Financing transboundary water development - Blue Peace Financing
Swiss Federal Department of Foreign Affairs / Swiss Agency for Development and Cooperation SDC
(
Government
)
#SDGAction50767
Description
Historically, transboundary water bodies have the potential of being a source of conflict. Due to its transboundary and multisectoral nature, the sustainable management of water resources requires the creation of transboundary and multisectoral cooperation frameworks. Such policy, legal and institutional cooperation frameworks can help reduce conflicts and contribute to peace. Access to financial resources can be a strong incentive for such cooperation frameworks. But the current financial ecosystem rarely enables transboundary and multisectoral investments. The way financing currently approaches water and related investments is overly national and sectoral. Major providers of water-related services like basin organizations and local governments lack access to capital. Meanwhile, it is not only sovereign states but also local governments and basin organizations (e.g. River Basin Organizations) who are the main provider of water-related services and therefore accountable for their integrated and sustainable management. However, these entities are usually limited in their ability, including their access to financing, to successfully fulfil their mandate. Therefore, promoting access to public and private capital for these non-sovereign entities while strengthening their institutional capacities is crucial.
The Blue Peace Financing Program funded by SDC and implemented by UNCDF contributes to:
- Unlocking public and private capital for better access to water-related services and transboundary water cooperation.
- Promoting access to public and private capital for water local and regional non-sovereign entities (e.g. River Basin Organizations), who manage water resources (surface and Groundwater).
- Providing Technical Assistance to strengthen the institutional capacity of these local and regional non-sovereign entities for them to mobilize and manage private and public capital.
- Providing technical support to these non-sovereign entities to develop pipeline of investment projects.
- Developing and implementing innovative blended finance mechanisms and financing instruments for water, peace and transboundary water cooperation.
- Transforming water cooperation frameworks into investment platforms through such innovative financing instruments and mechanisms.
- Creating enabling environments by transforming policy, legal and institutional frameworks.
- Developing measurement instruments and impact frameworks for financing water and transboundary water cooperation.
- Strengthening partnerships across sectors, including with the commercial financial sector (investment banks, stock exchanges, insurance companies, etc.).
- Providing a new impact investment opportunity for institutional investors.
This Program uses water as entry point to create and strengthen transboundary and multisectoral cooperation frameworks and transform them into investment platforms through innovative financing mechanisms and instruments. Given the fact that water is a cross-cutting issue relevant for all SDGs, this program will accelerate the implementation of all SDGs (directly or indirectly). More concretely, this program will create the following impacts:
- The current financial ecosystem will be transformed and better reflect the realities of our global challenges, including the global water crisis and climate change, which do not know national or sectoral boundaries.
- A new market in the sustainable finance field will be created, providing innovative investment opportunities for (impact) investors.
- The perception of the finance sector towards water and water-related projects will be transformed away from looking at water as a distinct sector towards recognizing water as a cross-cutting, transboundary (regional) and multisectoral impact investment opportunity.
- Local and regional non-sovereign entities managing water resources will have (better) access to public and private capital to fund and finance water-related projects.
- Local and regional non-sovereign entities managing water resources will have stronger institutional capacities and better legal and policy frameworks (a) to mobilize and manage funding and financing for water-related projects (b) for sustainable and integrated water resources management (IWRM) and (c) to build/develop and implement pipelines of investment projects.
- Countries who share water resources will have a strong financial incentive to create transboundary and multisectoral water cooperation frameworks and to manage their shared resources collectively and in a sustainable and integrated way.
- The water related investments promoted by the Blue Peace Financing Initiative will have a strong impact in the transboundary watersheds in crucial need of development initiatives. Hence, this initiative also offers investors the possibility to switch their investments from projects with a high carbon footprint to a blend of “green investment projects”. The biggest efforts that can be made to mitigate climate change are within the river basins targeted by the Blue Peace Financing Initiative. This reinforces the “Peace and cooperation” aspect of the initiative with an opportunity.
- Local Communities have better and more affordable access to water-related services, such as drinking water, WASH, agriculture, energy, etc.
- Inspiring new thinking on solutions in financing for transboundary water cooperation and peace and catalysing new ideas and initiatives.
UNCDF, International Municipal Investment Fund (IMIF), Gambia River Organization for Development (OMVG), Municipality of Freetown, Impact investors, private capital investors.
Exact end date is still to be defined.
SDGS & Targets
Goal 6
Ensure availability and sustainable management of water and sanitation for all
6.1
By 2030, achieve universal and equitable access to safe and affordable drinking water for all
6.1.1
Proportion of population using safely managed drinking water services
6.2
By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations
6.2.1
Proportion of population using (a) safely managed sanitation services and (b) a hand-washing facility with soap and water
6.3
By 2030, improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally
6.3.1
Proportion of domestic and industrial wastewater flows safely treated
6.3.2
Proportion of bodies of water with good ambient water quality
6.4
6.4.1
Change in water-use efficiency over time
6.4.2
Level of water stress: freshwater withdrawal as a proportion of available freshwater resources
6.5
By 2030, implement integrated water resources management at all levels, including through transboundary cooperation as appropriate
6.5.1
Degree of integrated water resources management
6.5.2
Proportion of transboundary basin area with an operational arrangement for water cooperation
6.6
6.6.1
Change in the extent of water-related ecosystems over time
6.a
6.a.1
Amount of water- and sanitation-related official development assistance that is part of a government-coordinated spending plan
6.b
Support and strengthen the participation of local communities in improving water and sanitation management
6.b.1
Proportion of local administrative units with established and operational policies and procedures for participation of local communities in water and sanitation management
SDG 14 targets covered
| Name | Description |
|---|
Deliverables & Timeline
Resources mobilized
Partnership Progress
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Timeline
Entity
SDGs
Region
- Africa
Other beneficiaries
The population and communities living in the Gambia river basin in Senegal (Gambia, Guinea and Guinea Bissau). Population of Freetown (Sierra Leone).
More information
Countries
Contact Information
Arlette, Assistant/secretary of SDC section water