CONCEPTUAL FRAMEWORK: NATURAL INFRASTRUCTURE FOR WATER Lima, Peru September 15, Todd Gartner Senior Associate, WRI

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1 CONCEPTUAL FRAMEWORK: NATURAL INFRASTRUCTURE FOR WATER Lima, Peru September 15, 2015 Todd Gartner Senior Associate, WRI

2 Overview WORLD RESOURCES INSTITUTE Water Cities WRI is a global research organization that turns big ideas into action at the nexus of environment, economic opportunity and human well-being. Forest Food Climat e Energ y Finance Economics Governance Business

3 Vision for Peru Catalyze a national movement to enhance water security, strengthen climate resilience, and bolster economic development for 32 million people through a $200 million green-gray infrastructure initiative to transform how government, businesses and utilities manage water resources. Restorati on Conservati on Sustainable Management

4 SDGs MEETING SUSTAINABLE DEVELOPMENT GOALS Water Security Climate Resilience Economic Development Sources: Folha de SP; CNN; Farm Africa

5 Water Challenges CURRENT OVERALL WATER STRESS Overall Water Risk Low Low to medium Medium to high High Extremely high No data Sources: WRI Aqueduct 2014

6 Water Challenges Peru s densely populated coastline faces high water demand relative to available supply Sources: WRI Aqueduct

7 Business As Usual RETHINK ENGINEERED INFRASTRUCTURE Non-revenue water Energy efficiency Waste management Climate resilience Water Reuse System monitoring Source: Advantech

8 Land Use Change A CLOSER LOOK: SOUTH AMERICA TREE COVER LOSS PERU Aug 2012 present Tree Cover L 400K + hectares Or over 480k Futbol pitches

9 New Approaches WHY NATURAL INFRASTRUCTURE? Improve water quality Regulate hydrologic cycle Mitigate flood Reduce erosion Improve energy security Conserve biodiversity Protect coastlines Sustain livelihoods Reduce costs Source: IUCN 2015

10 Business Case WORKING WITH NATURE Green-Gray Infrastructure optimizes performance and financial benefits Added benefit: $29 TRILLION PER YEAR* in natural water infrastructure services globally * Value estimated for wetlands (tidal marsh/mangroves, swamps/floodplains), rivers and lakes, based on 2011 area and 2007 USD values Source: IUCN 2015; Source: R. Costanza et al./global Environmental Change 26 (2014)

11 International Santa Fe and Albuquerque Forest fuel reduction to reduce wildfire risk Beijing Agricultural BMPs to reduce erosion and nutrient runoff Manila Riparian restoration to reduce erosion São Paulo Reforestation to reduce erosion and nutrient runoff Cape Town Forest protection and management to reduce erosion Source: TNC

12 Latin America Active and Developing Programs in Latin America and the Caribbean, 2013 Value of Funds Leveraged by the LAWFP Portfolio as of 2013 Source: Forest Trends 2014

13 Current Status CHALLENGES Top challenges to program growth Lack of awareness Lack of capacity and resources Lack of business case Lack of access to investment Lack of implementation support $10 trillion will be spent between now and 2030 on water infrastructure worldwide Source: Forest Trends 2014; Gartner, T. et al. (2015) Scaling Up Investments in Natural Infrastructure for Water Resources Protection and Coastal Defense; McKinsey 2013

14 Our Approach INSPIRE a network of actors that champion natural infrastructure solutions ENABLE assessment of natural infrastructure opportunities and challenges IMPLEMENT and monitor on-the-ground natural infrastructure projects INSPIRE ENABLE IMPLEMENT SCALE mobilize commitments share success stories build partnerships mapping & modeling green gray analysis capacity building technical support demonstration projects financing options

15 Inspire Work with partners around the world to motivate commitments Initiative 20x20 commitments to date Initiative 20x20 is a country-led effort to restore 20 million ha of land in Latin America and the Caribbean by WRI, in association with CATIE, CIAT, and IUCN, supports Initiative 20x20 through our Global Restoration Initiative.

16 Inspire Share success stories of watershed restoration projects Loess Plateau Before: 1999 Loess Plateau After: 2005 soil erosion on 920,000 hectares 99% in sediment in water 2.5 million people out of poverty

17 Inspire Engage the actor network to champion natural infrastructure approaches Source: Gartner, T. et al Natural Infrastructure. Washington, DC: Wld Resources Institute

18 Enable Identify target areas through near real-time mapping and in-depth modeling

19 Enable Conduct economic analysis to make the business case Comparison of costs for natural and built options for cities to meet water quality requirements in the US (millions $) Medford, Oregon Santa Fe, New Mexico Auburn, Maine Syracuse, New York Source: Gartner, T. et al Natural Infrastructure. Washington, DC: Wld Resources Institute

20 Implement Provide comprehensive roadmaps and guidelines

21 Implement Provide comprehensive roadmaps and guidelines Source: Gartner, T. et al. (forthcoming)

22 Implement Replicate demonstration projects Source: Forest Trends 2013

23 Implement Monitor on-the-ground projects and adaptively manage share lessons learned

24 Implement Design innovative and sustainable financial mechanisms Source: Gartner, T. et al Natural Infrastructure. Washington, DC: Wld Resources Institute

25 Collective Action SCALE THROUGH PARTNERSHIP AND FINANCE POLICY MAKERS & DEVELOPMEN Bilateral Development T Banks, Policy Makers, NGOs, National/Regional Govs. BUSINESS & INVESTORS Corporations, Corporate Consultants, Investors, Asset Managers MUNICIPALITIE S & UTILITIES Municipalities, Water Treatment & Hydroelectric Plant Management CIVIL SOCIETY GROUPS Academics, Reports, Community Based Non- Profits, General Public Achieve Sustainable Development Goals Manage operational & supply chain risks Improve water and energy security Awareness & Livelihoods

26 Transform the Water Sector STEPS FOR PERUVIAN STAKEHOLDERS SUPPORT NETWORK INVEST Provide political support and raise the profile of the approach Help build partnerships with governments and investors to make the business case Invest in initial phase and mobilize resources for scaling up

27 Todd Gartner Senior Associate, WRI