Integrated water resource management Corporate commitments and stewardship Payment for Ecosystem Services

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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 2 , 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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