Financial benefits from the implementation of nature-based solutions in the settlements – a case study on a catchment of Lake Velence

In recent years, the changing weather patterns caused by climate change have already impacted the population, but in 2022, these weather extremes surpassed the ones of previous years. Severe droughts across Europe posed significant challenges, primarily through water scarcity and caused severe (security of supply and economic) damages to different societal sectors. Drier summers and warmer, snow-less winters significantly change the water cycle and thus the amount of naturally retained rainwater on site. A long-term, sustainable solution is the widespread implementation of nature-based solutions.

The Lake Velence watershed in Hungary has been showing signs of drying up for years. To implement nature-based solutions, the catchment's natural features, the stakeholders' general requirements, the economic opportunities, and possible benefits must be incorporated. Small- and large-scale agricultural activities face a growing deficit in irrigation water, while the surrounding settlements of Lake Velence can collect a significant amount rainwater. The research focuses on the potential amount of rainwater that can be collected in the selected hilly settlements, it’s uses, and its ability to generate additional income. We evaluated the costs and benefits of implementing or non-implementing nature-based solutions based on the extent of rainwater usage. Using basic calculations of the area's present and possible future cultivation/agricultural activities, we examined the impacts of blue-green infrastructures on local GDP through a lost profit versus available surplus income comparison.