Decarbonizing Water: Applying The Voluntary Carbon Market Toward Global Water Security
Mortenson Center (University of Colorado Boulder), Castalia Advisors
Download
Abstract: This report examines how water sector interventions can be leveraged for carbon credit generation. It estimates an annual potential of 1.6 billion tCO?e from improved water infrastructure, such as borehole rehabilitation, wastewater treatment, and decentralized filtration. The authors present a typology of eligible water-carbon projects and explore digital MRV integration for credit monitoring. Kenya features through case studies in urban desludging, showcasing co-benefits in health, emissions reduction, and resource savings. The paper advocates bundling water infrastructure finance with carbon market revenues, and proposes integrity measures, transparent methodologies, and expanded registry eligibility. Recommendations target governments, registries, and standards bodies on improving additionality tests, credit pricing, and institutional safeguards. The water sector is framed as underrepresented in climate finance, with huge potential for equitable adaptation and emissions mitigation?especially across Africa and low-income regions.