Study of Financial Incentives to Increase Good Water Stewardship Performance

15 December 2021

Good water stewardship, as defined by the Alliance for Water Stewardship Standard, aims to create shared benefits at scale, i.e., at catchment, landscape or jurisdictional level. Through the implementation of credible good water stewardship actions, companies and other key stakeholders in the catchment could contribute to sustainable production and protection efforts. However, it has become clear that insights into existing and potential future financial incentives and other funding mechanisms for better inclusion and uptake of good water stewardship are still lacking.

As part of the ISEAL Innovations Fund ‘Boosting sustainability practice and performance at the landscape level through good water stewardship’ project, AWS Indonesia, in collaboration with researchers from the Faculty of Economics and Business, University of Indonesia embarked on a study to explore potential financial incentives and funding mechanisms to support better uptake of good water stewardship in Indonesia.

The study combines desk study and expert inputs to identify highly-potential funding mechanisms and financial incentive schemes for improving performance on the water related resource management and the environment in Indonesia, emphasizing those that are readily accessible to the private sector. The expert inputs were obtained through a series of interviews and FGDs (from 22 November to 14 December 2021), involving several national and regional government stakeholders, as well as international and Indonesian financial institutions, and other international institutions that involved or have a role in water stewardship program.

The outcome of this study is intended to inform or provide insights on the opportunity of financial mechanisms and incentives for district government, companies, and smallholders to support the uptake of and joint investment in good water stewardship in Indonesia. It is expected to be published in July 2022.

Want to know more about this project? Please contact Fany Wedahuditama (Mr):

This study is possible thanks to a grant from the ISEAL Innovations Fund which is supported by the Swiss State Secretariat for Economic Affairs SECO