MainDB: The Latin American Water Funds Partnership

Title: The Latin American Water Funds Partnership
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NWPTypeOfOrganization: Intergovernmental organization (IGO); Non-governmental organization (NGO)
NWPGeographicRegion: Caribbean and Central America; North America; South America
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Adaptation element: Adaptation planning and practices; Capacity building; Climate observations; Communication and outreach/awareness; Education and training; Financial support; Impact assessment; Knowledge management; Monitoring and evaluation/M&E; Science and research; Vulnerability assessment
Adaptation sector/theme: Water resources; Ecosystems; Disaster risk reduction
Climate hazard:
Country: Mexico; Brazil; Ecuador; Colombia; Venezuela (Bolivarian Republic of); Panama; Costa Rica; Dominican Republic; Guatemala; Honduras; Peru; Bolivia; Chile
NWPDataSource: PSI
Description: Floods, droughts, water contamination, and other impacts resulting from climate change pose risks to businesses and communities that strongly depend on water resources and on the ecosystems around them. A proactive approach to watershed management can reduce the financial, operational, and regulatory risks associated with this dependency, and also foster business opportunities by protecting environmental capital. The local water funds process is started with the stakeholder engagement and the establishment of a technical and an engagement team. It is very important to align public and private interventions in the basin. Once the key stakeholders are on board, a financial mechanism is established (usually a trust fund) in which interest earnings are invested in the watershed.
 
The following actions are part of the solutions proposed to improve the watershed:
 
Better management practices, such as sustainable production, low-impact agriculture, silvopastoral cattle ranching systems, and similar.
 
Hydrological monitoring protocols.
 
Awareness campaigns.
 
Educational campaigns.
 
Data recollection and analysis.
 
Payments for environmental services (aimed to establish economic incentives to rural farmers to replace unsustainable practices)
 
Conservation agreements and other conservation practices of natural ecosystems.
 
Restoration, assisted (reforestation and others) or un-assisted (natural regeneration), of degraded ecosystems.
 
Water Funds attract voluntary contributions from large water users downstream, like water utility companies, hydroelectric companies, and beverage companies. Revenue from these Water Funds is then directed to preserve key lands upstream that filter and regulate the water supply. Water Funds also create incentives and help finance sustainable economic development opportunities to benefit local communities.
Expected outcome: Leverage $27 million dollars for investment in Water Funds in the region.
Create and strengthen at least 32 Water Funds in five years.
Have a positive impact on as many as 3 million hectares of natural ecosystems.
Potentially benefit as many as 50 million people who receive their water supply from the watersheds where the Water Funds operate.
Further information: For further information go to:
 
FEMSA Foundation: https://femsafoundation.org/agua/lazos-de-agua/
 
The Nature Conservancy: https://www.nature.org/en-us/about-us/where-we-work/latin-america/stories-in-latin-america/water-funds-of-south-america/
 
Inter-American Development Bank: https://www.iadb.org/en/news/news-releases/2011-06-09/water-in-latin-america-and-the-caribbean,9402.html
Find the case study summary here:
https://unfccc.int/files/adaptation/nairobi_work_programme/private_sector_initiative/application/pdf/femsa_foundation.pdf
NWPGeographicScope: Regional
Indicators of achievement: Every water fund provides specific solutions and lines of action based on the needs and requirements identified during the technical analysis. The indicators of achievement would vary from water fund to water fund. The following represents the key indicators:
Total hectares of protected areas systems (public, sub-national) where actions have been taken to strengthen management activities.
Total hectares of private lands under better management practices (where interventions are being put in place, and where interventions are already in place).
Reduction in water treatment, dredging, and/or replacement costs (pilot water fund).
Total estimated annual sediment load abatement through interventions (Metric tons) in pilot sites.
Total hectares impacted by the Water Fund.
Total kilometers and percentage of stream network of the watershed directly related to water fund interventions (directly supported by the Platform/leveraged by the platform).
Total hectares of the watersheds impacted by the Water Fund actions.
The area of influence of the Water Funds.
Private and public sector funding to support the development and establishment of Water Funds.
Amount of money spent by each Water Fund to cover field activities.
The number of families receiving direct or indirect payments in the watershed areas.
The number of people (in millions) positively impacted by the Water Funds.
NWPInformationType: Case study
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NWPPartner: Femsa Foundation
Purpose: The main objective of the Water Funds is to develop mechanisms for conservation, based on science, aimed to maximize returns on investments made in the basin, and financially sustainable. The mechanism engages the FEMSA Foundation, The Nature Conservancy (TNC), the Inter-American Development Bank (IDB), and the Global Environment Facility (GEF) which has pledged $27 million dollars to restore 3 million hectares of critical watersheds in Latin America.
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Target group: Academics and scientists; Communities; Policy makers; Practitioners; Private sector
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Created at 21/04/2016 11:46 by Roberto Felix
Last modified at 10/05/2022 22:19 by Nicholas Hamp-Adams
 
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