Develop and validate a Water Fund Sustainability Index to strengthen the long-term viability of the water fund model
The water fund concept was first introduced in Brazil in 2004 to finance the conservation and protection of watersheds in the Atlantic Forest. Today there are 26 funds in eight countries throughout Latin America and another 14 in various stages of development. While there are clear processes and support tools for funds in the development phase, there is no mechanism to assess the sustainability of a water fund once it has launched. Fundación Internacional para la Promoción del Desarrollo Sustentable Futuro Latinoamericano (Fundación Futuro) has developed a preliminary assessment tool to measure a fund’s “sustainability profile.” With support from Tinker, Fundación Futuro will validate the model with eight operating funds of different sizes and from different countries and develop actionable plans to improve their operations and long-term viability. The validated tool will be used to strengthen existing funds and to establish standards for all future water funds.