Stakeholder Analysis and Engagement

Why is analyzing stakeholders important?

Key stakeholders must be highly involved in a Water Fund to achieve the long-term benefits that they are seeking to achieve for people and for nature. These stakeholders may be from a wide range of backgrounds, such as local people who live off the land, corporations interested in sustainable development, communities that value the benefits of biodiversity, or governments seeking innovative conservation mechanisms for freshwater conservation. 

These types of analyses should explicitly consider how a proposed Water Fund may affect or be affected by the mandate and/or interests of stakeholders in the project area.

A stakeholder analysis may provide an improved understanding of:

• Key stakeholders within a project area.
• Stakeholders’ respective interests in water resources within the project area.
• Divergent viewpoints within a project area on water use and water management.
• Potential or existing conflicts between water users in the project area.
• Potential strategies for negotiating with stakeholders with opposing perspectives  (e.g. via the identification of interests or shared-benefits, etc.), that will ultimately reduce the potential for delay and increase costs by incorporating competing interests into an integrated solution.

The identification of stakeholders early-on in the Water Funds development process is a key factor for success.