This paper highlights the interlinkages between the water and energy sectors and points out the effects that climate change has on the provision of energy and water resources, as well as providing guidance and inspiration for policy makers. It provides an analysis of the effects of climate change on the water and energy sectors and shows that there remains considerable scope for fuel-switching and financing of adaptation strategies. The paper also highlights the opportunities, strategic elements and constraints of five key issues which investors and policy-makers should take into consideration in designing their future water and energy strategies. Finally, it deals with the threat of ideological or maladaptive policy prescriptions, which indicate the imperative to rethink and redefine international financing mechanisms to promote investments in energy systems and energy technologies connected to climate change mitigation and adaptation.
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