Welcome to Our Future Water’s newsletter on “Financing Water Security: Bridging the Funding Gap,” which explores the funding shortfalls in this sector and presents innovative financing mechanisms that can bridge these gaps.
Threatened by chronic underfunding, the sustainable and equitable management of water—essential for life and economic activity—is at risk. Proper water resources management, requiring substantial investments in infrastructure, technology, and conservation practices, is critical for promoting health, well-being, and biodiversity, especially in areas facing water scarcity or quality issues.
Underinvestment can exacerbate water scarcity, increase disease risk, degrade water quality, deplete groundwater, and heighten vulnerability to climate change, negatively affecting agricultural productivity, food security, and economic growth opportunities.
In this newsletter, we explore innovative financing mechanisms to fill the existing funding gaps in this sector.
Insights
Green Bonds
Green Bonds represent an innovative approach to financing environmentally sustainable projects. These bonds, issued by governments, municipalities, or corporations, specifically aim to raise funds for projects with a positive environmental impact, such as water resources management. Not only do Green Bonds provide the necessary capital for these critical projects, but they also offer a financial return to investors. This dual benefit makes Green Bonds an attractive option for investors conscious about the environment and sustainable development while seeking a return on their investment. Explore more about Green Bonds and delve into how Anglian Water has skillfully harnessed their potential.
Green Loans
Green Loans, like Green Bonds, are targeted financial instruments designed to encourage environmentally friendly projects. These loans are usually provided with favourable terms to borrowers who are committed to using the funds for projects that contribute to environmental sustainability. This can include various activities, from improving water efficiency in industrial processes to implementing advanced water treatment technologies. By providing preferential conditions, Green Loans can help stimulate the adoption of sustainable practices, contributing to better water resources management and overall environmental protection. Discover how Water-link, an integrated inter-municipal water company in Antwerp, leverages a Green Loan to pave the way for a water-efficient future.
Payment for Ecosystem Services (PES)
PES is a mechanism where landowners are compensated for the ecosystem services they provide, such as water conservation or carbon sequestration. These services are often undervalued or overlooked, despite their significant contributions to the overall health of ecosystems and biodiversity. By assigning a monetary value to these services and providing compensation to those who protect and enhance them, PES schemes create a strong incentive for sustainable land use practices. This can lead to more responsible water usage, the protection of natural water sources, and the promotion of biodiversity, all of which are integral to the sustainable management of water resources. Explore how a PES scheme safeguards New York City’s water supply.
Additional Insights
- Renewable Energy Opportunities for Wastewater Treatment Plants: A Case Study of Melbourne Water
- Precision Agriculture, AI, and Water Efficiency: The Future of Farming
- Water Banking: A Climate Adaptation Strategy for Managing Critical Groundwater Resources
Online Event: Adapting to a future of extremes: Green, grey, and hybrid solutions
Join Our Future Water and State of Green for the online event “Adapting to a future of extremes: Green, grey, and hybrid solutions” to connect with leading climate adaptation and resiliency experts, as well as a panel of distinguished guests. Let’s work together to create a more sustainable and resilient future for our cities.
Event: FIWARE Global Summit 2023
Our Future Water is proud to be a media partner of the FIWARE Global Summit 2023. Join the upcoming FIWARE Global Summit 2023 in Vienna from 12-13 June for two days of world-class innovation, collaboration, and networking to discuss the latest trends and highlights in technologies such as blockchain, artificial intelligence, digital twins or robotics with special attention to the development of data spaces and data models for Smart Cities and Territories, Smart Industry, Smart Agrifood, Smart Energy, Smart Water and Smart Tourism.
Find more about the Summit here.
New Book Out: 30% Discount on Financing Water Security and Green Growth (Oxford University Press)
Financing Water Security and Green Growth presents a thorough exploration of innovative finance models for advancing water security and green growth initiatives across diverse contexts. Author Robert C. Brears details the application of public, private, and blended financing strategies to create resilient water supplies, ease water-energy-food nexus pressures, boost water conservation and reliability, and enhance water governance. The book also showcases case studies illustrating the effective use of these financing tools in different climates and income levels and highlights best practices.
Call for Chapters: Palgrave Encyclopedia of Sustainable Resources and Ecosystem Resilience
The Palgrave Encyclopedia of Sustainable Resources and Ecosystem Resilience, published with Springer Nature, provides practitioners and researchers with a tertiary body of knowledge on how improving resource efficiency and ensuring ecosystem resilience can achieve green growth, which values ecosystems, promotes inter-generational development policies, and protects human life and livelihoods from environmental risks and ecological scarcities. Submissions are open for chapter contributions by academics and practitioners. DM Robert C. Brears (Editor in Chief) for more information.
Latest Mark and Focus
Nature-based solutions (NBS) are one such solution that can harness the power of natural processes and ecosystems to address complex environmental issues. This magazine delves into the potential of NBS in different industries and environments, including the restoration of oceans, the development of renewable energy landscapes, the role of NBS in natural flood management, and the transformative impact of NBS in agriculture. Available at Issuu or Apple Books, or download it here.
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Urban Water Security, Our Future Water, Circular Water Economy, Blue-Green Infrastructure, Nature-Based Solutions, Climate Resilient Water Resources Management
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