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Investing in agricultural water, sustainably: recent trends in financing institutions

Investment by international financial institutions (IFIs) in agricultural-related water, irrigation and drainage projects is key to tackling food insecurity, poverty and inequality while addressing water scarcity and building climate resilience.

This report considers the role of IFIs in agricultural water investments and the types of finance they use, in particular the largest IFIs, the World Bank and the Asian Development Bank.

Citation

Ghosh, E., Kemp-Benedict, E., Huber-Lee, A., Nazareth, A. and Oudra, I. (2022). Investing in agricultural water, sustainably – Recent trends in financing institutions. FAO Investment Centre – Directions in Investment, No. 7. FAO, Rome. http://doi.org/10.4060/cc1212en

This paper examines the investments in agricultural water and related irrigation and drainage infrastructure over the past decade between 2010 and 2019. It also highlights the innovations and opportunities that lie on the horizon in the coming decade for climate change and emerging technologies. Finally, it gives close attention to how agricultural water investments connect to ecosystems.

Better governance can potentially lead to improved water productivity, climate resilience and equity. Good agricultural water management means using water in a way that provides crops and animals the amount of water they need, enhances productivity and conserves natural resources for the benefit of downstream users and ecosystem services. This paper seeks to understand how IFI investments in agricultural water are achieving these objectives and where future priorities may lie.

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SEI authors

2018 portrait of Emily Ghosh
Emily Ghosh

Scientist

SEI US

Eric Kemp-Benedict
Eric Kemp-Benedict

SEI Affiliated Researcher

SEI US

Profile picture of Annette Huber-Lee
Annette Huber-Lee

Senior Scientist

SEI US

Anisha Nazareth
Anisha Nazareth

Associate Scientist

SEI US

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