Innovative Financing Mechanisms for Water Scarcity in Agriculture
The threat posed by water scarcity in agriculture calls for innovative and sustainable funding mechanisms to finance the interventions aimed at alleviating water scarcity in agriculture. Options such as green and blue bonds are emerging as a source worth being considered; cooperatives have experience in facilitating access to financing for their members; models of payment for ecosystem services can be adapted; financing through new sources of funding such as the Green Climate Fund (GCF) can also be explored. Another option that exists consists of a mix of grants, loans guaranteed by governments, and contribution by beneficiaries. All these alternative financing mechanisms need to be assessed for their relevance to water scarcity in agriculture and for how they can be accessed for this purpose.
This session will share emerging financing mechanisms that could be suited to deal with water scarcity and address the threat that it poses to agriculture production and food security. It will be based on the collective experience of the convenors and will stimulate actions seeking to deal with the perceived bottleneck of financing projects addressing water scarcity in agriculture.
16:00-16:05 Welcome, objectives and expected outcomes Facilitator – Naty Barak, Chief Sustainability Officer, Netafim
16:05 – 16:10 WASAG Perspective - Ruhiza Boroto, WASAG Team Leader, Land and Water Division, FAO
16:10-16:22 A Proposed Framework for Innovative Financing Mechanisms - Daniel Zimmer , Director, Sustainable Land Use, Climate-KIC (Co-leader of the WASAG working group on Financing Mechanisms)
16:22-16:28 Case study 1 - "TBC " by Audrey Nepveu de Villemarceau, Technical Advisor, Water and Rural Infrastructure, IFAD
16:29 – 16:35 Case study 2 – "Blended finance for water investments" by Kathleen Dominique, Project Manager, Roundtable of Blended Finance, OECD
16:36 – 16:42 Case study 3 – "Fintech in water for agriculture" by Stuti Sharma, Water Resources Specialist, World Bank
16:43 – 16:55 Proposed support strategy - A talk by Naty Barak on successful examples of de-risking and engendering private investment
16:56-17:30 Conclusion/next steps - Panelists in discussion with the Working Group and the audience facilitated by Ruhiza Jean Boroto