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Green Water Credits. Godert van Lynden, Green Water Credits manager, ISRIC. Furthering water cooperation in rural areas. Making it happen! International Annual UN-Water Zaragoza Conference 2012/2013. ...

Green Water Credits. Godert van Lynden, Green Water Credits manager, ISRIC. Furthering water cooperation in rural areas. Making it happen! International Annual UN-Water Zaragoza Conference 2012/2013. Preparing for the 2013 International Year. Water Cooperation: Making it Happen! 8-10 January 2013

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  • One or more downstream beneficiariesmight buy different amounts of GWCs, like buying a “share” of the upstream landscape & downstream impact. The contract would require annual payments (fixed; or a royalty% of profits) to maintain the share & impact.In return, they will be able to increase margins through cost saving, green image.Downstream users are not in a position to monitor/provide myriad contracts with upstream managers. But broker is.Broker must be legal body/entity (Bank, WUA, NGO, or the GWC Fund). Better if it already exists: lower investment cost than setting up a new one. Depends on local conditions what kind of body (may be more complex: require several players to act together?).Broker provides upstream benefits (loan, training, tenure security, hardware etc.), based on what kind of benefits in the given situation will trigger behavior change in land management practices.The model could also involve initial larger investment larger than the annual payment. It depends on the particulars of the PES contract how this becomes interesting for the downstream beneficiary.Possible problem: investing downstream beneficiaries may be hesitant to invest on their own, in case there are other major downstream players that don’t invest but also gain from the investments and land management practice changes. Need considerable lobbying/concerted efforts in this case.

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  • 1. ISRIC Green Water TeamGodert van LyndenSjef KauffmanZhanguo Bai
  • 2. Introduction: the Tana BasinThe Tana basin covers an area of126,026 km2= 22% of Kenya’s areaThe basin has 34% of Kenyansurface water, and 24% of KenyangroundwaterTana River is the biggest andlongest river in Kenya, with alength of 1,012 kmIt originates from Mt. Kenya andthe Aberdares, and drains into theIndian Ocean Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 3. Water demand: major usersThe “Big Four” account for 75% of water use: KENGEN, NairobiCity, NIB, Private irrigatorsOther major water users are towns like Nyeri, Embu, Meru, Thika,Garissa,70% of Kenya’s electricity requirements areproduced in Tana. The five big dams produce593 MW80% of Nairobi’s fresh water comes fromTana Basin (Ndakaini and Sasumua Dams)The large irrigation schemes, i.e. Mwea,Bura & Hola are located in Tana16% of total surface water is abstracted Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 4. Water Quality & QuantityThe average annual flow in the Tana river is5,000M m3,The Tana supplies about 32% of total nationalwater resourcesMt. Kenya and Aberdares Range respectivelyprovide 49% and 44% of the total water flows inthe TanaThe remaining 7% is provided by Nyambene Hillsand other minor catchments.Per capita water availability estimated at 520 m3 Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 5. More water cannot be created, but:Current land management practicesshow wasting of rain water by : • high rates of surface runoff enhancing flash floods and erosion, and • large losses by evaporation of water directly from bare soil (up to 60% of rainfall!)Blue water can be better managedby good soil & water management: • reducing runoff and erosion, • more infiltration, • less unproductive evaporation, • more water for plant growth Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 6. Financing: Bridging the Incentive GapFarmers know the benefitsfrom green water WINmanagement,but this is toolittle to coverthe costs/labour Green Water Credits bridge the incentive gap: Compensation by water users to WIN water providers for specified water management services Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 7. Legal and institutional arrangementsMulti-party agreements between upstream land managersand downstream water users (e.g. hydropower, domesticwater, irrigators, government);In Kenya arrangements between WRUA’s/WRMA, WSTF,industrial and commercial users (KenGen, NWC, NIB);The Green Water Credits Commercial SustainableInvestment Package addresses:- Production (primary agricultural production);- Protection (soil and water conservation) and- Profit (access to markets and marketing agricultural produce) Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 8. Costs and benefits sharing Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 9. 4 Integrated Work Domains 1. Biophysical 2. Socio-economic 3. Institutional 4. Financial Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 10. Bio-physical aspects Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 11. Kenya: Estimated increase in hydro-power from green water management (50% cut in erosion/siltation) Hydropower Generation Scenario: upland_management, All months b c d e f g Masinga200 b c d e f g Kindaruma b c d e f g Kiambere180 b c d e f g Kamburu b c d e f g Gitaru160140120 100 000 GJ =100 51 000 barrels oil80 = $ 5.8 million604020 0 Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 The 2013 International Year Water Cooperation Preparing For 2025 2028 16 G. Van Lynden
  • 12. LESSONS LEARNTBenefits• Significant and simultaneous gains can be achieved in upstream (crop) production and in downstream water supply and quality;• Long-term economic revenues for the four main sectors (rainfed agriculture, irrigation, domestic and hydropower) can be in the order of US$ 8 million per year, even assuming implementation of SWC measures in only 20-25% of the watershed.• This is mainly thanks to reduced surface run-off and erosion, increased groundwater recharge and sub-surface flow, and associated decreased sediment content. It does not even include the economic benefits of avoided damage because of reduced floods; Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 13. LESSONS LEARNT• GWM practices can help to restore soil organic matter levels. This contributes to CO2 mitigation and enhances production;• It presents a substantial potential financial source (in the order of 48-93 million US$ over a 20 year period), which may additionally sustain farmers’ need for investments in soil and water management.Institutions and regulations• The GWC approach aims to make SWC work at basin scale within an upstream- downstream relationship. It must therefore link up with related existing projects and programmes.• It is important to enhance the process of awareness creation about the upstream- downstream interrelationship among national and international stakeholders by continuing information dissemination on the value of green water flows and the linkage between upstream soil and water management and downstream blue water. Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 14. LESSONS LEARNTInstitutions and regulations• The GWC approach aims to make SWC work at basin scale within an upstream-downstream relationship. It must therefore link up with related existing projects and programmes.• It is important to enhance the process of awareness creation about the upstream-downstream interrelationship among national and international stakeholders by continuing information dissemination on the value of green water flows and the linkage between upstream soil and water management and downstream blue water.• It is essential to have an iterative process in connecting stakeholders, institutions, banks, and researchers in workshops to discuss common interests and develop a country-specific GWC-approach by joint learning. An example of the joint learning process is the replacement of the original narrow vision of cash payments to farmers by a wider investment approach that takes into account production, protection, and profit over both the short- and long-term.• The Green Water Credit approach is a bottom-up multi-stakeholder process; local level implementers (like WRMA in Kenya) and its catchment plans need to get recognition. The GWC plan must be developed by the local land users. The community is the development unit in a catchment to get soil and land conservation management improved: “the things are happening in the village”.• At the closing workshop for the Detailed Project Design stage in Nyeri, Kenya, local stakeholders were well represented by representatives of many Water Resource Users Associations (WRUAs), as well as some major downstream institutions (KenGen, Nairobi Water, Equity bank, Water Services Trust Fund) . Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 15. LESSONS LEARNTFinancial Mechanism• The GWC project in Kenya demonstrates that an acceptable and long-lasting improvement in soil and water management by smallholders requires simultaneous investments in three components that together form the Green Water Credits commercial sustainable investment package, the GWC Climate Change Adaptation Fund :- Production (primary agricultural production);- Protection (soil and water conservation); and- Profit (access to markets and marketing agricultural produce);• A Green Water Credits CCA Fund is required for the investments in improved water and land management. These investments upstream are supported by public and private funds. In particular in the initial stage public and international funds will be required to bridge the time lag between initial investments and the return of the benefits – especially downstream;• In order to function properly and to guarantee transparency and trust between the involved parties, a professional entity needs to be charged with managing the Green Water Credits Fund, such as Equity Bank or the Water Services Trust Fund in Kenya. In Morocco, the Municipalities, drinking water companies and/or ABHS would plough back user fees into such a fund. Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 16. LESSONS LEARNTLivelihoodsGreen water management will contribute to improved crop production byreducing soil erosion and evaporation. This will not only make more wateravailable to the plants (green water) but also maintain soil fertility and organicmatter and reduce the required input of fertilisers otherwise – if applied at all –flushed away with the surface runoff and eroded soil. All this leads to bettercrops, hence enhanced food security and improved livelihoods.Further implementation and achieving impactThe project has worked out three options (plus a variant of option 3) forimplementation of the GWC approach in Kenya. As yet, it is still unclear whichoption will be effective to reach impact. Highly motivated stakeholders assistedby knowledge brokers are essential for successful implementation. Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 17. CONCLUSIONSGWC is a trans-disciplinary approach towards sustainableutilization of land and water resources through a multi-stakeholder process:• Linking soil properties and land use with water flows availability and quality;• Linking upstream land users with downstream water users, showing their interdependency,• Linking downstream effects of soil and water conservation with the investments made upstream. Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 22 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 18. Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 19. ResultsImplemented in• Kenya, Upper Tana Basin (Phase II, 2008 till Dec. 2011: Project Design), IFAD/Swiss funds. New project proposal (Dutch funds)• Morocco: Sebou Basin (Phase I, 2009 till Dec. 2011: Proof of Concept), IFAD funds• Algeria (Project preparation), Dutch funds• China, (Starting July 2012), Dutch funds• S. Africa: shown serious interest Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 24 Preparing For The 2013 International Year Water Cooperation G. Van Lynden
  • 20. More information...www.isric.orgwww.greenwatercredits.netwww.wocat.netGodert.vanlynden@wur.nlZhanguo.Bai@wur.nl Int’l Annual UN-Water Zaragoza Conference 8-10 Jan. 2013 Preparing For The 2013 International Year Water Cooperation G. Van Lynden