Background and objectives:
A key aspect for ensuring sustainable transboundary basin development and cooperation is funding. Funding and financing requirements and sources depend on the scope, mandate, objectives and ambition of the transboundary water cooperation arrangement. The lack of sustainable funding and financing models however often prevents countries from deepening their cooperation and improving their water management at basin level. Many countries also face difficulties in supporting transboundary water cooperation from national sources since often the benefits of transboundary cooperation are not always known. Having access to reliable funding and financing mechanisms both at domestic and international as well as from public and private sources to support cooperation processes and transboundary water management projects is therefore crucial.
Building on the first global workshop on funding and financing transboundary water cooperation and basin development, organized in 2020 - this second global workshop aimed to support countries and RBOs in further mobilizing funding and financing resources for transboundary water cooperation and basin development.
It was organized by the Water Convention serviced by UNECE under the leadership of Switzerland and the Netherlands in the framework of the programme area aimed at facilitating the funding and financing of transboundary water cooperation and basin development. It was organized in collaboration with the Senegal, the Asian Development Bank (ADB); the Global Environment Facility (GEF); the Global Environment Facility International Waters Learning Exchange and Resources Network (GEF IW:LEARN), the Inter-American Development Bank (IDB); the Organization for Economic Cooperation and Development (OECD); the United Nations Capital Development Funds (UNCDF); and the World Bank.
The global workshop provided a platform for:
- Countries and RBOs to share experiences, challenges and good practices in mobilizing financial resources for transboundary water cooperation, management and development activities from different sources - presenting financial strategies which could be replicated;
- Countries, RBOs and the finance community to exchange between each other and identify together how to further match basin’s needs with financing opportunities through roundtables and thematic interactive discussions enabling cross-learning, mutual understanding and networking;
- IFIs and private financers (when relevant) to share information on their financing and funding priorities, financial mechanisms and requirements for countries and RBOs to access their financial support for transboundary water cooperation and management activities.
The workshop aimed to address the following amin questions:
- How to mobilize public finance (domestic and international) for transboundary water cooperation and management activities?
- What types of private capital (both domestic and international) can be leveraged for transboundary water management related projects? How to access it?
- What are the existing de-risking instruments to support water related investments in transboundary setting?
- How can private investments decisions further consider transboundary water cooperation and basin development (e.g. by including transboundary issues into corporate risk assessment tools)
- What types of climate finance mechanisms support transboundary water management activities at basin level? How can countries and RBOs access them?
- What opportunities do innovative financial mechanisms bring to transboundary basins development?
This will be achieved through interactive exchanges and exercises between the countries, RBOs, and the financing community. The financing community includes here governments (Ministry of Finance), International Financial Institutions (IFIs), Climate Funds, bilateral donors, and private financiers (e.g. institutional investors, commercial banks, asset managers, impact investors).
The workshop will be followed by the Eighth meeting of the Task Force on the Water-Food Energy Ecosystems Nexus under the Water Convention on 7-8 December 2023. Participants can attend one or both meetings, as appropriate.
Targeted audience of the workshop:
The workshop was addressed to:
- Representatives of countries with shared water resources (from Ministries of water, environment, foreign affairs and finance);
- Representatives of RBOs and joint bodies;
- Representatives of international financial institutions (IFIs) and multilateral development banks (MDBs);
- Representatives of international and bilateral climate finance mechanisms;
- Representatives of the private sector, including companies, private banks, investment banks, pension funds, etc.;
- Representatives of UN entities, international organizations and NGOs working on financing (e.g. UNDP; UNCDF; UNEP Finance Initiative; Global Compact- CEO water mandate, World Water Economic Forum).
More information on the outcome of the global workshop can be found here: https://unece.org/media/news/386610.