Title page
Contents
Abstract 4
Résumé 4
Acknowledgements 5
Acronyms and abbreviations 6
Executive Summary 9
1. Background 11
2. Investment planning for uncertainty 12
2.1. Resilience thinking to deal with uncertainty 12
2.2. Scenarios and strategic planning approaches to prepare for an uncertain future 20
3. Water infrastructure investments: from individual projects to investment pathways 24
3.1. Strategic Investment Pathways: An analytical framework 25
3.2. Concluding remarks 30
4. Harnessing multiple sources of private finance 32
4.1. The financing challenge 32
4.2. Mobilising additional sources of finance for water-related investments 33
4.3. The role of intermediaries: Matching supply and demand of finance 42
4.4. Sustainable finance for water and the role of taxonomies 43
4.5. Concluding remarks 45
Annex A. Analytical framework for Strategic Investment Pathways 47
Step 2. Option Evaluation and Stress Testing 47
Step 3. Designing Strategic Investment Pathways 49
Annex B. Examples of intermediaries operating in the EU 51
The European Fund for Strategic Investment (EFSI) 51
The Natural Capital Financing Facility (NCFF) 51
Les Agences de l'eau - French water agencies 52
The Nature Conservancy and the Water Fund Network 52
Annex C. Draft technical screening criteria for water-related activities under the EU taxonomy 53
Some suggested draft criteria for the construction or extension of water supply systems 53
Some suggested draft criteria for nature-based solutions for flood risk prevention and protection of inland and coastal waters 53
References 55
Figure 2.1. Stressor categorisation and examples 13
Figure 2.2. General adaptive strategies based on climate change and socio-economic parameters 21
Figure 2.3. Delta Fund Budget up to 2034 22
Figure 3.1. The Sustainable Investment Pathways process in five steps 26
Figure 4.1. Potential sources of funding and finance for sustainable water resource management 34
Figure 4.2. Sources of funding by type of Natural Water Retention Measures project 37
Boxes
Box 2.1. Water efficiency at the centre of the EU Policy Agenda 17
Box 3.1. Water resilience analytical approaches and toolkits 28
Box 4.1. Eco-schemes under the CAP 38
Box 4.2. Supporting water investments through pilots and stewardship programmes 39
Box 4.3. Performance-based Environmental Impact Bond for green Infrastructure in the US 40
Box 4.4. Water for renewable energy: EIB's Climate Awareness Bond for a wastewater treatment project in Vienna 44
Annex Figures
Figure A A.1. The range of climate change realisations over which an investment is persistent and adaptive 48
Figure A A.2. A diagrammatic representation of the Future Map depicting pathways based on the immediate "investment 1" 50