By Miguel Wilches Fonseca
súper líder agua

Una herramienta financiera para la conservación de cuencas hidrográficas y la compensación de la huella hídrica corporativa

In recent years, the importance of conserving hydrographic basins has become evident as a measure to ensure the availability of water as an essential ecosystem and human service for future generations, and to guarantee the minimum environmental flow necessary to support biodiversity. Hydrographic basins are geographic areas defined by the limits of the watersheds, in which water flows towards a river, lake, or sea. These basins are vital for the supply of water for agriculture, industry, hydroelectric power generation, drinking water supply, and for the conservation of biodiversity and natural ecosystems.

Ecosystems within hydrographic basins can be affected by human activities, especially by industry, agriculture, and urbanization. Ecosystems associated with the water cycle such as highland moors, gallery forests, fog forests, wetlands, and bodies of water such as rivers, lagoons, lakes, among others, are affected by this expansion of human activities. The loss of these natural coverages generates significant alterations to the hydrographic basins, such as more intense flooding periods and more pronounced drought periods, as well as the deterioration of water quality due to erosion and contamination from agriculture and industry.

 Companies located in these hydrographic basins, in particular, have a large water footprint, which refers to the amount of water used in the production of goods and services. Therefore, it is necessary to find ways to compensate for the impact of companies in the hydrographic basins due to their high consumption of water and the deterioration of water quality, and to promote the conservation of these natural coverages that help regulate the water cycle and the water supply of the hydrographic basins.

One way to do this is through so-called water credits. Water credits are a financial tool that allows companies to offset their water footprint by financing conservation projects of the natural coverages associated with the water cycle, as well as bodies of water in the hydrographic basins. Essentially, companies purchase water credits, which represent one cubic meter of offered water that will be conserved in the hydrographic basin, avoiding the loss of this supply through the conservation and restoration of natural coverages, as well as the protection of bodies of water, among other activities. The money paid for water credits is used to finance conservation projects in the hydrographic basin, such as reforestation, the construction of more efficient irrigation systems, the recovery of degraded areas, the efficient use and saving of the water resource, the protection of high mountain coverages, among other activities that benefit the regulation and sustainability of the water resource.

In addition to helping offset the water footprint of companies, water credits can also have a positive impact on local communities that depend on water from the hydrographic basin. Conservation projects financed by water credits can improve the quality and quantity of available water, which can benefit local communities, especially those living in rural areas and depending on water for agriculture and subsistence.

These economic incentives help diversify the income of farmers by discouraging deforestation and degradation activities, reducing the need to expand the agricultural frontier, which requires training on the advantages of monetizing environmental services and being aware of the wealth that comes from conserving ecosystem services on the properties.

Water credits have a special characteristic that essentially differentiates them from carbon credits: the compensation for the water footprint must be carried out in the same hydrographic basin, in order not to alter the water balance and generate greater fluctuations in the water cycle, and ensuring that the compensation money contributes to maintaining the ecosystem service over time and improving long-term business sustainability.

To quantify water credits, it is necessary to determine the water contribution of the property, considering several variables such as the type of natural cover present, slope, soil type, elevation, precipitation, presence of water bodies, among others. In this way, it is possible to determine the flow contribution of the property to the watershed and to determine how many cubic meters per hectare the property contributes to the watershed supply by periodically measuring the flow and water quality at a control point in the watershed, which allows improvements in water quality and regulation of the water cycle of the watershed, reducing flow fluctuations in periods of drought and rainfall, indicating improvements in watershed water sustainability.

It is also necessary to quantify the water footprint of companies that use water resources in the watershed where the water credits project is developed and are willing to compensate for their water footprint through the purchase of water credits. This quantification of the water footprint must be carried out under the parameters of the international standard ISO 14046: Water footprint - Principles, requirements and guidelines. This standard provides the amount of cubic meters equivalent to the water credits to be purchased for compensation.

In conclusion, water credits are an important financial tool for the conservation of watersheds and the compensation of corporate water footprint. These credits allow companies to contribute to the conservation of watersheds where they carry out their operational activities, contributing to sustainable development goals and improving access to water for local communities due to the long-term sustainability of the ecosystem service while fulfilling their environmental and social responsibilities. It is important to promote the use of water credits as an effective way to conserve watersheds worldwide.