Multi-stakeholder collaboration integrates sustainable water management with community-led conservation and local livelihoods53BOX 3 Project context In Hangzhou, China, Qingshan Village’s reservoir became undrinkable, after decades of chemical-dependent bamboo farming caused nitrogen and phosphorus pollution. Government programmes focused more on urban and industrial pollution, leaving rural issues unaddressed. Collaborative solution: a multi-stakeholder approach –NGO and corporate philanthropy leadership: The Nature Conservancy, Alibaba Foundation and Wanxiang Trust launched a water fund to manage ~33 hectares of bamboo forest entrusted by farmers. The management plan prohibited chemical use, promoted eco-friendly practices and developed local green industries such as eco-agriculture, handicrafts, nature education and ecological experiences. –Farmer engagement: Farmers earned income via eco- payments and profit-sharing, while receiving training on sustainable practices and reducing reliance on fertilizers. –Tourism industry partnership: Homestays and hotels leveraged the restored ecosystem, donating approximately 15% of earnings to the fund for watershed protection. –Government support: The local government increased funding for ecological conservation and restoration in Qingshan Village, with over $1.4 million invested since 2019.Outcomes –Economic growth: Farmers earned 20% higher income compared to when they managed the land by themselves. Over 50 homestays joined the initiative and each increased their annual income by 10,000-20,000 RMB (~$1,400-2,800). –Water quality and ecosystem recovery: The reservoir was upgraded from undrinkable (grade IV) to drinkable (grade I) within five years. Biodiversity increased, with bird and mammal species returning to the area. –Scalability: Building on the Qingshan Village model, The Nature Conservancy, Alibaba Foundation and Mingsheng Tonghui Charity Foundation together launched the Qiandao Lake Water Fund with an initial investment of RMB 10 million (10 times the value of Qingshan) to expand the project from reservoir-scale to basin- wide water quality improvement. The project not only establishes an ecological benefit-sharing mechanism among stakeholders, it also leverages Alibaba’s e-commerce platform to expand market access for sustainably produced local agricultural products, such as rice and tea. Recognition and demand from end- consumers further incentivize farmers to adopt sustainable farming practices. As a result, the initiative has improved water quality, while enhancing the quality, productivity and market value of local agricultural production. Keys to success Building effective, scalable food-water-centric clusters to accelerate innovation requires three key critical pillars: –Physical proximity: to accelerate technology iteration and enable clusters to thrive. –Shared incentives: to link environmental outcomes with revenues. –Working across sectors: to enable clusters to embed resilience into rural economies and water systems, proving that collaboration is key to scaling-up solutions in water-scarce regions. From Scarcity to Solutions: Food-Water Innovation in Asia and the Middle East 38

From Scarcity to Solutions 2025