There is a significant yet still under-researched connection between climate change and security-related risks. The frequency of extreme weather events, including flooding, severe droughts and other associated impacts of global warming are contributing to the reduction of crop yields, diminishing water resources, and ultimately impacting human livelihood. In some cases, these events have contributed to the migration of ‘climate refugees’ in order to meet their basic human needs, including access to water, food, electricity, and shelter. As a result, climate change is increasingly entering the policy arena as a significant security issue.
Water funds are a collective investment vehicle in which stakeholders collaborate to implement nature-based source water protection. Downstream water users invest in upstream land and water management practices, compensating upstream land managers for restoration activities and better management of agricultural land. Rural landowners and communities can benefit economically from these investments as well. Mutual benefits are the hallmark of successful water funds.