Post on 26-Sep-2018
transcript
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Water Funds
Mainstreaming Biodiversity Workshop Cape Town, October 2013
Fernando Veiga
Water Funds Manager – Latin America
The Nature Conservancy
Freshwater
Photos © Walter H.
Wust
… is vital
© Walter H. Wust
© Walter H. Wust
© Walter H. Wust © Walter H. Wust
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Medium watersheds
Composite risk rankings (Eri-C)
Potential Risk
Low
Medium
High
13 threats, such as
Roads
Railroads
Mining
Cattle-ranching
Population density & growth
Main stresses to Latin America watersheds…
Development Climate change impacts
El Niño effects on water supplies – 120
municipalities with no water in 2010
Worst flood ever in Colombia, 2010
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Investing in the
GREEN INFRAESTRUCTURE
ECOSYSTEMS PROVIDE SERVICES TO THE HUMAN SOCIETIES
Increased evidence that the conservation and restoration of ecosystems is
key to guarantee water security for human needs, and in many cases is
the most cost-effective solution
Mainstreaming biodiversity into the Water sector
and the main water users
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• 14,300 hectares of priority
areas (3% of total area) = 50 %
of sediments abatement =
600,000 tons per year
• US$ 4.9 million/year of potential
reduction in water treatment
and drainage costs (no
considering other potential
benefits as reduction of other
contaminants)
Business case
São Paulo, Brazil
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0
3
6
9
12
15
18
2006 2007 2008 2009 2010 Promedio
Producción de Caña 5 Riegos Producción de Caña 4 Riegos
Sugar cane harvest (tons millions)
Source: Cenicaña – estimations Asocaña
8,7% decrease in productivity
Loss of $33 millions / year
Loss of $250 / ha / year
Production with 5 cycles Production with 4 cycles
Business case
Cauca Valley, Colombia
Increased pressure on water resources: potential reduction from 5 to 4 irrigation cycles
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0.0
10.0
20.0
30.0
40.0
50.0
Conservado Uso actual (con política ambiental)
Uso fuera parque (sin política ambiental)
m3/h
a/a
ño
tonela
das/h
a/a
ño
Cantidad agua
Cantidad de sedimentos
Source: Ciat, 2007 (TNC), Bogota Water Fund
Water quantity
Quantity of sediments (Component of Quality)
Conserved
Area
Uses inside
Protected Area
Outside
Protected Area
m3
/ha
/ye
ar
To
n/h
a/y
ea
r Regulation significant but not quantified
10:1
Savings
USD 4.5M year
Economic rationale
Bogotá, Colombia
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Users
Providers
Quito, Ecuador
Population: 2 million
Condor Bioreserve
& Surrounding farmlands
$
WATER
SERVICES
$ Financial
Fund
Water Funds
Board
Water Fund
ENVIRONMENTAL SERVICES MODEL
Proof of Concept:
Quito Water Fund Páramos:
Páramo absorbs vast
amounts of rainwater
and cloud mist and
slowly releases it,
acting as a natural
water tower
When intact is one of
the more botanically
diverse habitats on
earth with
approximately 4,700
plant species—all
adapted to the
intense ultraviolet
radiation, cold and
wind of high
elevations.
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Proof of Concept:
Quito Water Fund
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Importance
• 2 million residents
• Condor Bioreserve: 2.5 million acres, exceptional
biodiversity, including 760 bird species; 28 rivers
Partners
• EMPAAQ (Quito’s water agency); Quito Electric Company;
USAID; Swiss Development Corporation; Cerveceria National
(beer company); Tesalia Springs Co.
Conservation
Progress
• 85,000 hectares of public lands protected;
• 19,000 hectares of private lands restored and/or best
management practices
© Sergio Pucci/TNC; © Ami Vitale
Fund Progress
• 2000: $21,000 start-up - 2013: $13,000,000 aprox.
• Since 2006, 2% of the water utility revenues
• Annual investments of nearly $2-3 million (leverage)
Atlantic
Forest
- Originally 122 M ha -
12% of remnants
- Around 120 M people
- 70% Brazilian GDP
- High level of endemism
and biodiversity rates
- Strong restoration
needs. 90% in private
hands
- Perfect place for PES
high Water services
demand (urban &
industrial sectors)
-
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Water users
Income generation
Watershed Committees
(water user fees)
Public funds
Water utilities
Restoration and
conservation
activities
Water ecosystems
services
In Brazil – “Water Producer”
concept - ANA
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Users Providers
Sugar Cane Growers
Cattle-ranching upstream
$
ACCOUNTABILITY
Reporting
$ Fiduciary
fund
Board
WATER FUND
ENVIRONMENTAL SERVICES MODEL
asocaña
Agricultural water users
Water Funds are effective tools for
watershed conservation because
they:
• Connect suppliers of ecosystem
services with beneficiaries, providing
direct benefits downstream and
improved livelihoods upstream
(efficient)
• Mitigate water scarcity and pollution
problems at the source rather than
end-of-pipe treatments (effective)
• Provide a sustained funding
mechanism with a flexible governance
structure to allow for adaptive
management of risks and
opportunities (sustainable)
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Steps to establish a Water Fund
Pre-feasibility and evaluation
Which ecosystems services?
Where is the area of influence?
Who are the stakeholders?
Design
Feasibility studies:
Environmental
Socio-economic
Institutional
and legal
Negotiation
Institutional arrangement
Partners’ commitment (financial and
technical)
Maturity
Financial sustainability
Consolidation of field activities and monitoring
Operation
Contracts with local stakeholders
Field activities
Fund-raising
Monitoring
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Science-based approach Contribution
to aquifers
Contribution
to flows
Sediments Coverage
Highest priority areas for conservation
Biodiversity connectivity
Sistema
Área ronda del río
(250 mts cada lado)
(Has)
Área en cobertura
natural para
conservación (Has)
%
Área intervenida
para restauración
(Has)
%
Río Amaime 7.126 3.135 44 3.991 56
Río Bolo 2.210 1.414 64 796 36
Río Desbaratado 1.016 772 76 244 24
Río Fraile 2.792 2.345 84 447 16
Río Nima 1.642 1.133 69 509 31
Río Tuluá 13.234 5.426 41 7.808 59
TOTAL 28.020 14.226 13.794Water for life and sustainability
Investment Portfolio
-
Return on Investment
Total budget (US$ millions) Total budget (US$ millions)
Change in Erosion Change in Treatment Cost $
Activity scores
Incorporating climate change
Score
High
Low
Agricultural Suitability
Erosivity
Water yield
Climate Change
Scenario
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Investments
Private and communal lands 1. Conservation agreements
2. Best agricultural and cattle ranching practices (silvopastoril systems)
3. Riparian forests.
4. Reforestation & restauration
5. Income generation/environmental education
Public areas 1. Park guards
2. Implementation of management plan
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Ecuador
Brasil
Brasil
Colombia Colombia
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Peru
Ecuador
Colombia
Colombia
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WATER MONITORING
Water Monitoring Sites
Precipitation
• 3 sites
Flow
• 3 sites
Quality
• 9 sites
• 9 items
Parâmetro Analítico PH Turbidez DBO Cor Coliformes Termotolerantes Oxigênio dissolvido Nitrogênio amoniacal Fósforo Total Temperatura
Community
engagement
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Biodiversity Monitoring
• Importance of riparian areas
•Terrestrial monitoring (páramos and
forests) also showing first encouraging
results
Paulo Petry
Biodiversity Monitoring
- First results showing forest species in
restoration areas
- High potential for implementing the
Community Based Bird Monitoring
Program.
MONITORING
GOING ON
TNC, FEMSA Foundation, IDB and GEF, launched in 2011
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The vision Over the next 5 years $27 million of Seed Capital will
support direct investment of $143 million
in 32 Water Funds, leveraging additionally $500 million
providing long-term
payments for environmental services
to rural communities, and securing
clean and sufficient water and
effectively conserving 7 million acres
for 50 million people in Latin America
1. Support the establishment and strengthening of the
WFs
2. Identify and share best practices
3. Development of regional projects (ex:
replenishment)
4. Support monitoring initiatives
5. Keep developing the business cases
Goals (also shared with Latin America Conservation Council under
the Water Security strategy):
6. Raise awareness (Where Your Water Comes
From)
7. Support the green infrastructure approach in the
water sector loans (IDB and CAF)
8. Partner water regulators with the aim to include
the watershed conservation costs into the water
tariffs (ADERASA – PE, CR; BR)
Goals (also shared with Latin America Conservation Council under
the Water Security strategy):
Status:
15 in evaluation
14 in design
13 operating
1 mature
Opportunities:
- Exchange lessons
learned
- Regional players (public
and private) – reduction of
transaction costs
- Diversity and
cooperation
- Upscale (implementation
channel)
- Expand to new
geographies (Africa/US)
90,836 ha
126,089 ha
1,449,369 ha
Watersheds which
provide water to 33,74
million people
4,218 families benefited
upstream