Water Credit – Innovative way solution Climate Change
During recently concluded COP 27 of UNFCCC which was held in Sharm el-Sheikh, Egypt, climate finance was a critical issue discussed comprehensively.
About Water Credit:
- Water credits are one of the financing mechanisms to drive collective action toward common climate adaptation goals.
- Water credits represent a fixed quantum of water that is conserved or generated and can be transacted between water deficit and water surplus entities within a sub-basin.
- The concept of water credits is similar to carbon credits; however, unlike the atmosphere, the spatial limit for the transaction should remain within the same hydrological unit — that is, a river basin or watershed.
- The concept could help boost the ‘value’ of water in the public eyes. By attaching a monetary value to the resource, people could be encouraged to use it in a more economical manner.
About 27th Conference of Parties (COP27):
- The 2022 United Nations Climate Change Conference, also known as COP27, is the 27th United Nations Climate Change conference.
- It is being held in Sharm el-Sheikh, Egypt from November 6 to November 18, 2022.
- It is an important meeting because the latest science shows that climate change is moving much faster than we are, pushing ecosystems and communities to their limits.
- The Conference of Parties comes under the United Nations Climate Change Framework Convention (UNFCCC) which was formed in 1994.
- The UNFCCC was established to work towards the “stabilisation of greenhouse gas concentrations in the atmosphere.”