I would like to welcome the Principles for Responsible Agricultural Investments (RAI) to establish a global guideline for agricultural investment. Agricultural investments have a great potential for improving productivity of agricultural sector and contributing to eradicate poverty. At the same time, such investment deals affect people's livelihoods and use of natural resources required such as water. Freshwater is a finite resource that is essential for human well-being and development. In agricultural investment, there is no doubt that water is one of the most critical factors. The water requirement for all the investment deals made on agricultural sector is tremendous. This indicates more irrigation facilities and intense water use which alter both quantity and quality of water resources in areas where investment projects take place. The competition for water in land investment is already high, and we are already seeing a number of local conflicts around water.
It is also worth noting that irrigation will be demanding less than 40% of global water demand by 2050 (projected by OECD Environmental Outlook to 2050). Other industries and sectors will demand more and more water. It can be simply put, where all the agricultural investors find water? It is a great concern for both population who will be affected by agricultural investments and investors. In RAI, water is only mentioned as part of "natural resources" under Principle 3. Under Principle 3, a clause addressing water can lead to reach a global guideline for the investors what is the water requirement of project and how the water will be managed. From water perspective, it can be more clearly stated under principle 3 'how' water can be better valued and considered in agricultural investments by suggesting a separate water clause.
It would be great to see how this consultation will contribute to the development of RAI and look forward to follow-up on implementation of RAI. Keep up the good work!
With best regards,
Kyungmee Kim, Stockholm International Water Institute, Sweden
Dear Chairperson and colleagues,
I would like to welcome the Principles for Responsible Agricultural Investments (RAI) to establish a global guideline for agricultural investment. Agricultural investments have a great potential for improving productivity of agricultural sector and contributing to eradicate poverty. At the same time, such investment deals affect people's livelihoods and use of natural resources required such as water. Freshwater is a finite resource that is essential for human well-being and development. In agricultural investment, there is no doubt that water is one of the most critical factors. The water requirement for all the investment deals made on agricultural sector is tremendous. This indicates more irrigation facilities and intense water use which alter both quantity and quality of water resources in areas where investment projects take place. The competition for water in land investment is already high, and we are already seeing a number of local conflicts around water.
It is also worth noting that irrigation will be demanding less than 40% of global water demand by 2050 (projected by OECD Environmental Outlook to 2050). Other industries and sectors will demand more and more water. It can be simply put, where all the agricultural investors find water? It is a great concern for both population who will be affected by agricultural investments and investors. In RAI, water is only mentioned as part of "natural resources" under Principle 3. Under Principle 3, a clause addressing water can lead to reach a global guideline for the investors what is the water requirement of project and how the water will be managed. From water perspective, it can be more clearly stated under principle 3 'how' water can be better valued and considered in agricultural investments by suggesting a separate water clause.
It would be great to see how this consultation will contribute to the development of RAI and look forward to follow-up on implementation of RAI. Keep up the good work!
With best regards,
Kyungmee Kim, Stockholm International Water Institute, Sweden