The document summarizes a virtual roundtable on financing agricultural water held by the UN Food and Agriculture Organization. It notes that population growth and improved nutrition are increasing demand for agricultural water, while availability is decreasing due to factors like urbanization, climate change, and environmental stresses. Trillions of dollars in investment will be needed globally by 2050 to ensure sufficient water for agriculture. Adaptation is needed through technological innovations, policy reforms, and innovative financing mechanisms to modernize irrigation systems and make them more flexible and sustainable. Successful adaptation requires cross-sectoral cooperation across areas like finance, rural development, trade and the environment.

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. 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.  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. 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. 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. 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. Successful adaptation of water for agriculture requires
combined efforts from other sectors, including financial, rural
development, trade, industry and environment, among others.