1. Genevieve Bennett, Forest Trends’ Ecosystem Marketplace March 2014

2. Who we are

3. The infrastructure gap Estimated Global Annual Infrastructure Investment Needs by 2030 $ billions Water Infrastructure $1,000 Electricity Transmission and Distribution $80 Roads $160 SOURCE: Source: OECD (2006). "Infrastructure to 2030: Telecom, Land Transport, Water and Electricity."

4. Managing our landscapes as natural infrastructure which means identifying the services they provide that we depend on like pollution filtration or flood control and protecting those services, or compensating the people who do. SOURCE: Charting New Waters: State of Watershed Payments 2012. Why natural infrastructure?

5. Eco-markets: Global values 2008-2013 $ millions Current state of finance 205 active projects 77 in development $8.2 billion transacted in 2011 117 million ha under management that year SOURCE: Ecosystem Marketplace’s ‘State of’ reports series

6. Value of Watershed Investment Programs, 2011 $ millions Investments by region Asia: $7,460 North America: $361 Oceania: $149 Europe: $3 Africa: $109 Latin America: $89 SOURCE: Charting New Waters: State of Watershed Payments 2012.

7. The “classic model” SOURCE: Charting New Waters: State of Watershed Payments 2012.

8. Polluter Pays: <1% Share of investments by payer type Percentage of total transaction values, globally Beneficiary pays: 3% SOURCE: Charting New Waters: State of Watershed Payments 2012. China Not China Public good payer 97% Who’s paying?

9. 82%Direct contracts with governments and NGOs 7%Endowment and static funds for water 6%Direct contracts with water users 2%Water rights banking/acquisitions for instream flow 1%Water quality offsets and trading >1%Groundwater mitigation banking >1%Revolving loan funds >1%Green infrastructure tax credits/incentives Investments in practice SOURCE: Charting New Waters: State of Watershed Payments 2012.

10. What about the private sector? SOURCE: State of Watershed Payments: Executive Summary for Business, 2013, and Gassert et al, Aqueduct Global Maps 2.0, 2013.

11. 67% of businesses managing water risk on-site 4% managing risk in the supply chain 3% managing risk at the watershed level Landscape-scale risks overlooked? SOURCE: CDP Global Water Report 2013.

12. Why business is investing Drivers of business investments in 2011 # of projects reporting driver SOURCE: State of Watershed Payments: Executive Summary for Business, 2013.

13. Case study: Lake Naivasha, Kenya SOURCE: State of Watershed Payments 2012. Sediment Fertilizer Reduced flows in dry season Surges in wet season Flower-growing businesses Hotels New geothermal power plant Ranchers LAKE NAIVASHA WATER RESOURCE USERS ASSOCIATION Technical assistance Vouchers for agricultural inputs (worth $17/per household/year) High-value crop seeds Harvest revenues 30x higher than value of original voucher payment

14.  Natural infrastructure and the nexus  OECD countries  Non-OECD Africa  Non-OECD Asia  Non-OECD Latin America  Non-agriculture Projects funding sustainable agricultural practices % of projects

15.  Natural infrastructure and the nexus  OECD countries  OECD countries, proposed  Non-OECD Africa  Non-OECD Africa, proposed  Non-OECD Asia  Non-OECD Asia, proposed  Non-OECD Latin America  Non-energy Projects with funders in the energy sector % of projects

16. X FACTORS: Multilateral finance for water and energy infrastructure Post-2015 SDGs on water and the nexus Guidance and incentives for business Natural capital accounting How do we facilitate investment? BAU

17. Genevieve Bennett Forest Trends’ Ecosystem Marketplace gbennett@forest-trends.org Thank you

18. Models for business investment SOURCE: State of Watershed Payments: Executive Summary for Business, 2013.