Water and climate change: understanding the risks and making climate-smart investment decisions

This report focuses on water and water-related issues and investments, with a particular focus on reducing the vulnerability of water sector investments to the impacts of climate change. It provides a first version of a tool that can be used to assess exposure and screen the investment portfolio on a regional basis. Its main objective is to provide analytical, intellectual and strategic assistance to the regions for incorporating adaptation to climate variability and change in their work programs.

Using the existing knowledge and additional analysis commissioned, it illustrates that climate change is affecting the hydrologic cycle and the projected future hydrology will have a direct impact on the water resources base availability, usage, and management. The report addresses the stress on and vulnerability of the water systems through use of reliability, resilience, and robustness as the key indicators of sensitivity of water systems for climate induced failure.

New and innovative practices taking into account adaptation options for water systems and risk-based decision making in water investments are reviewed and assessed for application to investments in infrastructure. The climate change dimension is placed within the context of the impact of other factors (within and outside the sector) such as population growth (and associated increase in demand) and land management (particularly as related to water), which in some cases may be far more significant and critical than that of climate change in some parts of the world. Finally, recommendations for a progressive agenda on water and climate change are made.

This report provides an overview of the series of reports and documents prepared as part of the Flagship product of the Water Anchor of the Energy, Transport, and Water Department (ETW) in the Sustainable Development Vice Presidency.