Navigating Water Scarcity: Climate Adaptation Solutions and Policies for Chile and Mexico
María José Milla Pavón and Monserrat Magaña Ocaña
April 2024
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Executive Summary
This research, conducted for the Organisation for Economic Co-operation and Development (OECD), delves into water management initiatives in Mexico and Chile, stemming from the “Action Plan Towards Climate Resilience and Neutrality in Latin America and the Caribbean (LAC).” Water is a focal point in this plan and requires a detailed analysis of impact, lessons learned, challenges, and policy recommendations to develop adaptation strategies for sustainable water management. Analysis and recommendations for both countries are grounded in a thorough examination of global best practices and successful local endeavors.
Chile and Mexico both grapple with water scarcity, pollution, and inefficient water management exacerbated by climate change. Mexico faces governance challenges stemming from fragmented regulatory frameworks and inadequate enforcement mechanisms. In contrast, Chile’s water governance is hindered by historical water rights issues and limited institutional capacity. Both countries struggle with funding constraints, with Mexico lacking sustainable financing mechanisms and Chile facing difficulties mobilizing investment for sanitation services in rural areas.
While both countries face similar water management challenges exacerbated by climate change, their approaches differ. Mexico has made progress at the local level through stakeholder engagement, technical capacity building, and crisis responsiveness, fostering innovative projects like the Coapa Water District. In contrast, Chile has focused on institutional reforms, economic instruments, and trying to address equity considerations to optimize water use efficiency and support conservation efforts.
For Chile, recommendations include strengthening water governance frameworks, enhancing economic instruments, promoting conservation initiatives, and ensuring equitable access to water resources. Strengthening water governance frameworks would address the challenge of fragmented governance and improve coordination among stakeholders. Economic instruments such as water pricing mechanisms and subsidies would help address the undervaluation of water, incentivizing efficient water use and investment in water infrastructure. Likewise, promoting conservation initiatives, such as watershed management programs, would help protect ecosystems and enhance water security. Ensuring equitable access to water resources is crucial for addressing social inequalities and building resilience to water-related risks.
The recommendations for Mexico focus on key areas, such as enhancing water governance and management through updates to national water laws and alignment of urban development policies. Additionally, the empowerment of institutions like IMTA to spearhead innovation is emphasized, alongside the need for capacity building across diverse disciplines. Emphasizing financing mechanisms for the creation of new water assets. Furthermore, the report stresses the necessity of an integrated water management strategy, advocating for the incorporation of green infrastructure and conservation practices to bolster resilience and ensure the long-term sustainability of water resources. Leveraging international agreements, fostering stakeholder collaboration, and incentivizing advanced technologies for real-time monitoring are also identified as key opportunities. Addressing equity concerns is also paramount.
In conclusion, by addressing governance issues, enhancing regulatory enforcement, and promoting collaboration, both Mexico and Chile can overcome barriers to effective water management and build resilience to climate change. Continued international cooperation and knowledge sharing are critical for advancing sustainable water management practices and ensuring a water-secure future for Latin America. Through collaboration, innovation, and political commitment, both countries can strengthen resilience to water-related risks and contribute to sustainable development in the region, underscoring the importance of coordinated action and policy coherence.
