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Presentation - Seventh Roundtable on Financing Agricultural Water - Ismail Oudra

Presentation - Seventh Roundtable on Financing Agricultural Water - Ismail Oudra, Senior Irrigation and Infrastructure Engineer, U.N. FAO Investment Centre

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Presentation - Seventh Roundtable on Financing Agricultural Water - Ismail Oudra

  1. 1. Roundtable on Financing Agricultural Water Thematic meeting – Sustainable use of water for agriculture Co-convened with the U.N. Food and Agriculture Organization 27-28 January 2021, Virtual meeting Insights on opportunities for investment, including those driven by innovation Ismail Oudra, Senior Irrigation and Rural Infrastructure Engineer FAO Investment Center (CFI)
  2. 2. Population growth and nutritional improvements are driving up demand for agricultural water Water availability for irrigated agriculture is decreasing Increase in urbanization place great strain on already limited water resources Resulting stresses create environmental risks as less water is left for environment Climate change is expected to further reduce both water availability and water quality Less water for people
  3. 3.  Failure to address investment in the water sector could diminish growth rates by as much as 6 percent of GDP by 2050. (world Bank, 2016)  The scale of global economic losses related to water insecurity to existing irrigators estimated at USD 94 billion per year (Sadoff et al, 2015). No action is costly as it leads to negative externalities…
  4. 4. We need to adapt….  FAO estimated that around USD 960 billion will be required between 2005/07 and 2050 to ensure water for agricultural production in 93 developing countries (Koohafkan et al. 2011).  IFPRI estimated that to meet the expected expansion of food demand by 2030, about USD 7.9 billion of annual investments will be needed in developing countries to expand irrigation and other systems, and an additional USD 2.4 billion is needed annually to make current systems more efficient. (Ringler, 2017)
  5. 5. Loss of biodiversity Improve resiliency and adaptive capacity Changes in water availability Floods and droughts Increased irrigation requirements Changes in agricultural land use Deterioration of water and soil quality Adaptation needs to offset the potential negative impacts of climate change for agricultural water management…
  6. 6. Adaptation can be done through:  Technological innovations (modernization of existing irrigation systems and investing in their flexibility, integration of green and gray infrastructure, harnessing innovation and technology to safeguard water for multiple uses, etc.)  Innovations in water policy and governance (water saving policies, quotas & pricing, more ‘virtual’ imported water, water data acquisition and analytics, and water accounting, etc.)  Innovative financial mechanisms (blended finance, green climate finance, green bonds, de-risking mechanisms, etc.) Investment priorities started shifting towards investments focused on innovations that shapes agricultural water management…
  7. 7. Successful adaptation of water for agriculture requires combined efforts from other sectors, including financial, rural development, trade, industry and environment, among others.

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