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1. International commitments
Ambitious multi-lateral agreements on the environment and development are inherently cross-cutting; therefore an
integrated approach will be essential to achieve their economic, environmental and social goals. In particular, forthcoming
agreements on the Sustainable Development Goals and climate change mitigation and adaption under the UNFCCC directly impact
and rely on water, energy and food security.
2. Climate change adaptation
Adapting to climate change will be essential for building resilience and managing risks to water, energy and food security from
changing rainfall patterns, more frequent and intense extreme events, and rising temperatures. Whilst the region’s countries have
different levels of exposure, vulnerability and capacity to adapt to climate change, urban slums, hydropower generation and food
production are particularly at risk. Historically, climate change policies in the region have been poorly coordinated with other
sectoral and macroeconomic policies. Integrating national and local climate change adaptation plans within and across sectors offers an
urgent entry point to avoid maladaptation and negative externalities.
3. New infrastructure projects
The opportunity must not be missed to apply nexus approaches to the extensive new infrastructure development that is already
planned in LAC, and that will inluence water, energy and food security outcomes for decades to come. For instance, by prioritising
multi-purpose dams, beneits can be delivered to a wider spectrum of water users. Infrastructure designs should also examine the role
of natural infrastructure, which can bring important co-beneits, in complementing or replacing built infrastructure solutions.
4. Cities
There has been rapid urbanisation in the region over the last 50 years. Now 80 of the population lives in urban areas, one
of the highest rates globally. Cities have developed around sites originally chosen to suit the very different needs and contexts of
colonial expansion. As a result, some of the region’s largest cities are now facing water scarcity issues. Many of these cities, including
Rio de Janeiro, Sao Paulo, Mexico City, Lima and Caracas
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, are transferring water from neighbouring basins. Nearly a quarter of
residents are estimated to be in urban slums with low access to affordable potable water, energy and food. Key challenges include
weak and fragmented governance, poor management of utilities and pricing, and low infrastructure quality. Integrated solutions
such as using treated waste water for urban agriculture can help maximise resource-use eficiency.
5. Integrated water resource management
IWRM is an established concept in the LAC region and thus offers an entry point for integrated nexus thinking. However, water
governance gaps, including fragmented policymaking, capacity issues, funding, and monitoring and evaluation remain challenges
for its successful implementation. Strengthening IWRM through a nexus approach calls for engaging with actors beyond the watershed
scale, for example with energy policymakers in the national government and companies in agricultural commodity supply chains.
6. Corporate commitments and stewardship
Companies throughout the complex supply chains that connect LAC’s natural-resources to regional and global markets have a
key role in determining sustainable resource-use and demand. Globally, companies have made ambitious pledges to transition
to ‘zero deforestation’ or ‘zero net deforestation’ supply chains by 2020; this includes a commitment by the Consumer Goods Forum,
a global alliance of 400 companies with combined sales of USD 3 trillion annually. Furthermore, a number of companies from the
region are engaged in disclosure and accounting projects on water, forests and carbon. This offers an opportunity for governments and
civil society to support and incentivise good corporate stewardship.
7. Payment for Ecosystem Services
Latin America is a global leader in the development of PES programmes, for example Socio Bosque in Ecuador and Mexico’s
Payment for Watershed Services. Water funds have also lourished in the region, including for several major cities such as Bogota,
Lima and Quito. The Latin America Water Funds Partnership, capitalised by USD 27 million, aims to support 32 water funds that
conserve 7 million acres of watersheds and secure drinking water for 50 million people. There is an opportunity to build on existing
lessons and expertise in the region to incentivise actors to secure the provision of vital watershed services for energy generation,
agriculture, industry and domestic supply.
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