Water Credits- Pros, Cons and its Use by the UN

Adaptation finance is a key focus at the ongoing COP27. Even as the world experiments with the carbon credit system, a similar mechanism for water resources is taking root in several parts of the world.

What is water credits?

• Water credits is a concept being considered for improving the global water management system. It is a concept based on the carbon credit system of the Kyoto Protocol, 1997.
• Water credits are tradable certificates representing the quantity of water conserved/ generated by an individual/ organization.
• Such credits can be traded between water surplus and water deficit entities within a sub-basin.