International Water Law and Transboundary Water Cooperation
4 Sep 2023
The Rhône River, which originates in the Swiss Alps upstream of Lake Leman (colloquially: Lake Geneva), has again become the subject of negotiations between Switzerland and France ...
7 Sep 2023
Release of Water from Fukushima Nuclear Plant Begins
On August 24, Japan began the process of releasing water from the Fukushima nuclear power plant. The position of Japan is that a special process is being applied, with many precaut...
4 Sep 2023
Panama accedes to Helsinki Convention
On the 7th of July Panama announced its accession to the Convention on the Protection and Use of Transboundary Watercourses and International Lakes (Water Convention), otherwise kn...
6 Sep 2023
Groundwater: a resource for resilience in Southern Africa
Because it is available in different seasons and often of good quality, groundwater provides the opportunity to respond to droughts and climatic variations. These ideas underlie ph...
7 Sep 2023
Malawi and South Sudan Announce Presidential Compacts on Water and Sanitation
On the 21st of August, at Stockholm Water Week, the governments of Malawi and South Sudan announced the launch of Presidential Compacts on Water and Sanitation. This builds on an i...
Water in Armed Conflict and other situations of violence
1 Sep 2023
On the 21st of August Hawaii’s governor, Josh Green, speaking to CNN, stated: “there has been a great deal of water conflict on Maui for many years .. […] .. people have been fight...
7 Sep 2023
Sudan Update: The Water Diplomat Speaks to Action Against Hunger
Tobias Schmitz: From your perspective, what is the current status of the conflict and which areas are currently affected: has this changed geographically since mid-May? Paloma ...
Knowledge Based, Data-Driven Decision Making
6 Sep 2023
Aqueduct Water Risk Atlas highlights unprecedented water demand and climate impacts
The world is on the verge of an unparalleled water disaster, as a result of increasing demand and the unrelenting effects of the climate emergency, according to a report by the Wor...
28 Aug 2023
Activating the Innovation Component of the SDG 6 Global Acceleration Framework
During a session at World Water Week in Stockholm convened by UN-Water and the Global Water Partnership (GWP), participants were challenged to adopt innovative approaches towards d...
7 Sep 2023
Microplastics discovered in human heart
In August, microplastics were found for the first time in human heart tissue. A discovery that is now raising new concerns about their long-term impact on health. A Chinese team di...
6 Sep 2023
European Industry and Environmental Concerns Clash Over Proposed PFAS Ban
The European Union's proposed ban on per- and polyfluoroalkyl substances (PFAS) is deepening a debate between corporate interests and environmental concerns, underscoring the fragi...
7 Sep 2023
Preserving Precious Ecosystems: The Urgent Need for Wetland Conservation
Wetlands, which are sometimes overlooked in favor of more beautiful vistas, are essential to the health of our planet. Since they filter water, sustain biodiversity, and moderate c...
Finance for water cooperation
25 Aug 2023
The CEO Water Mandate (CEO WM), a special initiative established in 2007 by the UN Secretary-General and the UN Global Compact (UNGC) in partnership with the Pacific Institute, rel...
6 Sep 2023
Water and Sanitation Finance: The Challenge with Blended Finance
A recent study estimated the annualglobal investment needed to cover WASH-related services by 2030 at $264 billion. Figures from the UN2023 Water Conferencevaried between US$182 to...
National and Local News
5 Sep 2023
On the 29th of August, the Zambia Environmental Management Agency (ZEMA) clarified its decision on the 24th of August to cancel the decision letter issued to Mwembeshi Resources Li...
7 Sep 2023
China suffers flooding and emerging food safety concerns
Since the end of July, and for just a few days, China experienced severe flooding caused by the aftermath of typhoon Doksuri. Flooding took place in the grain-growing region of nor...
International Water Law and Transboundary Water Cooperation
Franco Swiss Negotiations on the use of the Rhone’s water
The Rhône River, which originates in the Swiss Alps upstream of Lake Leman (colloquially: Lake Geneva), has again become the subject of negotiations between Switzerland and France against the background of recent drought and water shortages in France. Importantly, the water of the Rhône is used to cool 14 of the 56 nuclear reactors providing France with electrical power.
In July this year, Électricité de France (EDF) announced a reduction in electricity production at two nuclear power plants as the high temperature of the river water set in earlier than is usual in the summer months. The water is used to cool the 3.6 GW Bugey and the 2.6 GW Saint Alban nuclear power, and EDF announced in mid-July that the hot weather was likely to halve the available power supply. The water is used to cool the reactors, and the water is returned to the river at higher temperatures, but the temperature increase needs to be limited in order to avoid damage to wildlife in the waters. The maximum river temperature for the operation of the Bugey plant is 26 °C, while that at the St. Alban plans is 28°C.
In March, an audit report highlighted issues related to the safety of French nuclear power plants as a result of the increased variability in river flow and temperature caused by climate change. The report states that the French nuclear fleet, which currently comprises 56 reactors located in 18 power plants, will be faced with challenges posed by climate change. At the same time, the ageing fleet will need to be replaced in a managed transition over the coming decades.
In March, a study by the French water agency warned that as a result of climate change, the level of the Rhone River could be lowered by up to 20% over the next three decades, and in certain tributaries such as the Isère and the Drôme, the reduction could amount to between 30% and 40%. Currently the summer demand on the Rhone does not exceed 15%. Nevertheless, in the medium term, it is envisaged that the Rhone is no longer going to be an inexhaustible resource. More importantly perhaps in the short term, the legal limits placed on the temperature of the water used to cool the nuclear reactors at the point of release into the river will force reduction in power production. Additionally, at the river mouth, the progressive ingress of salt water upstream in dry months could cause damage to crops and riparian vegetation.
Under pressure from France to open discussions, Switzerland announced that it was prepared to enter into negotiations on a Franco-Swiss treaty on the joint management of the Rhône. A primary concern is to set up consultations in response to the crossing of defined limits in the flow of the river. Both Countries are already parties to the Convention on the Protection and Use of Transboundary Watercourses and International Lakes of the United Nations Economic Commission for Europe (UNECE), otherwise known as the Helsinki Convention. This framework convention nevertheless requires more detailed river basin agreements to be negotiated which are specific to the local conditions.
Release of Water from Fukushima Nuclear Plant Begins
On August 24, Japan began the process of releasing water from the Fukushima nuclear power plant. The position of Japan is that a special process is being applied, with many precautions taken, one which is "common practice in the nuclear industry worldwide". The water has been filtered beforehand to remove most of its radioactive substances, with the exception of tritium. The process of release of water into the sea will be very gradual, lasting until 2050. The amount of treated water discharged each day will not exceed 500 m3. The first discharge is expected to last around 17 days, and will involve some 7,800 m3 of plant water containing tritium, a radioactive substance that is only dangerous in highly concentrated doses.
Japan plans to release this water with significant dilution beforehand, so that its radioactivity level does not exceed 1,500 becquerels (Bq) per liter. According to Japan, three further discharges are planned between now and the end of March, for volumes equivalent to the first. Statistically, more than 1.3 million m3 of wastewater stored to date at the Fukushima Daiichi power plant site will be discharged into the Pacific Ocean, from rainwater, groundwater and the injections needed to cool the cores of the reactors that melted down after the March 2011 tsunami devastated the country's northeast coast. The project was first announced in 2018, and it was only last July that the International Atomic Energy Agency (IAEA), which is overseeing the operation, gave the go-ahead, deeming the project to comply "with international standards" and to have a "negligible radiological impact on the population and the environment". In August, US Secretary of State Antony Blinken said he was "satisfied with Japan's plans". Japan has coordinated closely and proactively with the IAEA on its plans, and they have conducted a transparent, science-based process, he noted.
Anger
But this operation was launched in the face of opposition, particularly from China, which described the move as "selfish and irresponsible". Even Japanese fishermen see things differently, and are worried about the image of their product, especially as China has banned imports of food from ten Japanese counties, including Fukushima, since July. Hong Kong and Macao took similar measures this week, according to media reports. While other Asia-Pacific states with better relations with Japan, such as South Korea, Taiwan, Australia, Fiji and the Cook Islands, have expressed their confidence, opponents continue to defend their ideas and claim that the ocean is a humanitarian and common good. Demonstrations against the dumping have already taken place in South Korea. On the first day of the operation, there was a rally in front of the Power Plant, but few demonstrators were there, AFP noted. Although Seoul had announced its support for the plan, on August 12 a civic association demanded that Tokyo Electric Power Company Holdings Inc. put an end to its ocean dumping project.
The South Korean court eventually rejected the complaint. However, Seoul hopes that Tokyo will share information, allow access to its experts and immediately halt any dangerous release. A Japanese Foreign Ministry spokesman said Tokyo would continue to work closely with Seoul.
Panama accedes to Helsinki Convention
On the 7th of July Panama announced its accession to the Convention on the Protection and Use of Transboundary Watercourses and International Lakes (Water Convention), otherwise known as the Helsinki convention. In so doing, Panama has become the first Latin American country to accede to the convention. Panama shares river basins with Costa Rica and Colombia, and the total area of the country which lies within transboundary river basins represents approximatively 25% of the national territory. This percentage lies at the foundation of an important indicator within Sustainable Development Goal 6 on water and sanitation, i.e., SDG 6.5.2, which measures the proportion of transboundary basin area with an operational arrangement for water cooperation.
Panama is a water rich country by global standards, with some 33,000 m³ of water available per capita per annum, almost six times the global average, and it has a total of 18 watersheds and 150 rivers. The main transboundary river basin for Panama is the Sixaola, located in the border region with Costa Rica. UNECE reports that Panama and Costa Rica are working together to coordinate the development of the Sixaola River basin through a Binational Commission, and it is expected that the implementation of the Water Convention will help operationalize monitoring and data-sharing systems on water quality, quantity, and use, that in turn will help to identify trends and potential problems and support evidence-based decision-making.
Ms. Janaina Tewaney Mencomo, Minister of Foreign Affairs of Panama, stated: "Panama is committed to fostering both a blue and green economy through sustainable use of natural resources. The protection of the environment is a priority for Panama. Our accession to the Water Convention is a crucial engagement that reaffirms our leadership as a blue-green country worldwide, providing our country and continent with one additional tool."
Groundwater: a resource for resilience in Southern Africa
Because it is available in different seasons and often of good quality, groundwater provides the opportunity to respond to droughts and climatic variations. These ideas underlie phase II of the new SADC groundwater management programme for 2031, following the one completed in 2021. The Southern Africa Development Community (SADC)’s Groundwater Management Institute (GMI) secured funding from the World Bank and Global Environmental Facility for phase II of the Sustainable Groundwater Management Project.
It is estimated that 70% of the SADC population depends on groundwater for its daily needs. Statistics also show that 40% of SADC's 280 million inhabitants do not have access to an adequate supply of drinking water, and 60% do not have access to adequate sanitation services.
Groundwater is a fundamental resource to achieve a balance between social, economic and environmental, but groundwater is still poorly understood and insufficiently integrated into legal and policy frameworks. This is urgent in view of the increased demand for water in teh region, driven by population growth, inadequate water infrastructure and, above all, climate variability. For example, to increase resilience, three new boreholes have been drilled in Zambia in a project that will help the population of Chongwe to benefit from the necessary access to water. These boreholes will improve access to drinking water for almost 12,000 inhabitants.
This result was made possible by the Southern African Development Community Groundwater Management Institute (SADC-GMI). This pilot project launched by SADC-GMI in Chongwe complements existing boreholes in the region, while alleviating water scarcity. The project also aims to identify and describe a local aquifer in the region with sufficient production capacity for village water supply. The three boreholes will supply an additional 100 m3/hour to the existing water distribution network. It should also be noted that 70% of SADC's rural population depends on groundwater supplies
A resource to be preserved
Because it is widely available and often of good quality, groundwater has an intrinsic capacity to absorb episodes of drought and climatic variations. Some SADC member states are therefore actively integrating groundwater into their water resource management policies and legislation. These resources are particularly important for building climate resilience and reducing poverty by improving human well-being, livelihoods, food production, ecosystems, industries and urban growth in SADC. Despite varying dependence on groundwater in SADC member states, it generally provides an essential buffer between dry and rainy seasons. Groundwater is also resilient to climatic variations and changes.
There is increasing evidence for the importance of groundwater in climate adaptation. A study coordinated by researchers from University College London, Cardiff University (UK) and IRD, published in the journal Nature shows that groundwater renewal depends on heavy rainfall and flooding events, which could be amplified by climate change. In arid zones such as Tanzania, groundwater is generally renewed from localized seepage beneath temporary streams and lowland ponds.This is why Jean-Michel Vouillamoz, hydrogeologist and geophysicist at IRD, who coordinated data analysis in Benin in 2019, insisted that "a better understanding of the processes that control the renewal of groundwater stocks is of great importance to better estimate the impacts of climate change and thus develop appropriate adaptation strategies". Previous studies have, according to Richard Taylor (UCL), one of the coordinators of the study in question, quoted in Nature magazine, "underestimated their renewal and resilience in the face of climate change".
Malawi and South Sudan Announce Presidential Compacts on Water and Sanitation
On the 21st of August, at Stockholm Water Week, the governments of Malawi and South Sudan announced the launch of Presidential Compacts on Water and Sanitation. This builds on an initiative in 2022 by the Government of the Netherlands, together with IRC WASH, SWA and UNICEF, to directly engage heads of state in the drive to prioritise action on Water, Sanitation and Hygiene (WASH). According to Sanitation and Water for All (SWA), Presidential Compacts on water and sanitation mark a significant step forward in improving public health, ending open defecation, and increasing climate resiliency. SWA is a broad, multi-stakeholder partnership of governments and their partners from civil society, the private sector, UN agencies, research and learning institutions and the philanthropic community which has worked for many years to coordinate international action around access to WASH.
In the context of the first UN Water Conference in 46 years, the compacts initiative served to call for attention for water issues at the highest political level, and Presidential Compacts represent achievement of this attention. The Compacts are also an accountability mechanism, as they build upon clear commitments that encompass increased budget allocations, innovative sources of financing, and comprehensive plans for the construction of vital water and sanitation infrastructure. SWA has announced that for those actors which make commitments at the international level , it is willing to provide the monitoring services to report to the international community about aggregate progress on these global goals.
In the case of the Malawi and South Sudan commitments, the following engagements have been made: in the case of Malawi, in support of the $145 million in funding received from the World Bank, the Compact will provide a blueprint for rebuilding water and sanitation infrastructure and enhancing climate resiliency following the devastation from Cyclone Freddy. In the case of South Sudan, the country has earmarked $56 million – equivalent to nearly 2% of the country’s GDP – to bolster their Compact strategies, which include empowering communities to end open defecation by 2030. Sudan has also promised to expedite the passing of Water Bill 2014 to ensure a safe water supply.
Additionally, Nigeria announced its intention to serve as a Compact mentor, providing its expertise in engaging Heads of State to ensure the prioritization of water and sanitation.
Speaking at the launch event, Catarina de Albuquerque, CEO of SWA said: “To achieve water and sanitation for all by 2030, we’ll need a roughly six-fold increase in current rates of progress worldwide. However, we won’t get there without ambition, action and accountability from Presidents and Prime Ministers. Clean water and sanitation are fundamental human rights and essential for achieving secure stable resilient futures for every country. These Compacts demonstrate a collective commitment to transforming the lives of millions.”
Omar Abdi, Deputy Executive Director, Programmes for UNICEF, stated: "Empowering children with access to safe water and sanitation is not just a commitment, but a testament to a brighter, healthier future. As governments unite in their pledge to increase access to these basic necessities, we provide not only access to safe water services and sanitation, but bridges to a world where children can thrive without the risk of waterborne disease or compromise their learning or safety while collecting water."
Water in Armed Conflict and other situations of violence
The hydrological roots of Maui’s Great Fire
On the 21st of August Hawaii’s governor, Josh Green, speaking to CNN, stated: “there has been a great deal of water conflict on Maui for many years .. […] .. people have been fighting against the release of water to fight fires”. It has emerged that just before the disastrous fire that wiped out the town of Lahaina, representatives of the West Maui Land Company, noting the combination of dry vegetation and high winds, requested permission from State authorities to fill a private reservoir in case of the need to fight fires. Before the request was approved, however, power lines that fell as the result of the winds allegedly ignited a fire – an issues contested by Hawaii Electric company , and later in the day a second fire started which devasted the area and, by the 30th of August, had led to 115 fatalities and 388 missing persons.
The reservoir would probably not have helped to contain the fire, but the issue has again raised controversy and conflict over water rights in Hawaïi which has continued for some 150 years in different forms. Many writers over the past weeks have pointed to the enduring legacy of plantation capital: private land ownership did not exist and land allocation was managed on behalf of the people through the king. However, a new law in 1848 – the Great Mahele enabled the introduction of private land ownership, as one third of the land was designated as State Land, which was subsequently sold to agricultural corporations which began clearing the rich wetlands and rerouting the water for the development of water intensive, export oriented agricultural crops such as sugar and pineapples.
Maui’s rural areas today still feature many stone contour bunds, which were built by native Hawaiian communities five centuries ago. Maui used to have a traditional ‘Auwai’ system of channeling water from local streams to supply a fishpond or ‘Taro’ patches of agricultural land. Karo-Talo is a root vegetable which is considered to be one of the world’s first cultivated crops, and in Maui it was grown in agricultural patches within a wetland area, irrigated from rivers and streams with gravity fed irrigation channels.
However, with the expansion of plantation agriculture on Maui, and followed by a rapid expansion of a water-hungry tourist industry, a lot of pressure has been placed on water resources. When the West Maui Land Company wrote to Kaleo Manuel, a member of the State Commission on Water Resource Management to request the release of water for the private reservoir, the delay in response was interpreted by some companies as an example of the government leaning too much towards the protection of traditional water rights. Kaloe Manuel has since then been ‘redeployed’ to other tasks, a move which has angered many native Hawaiian farmers, who see the letter as a pretext to reallocate water in favour of the agricultural companies.
It is difficult to retroactively chart the draining of Maui’s wetlands in the absence of sufficient historical data. Some researchers have estimated that coastal wetlands in Hawaii have lost some 44% of their original area, as compared to only 3% in upland areas: therefore, it is indeed the agricultural plains that the greatest biodiversity and water loss has been suffered. Historical reports refer to lush plains peppered with wetlands and in which aquaculture was practiced traditionally for centuries. In the wake of the disaster, the stakes of the agricultural corporations are currently still pitted against conservation movements such as the Green New Deal Network which seek to reinvest in climate resilient, sustainable and inclusive forms of development which aim to reduce the level of risk to nature and to communities from current practices in natural resources governance.
Sudan Update: The Water Diplomat Speaks to Action Against Hunger
Tobias Schmitz: From your perspective, what is the current status of the conflict and which areas are currently affected: has this changed geographically since mid-May?
Paloma Martin: The fighting that began with the outbreak of conflict on 15 April between the Sudanese armed forces and the Sudanese security forces has resulted in frequent air attacks and shelling of military and civilian infrastructure, including hospitals, in the capital Khartoum and other parts of the country. More than 2.8 million people have been displaced, including more than 2.2 million internally and nearly 615,000 who have crossed into neighbouring countries.
Humanitarian programmes have been severely affected by attacks and looting of their premises, including the killing and injuries of humanitarian personnel, and destruction of infrastructure. At least 19 aid workers have been killed since the conflict began and many more have been injured. The latest news is that 53 warehouses of humanitarian partners have been looted, 87 of their offices have been ransacked and at least 188 vehicles have been stolen. Evacuations of humanitarian personnel have taken place in in key locations in Sudan, including Khartoum and Darfur, and some programmes have been suspended.
Looting and destruction of property is widespread in Khartoum and throughout Darfur as armed groups take advantage of the outbreak of conflict to rob and/or set fire to banks, shops, humanitarian offices, hospitals and homes. Civilians have been caught in the crossfire, resulting in at least 1,100 civilian deaths and injuries, and have had additonal distressing experiences, including deprivation of access to cash and reported cases of sexual violence.
Many ceasefires have been announced at different times since the beginning of the conflict, including a ceasefire on the 21st of June brokered by by Saudi Arabia and the United States. Following the reemergence of conflict, the IGAD group led by President William Ruto of Kenya disucssed another roadmap for peace on the 10th of July, but the conflict continues to spread.
More than two-thirds of the fighting initially took place in Khartoum and other urban areas along major roads, particularly the east-west corridors from Kassala to West Darfur. Since then, the conflict has spread to many parts of the country, with strong momentum in Greater Darfur, with conflicto breaking out in the towns of el Facher and al-Foula .
Tobias Schmitz: The United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA) estimates that the total number of people in need of humanitarian assistance was 15.8 million in 2022 and has become 24.7 million currently: do you have more information on these estimates and where are the main problems?
Paloma Martin: The number of people estimated to need humanitarian assistance across the country in 2023 has increased from 15.8 million last year to 24.7 million currently. The conflict has caused enormous human suffering and exacerbated significant pre-existing humanitarian needs among Sudan's civilian population. The conflict took place mainly in urban areas that were not previously included or were marginally included in the country's humanitarian response planning. Another factor contributing to the increase in the number of people in need of humanitarian assistance is the need to scale up life-saving multisectoral assistance to crisis-affected people and mitigate protection risks for those same people. In addition to large-scale displacement, the conflict has reduced access to food, water, money, health care and other basic services for millions of people.
The country is also experiencing severe water shortages caused by power cuts, which have led to an increase in the number of people in need of humanitarian WASH assistance. The target number of people in need of WASH services is 6.8 million.
As a result of the ongoing conflict, less than 20 per cent of health facilities in Khartoum remain fully functional and 60 per cent are not functioning, severely limiting access to urgent medical services for millions of people – a major factor in the increase in the number of people in need of humanitarian health assistance.
Similarly, many urban areas of the country have suffered heavy shelling that has damaged essential water, health care and electricity infrastructure, leading to an increase in the number of people in need of humanitarian assistance related to water, health services and electricity infrastructure in many parts of the Sudan.
Tobias Schmitz: To what extent is it still true that the water supply systems in Khartoum are down and have some repairs been possible?
Paloma Martin: Water, sanitation and hygiene needs are rising sharply in Khartoum and other conflict-affected states due to non-functionality of water treatment plans and interruption of the supply chain. It is not possible to repair or rehabilitate water points because insecurity affects the movement of humanitarian personnel. There are no intentional attacks on water infrastructure, but due to the use of heavy weapons, including airstrikes and fighting in residential areas, water and electricity stations have been either damaged or severely interrupted. Access to water points is problematic, leading to an increase in the number of displaced people at various assembly points, including at international borders.
Tobias Schmitz: How is the coordination of humanitarian assistance approached at this time?
Paloma Martin: UN organisations and INGOs have made efforts to ensure the safe evacuation of their international staff and to make arrangements for the safety of their local staff in the first weeks after the conflict began. they then began working on plans to scale up humanitarian assistance to affected people in collaboration with local organizations, civil groups and local INGO staff. UN/INGO used the signing of a seven-day ceasefire on 20 May to allow civilians to move, deliver vital humanitarian supplies and repair critical infrastructure.
Humanitarian partners have provided food to affected people in several states, as well as water, health care and hygiene support to displaced people where access to those in need has been possible. Despite all the challenges, humanitarian actors have provided life-saving assistance to 2.8 million people.
The UN community and NGOs have sought to advocate with the Sudanese authorities to create a safe environment and remove bureaucratic obstacles at local and national levels to enable humanitarian workers to deliver supplies quickly and safely. Different general and sectoral platforms of INGOs have been created to facilitate the humanitarian response process, such as the INGO Daily Check-in, which shares information on what each INGO is doing on the ground to meet the humanitarian needs of the affected population. There are also access working groups that work on humanitarian access issues.
Other platforms are the weekly INGO meetings on security, jointly facilitated by OCHA and UNDSS - the outcomes of these meetings are advisory notes on security and joint security planning.
Other specialized platforms are sectoral forums such as the SLF, the CASH Working Group, WASH, Health and Nutrition, and Protection, AAP (Accountability for Affected Population). WASH sector – UNICEF/line ministries hold weekly coordination meetings with WASH partners to discuss humanitarian update (main impact and needs) to prioritize areas, mobilize existing resources to fill gaps, encourage partners to update their HRP 2023 by requesting more funding to respond to the recent emergency in Sudan. The WASH cluster provides technical support to international and national WASH partners and supports the Water and Environmental Sanitation (WES) project with WASH equipment and ministries of health with chemicals (chlorine tablets) and information, education and communication materials. In addition, partners share their quarterly response tracking data.
Tobias Schmitz: What are ACF's activities and needs at this time in Sudan?
Paloma Martin: security and bureaucratic access issues, including lack of visas for NGOs, and attacks on humanitarian premises and warehouses continue to hamper partners' ability to deliver aid and services safely and on a large scale. In particular, humanitarians face enormous challenges in reaching people in need in conflict-affected areas in Khartoum, Darfur and Kordofan states, where the situation is extremely worrying.
ACF continued operations in three of its four operational areas in the health and nutrition, water, sanitation and hygiene, and FLS sectors (ACF operations continued in White Nile, Blue Nile and South Kordofan - we are working to resume our operations in Central Darfur, which has been extremely difficult so far due to the security situation).
Activities focus mainly on survival, health and nutrition services and primary health services, selection of cash assistance recipients and distribution of agricultural inputs. 51 health centres are operational and Action Against Hunger has delivered nutritional products to the White Nile and is currently making deliveries to the Blue Nile. Since the beginning of the conflict, Action Against Hunger has reached affected children and pregnant and lactating women. A total of 1,015 children under 5 and 117 pregnant and lactating women received treatment for malnutrition by the Sudanese Action Against Hunger mission. These include the treatment of severe and moderate malnutrition. Action Against Hunger supports the screening of malnutrition, the treatment of cases (malnutrition and infection) and the distribution of supplies at health facilities despite the context of security and limited accessibility. In Blue Nile, White Nile and South Kordofan, we have pre-positioned stocks of RUTF/medicines for three months in preparation for the rainy season.
Scarcity of water, food and health services leads to communicable diseases such as diarrhoea, malaria and other related infections. Action Against Hunger's team in Sudan supported the treatment of more than 1,676 cases of children under 5 and adults. In South Kordofan State, more than 84 cases of malaria have been treated.
In White Nile, Action Against Hunger successfully distributed agricultural inputs (seeds) to 238 targeted farmers at the household level, helping them produce food. Beneficiaries received training on agricultural practices prior to seed distribution.
Knowledge Based, Data-Driven Decision Making
Aqueduct Water Risk Atlas highlights unprecedented water demand and climate impacts
The world is on the verge of an unparalleled water disaster, as a result of increasing demand and the unrelenting effects of the climate emergency, according to a report by the World Resources Institute (WRI). The analysis reveals that an alarming 25 percent of the world's population is presently facing significant water stress, with forecasts indicating that an extra billion people would be in this precarious scenario by 2050.
The Aqueduct Water Risk Atlas, an exhaustive WRI study, provides a bleak picture of the global situation. Regions such as Bahrain, Cyprus, Kuwait, Lebanon, and Oman, which are home to a fifth of the world's population, are being threatened by significant water scarcity. Even a brief drought could place these countries in a precarious position of water scarcity.
Since 1960, the global demand for water has more than doubled, and by 2050, this need is anticipated to increase by an additional 20 to 25 percent. Population increases, high industrial demands, especially in agriculture, ill-advised water policies, and inadequate investment in water infrastructure all contribute to the soaring demand. The climate issue exacerbates the situation by increasing the frequency of severe droughts and heat waves, which weaken water security.
The Middle East and North Africa are anticipated to be the focus of the catastrophe, with the whole population of these regions facing significant water stress by the middle of the century. Consequences include not only drinking water shortages but also economic setbacks and potential political confrontations that could have global ramifications.
Although Sub-Saharan Africa is not now experiencing significant water scarcity, the region's water consumption is expected to increase by an astounding 163 percent by 2050. This spike, driven by home water usage and agricultural irrigation requirements, might impair the region's planned economic growth, perhaps delaying what was expected to be the fastest-growing economic region in the world.
The problem has repercussions in numerous industries, including energy, agriculture, and public health. In India, for example, water scarcity caused energy losses equivalent to power 1.5 million households for five years. The WRI research advocates nature-based solutions, efficient farming practices such as drip irrigation, and a transition to less water-intensive energy sources such as solar and wind.
According to the WRI research, there is an urgent need for international cooperation. Urgent, coordinated, and focused action is required to solve this escalating problem and avert disastrous outcomes. The global community must unite to handle the water problem head-on, or face severe and widespread consequences.
Activating the Innovation Component of the SDG 6 Global Acceleration Framework
During a session at World Water Week in Stockholm convened by UN-Water and the Global Water Partnership (GWP), participants were challenged to adopt innovative approaches towards data, finance, governance and capacity development. These topics had previously been identified as the main driving factors within the SDG 6 Global Acceleration Framework launched in 2020, when concern was already raised about the pace of SDG 6 implementation. The working session revolved around two main axes, i.e. ‘storytelling’- a sharing of experiences in the field of innovation by leading global water organisations – and the harnessing of existing commitments in the context of the Water Action Agenda.
Joakim Harlin, Chief, Freshwater Ecosystems Unit at the United Nations Environment Programme (UNEP), opened with a summary of current global water challenges and highlighted the need for innovation. Harling emphasized that to meet the 2030 global water goals, we need to accelerate by a factor of between two and six times the current progress. He explained how the SDG 6 Global Acceleration Framework, launched in 2020, was the UN system’s response towards accelerating progress, and that innovation in this context includes but also goes beyond technological solutions, and should include policies, management practices and institutions, which should be taken to scale.
Colin Herron, Senior Water Resources Management Specialist at GWP, moderated the session and argued that innovation is the antidote to business-as-usual: to achieve global targets innovation must be adopted at every level and in every organisation.
In a keynote speech, Bernard Koh, Assistant Chief Executive at the Public Utilities Board of Singapore , (PUB) shared the journey that his country had gone through over the last 60 years, going from a situation where there was no proper sewage facilities and discharge controls, turning rivers into open sewers, and seasonal floods occurring regularly in low lying areas, especially when intense rain coincided with high tides, in the 1960s, to a country in the present day with 100% access to safe managed drinking water (SDG 6.1.1) and sanitation (SDG 6.2.1a) services. This success story, captured in an SDG 6 Country Acceleration Case Study, had required the adoption of several innovations, such as leveraging technology to overcome water constraints, enhancing water resilience through water recycling and desalination, thus using every drop of water repeatedly. He explained the fact that PUB manages the entire water cycle, which facilitates long-term planning and efficiency. Furthermore, he described how water is high on the political agenda in Singapore, dominating every other policy, and guiding long-term plans and goals, and that water is priced to reflect the value of its scarcity.
In the following section, four high-level panellists were invited to tell stories about their innovation successes. The first speaker, David Duncan, who leads the UNICEF Office of Innovation Sustainable WASH Innovation Hub as a Senior Advisor, spoke about the Sanitation Revolving Fund as applied in Ghana. The story started six years previously, when, realising that large part of the population were using public toilets and couldn’t pay for their own private toilets, UNICEF realised that the underlying problem was that the cost of interest rates for micro-finance was too high. UNICEF started looking at reducing construction costs, but really only took the edge off the problem at first, and therefore defined an approach with microfinance from banks, which made interest rates more attractive. However, getting internal approval for this approach was challenging, since facilitating loans was not typically UNICEF’s support model. Ultimately this innovative method was approved and successfully implemented and has led to thousands of homes getting their own toilets, with sufficient quality data to give financial institutions confidence that it could go to scale. He highlighted that institutional change is difficult but worth it, and that, during implementation, it is important to continue learning on your feet.
The second speaker in this section was Gustavo Saltiel, Global Lead for Water Supply and Sanitation at the World Bank, who spoke about an innovative lending instrument, which was payment by results, which was first implemented at the World Bank eight years previously. This approach, a dramatic change in the modalities of multilateral organisations, was first tested in rural sanitation in Egypt. Through this approach, the Bank disbursed funds against specific performance indicators, using the country’s system of safeguards, rather than the Bank’s. He explained that this new way of working had supported a shift towards service delivery as the objective, rather than an exclusive focus on building infrastructure, employing appropriate technology for the specific purpose required. Such a process had required a strengthening of the accountability and transparency mechanisms, through independent verification protocols, which helped the Bank to know whether the results were being achieved. It had implied a pathbreaking system of fiscal transfers, wherein the Bank disbursed funds to the national government, which in turn disbursed to sub-national governments, with the participation in some cases of civil society organisations and the private sector.
Third up was Cheryl Hicks, Senior Advisor, CEO Water Mandate, who focused on the CEO Water Mandate’s leadership initiative, the Water Resilience Coalition (WRC), with an elevated set of corporate ambitions, working through collective actions to achieve net positive water impact in 100 of the world’s most water stressed basins by 2030. The initiative started with the recognition that the business community could play a unique role in accelerating progress on water, and that action needs to be coordinated to have impact at scale, recognising that even the most pioneering leaders cannot achieve water security and resilience without working collaboratively. Beyond on-the-ground projects, this interest in driving collaborative solutions is also taking numerous forms. She presented two such examples, first corporate collaborative and targeted investments in water, going beyond philanthropy, through a portfolio approach which identifies capital market mechanisms that companies can jointly invest in, for shared impact. The first such co-investment was announced in March 2023, with five WRC corporate members contributing to a $140 million microfinance fund for water and sanitation access, with a pipeline of investment opportunities being identified in the billions. Secondly, she highlighted a collaboration with the European Space Agency to digitise water diagnostics and monitoring at the basin scale, to inform future investment decisions. In both cases, she highlighted that the innovation was companies going beyond their direct operations, leveraging their unique business expertise to address common water challenges.
Finally in this section, Abou Amani, Director of the Division of Water Sciences and Secretary of the Intergovernmental Hydrological Programme (IHP) at UNESCO, told a story about the SDG 6 Capacity Development Initiative, an innovative example of how the whole UN system was coming together to collectively accompany countries on the ground to identify and fill their capacity gaps to achieve SDG 6. He described how this process, which is driven by the demand by countries, with high-level national ownership, starts with a capacity needs assessment, putting in place a country-specific plan to meet those needs, in full collaboration with local partners, thus ensuring the appropriateness of support and buy-in from beneficiaries. He explained that the process was being piloted in two countries, Panama and Costa Rica, with an iterative learning process, and could soon be used for replication in other countries.
In the ensuing debate, panellists pointed to a range of issues involved in acceleration such as – amongst others - the need for ‘step changes’ rather than smaller, incremental progress, the importance of engaging strong local champions to increase the reach of government, as well as public sector innovation in the field of procurement processes.
In an interactive exercise focusing on solving the water- related challenges of a fictitious urban setting, Alexis de Kerchove, Senior Director, Client Sustainability at Xylem; Akanksha Jain from the Swiss Water Partnership Youth; and Christine Colvin, Head of Policy, Freshwater at WWF International traded ideas. The panellists agreed that essential elements include collaboration and good governance; sustainable financial strategies at a regional level (which exist for most other sectors); the need for an adaptable new cohort of experts in water, merging science and engineering, to work with AI; and democratising data. Other comments made highlighted the length of time needed to achieve change, the need to increase efficiency in the agricultural sector; understanding and rethinking the economic models that led to the degradation, embracing and empowering people, and focusing on doing the basics better before thinking of AI and technology.
In closing, Colin Herron highlighted the creative process of bringing together different solutions from the Water Action Agenda to achieve impacts on SDG 6. He noted that combining the 820 commitments of the Water Action Agenda would be an innovative pathway towards greater impact. He invited the audience to become innovation champions, taking home the mindset that innovation could help them achieve better solutions, working across sectors and stakeholder groups. On behalf of UN-Water, Mary Matthews, UNDP’s Interim Senior Technical Advisor Water and UNDP Ocean Advisor & Ocean Innovation Challenge Manager, noted that if the rest of the world doesn’t understand the water problems it faces, it will be difficult to make hard changes. She stated that there are many examples of great innovations, including those from Nature, and we should all help each other to learn from them. Noting that we have little time, and may have overshot the mark already, she insisted on starting now, adding that we need to incubate and fund innovations to help them pilot and grow, to transform the world we live in.
Microplastics discovered in human heart
In August, microplastics were found for the first time in human heart tissue. A discovery that is now raising new concerns about their long-term impact on health. A Chinese team discovered the presence of microplastics after examining tissue samples from 15 cardiac surgery patients. The presence of chemicals, such as acrylic or Plexiglas, provides "direct evidence of the presence of microplastics in cardiac surgery patients", although there may be some doubt about contamination during surgery, according to doctors. In several studies, researchers have explained the closed cycle of plastic's transformation until it reaches our plates. The accumulation of microplastics in water presents a diverse range, the main types being polystyrene, polyethylene, polyvinyl chloride and microbeads. Among organisms, his findings indicate that microplastics have been found in the intestinal contents of various mollusc species.
The dominant types of these organisms are polyethylene and PVC. A conclusion confirmed by a researcher in Singh's laboratory. He is currently concentrating on creating a preliminary database on microplastics found in water, sediment and shellfish. Plastic disintegrates into smaller fragments. Pieces of plastic less than five millimeters in size are classified as microplastics. Some are even as small as nanometers. Primary microplastics are tiny particles manufactured for commercial purposes, such as cosmetics, as well as microfibers discarded from clothing, fishing nets and other textiles. Secondary microplastics result from the degradation of larger plastic objects, such as water bottles. When plastic enters ecosystems, it inevitably transforms into microplastics. The smaller its size, the more dangerous it is. Compared to microplastics, nanoplastics can easily penetrate biological cells.
A danger
A danger to nature and health. On August 17, an article published in The Guardian, based on a new paper by the University of Toronto, revealed that some 90% of water samples taken over the last ten years from the Great Lakes contain levels of microplastics that are dangerous to wildlife. Environmentalists call plastic recycling an "elaborate myth". The data provided show a higher risk for around 20% of these samples. The Great Lakes provide drinking water for more than 40 million people in the USA and Canada, contain around 90% of the USA's fresh water and are home to 3,500 species of plants and animals. Although there are a myriad of sources of microplastics, wastewater treatment plants appear to be one of the main sources of pollution in the Great Lakes basin, as is the case elsewhere.
Pollution from the microfibres that come off clothes in washing machines is considered another common source. In fact, in 2022, to analyze the presence of microplastics in Jhelum, India, a study conducted by the National Institute of Technology (NIT) in Srinagar and published in the journal Science of the Total Environment examined solid waste disposal sites along rivers. Results: unscientific disposal in landfills along the banks of water bodies is the cause, a common phenomenon in Kashmir and throughout the country, contributing significantly to microplastic pollution.
Microplastics were present in all samples, and their abundance in the water was highest downstream of solid waste disposal sites, according to Muneeb Farooq, researcher at NIT Srinagar and lead author of the study. The same study also shows that, in addition to environmental stresses such as UV exposure, some factors that can contribute to microplastic production are the large local temperature differences between summers and winters. The researchers suggest that when frozen, plastic waste becomes brittle and more vulnerable to degradation under mild environmental pressures.
European Industry and Environmental Concerns Clash Over Proposed PFAS Ban
The European Union's proposed ban on per- and polyfluoroalkyl substances (PFAS) is deepening a debate between corporate interests and environmental concerns, underscoring the fragile balance between economic viability and ecological effect.
The Voice of the German Machinery and Plant Engineering Industry -Verband Deutscher Maschinen und Anlagenbau (VDMA), which represents over 3,600 European mechanical and plant engineering companies, has raised a red flag regarding the potential negative effects of a comprehensive PFAS ban on a variety of industrial processes.
As the proposed prohibition approaches, the VDMA is particularly concerned about its potential effects on the textile industry. The organization contends that the exclusion of vital chemicals for the production of technical textiles and the absence of critical textile machinery components might disrupt the whole supply chain.
The influence on solid PFAS components, such as PTFE and FKM, which are vital to textile machines designed to work under harsh circumstances, is of primary concern to them. However, these materials are not fundamentally harmful to the environment and are disposed of in a responsible manner by equipment.
The VDMA pushes for a more nuanced approach, taking cues from the United Kingdom's varied evaluation of different PFAS groupings. They say that these PFAS components are indispensable in a variety of machinery types, such as textile dyeing machines, textile drying machines, and chemical dispensing systems, all of which are crucial to the manufacturing of sustainable textiles.
Despite the prominence of industry concerns, a debate is emerging over the European Commission's reported retreat from its vow to ban dangerous chemicals in consumer items. Originally planned as the centerpiece of the European Green Deal, the ban attempted to eradicate thousands of harmful substances, including the infamous PFAS dubbed as "forever chemicals" due to its relationship with a variety of health problems. Nonetheless, rising business pressure and political opposition appear to have driven the Commission to consider more lenient options, stoking concerns about public health and the veracity of environmental claims.
This widening chasm between business stakeholders and environmental advocates highlights the difficulty of regulating dangerous chemicals while managing complicated economic and ecological factors. As the debates progress, the outcomes will greatly influence the future course of European chemical laws, the industries they affect, and the environmental sustainability they seek to accomplish.
Preserving Precious Ecosystems: The Urgent Need for Wetland Conservation
Wetlands, which are sometimes overlooked in favor of more beautiful vistas, are essential to the health of our planet. Since they filter water, sustain biodiversity, and moderate climate change, these unique ecosystems require our attention and protection. As the global community grapples with environmental concerns, the value of wetland ecosystems has come into sharper focus, with examples from Africa and elsewhere demonstrating their importance.
Africa is home to several varieties of wetland, all of which provide vital biological purposes. The Okavango Delta in Botswana is a prime example. Countless animals, such as elephants, crocodiles, and numerous bird species, seek sanctuary in its complex network of rivers, lagoons, and islands. Not only can these wetland ecosystems sustain local populations by providing water and fertile soil for agriculture, but they also draw tourists, thereby boosting the regional economy.
The importance of wetland ecosystems is not exclusive to Africa; it is a global concern. Wetlands such as marshes, swamps, and mangroves serve as natural water filters. They contribute to water purification by catching pollutants, sediments, and excess nutrients before they reach larger bodies of water such as rivers and oceans. This protects not only human health and water sources, but aquatic habitats as well.
Moreover, wetland areas are crucial for mitigating global warming. Peatlands, a type of wetland, contain massive volumes of carbon dioxide. This carbon is released into the atmosphere when peatlands are degraded or drained, contributing to greenhouse gas emissions. By lowering carbon emissions and promoting carbon sequestration, maintaining and restoring peatlands can assist in mitigating climate change.
Despite their importance, wetland habitats are globally threatened. The degradation and loss of wetland ecosystems are caused by urbanization, agriculture, pollution, and climate change. For example, the disappearance of the Aral Sea in Central Asia due to excessive water diversion has had catastrophic impacts on the region's ecology and economy.
Wetlands conservation is gaining pace. The Ramsar Convention, a 1971 international accord, aims to conserve and exploit wetland ecosystems in a sustainable manner. Countries in Africa, such as Uganda, have established Ramsar sites to safeguard crucial wetland habitats. Moreover, community-led efforts are expanding, underscoring the importance of including residents in wetland protection and management.
The future health of our planet rests on recognizing the immense value of wetlands. As climate change accelerates and freshwater supplies become scarcer, the significance of wetland functions increases. In addition to maintaining existing wetland habitats, conservation efforts must also focus on restoring degraded ones. Government legislation, international cooperation, and public awareness campaigns are necessary to preserve the survival of these essential ecosystems.
The significance of wetlands cannot be overstated. These places are vital for biodiversity, water purification, and climate regulation, among other things, ranging from the renowned landscapes of Africa to the world's wetland ecosystems. If we prioritize wetland protection, we can guarantee a sustainable future for both the environment and human societies.
Finance for water cooperation
CEO Water Mandate’s Inaugural Impact Report Launched
The CEO Water Mandate (CEO WM), a special initiative established in 2007 by the UN Secretary-General and the UN Global Compact (UNGC) in partnership with the Pacific Institute, released its inaugural Impact Report for activities over 2022 and, at Stockholm Water Week, also released its 2022 Water Resilience Coalition impact report. Under its shirt term 2021-2023 strategy, the CEO Water Mandate aimed to ensure the upscaling of water stewardship practices by companies in critical locations and industry sectors. Already, the CEO WM is an umbrella body on water management practices for 234 companies worldwide.
The CEO WM strategy consists of a number of pillars: the first, perhaps predictably for the corporate sector, is to facilitate innovation and cutting edge thinking on water. More interestingly, the group has been working on building the business case for Nature Based Solutions (NBS). Because water supports nature in different ways in different settings, the business case for NBS plays out across many different possible paths of action for corporations to ensure benefits across water, carbon, biodiversity and socioeconomics. For example, the Impact Report mentions that invasive species removal can improve streamflow while also enhancing biodiversity. Planting mangroves can reduce coastal erosion, mitigate flooding and catalyze tourism. Restoring peat bogs can sequester carbon, improve drainage and support local ecosystems. The challenge for businesses is to monitor and report on industry activities on which positive impacts on nature are being expected: being able to quantify and value benefits from nature-based solutions is critical to make the business case for investment and demonstrating tangible results. Similarly in the socio-economic realm, the business case for investment in Water, Sanitation and Hygiene (WASH) requires bringing proof to the table of any investments in industry or community level WASH facilities. For instance, unsafe and unreliable drinking water, sanitation and hygiene services at work or at home directly affects worker health and safety, as well as undermining the security of business operations through its supply chains. Externally, lack of access to WASH facilities in communities where businesses operate and withdraw water directly affects company reputation, trust and license to operate.
A second area of reporting on the WM strategy is the area of Scaling for Impact. This rather tautological - or circular reasoning – around comprehensive reporting on impact of impact at scale becomes a little more accessible when CEO WM notes that “this year we focused on increasing direct uptake of innovative guidance and tools, while also convening more diverse private sector actors to advance our shared work. For instance, in Brazil, we established the first-ever Water Resilience Coalition Chapter to amplify the regional impact of collective actions.” Since its inception three years ago, 21 collective actions have been coordinated across 15 basins in 6 countries, and the coalition has expanded to 29 global companies with combined market capitalization of more than US$3 trillion. The Water Resilience Coalition’s 2030 Strategy aims to achieve quantifiable positive water impact in 100 identified water-stressed basins, contribute to water security for three billion people, and enable equitable access to WASH for 300 million people. In collaboration with the European Space Agency (ESA), the WRC launched a call for proposals to digitize water resilience monitoring.
Finally, the third pillar of the CEO Water Mandate seeks to raise the profile of water: communications is seen as key in calling for corporate action on water. For this reason, the Water Resilience Coalition released several high-level communications campaigns elevating key aspects of the Mandate’s thought leadership. One example of this is the communications around the concept of Net Positive Water Impact (NPWI), whereby actions of corporations aim to have a net positive impact on water resources in their area of operations.
Water and Sanitation Finance: The Challenge with Blended Finance
A recent study estimated the annual global investment needed to cover WASH-related services by 2030 at $264 billion. Figures from the UN2023 Water Conference varied between US$182 to more than US$600 billion annually. These figures are commonly used to support the position that neither public finance nor official development assistance (ODA) are sufficient to fill the funding gap, hence we must tap private finance.
This position is simplistic. It fails to address why private finance would be interested in the high (political) risk, low (financial) return sector that we know water and sanitation to be. It also places little emphasis on using existing funds better.
Blended finance is often proposed as the best way to bring private finance into the water and sanitation sectors. This two part blog will look firstly at the success (or as we argue, lack thereof) of blended finance, including the challenges of loan repayments and fiscal space, and in a follow up, at the neglected yet developing area of how to better use existing funding.
NO SILVER BULLET
Over the last decade there has been increased interest in blended finance as a solution to the funding gap in water and sanitation – using ODA or public funds to incentivise private investment in developing countries where commercial returns alone are not sufficiently convincing to attract private money. The argument is that by using some public money to attract private finance, the rest of the money that would otherwise have been spent can be released to be used elsewhere. Behind this argument is, often, the idea that if private money is leveraged in to provide services for those who can afford to pay (e.g. middle-class urban dwellers), then freed up public money can be spent reaching those who cannot.
In reality, however, it is again not that simple: blended finance “does not necessarily support pro-poor activities, often focuses on middle-income countries, and may give preferential treatment to donors’ own private-sector firms.” Blended finance programmes may also not align with country plans, and are often weak on transparency, accountability, and participation.
Maria Jose Romero, Policy and Advocacy Manager for Eurodad’s work on development finance argues that “[b]lended finance is yet another iteration of privatization and financialization, whereby publicly funded aid programs increasingly serve the needs and goals of the private sector.” She further outlines the risk that aid funds end up “subsidising private companies for investments they would have made in any case” – investments on which they expect to make a profit, with little evidence of the achievement of additional goals. At a time when aid budgets are being squeezed, there is a real risk that these ‘innovations’ divert aid from poorer to richer countries, and from poor people to wealthy corporations, without us learning from, for example, the established lessons of tied aid, which has been shown to cost 15-30% more than untied aid.
A report commissioned by the European Parliament reflects similar concerns, finding that public funds may flow to private shareholders rather than to sectors and regions in need; that blended finance may create risks for development agencies and costs for recipient governments over the longer-term; and that blending may promote the interests of financial investors rather than development outcomes.
Even supporters of blended finance recognise some of the challenges. Joan Larrea, Chief Executive of Convergence, the Global Network for Blended Finance, states that “[t]here are many cases where straight-up aid should remain straight-up aid, and there are also many cases where private sector investors don’t need any encouragement to do something because it already is lucrative enough to roll the dice and take the risk on whatever they’re staring at”.
LIMITED UPTAKE AND RISKS
The challenges are implicit in blended finance regardless of the sector being invested in. The water and sanitation sectors face additional challenges.
Firstly, blended finance is not flowing into the sector. Overall, blended finance approaches mobilised around US$258 billion between 2012 and 2019 in emerging markets, but little of this was for water and sanitation. Between 2017 and 2019 water and sanitation accounted for less than 1.5% of the commercial finance mobilised – which covers less than 2% of the estimated funding gap.
Secondly, the blended finance discussion is taking place in a context where fiscal space in emerging markets is limited, particularly in the poorest countries. Such countries have little or no room to take on further loans. Fiscal space is the “room in a government’s budget that allows it to provide resources for a desired purpose without jeopardizing the sustainability of its financial position or the stability of the economy”. Fiscal space is strongly linked to fiscal sustainability and whether government has the capacity to service debt obligations arising from any borrowing. Common factors that limit fiscal space include a narrow tax base, high levels of debt, low economic growth, recessions and competing demands for public spending. Inefficient public financial management systems, corruption, inadequate governance structures, and political constraints can also limit fiscal space.
Thirdly, including commercial loans as part of blended finance, may pose significant foreign exchange risks to developing countries, where revenue is earned in local currency but loan payments are in a foreign currency. Local currency investments may not be readily available or may come with high interest rates, forcing utilities or governments to seek international investments. Changes in the exchange rate may then mean that loans, including private sector loans through blended finance models, become much more expensive than initially planned for.
FINDING NEW WAYS TO CLOSE THE GAP
There are significant constraints to financing the water and sanitation sectors in developing countries through blended finance. While it may be working on a small scale in some locales, it is not, and is not likely to, deliver sustainable finance on the scale needed to meet SDG 6. Despite the allure of words like ‘innovative’ and ‘blended’ we need to find other ways to close the funding gap.
In the meantime, while more equitable, less risky methods of deploying private finance to the water and sanitation sector are being investigated, there is significant opportunity in lowering the costs of water and sanitation service provision. Much greater investment is needed in reducing corruption, improving infrastructure management, and addressing revenue collection. Using existing funding better should be the priority for the sector, and the necessary time, effort and investment should be put into this by development finance institutions, development banks, bilateral and other donors, and national and local government.
Our next blog will address some priorities in using existing funds better.
This blog is part of a series exploring water and sanitation sector finance from an integrity perspective, in the run up to the publication of our next Water Integrity Global Outlook on Finance in 2024. To stay in the loop with updates from the series, get in touch here.
Linked references
Strong, C, Kuzma, S., Vionnet, S., and Reig. (2020). Achieving abundance: understanding the cost of a sustainable water future, WRI Working Paper.
United Nations. (2023). Press Release: Historic UN conference marks watershed moment to tackle global water crisis and ensure water-secure future.
Pereira, J. (2017). Blended Finance, what it is and how it works. Research Report. Oxfam.
The Blended Finance Project. (2021). Interview with María José Romero – Eurodad.
Crabb, J. (2022). Why blended finance risks being bad for SDGs. Capital Monitor.
Global Partnership for Effective Development Co-operation, (2020). A Knotty Problem: Turning Words into Action on Tied Aid.
Bayliss, K.; Bonizzi, B.; Dimakou, O.; Waeyenberge, E.; Laskaridis, C.; Sial, F. (2020). The use of development funds for de-risking private investment: how effective is it in delivering development results? Policy Department for External Relations. Directorate General for External Policies of the Union
Farr, J.; Stodulka, K.; Holland, E.; Wedl, I.; Fletcher, K.; Mason, N. (2022). Mobilising capital for water: blended finance solutions to scale investment in emerging markets. WaterAid and the Blended Finance Taskforce. Washmatters. Wateraid.
OECD. (2019). Making Blended Finance Work for Water and Sanitation: Unlocking Commercial Finance for SDG 6, OECD Studies on Water, OECD Publishing, Paris, https://doi.org/10.1787/5efc8950-en.
Money, A. (2022). Blended Finance in the Water Sector: Challenges and Attributes. World Water Council.
Heller, P. (2005). Back to Basics — Fiscal Space: What It Is and How to Get It. Finance and Development. Volume 42, Number 2. International Monetary Fund.
Heller, P. (2005). Understanding Fiscal Space. IMF Policy Discussion Paper. PDP/05/4. International Monetary Fund.
National and Local News
Zambia halts mine in Lower Zambezi National Park
On the 29th of August, the Zambia Environmental Management Agency (ZEMA) clarified its decision on the 24th of August to cancel the decision letter issued to Mwembeshi Resources Limited in 2021 pertaining to its large-scale open pit copper mining project in Lower Zambezi National Park. According to ZEMA, the permission originally granted to the company in 2021 was provided under very strict conditions, stating that “given the fact this mine was going to be set up in the middle of one of the country’s most serene national parks, it follows that no margin of error should be allowed in ensuring adherence to environmental guidelines”.
In May this year, ZEMA found that Mwembeshi Resources had violated a number of environmental conditions pertaining to the Kangaluwi copper mine. At that time, ZEMA ordered Mwembeshi Resources Limited to cease all mining and construction activities in Lower Zambezi National Par. It further ordered the company to submit a site environmental restoration plan for the degraded area in the national park.
Earlier in the year, Zambia’s ruling party, the United Party for National Development had given the green light for the project and the Green Economy and Environment minister, Collins Nzovu, stated that the project would go ahead under strict conditions to be set by ZEMA. Zambia is heavily dependent on copper exports for its foreign revenue, accounting for 70% of export revenues. The government hopes to triple copper production by 2030, profiting from high global prices for the commodity, but most mines date from the 1920’s and cannot rapidly upscale their production.
The decision to approve the Mwembeshi project triggered action by environmental organisations, which had been working for years to halt the development. A 2012 Environmental and Social Impact Assessment Report advised against copper mining in the park, but the government approved the project in 2014. This prompted a group of environmentalists to file a court injunction against the project, which was successful. However, this injunction was lifted in 2021 and the impact assessment was reapproved, leading to new discussions around the project.
In its reaction to NEMA’s recent cancellation of the project, the World Wildlife Fund (WWF) commended ZEMA for its decision, stating that civil society organisations such as WWF, Conservation Advocates Zambia, and Conservation Lower Zambezi, had worked hard to highlight the negative impacts the copper mine would have on the park and the Zambezi River - as well as the people and nature that depend on it. In particular, the mine was expected to have significant negative impacts - such as pollution - on the river, including its freshwater fisheries that are critical for the food security and livelihoods of communities in the Zambian province of Luangwa and downstream in Zimbabwe and Mozambique.
China suffers flooding and emerging food safety concerns
Since the end of July, and for just a few days, China experienced severe flooding caused by the aftermath of typhoon Doksuri. Flooding took place in the grain-growing region of northeast China whereby flood waters inundated farmland. The floods have resulted in a double catastrophe for the country, which is concerned not just about the damage from the water but also about its food security. The floods killed 33 people, displacing more than a million in the suburbs of Beijing and the surrounding Hebei province, and leaving many more missing.
More than 18,000 people were evacuated from Shulan, according to the official Xinhua news agency. There was also anger and protest. Villagers say they were sacrificed to save the capital. According to media reports, the Hebei authorities have opened sluices and weirs in seven flood control zones. It was particularly in Heibei that anger mounted, as several towns in the province were inundated by several meters of water, in an effort to save Beijing from flooding. Secondly, there was the agricultural disaster. In neighboring Heilongjiang province, the rivers that irrigate its fertile farmland overflowed their banks, submerging rice fields, destroying vegetable greenhouses and damaging factories, local media reported. In effect, China's breadbasket was flooded. The three most northeastern provinces (Heilongjiang, Jilin and Liaoning) produce over a fifth of the country's cereal output, thanks to the region's fertile black soil. Soya, corn and rice are the main crops grown here.
At the beginning of August, the Ministry of Agriculture and Rural Affairs warned of the heavy rains and the serious impact they would have on Chinese agricultural production. Concern about disease outbreaks and infestations, it said. And it wasn't just concern. A few days later, on August 16, China called for more measures to protect its crops. Extreme weather conditions could lead to serious infestations of pests targeting cotton, corn and soybeans in certain regions, the ministry said. For example, the northern armyworm was found on 9,066.7 hectares in the central banner of Keyou, in Inner Mongolia's Xingan League, of which an area of 1,333 hectares was severely affected, according to the authorities.
Prices on the rise
Extensive damage has been recorded to rice and corn crops in cereal-producing provinces, threatening food prices. The situation is becoming critical, especially as these floods are taking place against a tense global backdrop, between the end of Indian white rice exports last July and Russia's suspension of the agreement on Ukrainian grain in the Black Sea. Initial estimates suggest that 4 to 5 million metric tons of corn, or 2% of the country's reserves, have been affected by the waters. Corn prices on the local Dalian commodities market fell by 1.4% to 2,579 yuan per tonne (346 euros). Rice production could also be affected by the floods. China's corn imports are expected to reach a new record of 23 million tonnes in 2023-2024, compared with 18 million tonnes a year earlier, according to the US Department of Agriculture. However, China should not need to import large quantities of rice, as the country is self-sufficient in this sector.