Water Funds to Augment Supply
Summary
The Nature Conservancy's Greater Cape Town Water Fund was established to augment the city's water supply in the context of decreased rainfall and increased temperatures and water demand. The water fund uses nature-based solutions, including the removal of invasive plant species and catchment restoration, to cost-effectively regulate water quality and improve water security at the source. The water fund promotes collective stakeholder engagement to secure Cape Town's water supply while operating alongside government plans and initiatives.
Cape Town's Day Zero has expedited the search for 'new' water across the region to help address long-term water security concerns in the context of population growth of around 2% per year) and climate change (TNC, 2018). The city's water supply has been under severe pressure since the drought from 2015 to 2018, and climate models show decreased rainfall accompanied by increased temperatures in the future, increasing the risk of water shortages (TNC, 2018). Efforts to reduce water scarcity and secure Cape Town's water supply have largely focused on gray (or engineered) infrastructure that does not have the ability to tackle near-term social and ecological priorities (TNC, 2018). Initiatives have included water reuse and augmenting surface water storage, exploratory investments in desalination and deep aquifer drilling in the Table Mountain Group, the Cape Flats aquifer and additional abstraction from the Atlantis aquifer (TNC, 2018). Moreover, various sub-catchments supplying the Western Cape Water Supply System (WCSCC) are covered by invasive plant species which alter soil ecology, increase the frequency and severity of wildfires and significantly impact river flow and aquifer recharge (TNC, 2018).
Intervention
In November 2018, The Nature Conservancy (TNC) launched the Greater Cape Town Water Fund (GCTWF). The GCTWF builds on experiences of more than 30 other water funds implemented or in development across 12 countries, and it is the second of its kind in Africa, modeled after the experiences and best practices of the Upper Tana-Nairobi Water Fund (SANBI, 2019). A water fund is an organization that designs and enhances financial and governance mechanisms which unite public, private and civil society stakeholders around the goal of contributing to water security through nature-based solutions and sustainable watershed management (TNC, 2021). A greater recognition for the value-added of investing in ecological infrastructure has been seen since the 2015-2018 drought (SANBI, 2019). The GCTWF, specifically, is based on two premises: that long-term water security in the region begins at the source; and that ecological infrastructure (e.g. native vegetation, wetlands, other nature-based solutions) regulates source water quality and supply more cost-effectively than gray infrastructure (TNC, 2018). The creation of the GCTWF involved making a strong business case to outline the return on investment and timeframes. The GCTWF intervention focused on making a case for ecological infrastructure in the WCSCC by first managing the invasive species in the seven priority sub-catchments (TNC, 2018). Invasive plant species removal has been deemed a priority as invasions in two-thirds of the sub-catchments supplying the WCWSS reduce the amount of water that reaches the rivers and dams by 55 billion liters per year, a significant volume in a region where every drop counts (TNC, 2018). The GCTWF aims to support and align with existing government initiatives and act as a catalyst for systemic change in catchment management by the cost-effective use of on-the-ground resources, strengthened capacity and robust monitoring and evaluation methods (TNC, 2018). The GCTWF will stimulate funding and the implementation of catchment restoration efforts and, in the process, create jobs and momentum to protect globally important biodiversity . The early stages of the water fund have been focused on invasive plant removal to restore seven priority sub-catchments supplying the WCWSS (SANBI, 2019).The scope of the water fund is broader, however, to support additional ecological infrastructure interventions to secure water supply, including the restoration of four priority wetlands and of natural vegetation on the Atlantis Aquifer (SANBI, 2019). TNC has been a key player in laying the groundwork of the GCTWF and bringing together public and private sector stakeholders alongside local communities around the common goal of restoring surface water and aquifer catchments that supply water. Investments are pooled across multiple public and private water users (SANBI, 2019). The water fund is directed by the GCTWF Steering Committee, a coalition of partners that brings together representatives to develop and implement an action strategy (TNC, 2018). An example of the Steering Committee's early work was to commission studies to evaluate the impact of nature-based solutions on water supply, beginning with targeted removals of invasive species, and determining whether investing at scale in catchment restoration is cost competitive with other supply-side solutions (TNC, 2018).
Challenges
While the GCTWF is an important initiative to augment Cape Town's water supply, it does not adequately address the long-term need to diversify water sources to include supply systems beyond rainfall. Clearing water-hungry invasive species will ensure more water reaches the existing supply network, however, resilience will be increased through augmentation from different sources that are less dependent on rainfall (Parks et al., 2019).
Outcomes
The GCTWF is Africa's second water fund, after the Upper Tana-Nairobi Water Fund. Preliminary research has determined that catchment restoration is significantly more cost-effective than other water augmentation solutions, supplying water at one-tenth the unit cost of alternative options (TNC, 2018; SANBI, 2019). The return on investment of the removal of invasive species versus other augmentation options is 351% (Mkhize et al., 2021). Moreover, wetland rehabilitation (for water storage and nutrient removal), for instance, will bring a net economic benefit estimated at R0.81 - R1.35 million per year (TNC, 2018). Other benefits of the water fund have included approximately 500 green jobs created, almost 20,000 hectares of alien plants cleared and approximately 140 million liters of water returned to the Greater Cape Town region (Mkhize et al., 2021). More recently, the Cape Town city council has approved a memorandum of understanding between the city and TNC which, over the next three years, will see the city investing R62 million to bolster efforts to clear invasive species in mountainous catchment areas, especially the Wemmershoek, Steenbras and Berg River Dam catchments (City of Cape Town, 2021). TNC will be matching the city's contribution rand-for-rand through contributions raised in the private sector and from philanthropy (City of Cape Town, 2021). From this continued partnership, an estimated 9,000 hectares of invasive species will be cleared and annual losses of 55 billion liters of water will be avoided (City of Cape Town, 2021). By 2045, it is expected that these collective actions, in the context of Cape Town's water resilience plan, will yield 100 billion liters of water per year, equivalent to a third of Cape Town's current annual supply (Mkhize et al., 2021). As the second TNC water fund in Africa, the GCTWF, modeled after the experiences and best practices of the Upper Tana-Nairobi Water Fund, is securing Cape Town's water supply through 'green infrastructure' solutions. The continued removal of invasive species and other catchment restoration actions, including wetland restoration, will augment Cape Town's water supply while addressing other social and ecological priorities.
References
Water Funds to Augment Supply
Summary
The Nature Conservancy's Greater Cape Town Water Fund was established to augment the city's water supply in the context of decreased rainfall and increased temperatures and water demand. The water fund uses nature-based solutions, including the removal of invasive plant species and catchment restoration, to cost-effectively regulate water quality and improve water security at the source. The water fund promotes collective stakeholder engagement to secure Cape Town's water supply while operating alongside government plans and initiatives.
Cape Town's Day Zero has expedited the search for 'new' water across the region to help address long-term water security concerns in the context of population growth of around 2% per year) and climate change (TNC, 2018). The city's water supply has been under severe pressure since the drought from 2015 to 2018, and climate models show decreased rainfall accompanied by increased temperatures in the future, increasing the risk of water shortages (TNC, 2018). Efforts to reduce water scarcity and secure Cape Town's water supply have largely focused on gray (or engineered) infrastructure that does not have the ability to tackle near-term social and ecological priorities (TNC, 2018). Initiatives have included water reuse and augmenting surface water storage, exploratory investments in desalination and deep aquifer drilling in the Table Mountain Group, the Cape Flats aquifer and additional abstraction from the Atlantis aquifer (TNC, 2018). Moreover, various sub-catchments supplying the Western Cape Water Supply System (WCSCC) are covered by invasive plant species which alter soil ecology, increase the frequency and severity of wildfires and significantly impact river flow and aquifer recharge (TNC, 2018).
Issue
Intervention
In November 2018, The Nature Conservancy (TNC) launched the Greater Cape Town Water Fund (GCTWF). The GCTWF builds on experiences of more than 30 other water funds implemented or in development across 12 countries, and it is the second of its kind in Africa, modeled after the experiences and best practices of the Upper Tana-Nairobi Water Fund (SANBI, 2019). A water fund is an organization that designs and enhances financial and governance mechanisms which unite public, private and civil society stakeholders around the goal of contributing to water security through nature-based solutions and sustainable watershed management (TNC, 2021). A greater recognition for the value-added of investing in ecological infrastructure has been seen since the 2015-2018 drought (SANBI, 2019). The GCTWF, specifically, is based on two premises: that long-term water security in the region begins at the source; and that ecological infrastructure (e.g. native vegetation, wetlands, other nature-based solutions) regulates source water quality and supply more cost-effectively than gray infrastructure (TNC, 2018). The creation of the GCTWF involved making a strong business case to outline the return on investment and timeframes. The GCTWF intervention focused on making a case for ecological infrastructure in the WCSCC by first managing the invasive species in the seven priority sub-catchments (TNC, 2018). Invasive plant species removal has been deemed a priority as invasions in two-thirds of the sub-catchments supplying the WCWSS reduce the amount of water that reaches the rivers and dams by 55 billion liters per year, a significant volume in a region where every drop counts (TNC, 2018). The GCTWF aims to support and align with existing government initiatives and act as a catalyst for systemic change in catchment management by the cost-effective use of on-the-ground resources, strengthened capacity and robust monitoring and evaluation methods (TNC, 2018). The GCTWF will stimulate funding and the implementation of catchment restoration efforts and, in the process, create jobs and momentum to protect globally important biodiversity . The early stages of the water fund have been focused on invasive plant removal to restore seven priority sub-catchments supplying the WCWSS (SANBI, 2019).The scope of the water fund is broader, however, to support additional ecological infrastructure interventions to secure water supply, including the restoration of four priority wetlands and of natural vegetation on the Atlantis Aquifer (SANBI, 2019). TNC has been a key player in laying the groundwork of the GCTWF and bringing together public and private sector stakeholders alongside local communities around the common goal of restoring surface water and aquifer catchments that supply water. Investments are pooled across multiple public and private water users (SANBI, 2019). The water fund is directed by the GCTWF Steering Committee, a coalition of partners that brings together representatives to develop and implement an action strategy (TNC, 2018). An example of the Steering Committee's early work was to commission studies to evaluate the impact of nature-based solutions on water supply, beginning with targeted removals of invasive species, and determining whether investing at scale in catchment restoration is cost competitive with other supply-side solutions (TNC, 2018).
Challenges
While the GCTWF is an important initiative to augment Cape Town's water supply, it does not adequately address the long-term need to diversify water sources to include supply systems beyond rainfall. Clearing water-hungry invasive species will ensure more water reaches the existing supply network, however, resilience will be increased through augmentation from different sources that are less dependent on rainfall (Parks et al., 2019).
Outcomes
The GCTWF is Africa's second water fund, after the Upper Tana-Nairobi Water Fund. Preliminary research has determined that catchment restoration is significantly more cost-effective than other water augmentation solutions, supplying water at one-tenth the unit cost of alternative options (TNC, 2018; SANBI, 2019). The return on investment of the removal of invasive species versus other augmentation options is 351% (Mkhize et al., 2021). Moreover, wetland rehabilitation (for water storage and nutrient removal), for instance, will bring a net economic benefit estimated at R0.81 - R1.35 million per year (TNC, 2018). Other benefits of the water fund have included approximately 500 green jobs created, almost 20,000 hectares of alien plants cleared and approximately 140 million liters of water returned to the Greater Cape Town region (Mkhize et al., 2021). More recently, the Cape Town city council has approved a memorandum of understanding between the city and TNC which, over the next three years, will see the city investing R62 million to bolster efforts to clear invasive species in mountainous catchment areas, especially the Wemmershoek, Steenbras and Berg River Dam catchments (City of Cape Town, 2021). TNC will be matching the city's contribution rand-for-rand through contributions raised in the private sector and from philanthropy (City of Cape Town, 2021). From this continued partnership, an estimated 9,000 hectares of invasive species will be cleared and annual losses of 55 billion liters of water will be avoided (City of Cape Town, 2021). By 2045, it is expected that these collective actions, in the context of Cape Town's water resilience plan, will yield 100 billion liters of water per year, equivalent to a third of Cape Town's current annual supply (Mkhize et al., 2021). As the second TNC water fund in Africa, the GCTWF, modeled after the experiences and best practices of the Upper Tana-Nairobi Water Fund, is securing Cape Town's water supply through 'green infrastructure' solutions. The continued removal of invasive species and other catchment restoration actions, including wetland restoration, will augment Cape Town's water supply while addressing other social and ecological priorities.
Issues |
|---|
Water Scarcity and Access |
Solutions |
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Integrated Water Resources Management (IWRM) |
References
City invests R62m to secure water by clearing invasive alien plants. City of Cape Town. (2021, March 31). Retrieved March 19, 2022, from https://www.capetown.gov.za/Media-and-news/City%20invests%20R62m%20to%20secure%20water%20by%20clearing%20invasive%20alien%20plants THE GREATER CAPE TOWN WATER FUND ASSESSING THE RETURN ON INVESTMENT FOR ECOLOGICAL INFRASTRUCTURE RESTORATION.
The Nature Conservancy (TNC). (2018, November). Retrieved March 12, 2022, from https://www.nature.org/content/dam/tnc/nature/en/documents/GCTWF-Business-Case_2018-11-14_Web.pdf
A Greater Cape Town Water Fund for Ecological Infrastructure. South African National Biodiversity Institute (SANBI). (2019, May 16). Retrieved March 19, 2022, from https://www.sanbi.org/cape/a-greater-cape-town-water-fund-for-ecological-infrastructure/
Mkhize, A., Tyolwana, V., & Sthandile, M. (2021, December 2). J.P. Morgan to fund Greater Cape Town Water Fund to remove invasive plants. Social TV. Retrieved March 19, 2022, from https://social-tv.co.za/j-p-morgan-to-fund-greater-cape-town-water-fund-to-remove-invasive-plants/
The Nature Conservancy. (2021). What is a water fund? TNC Water Funds Toolbox. Retrieved December 24, 2021, from https://waterfundstoolbox.org/getting-started/what-is-a-water-fund
The Nature Conservancy (TNC). (n.d.). Greater Cape Town Water Fund. TNC Water Funds Toolbox. Retrieved March 12, 2022, from https://waterfundstoolbox.org/regions/africa/cape-town-water-fund
Parks, R., McLaren, M., Toumi, R., & Rivett, U. (2019, February). Experiences and lessons in managing water from Cape Town. Grantham Institute. Retrieved March 28, 2022, from https://www.imperial.ac.uk/media/imperial-college/grantham-institute/public/publications/briefing-papers/Experiences-and-lessons-in-managing-water.pdf