Benefit sharing in Transboundary Waters Introduction and Roadmap

Benefit sharing in Transboundary Waters Introduction and Roadmap Based on the approach of BRIDGE Isabelle Fauconnier, IUCN Global Water Programme Vishwa Ranjan Sinha, IUCN Asia Regional Office, Bangkok WATER I N T E R N A T I O N A L U N I O NF O R W W W. I U C N. O R G/W A T E R C O N S E R V A T I OONF N A T U R E • GLOBAL W ATER PROGRAMME •

Outline of the Presentation Introduction: Why Benefit sharing in BRIDGE? Benefit Sharing: Principles and Concepts Zoom in to Concept 1: Identifying benefits Zoom in to Concept 2: Identifying stakeholders and equity issues • Benefit sharing in BRIDGE: How? – Track 1: Capacity building – Track 2: Real basin application • • WATER

Some Thoughts! Water Management, is by definition, conflict management There is no such thing as managing water for a single purpose Hydrologic needs can often be overwhelmed by political considerations Benefit Sharing is well established in international treaty practice WATER

Why Benefit sharing in BRIDGE • Transboundary IWRM: shared benefits for shared waters • Cooperation between stakeholders who share the resource • Institutions for governance of shared waters Benefit sharing: an approach to achieve win-win outcomes for multiple stakeholders in a basin

Principles of Benefit Sharing • Share benefits from water use rather than volumes of water allocation • Benefits for whom: stakeholders from national to local level • Different types of Benefits : from national to local level More efficient and equitable management of the basin

Concept 1 Concept 2 River basins offer different types of benefits that can be shared, vs. sharing the allocation of water Watersheds can be managed with decisions based on sharing benefits equitably among stakeholders Concept 3: Opportunities for enhancing benefits can be identified jointly Concept 5 Negotiation based on benefitsharing takes a win-win approach Concept 4 Several methods to value and distribute benefits and costs exist, with different data needs Concept 6 Implementation of benefitsharing requires functional institutions WATER

Concept 1 River basins offer different types of benefits that can be shared, vs. sharing the allocation of water Skill 1 Identify the different types of benefits Concept 2 Watersheds can be managed with decisions based on sharing benefits equitably among stakeholders Skill 2 Identify stakeholders from local to national levels, and any potential equity issues WATER

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Water volumes vs. Benefits from Water • Share benefits rather than volumes of water allocation • Benefits and costs at basin scale, from national to local level More efficient and equitable management of the basin since it enables to separate the physical location of development from the economic distribution of costs and benefits. WATER

BENEFITS DERIVING FROM WATER Challenges Provide benefits to the river/ basin Degraded water quality, watersheds, wetlands and biodiversity, ecosystem functions Flood control, drought mitigation Erosion management Wetlands and biodiversity conservations Water conservation, e-flows Increasing demands for water, sub-optimal water resources management and development Increased yields Enhances livelihoods, food security Navigation, tourism, recreation Carbon credits, PES Tense regional relations and political economy impacts Cooperation, political stability Policy shifts to food/energy security Regional fragmentation Regional integration Regional investment, development Regional trade, market access Diversified economies (environmental benefits) Obtain benefits from the river/ basin (economic benefits) Derive benefits (avoid costs) because of the river Opportunities (political benefits) Creating benefits beyond the river/ basin (e. g. , greater cooperation in other realms) WATER

From Economic benefits improved Increased activity, productivity and longwater term sustainability in managem economic sectors ent in the (aquaculture, irrigated basin agriculture, mining, energy generation, industrial production, nature-based tourism) Enhanced livelihoods and increased household incomes Reduced cost of carrying out productive activities Reduced economic impacts of water-related hazards (floods, droughts) Increased value of property From Regional economic enhanced cooperation trust in benefits and Development of regional beyond Social benefits Positive health impacts from improved water quality and reduced risk of water-related disasters. Improved access to basic services (such as electricity and water supply) Social welfare from increased employment and reduced poverty Improved satisfaction due to preservation of cultural resources or access to recreational opportunities. Ecosystem benefits Preservation of aquatic and terrestrial habitats and biodiversity Preservation of key biophysical processes, e. g. e-flows Better carbon management Inter-generational sustainability of ecosystems and natural infrastructure Peace and security benefits Shared basin identity Reduced risk and avoided cost of conflicts between WATER water users and between countries Strengthening of international law

Buzz Exercise in Pairs: Can you think of benefits that are more difficult to value, in monetary terms? How can this be addressed? Provide benefits to the river/ basin: environmental benefits Obtain benefits from the river/ basin: economic benefits Derive benefits because of the river: political benefits Creating benefits beyond the river/ basin: e. g. : greater cooperation in other realms INTERNATIONAL UNION FOR CONSERVATION OF NATURE A. Direct and tangible benefits: can be measured B. Indirect and intangible benefits: qualitatively assessed

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Who are the stakeholders? • Those who reap benefits, or incur impacts, from the use of water • Those who represent water users’ interests • In different sectors (agriculture, mining, environment, etc. ) • Formal and informal • Local to national levels WATER

How to differentiate Stakeholders? Internal (Decision Makers) External Primary External Secondary RBOs… Farmers… CSOs Private Sector… CBOs… Associations WATER

Other typologies • Civil society vs government vs private sector • Sectoral stakeholders: e. g. energy, water, agriculture, environment • Local, province/state, national Important to overlay different typologies for better understanding of stakes, power and influence WATER

What happens when certain stakeholders are overlooked? ? WATER

What happens when certain stakeholders are overlooked? Ø Stakes and interests can also be overlooked = benefits and impacts (costs) are overlooked WATER

What happens when certain stakeholders are overlooked? Ø Stakes and interests can also be overlooked = benefits and impacts (costs) are overlooked Ø The relative size of benefits and impacts may be overlooked WATER

What happens when certain stakeholders are overlooked? Ø Stakes and interests can also be overlooked = benefits and impacts (costs) are overlooked Ø The relative size of benefits and impacts may be overlooked Ø Distributional impacts are not adequately assessed WATER

What happens when certain stakeholders are overlooked? Ø Stakes and interests can also be overlooked = benefits and impacts (costs) are overlooked Ø The relative size of benefits and impacts may be overlooked Ø Distributional impacts are not adequately assessed Ø Results are less equitable WATER

What happens when certain stakeholders are overlooked? Ø Stakes and interests can also be overlooked = benefits and impacts (costs) are overlooked Ø The relative size of benefits and impacts may be overlooked Ø Distributional impacts are not adequately assessed Ø Results are less equitable Ø There is less buy-in to the resulting agreement WATER

Stakeholder Engagement Identify Stakeholders at all levels, in all sectors Map stakeholder interests and power Design the stakeholder engagement process Use adaptive design as interests and coalitions can change WATER

Benefit sharing in BRIDGE: How? 2 Tracks Benefit Sharing Training BOAT exercise Real Basin Application of BOAT BOA Dialogues WATER

2 tracks on Benefit Sharing in BRIDGE Ø Capacity building on the use of benefit sharing concepts and skills in cooperative transboundary water management: e. g. , identifying benefits, use of the BOAT tool, legal aspects of benefitsharing Ø Real basin application of Benefit Opportunities Assessment through multi-level, multistakeholder dialogue to analyse and select scenarios that enhance benefits for more stakeholders

Real Basin Application in Africa The Sio-Malaba-Malakisi basin • Shared by Kenya/Uganda • Population - 4 Million • Malaba-Malakisi and Mpologoma Catchment (3, 782 km 2) drains into Lake Kyoga; and • Sio Catchment (1, 448 km 2) drains into Lake Victoria; • Subsistence farming is the main economic activity; • High poverty, population pressure, degradation of land water resources.

Methodology for BOA-Dialogue in the SMM basin Step 1: 1 st SMM multi-level stakeholders’ workshop: identification of issues and basin visioning Step 2: Review of investment strategy and BOAT analysis, generation of scenarios Step 3: 2 nd SMM multi-level stakeholders’ workshop: interactive scenario analysis using BOAT and selection of preferred scenarios

Methodology for BOA-Dialogue in the SMM (basin continued) Step 4: Review and proposal of institutional mechanisms for cooperation and benefit sharing solutions Step 5: 3 rd SMM stakeholders’ workshop with development partners to agree on way forward to prepare prioritised investments

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THANK YOU! Questions? Comments? WATER