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Presentation on 'Policy and governance responses to the water-energy nexus challenge' by Kathleen Dominique, Environmental Economist, OECD, at 2014 UN-Water Annual International Zaragoza Conference. Preparing for World Water Day 2014: Partnerships for improving water and energy access, efficiency and sustainability. 13-16 January 2014TRANSCRIPT
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Policy and governance responses to the water-energy nexus challengeKathleen Dominique, Environmental Economist, OECD
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Water and energy scenarios
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Water demand to increase by 55% by 2050
Global water demand, baseline 2000 and 2050
Rapidly growing
water demand from
cities, industry and
energy suppliers
will challenge water
for irrigation to
2050.
Source: OECD (2012), OECD Environmental Outlook to 2050; output from IMAGE
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Change in annual temperature from 1990-2050
Human and economic costs of a changing climate: uncertain future for freshwater
Source: OECD (2012), OECD Environmental Outlook to 2050; output from IMAGE
Almost 40%
of people in 2050
(3.9 billion) will live
in severely water-
stressed regions
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Outlook for water requirements for energy production
Global water use for energy production by scenario
In the period 2010-
2035, water
withdrawal for
energy increases by
20% and water
consumption for
energy increases by
85%.
Source: IEA (2012), IEA World Energy Outlook, Chapter 17 “Water for Energy”.
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Outlook for water requirements for energy productionGlobal water use for energy production in the New Policies Scenario by
fuel and power generation type
Global electricity
generation grows by
some 70% over 2010-
2035, more than
water withdrawal or
consumption for
power generation.Source: IEA (2012), IEA World Energy Outlook, Chapter 17 “Water for Energy”.
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Projected shifts in water-intensity of energy production
Withdrawal-intensity
falls by 23%, while
consumption-intensity
increases by almost
18%.
Source: IEA (2012), IEA World Energy Outlook, Chapter 17 “Water for Energy”.
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Regional stress points: the example of ChinaRenewable water resources per capita and distribution of water-intensive energy
production by type in China
Source: IEA (2012), IEA World Energy Outlook, Chapter 17 “Water for Energy”.
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Policy and governance responses
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Improving coherence between water and energy policies
Strong water-energy linkages, yet often incoherent policies settings
Improved coherence requires meeting multiple policy objectives for water and energy
• Improving water security (managing risks of “too little”, “too much”, “too polluted” water and ensuring resilience of freshwater ecosystems)
• Increasing energy security
• Mitigating and adapting to climate change
Pursuing policy objectives independently often leads to incoherence (“water-blind” energy policies, “energy-blind” water policies)
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Various technological options impact water and energy policy objectives in different ways
• Help achievement objective(s) • Hinder achievement of objective(s)• Require trade-offs among objective(s)• No appreciable impact on objective(s)
“Win-win” technological options for both water and energy• E.g. low-flow fixtures, energy efficient appliances
Trade-offs required for water and energy• E.g. irrigated biofuels, groundwater pumping
Improving coherence between water and energy
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Approaches to enhancing policy coherence
Exploiting win-wins• Pursuing multiple policy objectives at the same time • Examples: increasing water and energy efficiency; lowering water consumption through
conservation, labelling of water-efficient appliances, etc. (Singapore)
Avoiding conflicts• Pursuing one policy objective without undermining others• Examples: Requiring solar hot water systems on new buildings (Israel); use of waste heat
from thermoelectric power plants to desalinate seawater to produce reliable drinking water (Middle East)
Managing trade-offs• Minimising negative impacts on other policies• Examples: Recycling effluent from biorefineries to reduce negative impacts on freshwater
ecosystems (Brazil); Co-ordination between policies for water allocation and energy explicitly (Israel).
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Robust water resource allocation • To promote efficient, flexible, equitable risk sharing among water users
Remove environmentally-harmful subsidies • For example, subsidies for energy use that exacerbate groundwater pumping
Make better use of economic instruments
• E.g. water pricing, abstraction charges, pollution charges
Generate better data to inform policy decisions
Policy options to improve incentives and information
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Governance challenges for water-energy coherence
Multiple institutional gaps • Lack of institutional incentives
• Lack of platforms/ governance mechanisms to manage trade-offs
• Interference of lobbies
• Absence of strategic planning and sequencing decisions
• Asymmetry of information and resources among institutions
• Intense competition between different ministries and public agencies
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Improving governance and partnerships
Efforts to better co-ordinate water and energy policies, examples of good practice:
• Brazil: to limit negative impact on freshwater ecosystems, legal framework requires previous authorisation from ANA for concessions to exploit hydropower potential.
• Spain: the National Water Council includes representatives from the energy sector.
• England and Wales: Environment Agency working with the Energy Saving Trust to develop policy to reduce hot water use in the home.
• Australia: researchers have created the Climate-Energy-Water Links project to add the energy dimension to water resources planning and policies.
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Thank you. Questions?
References OECD (2012) Environmental Outlook to 2050: The consequences of inaction. IEA (2012) World Energy Outlook, Chapter 17 “Water for energy”. IEA (2012) Golden Rules for a Golden Age of Gas. OECD (2013) Water Security for Better Lives. OECD (2013) Water and Climate Change Adaptation: Policies to Navigate
Uncharted Waters. OECD (2011) Water Governance in OECD Countries: A Multilevel Approach OECD work on water: www.oecd.org/water
[email protected] (OECD, Water allocation; water and climate change) [email protected] (IEA, Water for energy), [email protected] (OECD, Water governance)