ACT 60734: Climate change adaptation through watershed, forest and disaster risk management and governance - 1 Budget Support The Action is structured around two ojectives:1.&nbsp;Improved and inclusive conservation, restoration and sustainable management and use of forests and biodiversity, within and outside protected areas ¿ including prevention of forest fires and implementation of climate adaptation and mitigation efforts;2. Improved integrated water resources management and resilience to water-related natural disasters as a climate change adaptation measure.The first objectives consists in reducing deforestation, forest degradation (mostly due to forest fires) and biodiversity loss, with actions in support to responsible national authorities (the Ministry of Environment and Water, the National Service for Protected Areas) through budget support. Disaster risk reduction ¿ related to forest fires ¿ will be targeted with actions at system level. Sustainable production practices are expected to be supported, and their potential for export explored (looking at due diligence and traceability systems), based on the recommendations of the EU-Bolivia Joint Review of the forest sector.The second objective implies fostering water security through an adequate management of this increasingly scarce resource and its relation to land and forest coverage. It will seek to consider all demands and reduce conflicts, and adapt to climate change consequences ¿ mostly the significant droughts of the past few years which have caused economic losses as well higher vulnerability to forest fires. It will have a national coverage and be implemented by the Vice Ministry for Water Resources through sector budget support.&nbsp;&nbsp;&nbsp;&nbsp;A technical assistance programme, for both ministries in charge of environment (including forest and protected areas agencies), water and rural development policies, will complement budget support operations increasing national capacities and hence the potential for the Action¿s sustainability.&nbsp;