1 Water Funds © Ami Vitale Andrew Deutz, Ph.D. Director, International Government Relations The Nature Conservancy.

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Water Funds

© Ami Vitale

Andrew Deutz, Ph.D.Director, International Government Relations

The Nature Conservancy

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Ecosystem Services Model

Water users

Restoration &

Conservation activities

Income generated

Forests producing

clean water

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Users Providers

Quito, EcuadorPopulation: 2 million

Condor Bioreserve& Surrounding farmlands

$

CLEANWATER

$FinancialFund

Water Funds

Board

Water Fund

ENVIRONMENTAL SERVICES MODEL

4

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/

ha/a

ñoto

nela

das/

ha/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/

year

Ton

/ha/

year

Regulation significant but not quantified

10:1

SavingsUSD 4.5M year

Economic rationale

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Users Providers

Sugar Cane GrowersFarmers in watersheds

$

ACCOUNTABILITY

Reporting

$Fiduciaryfund

Board

WATER FUND

OutreachFeasibility

studiesStart Up

Seed funding

Growing

CapitalizationConsolidation

ENVIRONMENTAL SERVICES MODEL

asocaña

Available at:

ConserveOnline.org

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• Hydrological services: Status of supply and demand?

• Environmental, technical and socio-economic expected benefits or impacts of the Fund?

• Where should the Fund invest to increase and maintain hydrological services and get the greatest possible returns on investment?

• What is the cost of maintaining or improving the hydrological services?

• How do hydrological services vary under land-use and climate changes scenarios?

• What other environmental services can the Fund help maintain or improve?

Conductingfeasibility studies

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• Use of hydrological models :

- InVEST (Natural Capital Project :Stanford University-TNC-WWF); SWAT; FIESTA

- Water purification; Reservoir sedimentation; Water yield; Hydropower; Flow regulation; Sediment production; fog interceptation

- Prioritization of places and types of interventions (forest restoration; springs protection; improved cattle management, etc)

- Building scenarios; optimize ecosystem services and economic returns

Conductingfeasibility studies

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Highest Return on InvestmentContribution

to aquifersContribution

to flowsSediments Coverage

Highest priority areas for conservation

Biodiversity connectivity

SistemaÁrea 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 56Río Bolo 2.210 1.414 64 796 36Río Desbaratado 1.016 772 76 244 24Río Fraile 2.792 2.345 84 447 16Río Nima 1.642 1.133 69 509 31Río Tuluá 13.234 5.426 41 7.808 59

TOTAL 28.020 14.226 13.794Water for life and sustainability

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•Climate change analysis :

- Analysis of climate change in the future: climate change models

- Analysis of climate change impacts on hydrological services

- Development of climate adaptation strategies

Conductingfeasibility studies

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Changes in water quantity

1990-2003 2015 -2039

Enero

Febre

ro

Mar

zoAbr

il

May

oJu

nio Julio

Agost

o

Septie

mbr

e

Octub

re

Noviem

bre

Diciem

bre

0

50

100

150

200

250Monthly mean on water quantity

Línea Base MRI

Escenario MRITime (months)

Flo

wl

(m3/

s)

Adaptation to climate change: where to invest and how?

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• Socioeconomic analysis:

- Valuation of environmental and socio-economic benefits

- Stakeholder analysis – who benefits, and who decides?

- How much the fund will have to raise to meet the ES targets

• Legal and institutional analysis

- Current national legislation that should be applied

- Legal nature of the WF (trust fund (public/private); existing environmental fund; new organization; bank account)

Conductingfeasibility studies

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Investments

Private and communal lands1. Direct payments 2. Best agricultural and cattle ranching practices (silvopastoral systems)3. Riparian forests4. Reforestation & restoration5. Other projects

Public areas6. Park guards7. Implementation of management plan

© Fundación CIPAV

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WATER MONITORING

Water Monitoring Sites

Precipitation• 3 sites

Flow• 3 sites

Quality• 9 sites

• 9 items

Parâmetro AnalíticoPHTurbidezDBOCorColiformes TermotolerantesOxigênio dissolvidoNitrogênio amoniacalFósforo TotalTemperaturaCommunity

engagement

Water Funds in Latin America:

1 Mature and strengthened

10 Created and operating

17 in Design and Negotiation

15 in Evaluation

“Exports” under Development:• New Mexico, USA• Texas, USA, • Kenya