Decision frameworks for restoration & adaptation investment–Applying lessons from asset-intensive industries to the Great Barrier Reef
Asset-intensive industries (including water and power utilities, mineral resources and energy) are those which require significant levels of capital investment in their assets in order to operate. These industries face challenges from uncertainty in resource availability and demand for end products, the intricate and complicated nature of their assets, and the complexity of the economic, ecological and social settings in which they operate. In these industries, the application of decision frameworks that account for this uncertainty and complexity in guiding asset investment and development is standard practice. Lessons from asset-intensive industries were applied during the concept feasibility phase of the Reef Restoration and Adaptation Program (RRAP) to establish the investment case for research and development into interventions to help the Great Barrier Reef (GBR) resist, adapt to, and recover from the impacts of climate change. The authors worked with RRAP partners to define a decision framework that included structured decision-making processes (SDM), a cost-benefit analysis (CBA), and a value of information (VoI) analysis, to establish the investment case for intervening on the GBR which led to success in securing Australian Government commitment for the next phase of the Program. With climate change expected to drive increased demand for significant levels of restoration and adaptation investment in large integrated social, ecological and economic assets (such as the GBR), the lessons from RRAP offer insights for the application of decision frameworks to inform public and private investment priorities.