Resilient Ecosystems for Lasting Poverty Reduction

Over the past two and half decades, most of Kenya’s cropland has lost its topsoil, while the population has doubled, increasing demand for power and water. The green water credits approach is based on a conviction that the most cost-effective way of building resilience to increasing water scarcity caused by climate change and land degradation in Africa is to increase water storage in farmers’ fields. ‘Green water’, or rainwater stored in the soil and available for uptake by plants, is the largest freshwater resource on earth. The availability of green water can be increased by reducing run-off and evaporation from the soil. This results in a larger amount of water being available for crops and also in more water that can be used downstream (the so-called ‘blue water’). Farmers and pastoralists are key managers of soil and water but their services often go unrecognized and unrewarded. The concept of green water credits rectifies this market failure by rewarding upstream water producers for specified environmental management services that determine water supplies to consumers downstream. Rewards may be in the form of cash or other more lasting benefits.

*The activities described represent a component or a specific feature of the project presented.

Examples of climate change activities in IFAD loans and grants