FAO Investment Centre Making Investments in AWM Work TCI Investment Days 17 December 2014 Rome Dr Zhijun Chen TCIB

FAO Investment Centre  Introduction  Multiple challenges  New demands  How to invest

FAO Investment Centre 1. Introduction  Needs for AWM investments Quantity, quality and sustainability Integration with other options  Initiatives taken by TCI Capacity development Cooperation with partners Development of investment guidelines  Objectives of the session Discuss hot issues Share experiences and lessons Harvest inputs to the guidelines

FAO Investment Centre 2. Multiple Challenges Water scarcity (physical and economic) Source: World Water Development Report 4

FAO Investment Centre 2. Multiple Challenges Water competition (among users and uses) Source: World Water Development Report 2014 Global freshwater withdrawals: Baseline Scenario, 2000 and 2050

FAO Investment Centre 2. Multiple Challenges Agricultural diversification & restructuring

FAO Investment Centre 2. Multiple Challenges Water degradation (quantity and quality)  River drying up  Groundwater depletion  Water pollution  Soil salinity  Soil & water erosion

FAO Investment Centre 2. Multiple Challenges Climate change impacts (global and local)  Water availability  Water requirements  Extreme weather events  Water-related disasters

FAO Investment Centre 3. New Demands More crops with less drops

FAO Investment Centre 3. New Demands Better water services Reliability FlexibilityEquity

FAO Investment Centre 3. New Demands Multiple functions for better livelihoods  Crop production  Livestock production  Fishery production  Domestic water supply  Small town development  Drainage and flood control  Nature and culture heritages

FAO Investment Centre 3. New Demands Environment and ecosystem conservation  Maintain environment flow  Groundwater conservation  Water pollution control  Bio-diversity conservation

FAO Investment Centre 3. New Demands Climate Smart  Adaptation to climate change Improved physical system and management strategy adapted to new climate conditions  Mitigation of climate change Reduced energy consumption, industrial products use and GHG emissions  Contribution to FS and SD Productive, equitable and sustainable water development, management and utilization

FAO Investment Centre 4. How to Invest How to impact strategies and policies Demands  Enable favorable project conditions  Complement to other interventions  Address broader sector issues Difficulties  Complicated local context  longer timeframe needed  Big uncertainty and risks

FAO Investment Centre 4. How to Invest How to innovate financing Demands  Increase total AWM investment amount  Diversify financing sources  Target the most needed Difficulties  Limited public investment  Lack of incentive for private partners  Collective feature of AWM systems

FAO Investment Centre 4. How to Invest How to apply new technologies and tools Demands  IWRM and water accounting  Incorporating FAO normative products  CC mainstreaming, multiple functions Difficulties  Limited local capacities  Reluctance of project team  Project timeframe and resources

FAO Investment Centre 4. How to Invest How to strengthen institutions Demands  Service-oriented approach  Participatory irrigation manag.  Sustainable system O&M Difficulties  Conflicts with local social systems  Lack of favorable policy environment  Lack of continuous support

FAO Investment Centre 4. How to Invest How to support small-scale systems Demands  Community-based approach  Integration into IWRM framework  Formalization and standardization Difficulties  Limited local capacity  Lack of data and information  Unsuitability of existing tools

FAO Investment Centre  How to impact strategies and policies  How to innovate financing  How to apply new technologies and tools  How to strengthen institutions  How to support small-scale systems

FAO Investment Centre