Public Private Partnerships to Protect Natural Water Factories: The Case of Colombia’s Páramo Wetlands
by Sebastian Sunderhaus1 and Anna Viktoria Bussmann (GIZ Colombia)
This case study is drawn from the larger report Managing Water for Economic Resilience: De-risking Is Not Enough, published April 2024.
Key Messages
Colombia’s (economic) resilience strongly depends on the water provided by its high Andean wetlands (páramos).
Public-private partnerships based on the water stewardship approach are a meaningful tool to support the protection and sustainable use of the páramo ecosystems.
To ensure water and economic resilience, economic actors and private businesses should understand resilience from a macroeconomic as well as a microeconomic perspective and consider the water cycle in a holistic way.
Colombia’s Treacherous Water Abundance
The World Bank highlights that although Colombia is one of the nine countries with the greatest water resources worldwide, a third of its urban population is affected by water stress. This issue is increased by the impacts of climate change, which change rainfall patterns and will lead to a rise in average temperatures by up to 2.14 °C by the end of the century. Due to these changes, an increase in extreme events including droughts and floods, a higher frequency and intensity in impacts caused by El Niño and La Niña, and the loss of glaciers is expected (Borja-Vega, de Groot, & Serrano, 2020). Colombia’s glaciers have already been drastically impacted by a changing climate. In the last 170 years, Colombia’s glacier area has diminished by 90% (Ideam, 2023).
Moreover, pollution is increasingly degrading the quality of the country's water resources and damaging its ecosystems. Contributing factors to water stress are mining, unsustainable agricultural practices, and deforestation in watersheds and adjacent areas. Improving water security could avoid up to a 3% GDP loss in Colombia (Borja-Vega, de Groot, & Serrano, 2020). The water-rich country faces issues of water security which become visible not only in traditionally dry areas but also during the rainy season, during which time 835 municipal areas suffer from a lack of water. This includes the departments Antioquia, Cauca, Huila, Cundinarmarca, and Norte de Santander (Ideam, 2023).
Colombia’s water security depends strongly on its key ecosystems. These include the Orinoquia and Amazon basin as well as the country’s wetlands. The term “páramo” describes peatlands that are situated high in the Andes. Half of the world's páramos can be found in Colombia, they are an essential part of the water cycle and 70% of the country depends directly on the water they produce (MinAmbiente, 2019). Peatlands are important water reservoirs for flood control and water supply, as their sponge-like properties allow them to release water gradually, reducing the risk of both floods and droughts. This key feature contributes to climate change adaptation. Although peatlands cover only 3% of the earth's global land area, they contain about 30% of the carbon sequestered on land (about 1,320 t C/ha), which is 75% of the total atmospheric carbon and twice the carbon stock in the global forest biomass (Parish et al., 2008).
The Páramo Santurbán: An Essential Wetland for Water Security and Economic Resilience
The high-Andean wetland Páramo Santurbán in north-eastern Colombia provides water for more than two million people in Colombia and Venezuela. This ecosystem covers about 1,300 km2 and extends across the departments Santander and Norte de Santander. In Norte de Santander, the páramo supplies water to the rivers Zulia and Pamplonita, which connect to Lake Maracaibo in Venezuela. These watersheds are home to one million people. Furthermore, the wetland is essential for the livelihoods of the people living directly in and next to the Santurbán highlands. Most of them engage in traditional farming or mining practices and 95% of them depend on the natural resources to guarantee their subsistence.
The Intergovernmental Panel on Climate Change (IPCC) points out that páramos are among the most vulnerable ecosystems. Unsustainable activities are endangering the wetlands’ functions as water producers and reservoirs, jeopardizing their role for climate change adaptation and mitigation (Magrin et al., 2014). Short-term agricultural exploitation leads to destruction of the páramos ecosystems as well as high erosion and the contamination of rivers with sediment loads. Increasing temperatures caused by climate change will lead to an upward shift of páramo plants which depend on certain temperatures. Thus, the páramo area will decrease and in the same way the amount of water it can deliver and regulate will diminish.
The water provided by the Paramo Santúrban is undeniably a lifeline for the economy as the region relies strongly on agriculture. This sector is one of the economic categories with the highest water demand as more than 20% of Colombia’s available water resources are used for agricultural activities (MinAmbiente, 2022). In Norte de Santander, access to water for irrigation ensures consistent crop yields and reduces the risk of drought-related losses. This, in turn, sustains the livelihoods of countless farmers. In the same way, a reliable water supply allows farmers to diversify their crops and increase their agricultural output, explore market opportunities, and export agricultural goods. This not only generates revenue, but also enhances the region's reputation as a reliable supplier of agricultural products.
Beyond farming, water is essential for various post-harvest activities such as food processing, packaging, and transportation. Farmers, laborers, and those involved in related industries depend on agriculture for their livelihoods. A consistent water supply ensures the stability of these jobs and contributes to the region's economic resilience. Moreover, scenic beauty, lush landscapes, and recreational activities linked to water bodies can attract tourists. The tourism industry, often closely tied to agriculture, thrives when natural resources like rivers and lakes are well-preserved, contributing to the local and regional economy.
Public-Private Partnership to Enhance Resilience
MiPáramo is a public-private initiative that includes Bavaria, Alianza BioCuenca (the water fund of northeastern Colombia), the German Technical Cooperation GIZ, the Swiss Agency for Development and Cooperation (SDC), regional enterprises and other local stakeholders, among others. The project is based on cooperation among SDC, GIZ, and Bavaria in the establishment of the waterfund Alianza BioCuenca since 2014. The aim of the current development partnership is to create sustainable economic models for the people living in and around the Páramo Santurbán.
The project follows a water stewardship approach. Its main objective is to enhance water security by building partnerships in which stakeholders take shared responsibility, engage in meaningful actions, and guarantee a socially equitable use of water resources which can be environmentally sustainable and economically beneficial. It is based on three main axes: 1) an analysis of the hydrological benefit of the Páramo Santurbán, 2) sustainable production projects with farming communities, and 3) opportunities for discussion and outreach to engage with all the actors in the region.
At the core of miPáramo lies its engagement with the local communities. Here, a livelihoods approach focusing on sustainable use of the ecosystem becomes pivotal in ensuring water security and thus human well-being. The project offers mining and agricultural communities in the páramo and adjacent areas a sustainable economic alternative in harmony with nature. Farmers can become part of miPáramo through a voluntary agreement and engage in creating a map of their farm in order to determine areas best suited for conservation and production. The conservation areas (usually springs and watersheds) are marked or fenced off to avoid cattle contaminating the water. In the remaining areas, the focus lies on improving sustainable agricultural practices; farmers can participate in capacity building measures to enhance their agricultural productivity without harming nature. They learn how to interpret the state of the soil and how to adapt irrigation techniques and apply organic fertilizers. Additionally, farmers receive guidance on how to improve aspects of their product’s value chain — for example, developing an appealing design for the packages of their products. All these activities improve their livelihoods significantly while preserving the watershed. This way, the communities benefit directly from dedicating part of their land to conservation.
The partnership supports 200 farms in becoming increasingly sustainable and protecting 3,500 ha of the wetland area. Furthermore, it informs local stakeholders about the ecosystem’s importance for water security, climate change adaptation and mitigation, and biodiversity conservation. The miPáramo Emprende program includes 187 farms (180 family farms), of which 72 (or 40%) are run by women. According to a carbon sequestration feasibility study conducted by experts to identify opportunities for Alianza BioCuenca, the carbon stock sequestered in one hectare of coffee (Coffea arabica) is 6.53 tCO2e/ha (CO2CERO, 2022). Based on this data, the project estimates that the activities in Norte de Santander (60 ha) and Santander (80 ha) could sequester a total of approximately 522 tCO2. Through the programme, an additional 395 ha of the high Andean Forest and in the wetland of the Páramo Santurbán could be protected, resulting in a total protected area of 673 ha. The preservation of the natural vegetation of the high Andean Forest will make it possible to regulate about 504,750 m3 of water. This way 16,595 people will benefit from a livelihood of more than 2.5 m3/person/month, even during extreme drought. Through the protection and sustainable use of the páramo, the important ecosystem services of the landscape are protected and preserved for future generations.
Integrated water resource management and sustainable agriculture practices, particularly near páramos and within watersheds originating in these wetlands, not only enhance livelihoods and well-being of local communities, but can further greatly benefit the wider economy in the region. This includes private companies like Bavaria S.A., a brewery that strongly relies on water resources. The company understands that protecting water sources is essential for its economic sustainability as its beer is made up of 90% water.
By engaging in the miPáramo partnership, Bavaria’s operations are supported in various ways. The value chain and final product are improved by enhanced water quantity and quality. Sustainable agriculture practices near páramos help maintain adequate water quantity by reducing soil erosion, sedimentation, and contamination. This ensures a consistent and high-quality water supply for the brewery, reducing the risk of water scarcity or the need for costly filtration and purification processes. In the case of the Bavaria plant in Bucaramanga, the company had to pause its production several times for hours in the recent past due to the lack of water or the low quality of water.
Collaboration is essential to maintain the company’s operations and can lead to the responsible use and protection of water sources. Engaging with local communities and authorities in water management initiatives helps the brewery secure its water rights and maintain a positive relationship with its neighbors. Investing in sustainable agriculture and páramo conservation enhances the brewery's reputation and fosters goodwill among local communities, potentially reducing the risk of conflicts over water resources.
Supporting sustainable practices in the páramo will lead to cost savings and reduce risks to future operations. Reduced water treatment costs, lower risk of water shortages, and improved water quality all have positive impacts for the company. Furthermore, many regions have regulations related to water use and conservation. Engaging in sustainable practices near páramos ensures that the brewery complies with environmental regulations, avoiding fines and legal issues.
Lessons Learned and the Way Forward
In conclusion, integrating sustainable agriculture and responsible water resource management in páramo regions and watersheds can significantly benefit a brewery's water-dependent operations. It helps secure a reliable, high-quality water supply, benefitting the brewery as well as the communities in the watershed. Furthermore, it enhances environmental and social responsibility and reduces operational costs, ultimately contributing to the brewery's long-term success and sustainability.
The case of the Páramo Santurban shows that due to the exceptionally high diversity of ecosystem functions (water supply/regulation, biodiversity protection, climate change adaptation and mitigation), the páramos can be considered "mega-ecosystems" which must be protected to ensure resilience. To ensure water and economic resilience, economic actors and private businesses must consider the whole water cycle and acknowledge that freshwater ecosystems are key to achieving water security. The high Andean wetlands’ essential role in the water supply of rivers and downstream cities must be accounted for, with water resources being at the center of any resilience strategy. Water is not a fixed input and must be acknowledged in all its forms to understand how to make businesses and the economic system more resilient and avoid (future) risks.
The case study reveals how a major company in the region and one of the main water users has understood the importance of water security and enhanced resilience to guarantee its operations long-term and support the financial success of its business. Companies should understand that investing in water and climate and supporting collaborative approaches for enhanced water security is not only a “social practice” but an essential component of maintaining their businesses’ performance. By engaging in multi-stakeholder partnerships and supporting water security, businesses minimize their exposure to physical, regulatory, and operational risks and ensure their resilience. It becomes clear that the importance of water resilience for economic resilience must be understood from a macroeconomic as well as microeconomic perspective.
MiPáramo has further inspired different regions and waterfunds. The methodology has been taken up by the waterfund in Bogotá to support water security in the region of the capital city. Moreover, plans are underway for the program to be replicated in Lima, Peru.
References
Borja-Vega, C., de Groot, K., and Serrano, H.A. 2020. Water: A Strategic Asset for Economic Recovery in Colombia. Washington, D.C.: World Bank Group.
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CO2CERO. 2022. “Identificación de opciones para desarrollar iniciativas de reducción de emisiones.”
Ideam. 2023. Estudio Nacional del Agua 2022. Ideam. http://www.ideam.gov.co/documents/14691/125666586/Estudio+Nacional+del+Agua+2022.pdf
Magrin, G., Marengo, J., Boulanger, J. P., Buckeridge, M. S., Castellano, E., Poveda, G., ... & Villamizar, A. 2014. Central and South America. In: Climate Change 2014: Impacts, Adaptation, and Vulnerability. Part B: Regional Aspects. Contribution of Working Group II to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Barros, V.R., C.B. Field, D.J. Dokken, M.D. Mastrandrea, K.J. Mach, T.E. Bilir, M. Chatterjee, K.L. Ebi, Y.O. Estrada, R.C. Genova, B. Girma, E.S. Kissel, A.N. Levy, S. MacCracken, P.R. Mastrandrea, and L.L.White (eds.)]. Cambridge & New York City: Cambridge University Press.
Ministerio de Ambiente y Desarrollo Sostenible (MinAmbiente). 2019. “Páramos de Colombia, fábricas de agua y cunas de biodiversidad.” https://www.minambiente.gov.co/paramos-de-colombia-fabricas-de-agua-y-cunas-de-biodiversidad/
Ministerio de Ambiente y Desarrollo Sostenible (MinAmbiente). 2022. “Conozca cómo podría disminuir la demanda de agua en el sector agrícola.” https://www.minambiente.gov.co/conozca-como-podria-disminuir-la-demanda-de-agua-en-el-sector-agricola/
Parish, F., Sirin, A., Charman, D., Joosten, H., Minayeva, T., Silvius, M., and Stringer, L. (Eds.) 2008. Assessment on Peatlands, Biodiversity and Climate Change: Main Report. Kuala Lumpur & Wageningen: Global Environment Centre & Wetlands International.