During World Water Week in Stockholm, the Millennium Water Alliance (MWA), alongside the Resilient Water Accelerator, Virridy, and the Mortenson Center in Global Engineering at the University of Colorado Boulder, hosted a notable event titled “Introducing the Global Water Community to the Voluntary Carbon Markets.” Set against the backdrop of the M/S Teaterskeppet, this gathering aimed to bridge the water and carbon sectors through the lens of results-based financing via carbon credits.
Evan Thomas, CEO of Virridy and Director of the Mortenson Center, opened the event by highlighting the potential of carbon credits to generate up to $160 billion in investments over the next decade for global water security initiatives. “The Millennium Water Alliance was proud to be a co-host of this seminal event to bring together key players from the market and practitioners of results-based finance that focus on climate,” noted Keith Wright of MWA. “MWA and its members are part of the forefront of connecting results-based finance to climate outcomes to generate revenue for sustained water and climate services for those who need it most.”
Panel 1: Existing Water-Focused Carbon Projects and Gaps
The first panel, moderated by Evan Thomas, delved into ongoing water-focused carbon projects, showcasing both successes and areas for growth. Speakers included:
- Austin Alexander, Vice President of Sustainability at Xylem: Alexander discussed Xylem’s efforts to incorporate sustainability into their business model, emphasizing the role of corporate responsibility in advancing environmental goals.
- Todd Gartner, Director of Cities4Forests at the World Resources Institute (WRI): Gartner highlighted the integration of natural infrastructure, such as urban forests, in enhancing water management and carbon sequestration.
- June Samo, Program Director at Millennium Water Alliance Kenya: Samo provided insights into how carbon credits are being leveraged to maintain rural water systems in Northern Kenya, addressing challenges in a region frequently impacted by drought.
- Daniel Okombe, Program Lead at LifeStraw: Okombe shared experiences from LifeStraw’s Give Back program, which ties carbon credits to clean water access, benefiting millions of children while promoting sustainability.
Following a small group discussion facilitated by Alex Johnson, Chief Strategy Officer at Virridy, the conversation shifted to future opportunities in the water and carbon sectors.
Panel 2: Water-Focused Carbon Project Opportunities & Visions
The second panel aimed to inspire attendees about emerging opportunities in water-related carbon projects. Speakers included:
- Rebecca Power, Program Officer at the Walton Family Foundation: Power discussed the potential for large-scale nature-based solutions to support both water security and carbon reduction, particularly in projects within the Mississippi River Basin.
- Kenneth Möllersten, Expert in Carbon Dioxide Removal: Möllersten outlined current mechanisms within the carbon market under the Paris Agreement, emphasizing their relevance to water projects.
- Christina Barstow, Director of Strategic Partnerships at Helvetas USA: Barstow presented key findings from the “Decarbonizing Water” report, developed by MWA members UC Boulder and WaterAid, which was funded by the Conrad N. Hilton Foundation. The report examines how carbon credits can be effectively utilized to support water security.
- Max Moldavsky, Director of Water and Climate Finance at CDP: Moldavsky highlighted the need for innovative financing models that align environmental and financial goals, urging stakeholders to act swiftly to harness these opportunities.
DRIP-FUNDI: A Real-World Example of Carbon Credit Financing
MWA and Virridy’s ongoing USAID BHA DRIP-FUNDI project in Northern Kenya exemplifies the application of carbon credits to address water security. The program, titled “Pioneering Sustainable Water Solutions with Carbon Credit Financing in Drought-Stricken Northern Kenya,” seeks to provide sustainable water access for 120,000 people through improved borehole uptime, supported by carbon credits from partners like Mortenson Construction and the Autodesk Foundation. This initiative reflects how targeted financing can offer long-term solutions to cyclical drought challenges, moving beyond reactive emergency measures.
Conclusion and Next Steps:
The event concluded with a networking reception on the M/S Teaterskeppet’s deck, where attendees continued to exchange ideas and explore potential collaborations. For those unable to attend, the event underscored the significant opportunities available through results-based financing via carbon credits. The discussions were not just about theoretical possibilities; they highlighted actionable pathways for integrating water security with carbon reduction strategies.
Looking Forward:
MWA’s involvement in studies such as the Results-based Financing through Carbon Credits Feasibility and Learning Study, funded by the Conrad N. Hilton Foundation, and the “Decarbonizing Water” report underscores a commitment to advancing practical, scalable solutions at the intersection of water and climate. These efforts reflect a broader push to mobilize innovative financing that can sustain water services and foster resilience.
Join Us:
Explore the Results-based Financing through Carbon Credits Feasibility and Learning Study and the Decarbonizing Water: Applying the Voluntary Carbon Market toward Global Water Security paper to learn more about these initiatives. MWA invites stakeholders, donors, and partners to engage with us as we work towards a future where water security and carbon reduction go hand in hand.