov.au/
7.3 Key Decision-Making Tools
The key decision-making tools within the pathway are practical tools or templates to which social and economic decision support information is applied within the context of the identified policy requirements. These tools are important inputs into the decision-making pathway and provide a way for decision makers to determine the most equitable adaptation option/s. The key practice tools recommended within the pathway include:
• Risk Assessments (Step 1 and 3);
•Cost-Benefit Analysis (Step 3 and 4);
• Business Case template (Step 4 and 5).
7.3.1 Risk assessment
Risk management is a process that is generally used in most government and businesses as a means of managing and reducing the risks to which businesses are exposed.
Risk assessments determine the level of risk related to a
potential threat or hazard by analysing the likelihood and consequence of an impact/s arising as a result of the threat. A climate change risk assessment focuses on the risks arising from a particular climate change threat or suite of threats. Other compounding risks such as population growth, changes in lifestyle and demand that are not climate change risks themselves should be assessed separately because they can add an undesirable level of complexity to the assessment process.
The risk is the combination of the likelihood of the hazard or threat and the consequence:
R = L + C
where
R = Risk L = Likelihood of the hazard or threat C = consequence (heath and safety, social, economic or environmental loss).
The consequences of a threat include social and economic impacts. Without this information a true understanding of the impacts of a threat cannot be identified or it is potentially skewed towards the known consequences.
Developing risk assessment criteria
Prior to undertaking a risk assessment, CCP managers will need to develop a set of risk criteria against which to assess the specific climate change risks. Things to consider when developing risk criteria include (DSE 2012b):
• the kinds of consequences that will be considered;
• how likelihood will be defined;
•what risks are broadly acceptable, tolerable and intolerable.
Likelihood criteria are based on the probability or level of certainty that the impact is going to occur. It can be expressed numerically or descriptively. This does not usually vary much between different risk assessments and existing templates and guidelines will provide a sound basis for this criteria.
Qualitative information is usually descriptive and therefore judgement around the extent or severity of impacts may be subjective. Quantitative information includes impacts, risks and values that can be numerically, monetarily or ‘quantitatively’ captured and assessed. Usually quantitative assessments require some form of research or pre-work to determine the inputs. This Framework utilises both a qualitative and quantitative risk assessment.
Consequence criteria will need to establish ratings for qualitative and quantitative expressions of risk. Some social impacts will be expressed as an economic value in monetary terms while social equity preferences and other social impacts may be expressed in either descriptive/qualitative
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terms or as percentages. These consequence criteria will vary from business to business and each would have its own ratings. Most risk assessments will have qualitative and quantitative criteria and impacts to be analysed.
Applying risk assessment to the decision-making pathway
Risk assessments should be consistent with the Australian/New Zealand Standard AS/NZ ISO 31000:2009 Risk Management Principles and Guidelines. The process diagram in Appendix 4 outlines the steps of a formal risk assessment process.
In the case of the decision-making pathway, Steps 1 and 3 use the risk assessment in different ways. The risk assessment introduced as a part of Step 1 is the initial risk assessment that is intended to identify climate change impacts and risks and is usually performed in qualitative terms and quantitative where information is readily available. This assessment considers social and economic impacts on the CCP and on the adjacent coastal reserves and the community that have flow-on impacts back to the CCP.
The risk assessment recommended as a part of Step 3 is a detailed risk assessment that incorporates the consideration of more quantitative information of economic values and social equity preferences derived from research. The detailed risk assessment analyses the social and economic impacts of different adaptation options in a quantitative manner and qualitative manner where no numerical information is available such as impacts on socially important attributes. This is similar to a social impact assessment which includes analysing, monitoring and managing the intended and unintended social consequences, both positive and negative, of planned interventions (policies, programs, plans, and projects) and any social change processes invoked by those interventions (IAIA 2003).
More Information
Further guidance on risk assessment for climate change can be found in the Victorian Coastal Hazard Guide at http://www.climatechange.vic.gov.au/__data/assets/pdf_file/0020/139241/Victorian-Coastal-Hazard-Guide.pdf
Climate Change Impacts & Risk Management: A Guide for Business and Government, produced by the Australian Greenhouse Office (now the Department of Climate Change and Energy Efficiency) in 2006 http://www.climatechange.gov.au/community/~/media/publications/local-govt/risk-management.ashx
7.3.2 Cost-benefit analysis
Cost-benefit analysis (CBA) is an analytical tool that can be used to assess the benefits and costs of an adaptation option. The objective of cost-benefit analysis is to determine
whether society or a community, as a whole, will be better off if an adaptation option is implemented. This requires monetising and evaluating all of the measurable benefits and costs and comparing them. A process diagram on the steps of a CBA can be found in Appendix 5.
The key points to remember in undertaking CBA for social and economic values consistent with the steps in the process diagram of Appendix 5 are (Ecosystem Evaluation 2012):
• Identify the adaptation option being evaluated including information about the location, timing and who will be affected. Take care to identify all groups that will be affected including upstream and downstream impacts and flow-on effects now and into the future.
• Identify the social and economic positive and negative impacts of adaptation options for a community e.g. how much beach or CCP will be lost or how often flood inundation may occur. This will be based on the outputs of a climate change impact risk assessment.
•Quantify the positive and negative impacts as costs and benefits of the effects of the adaptation option e.g. financial burdens, effects on economic values (including non-market values), flow-on community benefits etc. This will be based on research.
•Compare the costs and benefits of the adaptation options by applying a net present value (NPV) analysis to bring future costs and benefits back to a present value. This enables the cost of adaptation to be matched with the benefits from the adaptation over the life of the asset, promoting intergenerational equity (Productivity Commission 2012).
•Consider any adjustments or weightings that may need to be applied to reflect the qualitative social equity preferences or other attributes of social importance.
•Consider whether the outputs of the CBA need to be reapplied to the detailed risk assessment if the assumptions, criteria or ratings used in the assessment were incorrect. This may alter the outcome of the risk assessment.
Net present value
Net Present Value (NPV) is a commonly used tool within a Cost-Benefit Analysis to work out or demonstrate the value of money over time, using both incoming and outgoing economic values. In applying an economic NPV, CCP managers can determine the ‘real’ cost of adaptation now, over time and in the future based by bringing all the monetary and non-monetary flows of benefits and costs through time into a present day measure. An economic (as opposed to financial) NPV represents a key opportunity to ensure broader non-market values are considered over time.
The Productivity Commission provides a useful outline of the concept of discount rates, as shown in the following excerpt.
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Productivity Commission 2012 – Barriers to Effective Climate
Change Adaptation
Discount rates…
In formal cost–benefit analysis, future impacts are ‘discounted’
to express the degree to which people are prepared to trade off
current and future benefits and costs. The future benefits and
costs are estimated, and a ‘discount rate’ is applied to estimate
the value that people today place on impacts that will arise in
the future. The higher the discount rate, the lower the weight
placed on future benefits and costs. There is no ‘right’ answer
when using this approach: ultimately the decision rests on the
values of the decision maker.
Given the long life of infrastructure and the potential impact
of climate change on future generations, a significantly lower
discount rate [than 7%] may be appropriate and The Australian
Government recommended that when considering the risks of
climate change, governments and businesses should adopt a
planning horizon of 25 years ‘in the first instance’ (AGO 2006,
p.9), but this could be extended to 50 or even 100 years.
More Information
Further guidance on undertaking a Cost-Benefit Analysis can be found in the Handbook of Cost-Benefit Analysis (2006) by the Department of Finance and Administration at http://www.finance.gov.au/publications/finance-circulars/2006/docs/Handbook_of_CB_analysis.pdf
More information on Cost-Benefit Analysis can be found at http://assets.cambridge.org/97805218/21469/frontmatter/9780521821469_frontmatter.pdf
7.3.3 Developing a business case
The purpose of developing a business case is to illustrate the reasoning behind the works, use or development in the CCP or on adjacent Crown land. The business case can form the justification for investigation or climate change adaptation and provide the base information for an application to DSE under the Coastal Management Act 1995 for consent to undertake works on Crown land.
A business case includes:
• Project description;
• Project justification;
• Project Outcomes;
•Options Analysis;
• Project Costs;
• Implementation and ongoing management, operations and maintenance.
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Part 2USING THE FRAMEWORK
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8.1 The Decision-Making Pathway
The steps within the pathway highlight key policy inputs and tools in which CCP decision makers need to consider social and economic information in adaptation and provide guidance for decision makers to include economic value and social equity preference information.
The pathway is a two-stage process (refer Figure 4). There are key steps within each stage that have key inputs and tools and decision support information. The Steps within the pathway are interdependent on the outputs of preceding steps and may also trigger reviews of preceding steps or a repeat assessment of the same step with new information. A summary of the two-stage process and the steps within it are outlined below.
The Decision Support Framework for Adaptation is intended to provide guidance to decision makers on how to incorporate economic value and social equity information generated through research in adaptation decisions.
The Decision Support Framework relies on a central and generic decision-making pathway, providing the steps for decision makers to follow and apply to decision making.
While most decision-making processes require or recommend consideration of social and economic issues, they often lack the guidance to assist CCP managers to generate, interpret and apply non-market economic values and social equity considerations in decisions.
By surveying CCP campers, residents and the community, decision makers can inform their adaptation options assessment and apply due consideration and weighting to social and economic information. Further detail on how to obtain, interpret and apply this information is provided in Section 6.
8. Decision Support Framework for Adaptation
Stage 1: Adaptation Options Assessment
Step 4: CCP Business Planning
Step 2: CCP Business Planning
Step 3: Adaptation Options Assessment
Step 5: CM Act Consent
Decision-Making Pathway
Step 6: Planning Permit
Stage 2: AdaptationDecision Making
Step 1: Climate change implications for CCP
Figure 4: The Generic Adaptation Pathway for CCPs
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Stage 1 - Adaption Options Assessment
This stage guides CCP managers through a process to identify the risk of climate change impacts and assess potential adaptation options. It also informs other decision makers who are a part of the process as to the steps and information that have been followed in identifying the adaptation options. There are three steps within Stage 1:
Step 1: Identify the risks to CCPs and the flow-on social and economic implications for CCPs, campers, residents and the community. This step relies on the principles and policy requirements in the VCS and a risk assessment to identify and prioritise risks.
Step 2: Reviewing and ensuring the CCP Business Plan (or other relevant strategic planning process) commits to investing in further investigation of climate change adaptation in response to the identified risks. It is also important to ensure that the business plan recognises any linkage with other projects or actions in CAPs and CMPs and ensures funding is available for the investigation.
Step 3: Adaptation options assessment to identify one or a suite of preferred adaptation options to manage the impacts of priority climate change priority risk/s, giving specific consideration to the social and economic impacts for each adaptation option. The policy input is the VCS and the tools recommended are options identification, detailed risk assessment of each option and an economic cost-benefit analysis.
Stage 2 - Adaptation Decision Making
Once the preferred adaptation option is identified in Stage 1, the pathway guides CCP managers through the key decision-making processes for adaptation planning. They are:
Step 4: A follow up review of the CCP Business Plan (or other relevant plan) to ensure appropriate funding is allocated or available for implementation and construction works for adaptation. This will need to also identify the funding source and investment timeframes, giving due consideration to how the economic burdens and benefits will be shared across different groups and generations.
Step 5: Guidance on how to apply for consent under the Coastal Management Act 1995 for works, development or use on coastal Crown land. Decision makers will take into consideration the social equity and economic impacts of climate change and the adaptation option.
Step 6: Guidance on obtaining a planning permit for works, development or use where required. This step outlines the key areas in which social and economic information will need to be considered within the planning permit application process. It does not preclude other areas which will need to be considered as a part of the planning process.
Sometimes Steps 5 and 6 may occur simultaneously. DSE are a referral authority from Local Government in Step 6 of the planning permit application process. DSE’s consent is critical to issuing a permit.
Within each Step, there are key legislation, policy and practice tools that are a critical part of the decision-making process, outline the social and economic requirements or a decision-making tool. The key legislation, policy and practice tools are described in Section 7.
Figure 5 below represents how the key policies and tools and practices are incorporated into the decision-making pathway.
Figure 5: Decision Support Framework for CCP Adaptation - Policies and Tools
Decision Support Framework for Adaptation
46 Western Coastal Board
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Within each Step, there are key legislation, policy and practice tools that are a critical part of the decision-making process, outline the social and economic requirements or a decision-making tool. The key legislation, policy and practice tools are described in Section 7:
Figure 5 below represents how the key policies and tools and practices are incorporated into the decision-making pathway.
Figure 5: Decision Support Framework for CCP Adaptation
Key Inputs & Tools
Key policy inputs
Key decision-making tools Step 4: CCP Business
Planning
Step 2: CCP Business Planning
Step 3: Adaptation Options Assessment
Step 5: CM Act Consent
Decision-Making Pathway
Step 6: Planning Permit
Step 1: Climate change implications for CCP
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interpreted in decision making and the decision-making tools provide for the application of the social and economic information. Figure 6 demonstrates that the decision support information is applied to the decision-making tools to meet the requirements of the key legislation and policy throughout the steps of the decision-making pathway.
Decision Support Framework for Adaptation
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8.2 Decision Support Framework The Decision Support Framework for Adaptation support decision makers demonstrating where and how social and economic information can be considered in adaptation.
The key policy provides guidance on how social and economic information needs to be considered and interpreted in decision making and the decision-making tools provide for the application of the social and economic information. Figure 6 demonstrates that the decision support information is applied to the decision-making tools to meet the requirements of the key legislation and policy throughout the steps of the decision-making pathway.
Figure 6: Decision Support Framework for Coastal CCP Adaptation
Key Inputs & Tools
Key policy inputs
Key
decision-making tools
Step 4: CCP Business Planning
Step 2: CCP Business Planning
Step 3: Adaptation Options
Step 5: CM Act Consent
Decision-Making Pathway
Step 6: Planning Permit
Step 1: Climate change implications
Economic values
Market value
Non-market values
Social equity preferences
Important
social attributes
Decision Support Information
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8.2 Decision Support Framework
The Decision Support Framework for Adaptation supports decision makers by demonstrating where and how social and economic information can be considered in adaptation.
The key policy provides guidance on how social and economic information needs to be considered and
Figure 6: Decision Support Framework for Coastal CCP Adaptation
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Stage 1: Adaptation Options AssessmentStage 1 of the decision-making pathway aims to provide guidance to CCP managers on how to decide on an adaptation option or suite of options to respond to climate change impacts.
Decision Support Framework for Adaptation
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Stage 1: Adaptation Options Assessment
Stage 1 of the decision-making pathway aims to provide guidance to CCP managers on how to decide on an adaptation option or suite of options to respond to climate change impacts.
Step 2: CCP Business Planning
Step 3: Adaptation Options Assessment
Decision-Making Pathway
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Step 1: Climate change implications for CCP
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Step 1: Climate Change Implications for CCPs
This step is designed to provide guidance for CCP manages in assessing their climate change risks and prioritising them.
A Key Policy Imputs
Victorian Coastal Strategy Decision Support
Understand and plan for the environmental, social and economic impacts and risks associated with climate change, coastal erosion, coastal inundation and degradation of estuaries and catchment impacts.
(Refer to Section 7 for VCS principles).
• In order to understand and assess climate change impacts in the Risk Assessment of this Step, the baseline social and economic values of the CCP and community must be understood.
•When identifying impacts in the Risk Assessment within the context of the VCS consider:
- direct social and economic impacts on the CCP and its values due to climate change using climate change projections. This might include issues such as coastal migration due to people wanting to move to cooler locations on the coast, the future demand for camping under more uncertain extreme conditions on the coast that change the social and economic landscape.
- physical impacts on the CCP and the potential flow-on social and economic impacts on the CCP and adjacent coastal reserves and their values. The identification of the physical impact sets the scope for the flow-on social and economic impacts.
•Consider all of the different groups on- and off-site including indigenous peoples’ interests.
•Consider impacts arising in the community that affect the CCP and those arising from the CCP affecting the community. For example effects on the different market and non-market values, effects on enjoyment and benefits, sense of community, impacts on different community groups and loss of social space.
• Ensure that impacts are not just those arising as a result of physical impacts, but those broader social and economic issues arising due to climate change.
Consider cumulative implications of all decisions and impacts (including both physical and the flow-on or direct social and economic impacts).
•When identifying cumulative impacts in the Risk Assessment within the context of the VCS consider:
- the cumulative effect of physical impacts. E.g. Sea level rise and storm surge plus catchment flooding at the same time or simultaneous heatwaves and bushfires and the flow-on social and economic impacts. Cumulative physical impacts can have far greater social and economic impacts than those singular physical impacts and can trigger other new effects.
• the cumulative social and economic impacts, where many simultaneous social or economic impacts have an even greater cumulative effect. Consider the CCP, the surrounding community and the wider community.
Key Questions:
•Have you got enough information to adequately identify the social and economic impacts at least from a ‘qualitative’ or ‘descriptive’ perspective, to apply to the following Risk Assessment within Step 1?
•Have you established an effective baseline for understanding the full social and economic implications of climate change on the CCP?
•Have you considered the following in establishing the baseline CCP social and economic values?
- What is unique about the CCP or surrounding amenities/activities that attracts campers to this particular CCP that may be affected by climate?
- What are the important values to the community that are delivered by the CCPs vision and values?
Climate change implications for CCP
Social & economic risks and impacts
Baseline social and economic values
Policy: VCS
Tools: Risk Assessment
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- Does the CCP have sport and/or recreation facilities that are used by the community?
- What is the seasonal and annual variability of campers and revenue?
- Are there any specific internal or external drivers that influence the number of campers that are influenced by climate or weather?
- Are there any existing vulnerabilities that are likely to be exacerbated?
•Have you captured those direct social and economic impacts and flow-on impacts on social and economic values from physical impacts?
•Have you captured the cumulative impacts of climate change?
B Key Decision-Making Tools
Risk Assessment Tool Decision Support
Develop a set of risk criteria against which to assess the likelihood and consequence of specific climate change risks.
(Refer to Section 7 and Appendix 4 in the steps and guidance in preparing a risk assessment)
•Develop likelihood criteria to assess the likelihood of the social and economic impacts occurring. The likelihood of climate change projections themselves are not being assessed. Likelihood criteria can be descriptive i.e. almost certain, likely, possible, unlikely, rare.
•Develop consequence criteria. Decide what constitutes the various levels of social and economic impacts or consequences (extreme, major, moderate, minor and insignificant) arising as direct impacts or from physical and cumulative climate change threat. The baseline social and economic values can help set the criteria.
• Ensure criteria are developed for onsite impacts that affect the CCP and off site impacts that affect the CCP.
• It may be necessary to adjust the criteria after undertaking a first pass assessment of the impacts and risks. This could be due to a skewing of all results in one direction or changes in assumptions.
• See more information below on how to develop and undertake a risk assessment.
Assess each potential risk for likelihood and consequence.
•Use climate change projections, any Coastal Hazard Vulnerability Assessment and use flood or bushfire mapping and modelling to assist in understanding the physical impacts which lead to social and economic impacts.
•Using the decision support in the VCS Policy of this Step above identify and describe all social and economic impacts (direct, flow-on of from physical impacts and cumulative impacts) of climate change on the CCP.
• The background information on economic value and social equity in Section 6 may help guide a better understanding of the social and economic impacts and how they can be applied to the risk assessment.
•Assign each potential impact a likelihood rating (i.e. How likely the social and economic impact is to occur). The likelihood may differ for each social or economic impact; therefore an individual rating for each may be required.
•Assign each potential social and economic impact a consequence rating based on the criteria that was developed. Similarly, the consequence rating for each social or economic impact may differ. As such individual ratings may be required.
• The likelihood and the consequence may be challenging to predict and give a rating, but best estimate is sufficient.
•Determine the overall risk rating of each impact by combining (adding) the highest consequence rating (if a social and economic consequences rating is given to one impact) of each impact with the likelihood rating of each impact. This figure is the risk rating.
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Risk Assessment Tool Decision Support
•Note: This Framework is purely targeted at assessing impacts arising from climate change risks only. Other factors that may influence the viability of future CCPs such as population, changing demographics, and demand and lifestyle choices are not being assessed. However, if these factors are influenced by climate change that then has an impact on the CCP then it may be considered within the assessment in that context.
Prioritise risks. • List all of the impacts in order of overall risk rating (combined likelihood and consequence) from highest risk to lowest.
Identify any critical thresholds or triggers that may have been identified as a part of the risk assessment process.
•Consider triggers that were identified in the baseline social and economic information such as break-even points in revenue and physical assessments such as a critical sea level in which the park may be severely affected or in which access to the beach may be restricted.
Key Questions:
•Have you got all of the necessary input for the risk assessment?
•Have you used the baseline social and economic value information effectively in the assessment?
•Do you need further information or assistance to undertake the risk assessment?
More Information
For further and more detailed information on undertaking risk assessments for climate change refer to the Victorian Coastal Hazard Guide at http://www.climatechange.vic.gov.au/__data/assets/pdf_file/0020/139241/Victorian-Coastal-Hazard-Guide.pdf or
Climate Change Impacts & Risk Management: A Guide for Business and Government, produced by the Australian Greenhouse Office (now the Department of Climate Change and Energy Efficiency) in 2006 http://www.climatechange.gov.au/community/~/media/publications/local-govt/risk-management.ashx
Social Impact Assessment Literature that may assist in understanding how and what social impacts can be assessed through the risk management.
Holroyd City Councils Social Impact Assessment Guidelines: http://www.holroyd.nsw.gov.au/__data/assets/pdf_file/0003/8877/siaguidelines.pdf
Macedon Ranges Shire Council Integrated Impact Assessment Toolkithttp://www.mrsc.vic.gov.au/files/IntegratedImpactAssessToolkitMRSC.pdf
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Step 2: Business Planning
The outcomes from Step 1 will result in a list of social and economic impacts and prioritised risks that affect the CCP and adjacent environs. Step 2 recognises the need for managers to invest in developing sufficient understanding of impacts and risks, and implementing strategies to address them. This investment requires active consideration in a business planning context.
Step 2 outlines how CCP managers can consider the priority risks on the commercial viability or future of the CCP through business planning processes.
A Key Policy Inputs
VCS Decision Support
Ensure the values of coastal resources are identified and the impacts of any proposed use or development on those values are understood and considered before decisions are made.
(Refer to Section 7 for VCS principles).
• Step 1 will have identified social and economic values of the CCP. This information is likely to be mostly qualitative and based on assumptions. Therefore further investment in generating knowledge to understand the social and economic values as well as social equity preferences to assist adaptation may be required through survey and research.
•When undertaking business planning, consider:
- The CCP business implications arising from the direct, flow-on impacts and cumulative social and economic impacts that need to be taken into account in CCP business planning and how they affect the CCP as a commercial entity?
- How the effects on the CCP as a commercial entity affect other coastal values and resources?
• Ensure that the risk profile/vulnerability and priority risks are reviewed annually for the business plan to prioritise and direct investment, as priorities and risk are subject to change.
•Consider the CCP business implications due to the social and economic impacts of climate change against other competing business priorities. How does climate change compare in terms of short-term and long-term priorities against other issues that may affect the commercial viability of the CCP?
Require a long-term view when making decisions about coastal and marine environments which are perennial ‘public good’ assets.
•When undertaking business planning, consider the long-term future of the CCPs, coastal reserve and community. This will require long-term CCP forward planning to consider:
- The use of climate change projections for future scenarios.
- Future climate change impacts and risks in addition to current business risks.
Key Questions:
•Do you have sufficient information on the economic value of coastal resources and the impacts of climate change on those values?
•Have you established a long-term planning horizon for climate change adaptation in the business planning process?
•How will funding to undertake research into social and economic values and investigation into adaptation options be funded? Are there any funding programs or grants available?
• Is any social and economic information available from other locations that can be applied to the CCP using benefits transfer?
• Is climate change adaptation embedded in future business planning processes, including reviews?
CCP Business PlanningSocial & economic impacts and risks
Coastal values
Policy: VCS CAPS & CMPs Tools: Guidelines Business Case
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CAPS & CMPs Decision Support
Decision makers should consider the relevant CAPs and CMPs that apply to their region and how they relate to the priority social and economic impacts and risks identified in Step 1.
(Refer to Section 7 for information on CAPs and CMPs)
• Ensure the objectives and actions in the relevant CAPs and CMPs that may be affected by social and economic impacts on the CCP (as outlined in Step 1) are identified for consideration in business planning and decision making.
• Identify and understand the implications that the CCP social and economic impacts may have on the ability of a CAP or CMP to achieve its objectives and how this related to business planning. Give particular consideration to the Plans’ social or economic objectives and the flow-on effects that this may have on the management of coastal reserves and on the adjacent communities.
• Identify any objectives or actions within the CAPs and CMP that may influence the viability of future adaptation options. This information will be useful in undertaking the adaptation options assessment is Step 3 by ensuring adaptation options align with the CAPs and CMP objectives.
Key Questions:
•Can any necessary research into social and economic value and investigation into adaptation options be undertaken as part of the CCP masterplanning or other business process to feed into Step 3 – Adaptation Options Assessment?
•Are there any existing internal or external projects to the CCP or opportunities that could be used for leverage to investigate relevant social and economic issues or values such as Local Government or State Government projects?
B Key Decision-Making Tools
Guidelines Decision Support
Protect the social, economic and environmental values of Crown land for current and future generations.
• In undertaking business planning, to ensure the protection of values, identify and describe the social and economic values of the CCP that are under threat for current and future generations. This information will have been identified in Step 1 and considered in the VCS policy of this Step.
Legal responsibilities of committees with regards to public safety.
•Describe any public health or safety issues arising from direct, flow-on or cumulative climate change impacts on the CCP and how they may affect the social and economic values of the CCP.
Developing a Business Case Decision Support
Project justification. •Describe the social and economic impacts on the CCP identified in Step 1 and then discuss within the context of the Policy requirements of this Step and the implications for the CCP as a commercial entity. This can form the basis for developing a business case for further investigation into:
- Understanding the social and economic values of CCP to campers, residents and the community as well as social equity preferences for sharing the burdens of impacts as well as the benefits and burdens of adaptation.
- Investigating adaptation options and the social and economic impacts of the adaptation options of the CCP, residents and community.
Project Outcomes. •Describe the desired outcomes of the social and economic research and adaptation options investigation.
Project Costs. • Provide a breakdown of the research and investigation and the sources of internal or external funding to undertake the work.
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Step 3: Options Assessment
This step involves the assessment of the various adaptation options available to manage the priority CCP risks identified in Step 1. It requires assessment of the social and economic impacts of the adaptation options and the social equity issues associated with each option. Detailed social and economic values and social equity decision support information is required as detailed in Section 6 of this report. CCP managers will need to obtain relevant information either through undertaking research for the CCP itself or by benefits transfer if appropriate as discussed also in Section 6.
The VCS as a policy input identifies the social and economic requirements that need to be considered in the decision making. The policy requirements will inform and assist Options Identification, the Detailed Options Risk Assessment and CBA in the decision-making tools of this step below. Although this step appears as a linear process, the policy and tools are in fact interdependent and the outcomes of the CBA may trigger a need for a review of the Detailed Options Risk Assessment.
A Key Policy Inputs
VCS Decision Support
Ensure integrated coastal zone planning and management (ICZM) takes into account the environmental, social and economic implications of decisions.
(Refer to Section 7 for VCS principles).
•When undertaking the Detailed Risk Assessment Tool within this Step, all coastal actions and local operations on the CCP and adjacent coastal reserves that will be affected by different adaptation options will need to be identified and discussed in relation to how these options affect ICZM outcomes in the region. Apply a social and economic lens to focus the outcomes of the options assessment on implications for economic values and social equity.
Ensure that the value of coastal resources are identified and the impacts of any proposed use or development on those values are understood and considered before decisions are made.
•When undertaking the Detailed Risk Assessment ensure all direct and indirect flow-on and cumulative social and economic effects of climate change adaptation options.
•Assessment of options must consider impacts of the adaptation option both on the CCP and off site. Off site includes the coastal reserves as well as the adjacent community both upstream and downstream.
• The assessment should also consider the intergenerational equity of the adaptation option/s and how and when the benefits and burdens of adaptation are distributed.
Ensure an integrated analysis of economic, social, environmental and cultural heritage implications of decisions.
•Apply Detailed Risk Assessment for the adaptation options and then CBA as outlined below.
Key Questions:
•Do you understand the non market economic values for the CCP held by campers and the community?
•Do you understand the social equity preferences of campers and the community in relation to how the burdens and benefits of climate change and adaptation can be equitably shared?
•Have you identified the social and/or economic drivers affect the CCP that may be affected by climate change adaptation?
•Have you looked at the interrelationships between physical, environmental, social and economic implications of impacts and adaptation impacts?
• Is there any social and economic information from benefits transfer available or is research required?
Adaptation Options Assessment Economic values pre- and post- adaptation Social equity preferences
Policy: VCS
Tools: Options identification Detailed options risk assessment Cost-benefit Analysis
Important social attributes
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B Key Decision-Making Tools
Options Identification Decision Support
Identify CCP adaptation options for priority risks identified in Step 1.
•Options identification needs to be undertaken in conjunction with the application of the VCS policy within this Step. Decision makers may wish to assess a large range of adaptation options, or select a small number of more likely options. When deciding which options to undertake further assessment of a number of factors can be considered:
- Budget constraints;
- Adaptation option effectiveness;
- Consistency with relevant policies, plans and strategies such as the VCS and CAPs;
- Influencing issues such as population, demand, lifestyle choices and demographics;
- Equity preferences of the community and campers identified through research (note: this will be limited by the knowledge of those surveyed);
- Other constraints such as environmental sensitivity or marine ecology.
•Adaptation options may be limited to a single option or include a suite of discrete options that can be implemented in the short term, or over longer planning or funding cycles. The option/s could form a part of a broader adaptation strategy.
• In a first pass review of the adaptation options, rule out any option/s that are obviously unfeasible or inconsistent with existing national, state or local policy positions. This will leave a short list of options for further assessment.
Detailed Options Risk Assessment
Decision Support
Revision of criteria
Consequence criteria will need to be revised from the initial risk assessment in Step 1 to cater for new information or types of social and economic impacts associated with adaptation options.
Likelihood criteria will not change from the Step 1 Risk Assessment.
(Use guidance in Section 7 and Appendix 4 to develop and undertake Risk Assessment).
• The Detailed Options Risk Assessment in this Step differs from the climate change risk assessment in Step 1. In this Step, it is the likelihood and consequences of the social and economic impacts arising from the adaptation options themselves that are assessed.
•Use the likelihood criteria adopted for the climate change risk assessment in Step 1 of the Pathway. These criteria will not change between Step 1 and 3.
•Use the key concepts and information provided in Section 6 to assist in revising the consequence criteria. Appendix 2 provides a brief example of developing consequence criteria that may assist.
• Information derived from social and economic research or benefits transfer can help adjust and add to the consequence criteria developed as a part of the Climate Change Risk Assessment in Step 1 of the pathway. This information will help inform the types of existing economic (market and non-market) values that can be assessed and the breadth of values. The following information may be considered in revising the criteria to guide risk assessment:
- Economic values of CCP pre- and post- adaptation Consider what changes in economic values may be acceptable and unacceptable. This will help determine spread of consequence ratings for changes in economic values to go in the descriptors for extreme, major, moderate, minor and insignificant consequences.
- Social equity preferences of campers, residents and community This will be a new component of the criteria, having not been required in Step 1. Social equity consequence criteria will need to reflect the fairness or preferences for sharing the different risks (benefits and burdens of adaptation) by the different groups affected.
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Detailed Options Risk Assessment
Decision Support
- Social attributes of CCP, coastal reserve and surrounding attractions. Criteria to assess impacts on social attributes due to adaptation options will need to use the outcomes of social research that identified the important social attributes of the CCP and the coastal reserve to campers and the community. The social attributes consequence criteria will need to reflect the range of impacts and the severity of the impacts.
- Estimate of financial or capital and ongoing cost of different adaptation option works This will identify the range or spread of costs for the different adaptation options. Consequence criteria for these costs will need to reflect that range from zero/small costs (insignificant consequence) to the highest costs (extreme consequence).
Assess the impacts of each shortlisted adaptation option.
• Ensure that the first option assessed is the ‘Do Nothing’ or Let Nature Take its Course’ option. Assess the flow-on social and economic effects of the ‘Do nothing’ option for likelihood and consequence. This sets a baseline for subsequent adaptation option assessments.
•Describe all social and economic impacts on the CCP, coastal reserve and community arising as a result of the adaptation option/s. Apply the social and economic leans to consider:
- Direct social and economic impacts due to the adaptation option;
- Flow-on social and economic impacts due to other physical impacts the adaptation option/s may cause;
- Cumulative social and economic impacts that combined may lead to further impacts on or off site.
• Identify benefits and burdens of the adaptation. Include the identification of any residual risk that cannot be addressed by the adaptation option as well as any new risks that arise.
•Rate each of the impacts of the adaptation option against the developed criteria – both qualitative and quantitative.
• List all of the assessed options in terms of smallest risk rating (i.e. least impact) to highest risk rating (i.e. highest impacts). Use this list to identify a preferred option or options for further assessment in the cost-benefit analysis.
• Identify the assumptions made in both developing the likelihood and consequence criteria and in undertaking the detailed risk assessment.
Key Questions:
•Do you have adequate information to do a full and frank assessment?
•Do you understand the equity preferences for the different adaptation options and how the benefits and burdens of adaptation would be shared across the different groups of campers, residents and the community?
•Have you considered the social impacts of the adaptation options such as effect on recreational value, loss of social space, reduced enjoyment and benefits, loss of other social amenities or businesses due to reduced visitor rates?
•Have you considered the total economic values of the CCP and the relationship to the local community and economy?
•Have you developed a robust baseline through the assessment of the ‘Do Nothing’ option?
•Are there any other processes that could be used to manage residual risk?
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Cost-Benefit Analysis Decision Support
Follow the CBA process outlined in Section 7 and Appendix 5.
•Undertake a CBA for the preferred option/s identified in the Detailed Risk Assessment. It is also recommended that a CBA for the ‘Do Nothing’ option is undertaken first to demonstrate baseline costs and benefits. The CBA must be undertaken within the context of the overall business because not only does it provide a complete analysis of all the direct and indirect impacts of adaptation on the business, but also then informs business planning in Step 4. The key elements to consider the social and economic information are below.
Identify the timing and who will be affected.
• List all of the groups, upstream and downstream that will be affected now and in the future. Select a timeframe over which the costs and benefits will be analysed. It is recommended that the timeframe selected is able to represent to some extent the generations that will derive a benefit from it. For example in 20 years the benefits of an adaptation option may start to be realised and costs could be adequately shared. Note that the timeframe applied at this point will also affect the discount rate applied later in the CBA.
Quantify the physical effects of the adaptation option that will lead to costs (burdens) and benefits for a community.
•Use the social and economic information from the research (as recommended in Section 6) and applied to the detailed risk assessment within this Step. The risk assessment will have identified the social and economic impacts (benefits and burdens).
Quantify the costs (burdens) and benefits of the effects of the adaptation option e.g. financial burdens, effects on economic values (including non-market values), flow-on community benefits etc.
•Use the information from the detailed risk assessment within this Step. Depending on how the cost-benefit analysis is framed influences whether changes are identified as costs or benefits. A cost to one group could benefit another. This information could include: Direct Financial Costs ($) Source of costs/values Capital expenditure Design and construction costs Operational expenditure Ongoing annual maintenance and operational costs, including inspections and monitoring Direct and Indirect Benefit ($) Change in Revenue due to works or CCP revenue strategy Capital asset depreciation Asset value Change in Capital value assets Asset value/Replacement value Change in Local community spend Spend in local economy Benefit of CCP to campers Revenue from campers & Surplus value from recreation to campers Community value of CCP Non-market use and non-use values of CCP Community value of adjacent environs Non-market and market values of and foreshore adjacent environs and foreshore Park campers value of CCP Recreation and conservation values of campers Park campers value of foreshore Use and non-use non-market values of foreshore
• It is important to note that what one group may consider to be a burden may be perceived as a benefit by other groups.
Adjust for equity preferences and importance of social attributes.
•Apply any necessary weighting or adjustments to account for non-measurable social impacts identified through social equity preference or social attribute importance research.
Compare the costs and benefits of the adaptation options.
•Add up the cost or burdens of the project including negative effects on economic values and add up the benefits of the project including values that are saved or preserved due to the adaptation option.
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Cost-Benefit Analysis Decision Support
Undertake net present value analysis.
• Select a discount rate and use the timeframe selected for analysis in the earlier part of this step.
•Analyse both the costs and benefits over time. For more guidance on NPV see Section 7.
Key Questions:
•What are the current and projected revenue and expenditure streams?
•What are the current market values and non-market values?
•What is the capital value of the CCP and its facilities?
•What is the current and projected investment in the CCP and coastal management beyond the CCP?
•What is the economic contribution to the local economy derived from campers?
•What are the trade offs for benefits and burdens? I.e. Does one group accept an impact or burden in one aspect so as to achieve benefits from or for another aspect?
•Which intangibles or effects that cannot be measured may have significant implications for the CBA? Is this information available and how might it be obtained? This information could be used to provide weighting or adjustment to the CBA.
•Do I need to reapply the outputs of the CBA to the Detailed Risk Assessment performed as a part of this Step? The outputs from the CBA can more give a more accurate representation of costs and benefits which can be fed back into the risk assessment to adjust any assumptions or assessment made that may have been incorrect or inaccurate.
More Information
The Victorian Coastal Strategy and the Victorian Coastal Hazard Guide discuss some of the different approaches for coastal adaptation under the key themes: Protect, Accommodation, Retreat.
The Victorian Coastal Strategy can be found at http://www.vcc.vic.gov.au/page/victorian-coastal-strategy
The Coastal Hazard Guide can be found at www.climatechange.vic.gov.au.
Further guidance on undertaking a Cost-Benefit Analysis can be found in the Handbook of Cost-Benefit Analysis (2006) by the Department of Finance and Administration at http://www.finance.gov.au/publications/finance-circulars/2006/docs/Handbook_of_CB_analysis.pdf
For more information on CBA discount rates and intergenerational comparisons visit: http://uat.pc.gov.au/__data/assets/pdf_file/0012/96699/cost-benefit-discount.pdfStage
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Stage 2: Decision-Making SupportStage 2 provides guidance to all those involved in decision-making processes for CCP adaptation. It provides CCP managers with guidance in how to gain key consents and approvals for climate change adaptation use, development or works. It provides support to decision makers such as Council and State Government Departments such as DSE, on how they may consider social and economic information in making decisions and providing approvals.
Decision Support Framework for Adaptation
63 Western Coastal Board
Stage 2: Decision-Making Support Stage 2 provides guidance to all those involved in decision-making processes for CCP adaptation. It provides CCP managers with guidance in how to gain key consents and approvals for climate change adaptation use, development or works. It provides support to decision makers such as Council and State Government Departments such as DSE, on how they may consider social and economic information in making decisions and providing approvals.
Step 4: CCP Business Planning
Step 5: CM Act Consent
Step 6: Planning Permit STA
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Decision-Making Pathway
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Step 4: Business Planning
This Business Planning step focuses on the needs of CCP managers to plan and obtain funding for the approval and implementation of the adaptation option. This Step builds on the business planning in Step 2 and is likely to use information from step 3 that changes business planning expectations. This Step is not intended to demonstrate how to do a CCP business plan, but highlight the key inputs required to justify investment in the adaptation option. It should include project justification through long-term strategic planning, development of a business case to support investment, and approval to allocate funds for the implementation and/or construction of the adaptation option to be undertaken.
A Key Policy Inputs
VCS Decision Support
Ensure integrated coastal zone planning and management (ICZM) takes into account the environmental, social and economic implications of decisions and considers cumulative implications of all decisions and impacts.
• Stage 1 Adaptation Options Assessment has addressed this principle throughout Steps 1-3. The preferred adaptation option/s identified should support the ICZM approach through its consideration of the directions and actions in CAPs and CMPs, and through consideration of social, economic and environmental issues and interrelationships.
•Use the Options Assessment outcomes in Step 3 as justification within the business plan and business case with this Step to demonstrate how the adaptation option/s consider the social and economic values of the CCP, coastline and reserves in the area. Ensure that consideration is given to the cumulative implications of the adaptation option/s including flow-on effects. This presents the opportunity to bring the CCP and its place in the bigger picture of the settlement into focus.
Assume a long-term view when making decisions about coastal and marine environments which are perennial ‘public good’ assets.
•When making decision regarding the adaptation option/s, consider the long-term future public use of the CCP and adjacent coastal reserve and how any social and economic implications (benefits and burdens) arising from the adaptation option/s are shared with current and future generations.
Key Questions:
•Does the adaptation option/s take into account the triple bottom line implications of the decision?
•Have cumulative impacts been adequately addressed?
•Does the adaptation option/s provide for a sufficiently long-term response to climate change impacts?
• Is further adaptation required after this?
•Are there opportunities to leverage the adaptation option, such as aligned projects or funding streams?
Have you considered if any significant investment in an adaptation option/s is economically efficient and effectively responds to social equity issues?
CCP Business Planning
Social and economic values pre- and post- adaptation option/s.Social equity preferences
Policy: VCS, CAPS & CMPs Guidelines Tools: BPMG for CoMs Cost-benefit Analysis (Step 3) Business Case (Step 2)
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CAPs & CMPs Decision Support
Consider the relevant CAPs and CMPs that apply and how they relate to the preferred adaptation option/s.
• The CAPs and CMPs policy in Step 2 set the context for how the CAPs and CMPs were considered in the investigation and adaptation options assessment. Following the identification of the preferred option/s as a part of Step 3, these option/s to be adopted for implementation now need to be further considered and how they affect or are affected by the relevant CAPs or CMPs.
• In undertaking business planning and developing a business case for the adaptation option/s consider any implications that preferred option/s may have on the ability of a CAP or CMP to achieve its objectives, particularly with any consistencies regarding social or economic objectives or opportunities to leverage off other actions. This will need to be taken into account in future review of CAPs and CMPs if not already addressed.
Key Questions:
•Do any adaptation options conflict with actions in the CAPs or CMP?
•Do the CAPs and CMPs already include provision for this adaptation option or similar strategies?
•Does the CAP or CMPs need to consider the adaptation option in the next review?
Guidelines Decision Support
Protect the social, economic and environmental values of Crown land for current and future generations.
•When considering how the preferred option fits into business planning, consider if the adaptation option protects the future social and economic values of the CCP. Use Decision Support described in the VCS input for this Step 4. This will also inform the development of a business case (below).
Legal responsibilities of committees with regards to public safety.
•Consider how the adaptation option is addressing the legal responsibilities of the land manager for public safety associated with climate change risks.
B Key Decision-making Tools
Cost-Benefit Analysis Decision Support
Use CBA outputs from Step 3. • The CBA analysis undertaken as a part of Step 3 demonstrates the overall costs and benefits associated with the adaptation within the context of the business as a whole that needs to be considered in business planning.
Developing a Business Case Decision Support
Project justification. •Describe the climate change impacts identified in Step 1 of the pathway (CCP implications) that demonstrates the need to adapt in the manner of the preferred option/s.
•Use descriptions and justification in the decision support of Policy inputs (VCS and CAPs & CMPs) within Step 4.
Project Outcomes. •Describe the proposed works, use, development or strategy and how it will achieve its desired objectives in providing protection and/or adaptation to climate change impacts, focusing on social and economic impacts. The associated impacts with the adaptation option itself on the economic values and social considerations identified and considered in Step 3 also need to be discussed.
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Developing a Business Case Decision Support
Options Analysis. • Identify the options that were considered in Step 3 of the pathway and describe the reasons behind selecting the preferred option/s. Provide justification using the Options Assessment that was undertaken and the results in relation to social and economic consequences.
• If only partial protection or effectiveness is achieved in adaptation, this needs to be highlighted and explained including why it does not address the entire climate change risk. Outline any economic and social equity implications that are either the reason for the partial adaptation or are affected by the partial adaptation.
Project Costs. • Provide a breakdown of the project costs, both capital expenditure and ongoing operational expenditure. Also required is the cost-benefit analysis that considers the market and non-market values of CCPs that was undertaken as a part of Business Planning in this step.
• It would also be prudent to include any potential methods for increasing revenue to cover the costs of the project or other sources of funding.
Implementation and ongoing management, operations and maintenance.
•Outline the implementation process including approval processes and stakeholder engagement. Timeframes and synergies/leverage with other projects could also be highlighted.
•Adaptation response options may require ongoing maintenance, inspections and monitoring. Indicate the likely schedule for such management procedures , the method by which they will be undertaken and opportunities for achieving efficiencies or leverage with other operations.
Key Questions:
•What is the long-term vision for the CCP over the next 20-50 years?
•What are the short term plans for the CCP over the next 3-5 years?
•What funding will be required to fund capital costs of adaptation and ongoing maintenance and operational costs?
• From where and how will the funding to undertake the implementation of the adaptation option be obtained – internally and externally?
More Information
For more information on Net Present Value and its use in Cost-benefit analysis go to: http://www.finance.gov.au/obpr/docs/Decision-Rules.pdf
The DSE Committee of Management Responsibilities and Good Practice Guidelines can be found at http://www.dse.vic.gov.au/__data/assets/pdf_file/0004/108958/CoMGuidelines.pdf
The DSE Best Practice Management Guidelines for Committees of Management Managing Caravan and Camping Park on Crown Land can be found at http://www.dse.vic.gov.au/__data/assets/pdf_file/0006/133962/DSE-Best-Practice-Management-Guidelines-Caravan-and-Camping-Parks-on-Crown-Land.pdf
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Step 5: Coastal Management Act 1995 Consent
This step outlines the process and requirements for gaining consent for adaptation works or development on coastal Crown land under the Coastal Management Act 1995. The business case performed as a part of Step 4 and the outputs from the previous Steps can also form the base of an application for consent to undertake works on coastal Crown land.
A Key Policy Inputs
Victorian Coastal Strategy Decision Support
Demonstrate consistency with all relevant policy in Principles 2 and 3.
•Consolidate all of the VCS decision support in Steps 1 – 4 to justify how the project has considered all relevant VCS principles.
CAPs and CMPs Decision Support
Consistency, synergies or conflict with CAPs and CMPs.
•Consolidate all of the CAPs and CMPs decision support in Steps 2 and 4 to justify how the project has considered the regional CAPs and CMPs that apply to the preferred option. While the consent process does not explicitly require consistency with the CMP, it is considered best practice to do this.
DSE Fact Sheet Decision Support
Requirements for Coastal Management Act 1995 consent.
• The application must have regard to the VCS and any CAPs that apply to the land (refer to above VCS Policy and CAP and CMP Policy within this Step for further guidance).
• The application must provide social and economic justification for the support. Further guidance on the contents of an application is outlined in this Step below under Decision-Making Tools.
B Key Decision-Making Tools
Application for Consent to Use or Develop Coastal Crown Land
Decision Support
DSE Fact sheet. •Use the DSE Fact sheet: Consent to use or develop coastal Crown land for guidance on developing an application. This Fact Sheet outlines the different things that need to be addressed in an application. The consideration of social and economic values and impacts may need to be addressed in a number of sections of the application. See below for further details on those sections.
The justification for the proposal. •Application must include justification of project including economic and social risks of not doing the project. Use justification provided as Decision Support in Step 4 and the Decision Support policy inputs described above in this Step.
•Draw on the risk assessment completed for the Do Nothing option in Step 3 to outline the risks of not doing the adaptation option.
CM Act ConsentSocial and economic values pre- and post- adaptation
Social and economic impacts
Policy: VCS CAPs & CMPs Fact sheetTools: Business Case (Step 4) Application for Consent
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Application for Consent to Use or Develop Coastal Crown Land
Decision Support
An assessment of the potential impacts and benefits of the proposal.
•Use outcomes from Step 1 and 3 of the pathway as described and consolidated in the Business Case of Step 4. This section must describe the social and economic benefits of the adaptation option for the CCP campers, residents and community (current and future generations) and discuss how the burdens and rewards of adaptation are spread across the CCP and community groups (including future generations) addressing market and non-market values, social equity and other important social attributes.
Any CAPs and CMPs applying to the land.
•Consolidated above in this Step from Steps 2 and 4.
• Further detail may be required on specific actions within these plans.
•Describe any other national, state and local policies (biodiversity, native vegetation, coastal acid sulphate soils) that may be affected and how this was weighed against the social and economic benefits of undertaking the preferred adaptation option. Detail how the adaptation option/s align with the relevant CAP and CMP for the region.
• Identify within the CMP how adaptation costs will be funded internally.
The total approximate cost of the proposal.
• This can include the holistic (market and non-market) costs associated with the proposal. Use information from Business Case in Step 4 and include the outcomes of the cost-benefit analysis for the adaptation option.
•Discuss how the project will be funded, both as initial construction or works costs and over time for monitoring and ongoing management where required. Identify internal and external funding sources such as grants, donations, local government contributions, camping fees.
Other information that could be considered e.g. Indigenous people’s interests.
•Describe any socio-cultural issues, sites or groups that may be affected by the proposal either in a positive or negative manner. Any potential effects on indigenous peoples’ interest or values would have been identified in Step 1 and 3 in the risk assessments. It would be prudent to engage the relevant representatives of the indigenous community as a part of the research and consultation process prior to completing and submitting any application.
Planning Scheme considerations. • Specify the local planning scheme and any overlays, zones or provisions as they related to the project and whether or not a planning Permit required for the project. This is addressed in Step 6.
Community Consultation. • Identify what community and stakeholder consultation has been undertaken throughout the various steps of the project such as research, surveys and consultation in regards to the preferred options once identified.
Key Questions:
•Have DSE been consulted throughout the Steps of this project?
•Are there any other policy or legislation that may influence the decision to consent, particularly those that have flow-on social and economic implications? Refer Section 7
•Does the project raise important issues for future refinement of the VCS, CAP and CMP?
•How does the project align with the policies, strategic directions and actions in the VCS, CAP and CMP and do you need to consider the adaptation option in their next reviews?
More Information
DSE Fact Sheet: Consent to use or develop coastal Crown land can be obtained from DSE or visit the website www.dse.vic.gov.au
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Step 6: Planning Permit
Once consent has been obtained under the Coastal Management Act 1995 through Step 5, CCP managers can apply for a planning permit from the local Council where one is required. Section 7 and Appendix 3 provides greater detail on the relevant policy, objectives, strategies and decision guidelines that will guide the decision to grant the permit.
A Key Policy Inputs
State Planning Policy Framework
Decision Support
Clause 11.05-4 Regional planning strategies and principles.
Climate Change, Natural Hazards and Community Safety.
•Describe how the project is responding to the impacts of climate change and natural hazards and promoting community safety through the preferred adaptation option. Use the Business Case generated in Step 4, and the discussion on public safety addressed within the Best Practice Management Guidelines for CoMs in Step 4.
Clause 11.05-5 Coastal Settlement.
•Use the VCS decision support in Step 4 in relation to ICZM as a guide to developing this response. Describe how the adaptation option/s supports a diverse coastal settlement through the consideration of economic values and social equity preference of not only the CCP, but the broader community.
Clause 12.02 Coastal areas
12.02-2 Appropriate development of coastal areas.
•Use the consolidated VCS decision support in Step 5 and the information contained in the Application for Consent under the Coastal Management Act 1995 in Step 5. The VCS is the policy guidelines in relation to all clauses in 12.02.
•Describe how the adaptation option has considered coastal biodiversity, ecological values and cultural issues, including the flow-on effects of social and economic values to the CCP and surrounding community.
Clause 12.02 Coastal areas
12.02-3 Coastal Crown land.
• This clause requires that development achieves an environmental, social and economic balance.
•Describe how the adaptation option maintains safe and equitable public access to the CCP and the overall social and economic benefits to the community. Discuss the triple bottom line balance.
Clause 12.02 Coastal areas
12.02-4 Coastal tourism.
•Describe how this adaptation option ensures a diverse range of accessible and equitable accommodation options for the coast and that it is suitable to the area and coastal character. Also discuss the economic values of the CCP, what it contributes to society and the need for its continued existence.
Section 13.01 Climate change impacts.
13.01-1 Coastal inundation and erosion.
• This clause relates to planning for and managing coastal impacts of climate change and therefore the crux of the CCP adaptation option. Use the Business case justification in Step 4, describing how the risks of climate change are being addressed through this adaptation option.
•Also discuss other risks have been identified are not addressed within the current application.
Planning PermitPre- and post- adaptationsocial and economic impactsSocial and equity impacts
Policy: SPPF LPPFTools: Business Case (Step 4)
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Local Planning Policy Framework (LPPF
Decision Support
The Municipal Strategic Statement (MSS).
• Review the MSS for the municipality for any relevant social and economic issues and values. Respond and describe if and how the adaptation option is consistent with these points within the MSS.
Zones – Check the zone of the site.
The main zone that applies to CCPs on Crown land along the western Victorian coastline is Public Park and Recreation Zone (PPRZ) – the purpose of this zone is to recognise land for public use. Refer to Appendix 3.
• Zones require a permit for development, works and specific uses for land within the zone. CCP managers will need to check the relevant zones in the local planning scheme and any schedules that may exempt particular types of works or development.
•Discuss how the proposed adaptation option attempts to retain or enhance the social and economic values of Crown land for public use and enjoyment – as a CCP or other coastal reserve.
Overlays – Check which overlays apply to the site.
• If an area that may be affected by the proposed adaptation option is covered by an overlay, CCP managers should identify the specific requirements of the overlay as specified in the local planning scheme.
•Within a number of overlays, there are decision guidelines that require consideration of social or economic values. Those specific decision guidelines are:
- Whether the proposal has any effect on any significant cultural or heritage place and the social values. (Heritage Overlay);
- Whether the proposal has any effect on significant landscapes and the associated social values. (Significant Landscape Overlay);
- Whether the proposal has any effects on flood risk to life, health and safety (Land Subject to Inundation Overlay and Floodway Overlay);
- Whether the proposal assists in building resilience to bushfires and reduces the risk to life and property. (Wildfire Management Overlay).
Particular provisions. •Check the local planning scheme for relevant provisions. However, there are not likely to be any particular provisions that apply to CCPs.
General Provisions.
65.01 Approval of an application or plan.
Before deciding on an application or approval of a plan, the responsible authority must consider, the matters set out in Section 60 of the Act.
•Matters to address include:
- The effect on the amenity of the area.
- The degree of flood, erosion or fire hazard associated with the location of the land and the use, development or management of the land so as to minimise any such hazard.
•CCP managers can use the outcomes from Step 1 and 3 to discuss the potential impacts of climate change on the CCP and surrounding area. This should include the effects on amenity and discuss how the adaptation option will attempt to manage climate change impacts on amenity as well the amenity impacts created by the adaptation option itself. Amenity can be expressed in a range of ways, including through economic value and social preferences and importance.
Incorporated Documents. •CCP managers will need to consider if any of these documents need to be considered as a part of the planning permit process and any impacts of economic and social equity that may affect or be affected by these documents.
Key Questions:
•Does the adaptation option/s address the social and economic objectives of each relevant planning policy?
•Has each policy been addressed in the planning permit application?
•Has sufficient information been used in the permit process to enable a holistic consideration of the suitability of the adaptation option?
More Information
Planning schemes vary in each municipality. CCP managers will need to identify the specific planning scheme requirement for their municipality at http://planningschemes.dpcd.vic.gov.au/index.htm and contact the local council
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9.1 LimitationsTwo primary limitations apply to this Framework:
•Dealing with uncertainty; and
• The ability of people to embrace a relatively new approach to decision making.
9.1.1 Uncertainty
Trying to assess the likelihood and consequence of projected climate change impacts introduces a range of uncertainties, which can sometimes prove challenging for decision-makers. However, uncertainties are inherent when dealing with climate change, and it is necessary to put aside those uncertainties and adopt a precautionary approach outlined in the VCS.
9.1.2 A new approach
Decision making is constantly evolving. This Framework seeks to assist in this evolution by highlighting the importance of social and economic information and where it should be included in decision making for adaptation. While we recognise that this represents a shift in thinking for many decision makers, we expect the opportunities inherent in this approach to empower all stakeholders to make better decisions.
9.2 OpportunitiesThis framework enables CCP managers and decision makers to see where social and economic information could be considered in climate change adaptation planning. The inclusion of non-market values and social equity preference information in decision making provides an important opportunity to improve decision making consistent with the requirements of legislation and will hopefully prove to be a useful approach.
9.2.1 Economic values
By obtaining economic (market and non-market) values and applying them to the Decision Support Framework, CCP manager will be assured that the social and economic impacts of climate change on their CCP will be minimised and that the impacts of the adaptation to climate change itself will be identified and minimised. Where information or adaptive capacity is not readily available for CCP managers to undertake climate change adaptation, further support,
advice or assistance should be sought.
Understanding land values may also add weight to understanding the impacts of climate change on CCPs. It is recognised however that there currently exists a paucity of information on the land or asset values of Crown land, particularly caravan and camping parks. In a typical valuation, land values are based on market value of the land, the financial return from the land or a combination of both. Neither of these are readily available for CCPs because they are not purely commercial ventures and subject to the typical requisite market factors although there is the potential for land values to be estimated by a qualified and registered valuer; however this has important limitations (WCB 2012b).
9.2.2 Social equity
The consideration of social equity in adaptation decision-making is relatively new. Knowledge around what people think is fair, and how benefits and burdens should be spread, will continually evolve and vary depending on the location, demographics and the community. Perceptions of fairness often underpin conflict arising from change, and decisions based on a true understanding of what people think is fair provides an important dimension to climate change adaptation. Improved understanding of social equity preferences, and how and why they exist or change, will inform better decision making in climate change adaptation.
9.2.3 Community engagement
Undertaking research offers those managing CCPs a chance to engage with their stakeholders: campers, visitors and residents in the surrounding community. It offers more than the opportunity to obtain values and preferences and provides ideas, feedback, builds better relationships and community support.
9.2.4 Ongoing research
An ongoing commitment to research can provide valuable information to reflect changing values and perceptions over time as a result of changes, events or lifestyle - that can be used in CCP planning. This is information will also prove useful to other CCP managers and can be used for benefits transfer.
There is also opportunity for a more strategic approach to CCP climate change adaptation within regions. Information and knowledge sharing can help build capacity amongst
9. Opportunities and Limitations
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CCP managers and can also involve other decision makers such as DSE and local government. This collaboration will also help to identify other projects in the region that could provide leverage for climate change adaptation projects in general.
9.2.5 Transferability
By raising the profile of social and economic information used to inform decision-making in addition to coastal climate change adaptation, the social and economic values of CCPs will become more recognised. This may also act as a catalyst for recognition of social and economic information in other types of decision-making and areas of change management.
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App
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Appendix 1: CCP Adaptation Options
Appendix 2: Examples of Developing Risk Assessment Criteria
Appendix 3: State Planning Policy Framework and Local Planning Policy Framework
Appendix 4: Risk Assessment Process Diagram
Appendix 5: Cost Benefit Analysis Process Diagram
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CCP Adaptation Options
ProtectSea wall or barrier
A sea wall or barrier is a structure that has two primary functions; retaining soil and surcharge loads (additional pressure) behind the wall and protection of shoreline from wave loads. In addition, walls or barriers typically protect frontline beaches from storm surges, shoreline erosion and wave overtopping (Vitaly 2010). These barriers can provide some protection for the CCPs from storm surge but often cannot protect a beach from erosion and can interfere with coastal processes which may result in the loss of the beach. A sea wall or barrier also does not provide protection from permanent sea level rise.
Riverine or estuarine levees
A levee is a barrier designed to temporarily hold back riverine or estuary floodwaters. A levee is constructed of compacted soil and often has a solid concrete core to provide additional stabilisation and protection from failure. These levees cannot withstand wave energy and aren’t suitable for sea protection, instead providing protection from more passive flooding from estuaries.
Land management and maintenance
Land management and maintenance is a means of bushfire protection and management. It aims to reduce the risk of bushfire and bushfire impacts on CCPs by managing vegetation to reduce potential bushfire fuel surrounding and within the park.
AccommodateBeach renourishment
Beach nourishment is the process of dumping or pumping sand from elsewhere onto an eroding shoreline to create a new beach or to widen the existing beach. Beach nourishment is often proposed when beach erosion threatens to remove an existing beach, making it too narrow to be used. Renourishment is usually an ongoing process, as it is still subjected to the eroding coastal processes and is a combination of the protect and accommodate option.
Fill pads
Fill pad are usually achieved by filling flood-affected land to a height about flood level to ensure the land or building floor levels are flood free (achieving freeboard). This can mean that land surrounding the fill pad is still inundated and can cause safe access issues, but is a means of ensuring people have a place of safe refuge. Similar to levees, fill pads are not well suited to high wave energy environments.
Dune revegetation or restoration
Dune revegetation and restoration aim to restore and maintain a protective natural dune buffer between coastal development and the sea. Ideally, the dune should be of sufficient dimensions to provide total protection from coastal erosion and flooding, including the aggravation of these hazards by sea level rise. A good cover of appropriate native sand-binding vegetation needs to be established and maintained, especially on the seaward face of the frontal dune. Whilst this may provide additional stabilization to the dune, it will not protect the dune from existing and future coastal processes and storm surge.
Appendix 1
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Sustainable water use planning
In response to ongoing dry conditions, CCP managers may choose to implement a sustainable water use plan or a drought management plan that identifies how and where water is used and how it can be saved in order to maintain existing levels of satisfaction for recreation, amenity and consumption.
Change Accommodation Mix
Changing the mix of accommodation such as powered sites versus unpowered sites, cabins versus camping site, casual camping sites versus seasonal or permit holders could mean more flexibility to adapt in response to temporary or gradual changes over time.
Change Park Amenities
CCPs that may be subject to partial or temporary inundation from riverine flooding or storm surge may find that relocating facilities and infrastructure to flood free locations will provide protection for those facilities and the accommodate the temporary inundation of the CCP.
RetreatRelocate/Retreat/Expand Park
Where permanent inundation or public safety becomes a risk, permanent relocation may be the only suitable option. CCPs that are adjacent to tracts of Crown land that is not used for other purposes, may consider expanding the area of the CCP into land that may not be affected by sea level rise, storm surge or flooding.
Allow nature to take its course (Do nothing)
This is the ‘do nothing’ option. By allowing nature to take its course, CCPs may see a gradual recession in CCP area or camping sites as a result of sea level rise, or a sudden damaging erosion event. This option may be the most financially viable in some circumstances, however in making that decision, CCP managers and decision makers will need to consider what the loss of the park may mean in terms of economic value and important social attributes for campers, residents and the community.
Residual TreatmentEmergency Management
Emergency management planning for particular CCPs should deal with the full range of types and severities of residual climate change impact risks which cannot be managed. This includes sea level rise, storm surge, flooding, extreme wind events, bushfire and extreme heat events.
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Examples of Developing Risk Assessment CriteriaAn example of applying rating criteria to monetary economic and social (expressed as non-market value) impacts could be:
Example of non-market value consequence criteria
Scale of Consequences Economic Consequences (descriptor)
Major • Permanently affects market value or non-market value by greater than Z% per annum
Severe • Permanently affects market value or non-market value by Y% to Z% per annum
Moderate • Permanently affects market value or non-market value by X%- Y% per annum
Minor • Permanently affects market value or non-market value by less than X% per annum
Negligible •No affect on market or non-market values
Example of important social attribute consequence criteria
Those qualitative social impacts that do not have a monetary value can still be used in risk assessments or to inform decision making.
Example of rating descriptive social impacts could be:
Scale of Consequences Economic Consequences (descriptor)
Major • Permanent loss of access to beach of entire beach due to inundation or coastal erosion.
Severe • Permanent loss of beach: permanent loss of Z metres of beach
Moderate • Permanent loss of beach: permanent loss of Ym of beach
Minor • Permanent loss of beach: permanent loss of Xm of beach
Negligible •No loss of beach:
Appendix 2
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State Planning Policy Framework and Local Planning Policy FrameworkState Planning Policy Framework
The SPPF contains strategic issues of State importance which must be considered when decisions are made. Sections relevant to coastal CCP use and development are:
Clause 11.05-4 Regional planning strategies and principles
Objective
To develop regions and settlements which have a strong identity, are prosperous and are environmental sustainable.
Strategies - Identify and assess the spatial and land use planning implications of a region’s strategic directions in Regional Strategic
Plans.
- Apply the following principles to settlement planning in Victoria’s regions, including the hinterland areas.
Climate Change, Natural Hazards and Community Safety
The clause requires proposals and planning to:
Respond to the impacts of climate change and natural hazards and promote community safety by:
- Siting and designing new dwellings, subdivisions and other development to minimise risk to life, property, the natural environment and community infrastructure from natural hazards, such as bushfire and flooding.
- Developing adaptation response strategies for existing settlements in hazardous and high risk areas to accommodate change over time.
Policy guidelines
Planning must consider as relevant:
Ready for Tomorrow – a Blueprint for Regional and Rural Victoria (State Government of Victoria, 2010).
Clause 11.05-5 Coastal Settlement
Objective
To plan for sustainable coastal development.
Strategies - Support a network of diverse coastal settlements which provides for a broad range of housing types, economic
opportunities and services.
- Avoid linear urban sprawl along the coastal edge and ribbon development within rural landscapes and protect areas between settlements for non-urban use.
- Avoid development on ridgelines, primary coastal dune systems and low lying coastal areas.
Policy guidelines
Planning must consider as relevant:
- Victorian Coastal Strategy (Victorian Coastal Council, 2008).
Appendix 3
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Clause 12.02 Coastal areas
Objective
To recognise and enhance the value of the coastal areas to the community and ensure sustainable use of natural coastal resources.
Strategies
Coordinated land use and planning with the requirements of the Coastal Management Act 1995 to:
- Provide clear direction for the future sustainable use of the coast, including the marine environment, for recreation, conservation, tourism, commerce and similar uses in appropriate areas.
- Protect and maintain areas of environmental significance.
- Identify suitable areas and opportunities for improved facilities.
Apply the hierarchy of principles for coastal planning and management as set out in the Victorian Coastal Strategy 2008, which are:
Principle 1: Provide for the protection of significant environmental and cultural values.
Principle 2: Undertake integrated planning and provide clear direction for the future.
Principle 3: Ensure the sustainable use of natural coastal resources.
When the above principles have been considered and addressed:
Principle 4: Ensure development on the coast is located within existing modified and resilient environments where the demand for development is evident and the impact can be managed.
Policy guidelines
Planning must consider as relevant:
- The Victorian Coastal Strategy (Victorian Coastal Council, 2008).
12.02-2 Appropriate development of coastal areas
Objective
To ensure development conserves, protects and seeks to enhance coastal biodiversity and ecological values.
Strategies - Ensure development is sensitively sited and designed and respects the character of coastal settlements.
- Maintain the natural drainage patterns, water quality and biodiversity within and adjacent to coastal estuaries, wetlands and waterways.
- Protect cultural heritage places, including Aboriginal places, archaeological sites and historic shipwrecks.
Policy guidelines
Planning must consider as relevant:
- The Victorian Coastal Strategy (Victorian Coastal Council, 2008).
- The Coastal Spaces Landscape Assessment Study (Department of Sustainability and Environment, 2006).
- Any relevant coastal action plan or management plan approved under the Coastal Management Act 1995 or National Parks Act 1975.
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12.02-3 Coastal Crown land
Objective
To achieve development that provides an environmental, social and economic balance.
Strategies
Ensure that use and development on or adjacent to coastal foreshore Crown land:
- Maintains safe, equitable public access and improves public benefit whilst protecting local environmental and social values.
- Demonstrates need and coastal dependency.
- Is located within a defined activity or recreation node.
Policy guidelines
Planning must consider as relevant:
- The Victorian Coastal Strategy (Victorian Coastal Council, 2008).
- The purpose for which land is reserved under the Crown Land (Reserves) Act 1978.
- Any relevant coastal action plan or management plan approved under the Coastal Management Act 1995 or National Parks Act 1975.
12.02-4 Coastal tourism
Objective
To encourage suitably located and designed coastal and marine tourism opportunities.
Strategies
- Ensure that a diverse range of accommodation options and coastal experience are maintained and provided for and that sites and facilities are accessible to all.
- Ensure tourism developments demonstrate a tourist accommodation need and support a nature based approach within non-urban areas.
- Ensure developments are of an appropriate scale, use and intensity relative to its location and minimises impacts on the surrounding natural visual, environmental and coastal character.
Policy guidelines
Planning must consider as relevant:
- The Victorian Coastal Strategy (Victorian Coastal Council, 2008).
- The Coastal Spaces Landscape Assessment Study (Department of Sustainability and Environment, 2006)
Clause 13.01 Climate change impacts
Clause 13.01-1 Coastal inundation and erosion
Objective
To plan for and manage the potential coastal impacts of climate change.
Strategies
In planning for possible sea level rise, an increase of 0.2 metres over current 1 in 100 year flood levels by 2040 may be used for new development in close proximity to existing development (urban infill).
- Plan for possible sea level rise of 0.8 metres by 2100, and allow for the combined effects of tides, storm surges, coastal processes and local conditions such as topography and geology when assessing risks and coastal impacts associated with climate change.
- Consider the risks associated with climate change in planning and management decision-making processes.
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- Ensure that land subject to coastal hazards are identified and appropriately managed to ensure that future development is not at risk.
- Ensure that development or protective works seeking to respond to coastal hazard risks avoids detrimental impacts on coastal processes.
- Avoid development in identified coastal hazard areas susceptible to inundation (both river and coastal), erosion, landslip/landslide, acid sulfate soils, bushfire and geotechnical risk.
Policy guidelines
Planning must consider as relevant:
- The Victorian Coastal Strategy (Victorian Coastal Council, 2008).
- Any relevant coastal action plan or management plan approved under the Coastal Management Act 1995 or National Parks Act 1975.
- Any relevant Land Conservation Council recommendations.
Local Planning Policy Framework
Zones & Overlays
Zones and overlays may exist over the site that prohibit particular use or development or specify that that the use or development may need a planning permit.
Zones require a permit for development, work and specific uses; and schedules exist that may exempt particular types of works or development and can vary between municipalities.
There are main zone that applies to caravan and camping parks on Crown land along the west Victorian coastline is Public Park and Recreation Zone (PPRZ).
Public Park and Recreation Zone (PPRZ)
Purpose: - To implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal
Strategic Statement and local planning policies.
- To recognise areas for public recreation and open space.
- To protect and conserve areas of significance where appropriate.
- To provide for commercial uses where appropriate.
Decision guidelines
Before deciding on an application to use or subdivide land, construct a building or construct or carry out works, in addition to the decision guidelines in Clause 65, the responsible authority must consider, as appropriate:
- The State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- The comments of any public land manager or other relevant land manager having responsibility for the care or management of the land or adjacent land.
- Whether the development is appropriately located and designed, including in accordance with any relevant use, design or siting guidelines.
Common overlays that exist on coastal Crown land include:
Heritage Overlay (HO)
Purpose
- To implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- To conserve and enhance heritage places of natural or cultural significance.
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- To conserve and enhance those elements which contribute to the significance of heritage places.
Decision guidelines
Before deciding on an application, in addition to the decision guidelines in Clause 65, the responsible authority must consider, as appropriate:
- The State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- The significance of the heritage place and whether the proposal will adversely affect the natural or cultural significance of the place.
- Any applicable statement of significance, heritage study and any applicable conservation policy.
- Whether the proposed works will adversely affect the significance, character or appearance of the heritage place.
- Whether the lopping or development will adversely affect the health, appearance or significance of the tree.
Significant Landscape Overlay (SLO)
Purpose
- To implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- To identify significant landscapes.
Decision guidelines
Before deciding on an application, in addition to the decision guidelines in Clause 65, the responsible authority must consider as appropriate:
- The State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- The statement of the nature and key elements of the landscape and the landscape character objective contained in a schedule to this overlay.
- The conservation and enhancement of the landscape values of the area.
- The need to remove, destroy or lop vegetation to create defendable space to reduce the risk of bushfire to life and property.
- The impact of buildings and works on significant views.
- To conserve and enhance the character of significant landscapes
Land Subject to Inundation Overlay (LSIO)
Purpose
- To implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- To identify land in a flood storage or flood fringe area affected by the 1 in 100 year flood or any other area determined by the floodplain management authority.
- To ensure that development maintains the free passage and temporary storage of floodwaters, minimises flood damage, is compatible with the flood hazard and local drainage conditions and will not cause any significant rise in flood level or flow velocity.
Decision guidelines
Before deciding on an application, in addition to the decision guidelines in Clause 65, the responsible authority must consider, as appropriate:
- The State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- Any local floodplain development plan.
- Whether the proposed use or development could be located on flood-free land or land with a lesser flood hazard outside this overlay.
- The susceptibility of the development to flooding and flood damage.
- The potential flood risk to life, health and safety associated with the development.
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- Flood risk factors to consider include:
» The frequency, duration, extent, depth and velocity of flooding of the site and accessway.
» The flood warning time available.
» The danger to the occupants of the development, other floodplain residents and emergency personnel if the site or accessway is flooded.
- The effect of the development on river health values including wetlands, natural habitat, stream stability, erosion, environmental flows, water quality and sites of scientific significance.
Floodway Overlay (FO)
Purpose
- To implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- To identify waterways, major floodpaths, drainage depressions and high hazard areas which have the greatest risk and frequency of being affected by flooding.
- To ensure that any development maintains the free passage and temporary storage of floodwater, minimises flood damage and is compatible with flood hazard, local drainage conditions and the minimisation of soil erosion, sedimentation and silting.
Decision guidelines
Before deciding on an application, in addition to the decision guidelines in Clause 65, the responsible authority must consider, as appropriate:
- The State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- The local floodplain development plan or flood risk report.
Wildfire Management Overlay
Purpose
- To implement the State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- To assist to strengthen community resilience to bushfire.
- To identify areas where the bushfire hazard requires specified bushfire protection measures for subdivision and buildings and works to be implemented.
- To ensure development does not proceed unless the risk to life and property from bushfire can be reduced to an acceptable level.
General decision guidelines
Before deciding on an application, in addition to the decision guidelines in Clause 52.47 and Clause 65, the responsible authority must consider, as appropriate:
- The State Planning Policy Framework and the Local Planning Policy Framework, including the Municipal Strategic Statement and local planning policies.
- The locality and description and the bushfire management statement.
- The objectives, standards and decision guidelines of Clause 52.47.
- Whether the level of risk to life, property and community infrastructure from bushfire is acceptable.
- Any relevant approved State, regional or municipal fire prevention plan.
- The impact of any relevant existing or planned State, regional or local bushfire management and prevention actions on the level of risk to life, property and community infrastructure from bushfire.
Each overlay provision has a purpose and set of decision guidelines that must be considered in the application for planning permit if it applies to the land.
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General Provisions
The decision guidelines that the responsible authority must decide whether the proposal will produce acceptable outcomes are outlined under Clause 65 of the VPPs (Section 60 of the P&E Act).,
65.01 Approval of an application or plan
Before deciding on an application or approval of a plan, the responsible authority must consider, the matters set out in Section 60 of the Act. (Refer to Section 7.1.1 of this document)
62 Uses, buildings, works, subdivisions and demolition not requiring a permit
This refers to uses, buildings, works, subdivisions and demolition not requiring a permit may. Those exempt are.
- Buildings or works which provide for fire protection under relevant legislation.
- Maintenance works carried out by a municipality or public authority to prevent or alleviate flood damage.
Other Buildings and works not requiring a permit unless specifically required by the planning scheme include:
- Street furniture including post boxes, telephone booths, fire hydrants, bus shelters, shade sails, traffic control devices and public toilets.
- Park furniture including seating, tables, shelters, rubbish bins, playground equipment, barbeques, shade sails, drinking fountains and public toilets.
- Repairs and routine maintenance to an existing building or works.
- A rainwater tank with a capacity of not more than 4500 litres.
- Any works necessary to prevent soil erosion, or to ensure soil conservation or reclamation.
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Risk Assessment Process Diagram
Undertaking the risk assessment
Risk assessments should be consistent with the Australian/New Zealand Standard AS/NZ ISO 31000:2009 Risk Management Principles and Guidelines.
Appendix 4
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Cost-Benefit Analysis Process DiagramCost-Benefit Analysis Framework (Gilpin 2000)
Appendix 5
Determine scope and objective
What are the constraints?
What are the alternatives?
Identify costs and benefits
Quantify/value costs and benefits
Calculate net present value
Sensitivity test for uncertaincy
Consider equity issues and intangibles
Report
